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(i) by striking ‘‘2005 and 2006’’ in-
serting ‘‘2007 and 2008’’ ; and 
(ii) by striking ‘‘pilot’’. 
(2) CONFORMING
AMENDMENT.—Section 1(b) 
of such Act is amended, in the table of contents, by 
striking the item relating to section 7113 and insert-
ing after section 7112 the following new item: 
‘‘7113. Program to provide grants to American-sponsored schools in Arab and 
predominantly Muslim countries to provide scholarships.’’. 
Subtitle B—Democracy and Devel-
opment in Arab and Predomi-
nantly Muslim Countries 
SEC. 1421. PROMOTING DEMOCRACY AND DEVELOPMENT 
IN THE MIDDLE EAST, CENTRAL ASIA, SOUTH 
ASIA, AND SOUTHEAST ASIA. 
(a) FINDINGS.—Congress finds the following: 
(1) Al-Qaeda and affiliated groups have estab-
lished a terrorist network with linkages throughout 
the Middle East, Central Asia, South Asia, and 
Southeast Asia. 
(2) While political repression and lack of eco-
nomic development do not justify terrorism, in-
creased political freedoms, poverty reduction, and 
broad-based economic growth can contribute to an 
environment that undercuts tendencies and condi-
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tions that facilitate the rise of terrorist organiza-
tions. 
(3) It is in the national security interests of the 
United States to promote democracy, the rule of law, 
good governance, sustainable development, a vig-
orous civil society, political freedom, protection of 
minorities, independent media, women’s rights, pri-
vate sector growth, and open economic systems in 
the countries of the Middle East, Central Asia, 
South Asia, and Southeast Asia. 
(b) POLICY.—It is the policy of the United States 
to— 
(1) promote over the long-term, seizing oppor-
tunities whenever possible in the short term, democ-
racy, the rule of law, good governance, sustainable 
development, a vigorous civil society, political free-
dom, protection of minorities, independent media, 
women’s rights, private sector growth, and open eco-
nomic systems in the countries of the Middle East, 
Central Asia, South Asia, and Southeast Asia; 
(2) provide assistance and resources to individ-
uals and organizations in the countries of the Middle 
East, Central Asia, South Asia, and Southeast Asia 
that are committed to promoting such objectives and 
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to design strategies in conjunction with such individ-
uals and organizations; and 
(3) work with other countries and international 
organizations to increase the resources devoted to 
promoting such objectives. 
(c) STRATEGY.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of State 
shall submit to appropriate congressional committees a re-
port with a country-by-country five year strategy to pro-
mote the policy of the United States described in sub-
section (b). Such report shall contain an estimate of the 
funds necessary to implement such a strategy. 
(d) APPROPRIATE
CONGRESSIONAL
COMMITTEES 
DEFINED.—In this section, the term ‘‘appropriate con-
gressional committees’’ means the Committee on Foreign 
Affairs and the Committee on Appropriations of the 
House of Representatives and the Committee on Foreign 
Relations and the Committee on Appropriations of the 
Senate. 
SEC. 1422. MIDDLE EAST FOUNDATION. 
(a) PURPOSES.—The purposes of this section are to 
support, through the provision of grants, technical assist-
ance, training, and other programs, in the countries of the 
Middle East, the expansion of— 
(1) civil society; 
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(2) opportunities for political participation for 
all citizens; 
(3) protections for internationally recognized 
human rights, including the rights of women; 
(4) educational system reforms; 
(5) independent media; 
(6) policies that promote economic opportunities 
for citizens; 
(7) the rule of law; and 
(8) democratic processes of government. 
(b) MIDDLE EAST FOUNDATION.— 
(1) DESIGNATION.—The Secretary of State is 
authorized to designate an appropriate private, non-
profit organization that is organized or incorporated 
under the laws of the United States or of a State 
as the Middle East Foundation (referred to in this 
section as the ‘‘Foundation’’). 
(2) FUNDING.— 
(A) AUTHORITY.—The Secretary of State 
is authorized to provide funding to the Founda-
tion through the Middle East Partnership Ini-
tiative of the Department of State. The Foun-
dation shall use amounts provided under this 
paragraph to carry out the purposes specified in 
subsection (a), including through making grants 
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and providing other assistance to entities to 
carry out programs for such purposes. 
(B) FUNDING FROM OTHER SOURCES.—In 
determining the amount of funding to provide 
to the Foundation, the Secretary of State shall 
take into consideration the amount of funds 
that the Foundation has received from sources 
other than the United States Government. 
(3) NOTIFICATION TO CONGRESSIONAL COMMIT-
TEES.—The Secretary of State shall notify the Com-
mittee on Foreign Affairs and the Committee on Ap-
propriations of the House of Representatives and the 
Committee on Foreign Relations and the Committee 
on Appropriations of the Senate prior to designating 
an appropriate organization as the Foundation. 
(c) GRANTS FOR PROJECTS.— 
(1) FOUNDATION TO MAKE GRANTS.—The Sec-
retary of State shall enter into an agreement with 
the Foundation that requires the Foundation to use 
the funds provided under subsection (b)(2) to make 
grants to persons or entities (other than govern-
ments or government entities) located in the Middle 
East or working with local partners based in the 
Middle East to carry out projects that support the 
purposes specified in subsection (a). 
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(2) CENTER FOR PUBLIC POLICY.—Under the 
agreement described in paragraph (1), the Founda-
tion may make a grant to an institution of higher 
education located in the Middle East to create a cen-
ter for public policy for the purpose of permitting 
scholars and professionals from the countries of the 
Middle East and from other countries, including the 
United States, to carry out research, training pro-
grams, and other activities to inform public policy-
making in the Middle East and to promote broad 
economic, social, and political reform for the people 
of the Middle East. 
(3) APPLICATIONS
FOR
GRANTS.—An entity 
seeking a grant from the Foundation under this sec-
tion shall submit an application to the head of the 
Foundation at such time, in such manner, and con-
taining such information as the head of the Founda-
tion may reasonably require. 
(d) PRIVATE CHARACTER OF THE FOUNDATION.— 
Nothing in this section shall be construed to— 
(1) make the Foundation an agency or estab-
lishment of the United States Government, or to 
make the officers or employees of the Foundation of-
ficers or employees of the United States for purposes 
of title 5, United States Code; or 
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(2) to impose any restriction on the Founda-
tion’s acceptance of funds from private and public 
sources in support of its activities consistent with 
the purposes specified in subsection (a). 
(e) LIMITATION
ON PAYMENTS
TO FOUNDATION 
PERSONNEL.—No part of the funds provided to the Foun-
dation under this section shall inure to the benefit of any 
officer or employee of the Foundation, except as salary 
or reasonable compensation for services. 
(f) RETENTION OF INTEREST.—The Foundation may 
hold funds provided under this section in interest-bearing 
accounts prior to the disbursement of such funds to carry 
out the purposes specified in subsection (a), and, only to 
the extent and in the amounts provided for in advance 
in appropriations Acts, may retain for use for such pur-
poses any interest earned without returning such interest 
to the Treasury of the United States. 
(g) FINANCIAL ACCOUNTABILITY.— 
(1) INDEPENDENT
PRIVATE
AUDITS
OF
THE 
FOUNDATION.—The accounts of the Foundation 
shall be audited annually in accordance with gen-
erally accepted auditing standards by independent 
certified public accountants or independent licensed 
public accountants certified or licensed by a regu-
latory authority of a State or other political subdivi-
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sion of the United States. The report of the inde-
pendent audit shall be included in the annual report 
required by subsection (h). 
(2) GAO AUDITS.—The financial transactions 
undertaken pursuant to this section by the Founda-
tion may be audited by the Government Account-
ability Office in accordance with such principles and 
procedures and under such rules and regulations as 
may be prescribed by the Comptroller General of the 
United States. 
(3) AUDITS OF GRANT RECIPIENTS- .— 
(A) IN GENERAL.—A recipient of a grant 
from the Foundation shall agree to permit an 
audit of the books and records of such recipient 
related to the use of the grant funds. 
(B) 
RECORDKEEPING.—Such 
recipient 
shall maintain appropriate books and records to 
facilitate an audit referred to in subparagraph 
(A), including— 
(i) separate accounts with respect to 
the grant funds; 
(ii) records that fully disclose the use 
of the grant funds; 
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(iii) records describing the total cost 
of any project carried out using grant 
funds; and 
(iv) the amount and nature of any 
funds received from other sources that 
were combined with the grant funds to 
carry out a project. 
(h) ANNUAL REPORTS.—Not later than January 31, 
2008, and annually thereafter, the Foundation shall sub-
mit to the appropriate congressional committees and make 
available to the public a report that includes, for the fiscal 
year prior to the fiscal year in which the report is sub-
mitted, a comprehensive and detailed description of— 
(1) the operations and activities of the Founda-
tion that were carried out using funds provided 
under this section; 
(2) grants made by the Foundation to other en-
tities with funds provided under this section; 
(3) other activities of the Foundation to further 
the purposes specified in subsection (a); and 
(4) the financial condition of the Foundation. 
(i) DEFINITIONS.—In this section: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on Foreign Affairs 
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and the Committee on Appropriations of the House 
of Representatives and the Committee on Foreign 
Relations and the Committee on Appropriations of 
the Senate. 
(2) MIDDLE EAST.—The term ‘‘Middle East’’ 
means Algeria, Bahrain, Egypt, Iran, Iraq, Jordan, 
Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, 
Saudi Arabia, Syria, Tunisia, United Arab Emirates, 
West Bank and Gaza, and Yemen. 
(j) EXPIRATION OF AUTHORITY.—The authority pro-
vided under this section shall expire on September 30, 
2017. 
(k) REPEAL.—Section 534(k) of Public Law 109– 
102 is repealed. 
Subtitle C—Restoring United 
States Moral Leadership 
SEC. 
1431. 
ADVANCING 
UNITED 
STATES 
INTERESTS 
THROUGH PUBLIC DIPLOMACY. 
(a) FINDING.—Congress finds that the report of the 
National Commission on Terrorist Attacks Upon the 
United States stated that, ‘‘Recognizing that Arab and 
Muslim audiences rely on satellite television and radio, the 
government has begun some promising initiatives in tele-
vision and radio broadcasting to the Arab world, Iran, and 
Afghanistan. These efforts are beginning to reach large 
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audiences. The Broadcasting Board of Governors has 
asked for much larger resources. It should get them.’’. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) The United States needs to improve its 
communication of information and ideas to people in 
foreign countries, particularly in countries with sig-
nificant Muslim populations. 
(2) Public diplomacy should reaffirm the para-
mount commitment of the United States to demo-
cratic principles, including preserving the civil lib-
erties of all the people of the United States, includ-
ing Muslim-Americans. 
(3) A significant expansion of United States 
international broadcasting would provide a cost-ef-
fective means of improving communication with 
countries with significant Muslim populations by 
providing news, information, and analysis, as well as 
cultural programming, through both radio and tele-
vision broadcasts. 
(c) SPECIAL AUTHORITY FOR SURGE CAPACITY.— 
The United States International Broadcasting Act of 1994 
(22 U.S.C. 6201 et seq.) is amended by adding at the end 
the following new section: 
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