tion 219 of the Immigration and Nationality 
Act. 
(2) The President may waive the application of 
paragraph (1) to a government if the President de-
termines that national security or humanitarian rea-
sons justify such waiver: Provided, That the Presi-
dent shall publish each such waiver in the Federal 
Register and, at least 15 days before the waiver 
takes effect, shall notify the Committees on Appro-
priations of the waiver (including the justification 
for the waiver) in accordance with the regular notifi-
cation procedures of the Committees on Appropria-
tions. 
PROHIBITION ON FIRST-CLASS TRAVEL 
SEC. 7022. None of the funds made available in this 
Act may be used for first-class travel by employees of 
agencies funded by this Act in contravention of sections 
301–10.122 through 301–10.124 of title 41, Code of Fed-
eral Regulations. 
DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY 
SEC. 7023. For the purpose of titles II through VI 
of this Act ‘‘program, project, and activity’’ shall be de-
fined at the appropriations Act account level and shall in-
clude all appropriations and authorizations Acts funding 
directives, ceilings, and limitations with the exception that 
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for the following accounts: ‘‘Economic Support Fund’’ and 
‘‘Foreign Military Financing Program’’, ‘‘program, 
project, and activity’’ shall also be considered to include 
country, regional, and central program level funding with-
in each such account; and for the development assistance 
accounts of the United States Agency for International 
Development, ‘‘program, project, and activity’’ shall also 
be considered to include central, country, regional, and 
program level funding, either as— 
(1) justified to the Congress; or 
(2) allocated by the Executive Branch in ac-
cordance with a report, to be provided to the Com-
mittees on Appropriations within 30 days of the en-
actment of this Act, as required by section 653(a) 
of the Foreign Assistance Act of 1961. 
AUTHORITIES FOR THE PEACE CORPS, INTER-AMERICAN 
FOUNDATION AND UNITED STATES AFRICAN DEVEL-
OPMENT FOUNDATION 
SEC. 7024. Unless expressly provided to the contrary, 
provisions of this or any other Act, including provisions 
contained in prior Acts authorizing or making appropria-
tions for the Department of State, foreign operations, and 
related programs, shall not be construed to prohibit activi-
ties authorized by or conducted under the Peace Corps 
Act, the Inter-American Foundation Act or the African 
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Development Foundation Act: Provided, That prior to con-
ducting activities in a country for which assistance is pro-
hibited, the agency shall consult with the Committees on 
Appropriations and report to such Committees within 15 
days of taking such action. 
COMMERCE, TRADE AND SURPLUS COMMODITIES 
SEC. 7025. (a) None of the funds appropriated or 
made available pursuant to titles III through VI of this 
Act for direct assistance and none of the funds otherwise 
made available to the Export-Import Bank and the Over-
seas Private Investment Corporation shall be obligated or 
expended to finance any loan, any assistance or any other 
financial commitments for establishing or expanding pro-
duction of any commodity for export by any country other 
than the United States, if the commodity is likely to be 
in surplus on world markets at the time the resulting pro-
ductive capacity is expected to become operative and if the 
assistance will cause substantial injury to United States 
producers of the same, similar, or competing commodity: 
Provided, That such prohibition shall not apply to the Ex-
port-Import Bank if in the judgment of its Board of Direc-
tors the benefits to industry and employment in the 
United States are likely to outweigh the injury to United 
States producers of the same, similar, or competing com-
modity, and the Chairman of the Board so notifies the 
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Committees on Appropriations: Provided further, That this 
subsection shall not prohibit— 
(1) activities in a country that is eligible for as-
sistance from the International Development Asso-
ciation, is not eligible for assistance from the Inter-
national Bank for Reconstruction and Development, 
and does not export on a consistent basis the agri-
cultural commodity with respect to which assistance 
is furnished; or 
(2) activities in a country the President deter-
mines is recovering from widespread conflict, a hu-
manitarian crisis, or a complex emergency. 
(b) None of the funds appropriated by this or any 
other Act to carry out chapter 1 of part I of the Foreign 
Assistance Act of 1961 shall be available for any testing 
or breeding feasibility study, variety improvement or intro-
duction, consultancy, publication, conference, or training 
in connection with the growth or production in a foreign 
country of an agricultural commodity for export which 
would compete with a similar commodity grown or pro-
duced in the United States: Provided, That this subsection 
shall not prohibit— 
(1) activities designed to increase food security 
in developing countries where such activities will not 
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have a significant impact on the export of agricul-
tural commodities of the United States; 
(2) research activities intended primarily to 
benefit American producers; 
(3) activities in a country that is eligible for as-
sistance from the International Development Asso-
ciation, is not eligible for assistance from the Inter-
national Bank for Reconstruction and Development, 
and does not export on a consistent basis the agri-
cultural commodity with respect to which assistance 
is furnished; or 
(4) activities in a country the President deter-
mines is recovering from widespread conflict, a hu-
manitarian crisis, or a complex emergency. 
(c) The Secretary of the Treasury shall instruct the 
United States executive directors of the international fi-
nancial institutions, as defined in section 7029(e) of this 
Act, to use the voice and vote of the United States to op-
pose any assistance by such institutions, using funds ap-
propriated or made available by this Act, for the produc-
tion or extraction of any commodity or mineral for export, 
if it is in surplus on world markets and if the assistance 
will cause substantial injury to United States producers 
of the same, similar, or competing commodity. 
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SEPARATE ACCOUNTS 
SEC. 7026. (a) SEPARATE ACCOUNTS FOR LOCAL 
CURRENCIES.— 
(1) If assistance is furnished to the government 
of a foreign country under chapters 1 and 10 of part 
I or chapter 4 of part II of the Foreign Assistance 
Act of 1961 under agreements which result in the 
generation of local currencies of that country, the 
Administrator of the United States Agency for 
International Development (USAID) shall— 
(A) require that local currencies be depos-
ited in a separate account established by that 
government; 
(B) enter into an agreement with that gov-
ernment which sets forth— 
(i) the amount of the local currencies 
to be generated; and 
(ii) the terms and conditions under 
which the currencies so deposited may be 
utilized, consistent with this section; and 
(C) establish by agreement with that gov-
ernment the responsibilities of USAID and that 
government to monitor and account for deposits 
into and disbursements from the separate ac-
count. 
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(2) USES OF LOCAL CURRENCIES.—As may be 
agreed upon with the foreign government, local cur-
rencies deposited in a separate account pursuant to 
subsection (a), or an equivalent amount of local cur-
rencies, shall be used only— 
(A) to carry out chapter 1 or 10 of part 
I or chapter 4 of part II of the Foreign Assist-
ance Act of 1961 (as the case may be), for such 
purposes as— 
(i) project and sector assistance activi-
ties; or 
(ii) debt and deficit financing; or 
(B) for the administrative requirements of 
the United States Government. 
(3) PROGRAMMING ACCOUNTABILITY.—USAID 
shall take all necessary steps to ensure that the 
equivalent of the local currencies disbursed pursuant 
to subsection (a)(2)(A) from the separate account 
established pursuant to subsection (a)(1) are used 
for the purposes agreed upon pursuant to subsection 
(a)(2). 
(4) 
TERMINATION
OF
ASSISTANCE
PRO-
GRAMS.—Upon termination of assistance to a coun-
try under chapter 1 or 10 of part I or chapter 4 of 
part II of the Foreign Assistance Act of 1961 (as 
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the case may be), any unencumbered balances of 
funds which remain in a separate account estab-
lished pursuant to subsection (a) shall be disposed of 
for such purposes as may be agreed to by the gov-
ernment of that country and the United States Gov-
ernment. 
(5) REPORTING
REQUIREMENT.—The USAID 
Administrator shall report as part of the justifica-
tion documents submitted to the Committees on Ap-
propriations on the use of local currencies for the 
administrative requirements of the United States 
Government as authorized in subsection (a)(2)(B), 
and such report shall include the amount of local 
currency (and United States dollar equivalent) used 
or to be used for such purpose in each applicable 
country. 
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.— 
(1) IN GENERAL.—If assistance is made avail-
able to the government of a foreign country, under 
chapter 1 or 10 of part I or chapter 4 of part II of 
the Foreign Assistance Act of 1961, as cash transfer 
assistance or as nonproject sector assistance, that 
country shall be required to maintain such funds in 
a separate account and not commingle them with 
any other funds. 
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(2) APPLICABILITY OF OTHER PROVISIONS OF 
LAW.—Such funds may be obligated and expended 
notwithstanding provisions of law which are incon-
sistent with the nature of this assistance including 
provisions which are referenced in the Joint Explan-
atory Statement of the Committee of Conference ac-
companying House Joint Resolution 648 (House Re-
port No. 98–1159). 
(3) NOTIFICATION.—At least 15 days prior to 
obligating any such cash transfer or nonproject sec-
tor assistance, the President shall submit a notifica-
tion through the regular notification procedures of 
the Committees on Appropriations, which shall in-
clude a detailed description of how the funds pro-
posed to be made available will be used, with a dis-
cussion of the United States interests that will be 
served by the assistance (including, as appropriate, 
a description of the economic policy reforms that will 
be promoted by such assistance). 
(4) EXEMPTION.—Nonproject sector assistance 
funds may be exempt from the requirements of sub-
section (b)(1) only through the regular notification 
procedures of the Committees on Appropriations. 
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ELIGIBILITY FOR ASSISTANCE 
SEC. 7027. (a) ASSISTANCE THROUGH NONGOVERN-
MENTAL ORGANIZATIONS.—Restrictions contained in this 
or any other Act with respect to assistance for a country 
shall not be construed to restrict assistance in support of 
programs of nongovernmental organizations from funds 
appropriated by this Act to carry out the provisions of 
chapters 1, 10, 11, and 12 of part I and chapter 4 of 
part II of the Foreign Assistance Act of 1961: Provided, 
That before using the authority of this subsection to fur-
nish assistance in support of programs of nongovern-
mental organizations, the President shall notify the Com-
mittees on Appropriations pursuant to the regular notifi-
cation procedures, including a description of the program 
to be assisted, the assistance to be provided, and the rea-
sons for furnishing such assistance: Provided further, That 
nothing in this subsection shall be construed to alter any 
existing statutory prohibitions against abortion or involun-
tary sterilizations contained in this or any other Act. 
(b) PUBLIC LAW 480.—During fiscal year 2016, re-
strictions contained in this or any other Act with respect 
to assistance for a country shall not be construed to re-
strict assistance under the Food for Peace Act (Public 
Law 83–480): Provided, That none of the funds appro-
priated to carry out title I of such Act and made available 
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pursuant to this subsection may be obligated or expended 
except as provided through the regular notification proce-
dures of the Committees on Appropriations. 
(c) EXCEPTION.—This section shall not apply— 
(1) with respect to section 620A of the Foreign 
Assistance Act of 1961 or any comparable provision 
of law prohibiting assistance to countries that sup-
port international terrorism; or 
(2) with respect to section 116 of the Foreign 
Assistance Act of 1961 or any comparable provision 
of law prohibiting assistance to the government of a 
country that violates internationally recognized 
human rights. 
LOCAL COMPETITION 
SEC. 7028. (a) REQUIREMENTS FOR EXCEPTIONS TO 
COMPETITION
FOR
LOCAL
ENTITIES.—Funds appro-
priated by this Act that are made available to the United 
States Agency for International Development (USAID) 
may only be made available for limited competitions 
through local entities if— 
(1) prior to the determination to limit competi-
tion to local entities, USAID has— 
(A) assessed the level of local capacity to 
effectively implement, manage, and account for 
programs included in such competition; and 
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(B) documented the written results of the 
assessment and decisions made; and 
(2) prior to making an award after limiting 
competition to local entities— 
(A) each successful local entity has been 
determined to be responsible in accordance with 
USAID guidelines; and 
(B) effective monitoring and evaluation 
systems are in place to ensure that award fund-
ing is used for its intended purposes; and 
(3) no level of acceptable fraud is assumed. 
(b) In addition to the requirements of paragraph (1), 
the Administrator of USAID shall report, on a semi-an-
nual basis during fiscal year 2016, to the appropriate con-
gressional committees on all awards subject to limited or 
no competition for local entities: Provided, That such re-
port should be posted on the USAID Web site: Provided 
further, That the requirements of this subsection shall only 
apply to awards in excess of $3,000,000 and sole source 
awards to local entities in excess of $2,000,000. 
INTERNATIONAL FINANCIAL INSTITUTIONS 
SEC. 7029. (a) The Secretary of the Treasury shall 
instruct the United States executive director of each inter-
national financial institution to seek to require that such 
institution adopts and implements a publicly available pol-
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icy, including the strategic use of peer reviews and exter-
nal experts, to conduct independent, in-depth evaluations 
of the effectiveness of at least 25 percent of all loans, 
grants, programs, and significant analytical non-lending 
activities in advancing the institution’s goals of reducing 
poverty and promoting equitable economic growth, con-
sistent with relevant safeguards, to ensure that decisions 
to support such loans, grants, programs, and activities are 
based on accurate data and objective analysis: Provided, 
That not later than 180 days after enactment of this Act, 
the Secretary shall submit a report to the Committees on 
Appropriations on steps taken by the United States execu-
tive directors and the international financial institutions 
consistent with this paragraph. 
(b) None of the funds appropriated under title V of 
this Act may be made as payment to any international 
financial institution while the United States executive di-
rector to such institution is compensated by the institution 
at a rate which, together with whatever compensation such 
executive director receives from the United States, is in 
excess of the rate provided for an individual occupying a 
position at level IV of the Executive Schedule under sec-
tion 5315 of title 5, United States Code, or while any al-
ternate United States executive director to such institution 
is compensated by the institution at a rate in excess of 
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the rate provided for an individual occupying a position 
at level V of the Executive Schedule under section 5316 
of title 5, United States Code. 
(c) The Secretary of the Treasury shall instruct the 
United States executive director of each international fi-
nancial institution to promote in loan, grant, and other 
financing agreements improvements in borrowing coun-
tries’ financial management and judicial capacity to inves-
tigate, prosecute, and punish fraud and corruption. 
(d) The Secretary of the Treasury shall instruct the 
United States executive director of each international fi-
nancial institution to seek to require that such institution 
conducts rigorous human rights due diligence and human 
rights risk management, as appropriate, in connection 
with any loan, grant, policy, or strategy of such institu-
tion: Provided, That prior to voting on any such loan, 
grant, policy, or strategy the executive director shall con-
sult with the Assistant Secretary for Democracy, Human 
Rights, and Labor, Department of State, if the executive 
director has reason to believe that such loan, grant, policy, 
or strategy could result in forced displacement or other 
violation of human rights. 
(e) For the purposes of this Act, ‘‘international finan-
cial institutions’’ shall mean the International Bank for 
Reconstruction and Development, the International Devel-
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100 
opment Association, the International Finance Corpora-
tion, the Inter-American Development Bank, the Inter-
national Monetary Fund, the Asian Development Bank, 
the Asian Development Fund, the Inter-American Invest-
ment Corporation, the North American Development 
Bank, the European Bank for Reconstruction and Devel-
opment, the African Development Bank, the African De-
velopment Fund and the Multilateral Investment Guar-
antee Agency. 
DEBT-FOR-DEVELOPMENT 
SEC. 7030. In order to enhance the continued partici-
pation of nongovernmental organizations in debt-for-devel-
opment and debt-for-nature exchanges, a nongovern-
mental organization which is a grantee or contractor of 
the United States Agency for International Development 
may place in interest bearing accounts local currencies 
which accrue to that organization as a result of economic 
assistance provided under title III of this Act and, subject 
to the regular notification procedures of the Committees 
on Appropriations, any interest earned on such investment 
shall be used for the purpose for which the assistance was 
provided to that organization. 
FINANCIAL MANAGEMENT AND BUDGET TRANSPARENCY 
SEC. 7031. (a) LIMITATION ON DIRECT GOVERN-
MENT-TO-GOVERNMENT ASSISTANCE.— 
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101 
(1) Funds appropriated by this Act may be 
made available for direct government-to-government 
assistance only if— 
(A) each implementing agency or ministry 
to receive assistance has been assessed and is 
considered to have the systems required to 
manage such assistance and any identified 
vulnerabilities or weaknesses of such agency or 
ministry have been addressed; and 
(i) the recipient agency or ministry 
employs and utilizes staff with the nec-
essary technical, financial, and manage-
ment capabilities; 
(ii) the recipient agency or ministry 
has adopted competitive procurement poli-
cies and systems; 
(iii) effective monitoring and evalua-
tion systems are in place to ensure that 
such assistance is used for its intended 
purposes; 
(iv) no level of acceptable fraud is as-
sumed; and 
(v) the government of the recipient 
country is taking steps to publicly disclose 
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102 
on an annual basis its national budget, to 
include income and expenditures; 
(B) the recipient government is in compli-
ance with the principles set forth in section 
7013 of this Act; 
(C) the recipient agency or ministry is not 
headed or controlled by an organization des-
ignated as a foreign terrorist organization 
under section 219 of the Immigration and Na-
tionality Act; 
(D) the Government of the United States 
and the government of the recipient country 
have agreed, in writing, on clear and achievable 
objectives for the use of such assistance, which 
should be made available on a cost-reimbursable 
basis; and 
(E) the recipient government is taking 
steps to protect the rights of civil society, in-
cluding freedoms of expression, association and 
assembly. 
(2) In addition to the requirements in sub-
section (a), no funds may be made available for di-
rect government-to-government assistance without 
prior consultation with, and notification of, the Com-
mittees on Appropriations: Provided, That such noti-
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103 
fication shall contain an explanation of how the pro-
posed activity meets the requirements of paragraph 
(1): Provided further, That the requirements of this 
paragraph shall only apply to direct government-to- 
government assistance in excess of $10,000,000 and 
all funds available for cash transfer, budget support, 
and cash payments to individuals. 
(3) The Administrator of the United States 
Agency for International Development (USAID) or 
the Secretary of State, as appropriate, shall suspend 
any direct government-to-government assistance if 
the Administrator or the Secretary has credible in-
formation of material misuse of such assistance, un-
less the Administrator or the Secretary reports to 
the Committees on Appropriations that it is in the 
national interest of the United States to continue 
such assistance, including a justification, or that 
such misuse has been appropriately addressed. 
(4) The Secretary of State shall submit to the 
Committees on Appropriations, concurrent with the 
fiscal year 2017 congressional budget justification 
materials, amounts planned for assistance described 
in subsection (a) by country, proposed funding 
amount, source of funds, and type of assistance. 
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104 
(5) Not later than 90 days after the enactment 
of this Act and 6 months thereafter until September 
30, 2016, the USAID Administrator shall submit to 
the Committees on Appropriations a report that— 
(A) details all assistance described in sub-
section (a) provided during the previous 6- 
month period by country, funding amount, 
source of funds, and type of such assistance; 
and 
(B) the type of procurement instrument or 
mechanism utilized and whether the assistance 
was provided on a reimbursable basis. 
(6) None of the funds made available by this 
Act may be used for any foreign country for debt 
service payments owed by any country to any inter-
national financial institution: Provided, That for 
purposes of this subsection, the term ‘‘international 
financial institution’’ has the meaning given the 
term in section 7029(e) of this Act. 
(b) NATIONAL BUDGET
AND CONTRACT TRANS-
PARENCY.— 
(1) 
MINIMUM
REQUIREMENTS
OF
FISCAL 
TRANSPARENCY.—The Secretary of State shall con-
tinue to update and strengthen the ‘‘minimum re-
quirements of fiscal transparency’’ for each govern-
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105 
ment receiving assistance appropriated by this Act, 
as identified in the report required by section 
7031(b) of division K of Public Law 113–76. 
(2) DEFINITION.—For purposes of paragraph 
(1), ‘‘minimum requirements of fiscal transparency’’ 
are requirements consistent with those in subsection 
(a)(1), and the public disclosure of national budget 
documentation (to include receipts and expenditures 
by ministry) and government contracts and licenses 
for natural resource extraction (to include bidding 
and concession allocation practices). 
(3) DETERMINATION AND REPORT.—For each 
government identified pursuant to paragraph (1), 
the Secretary of State, not later than 180 days after 
enactment of this Act, shall make or update any de-
termination of ‘‘significant progress’’ or ‘‘no signifi-
cant progress’’ in meeting the minimum require-
ments of fiscal transparency, and make such deter-
minations publicly available in an annual ‘‘Fiscal 
Transparency Report’’ to be posted on the Depart-
ment of State’s Web site: Provided, That the Sec-
retary shall identify the significant progress made by 
each such government to publicly disclose national 
budget documentation, contracts, and licenses which 
are additional to such information disclosed in pre-
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106 
vious fiscal years, and include specific recommenda-
tions of short- and long-term steps such government 
should take to improve fiscal transparency: Provided 
further, That the annual report shall include a de-
tailed description of how funds appropriated by this 
Act are being used to improve fiscal transparency, 
and identify benchmarks for measuring progress. 
(4) ASSISTANCE.—Funds appropriated under 
title III of this Act shall be made available for pro-
grams and activities to assist governments identified 
pursuant to paragraph (1) to improve budget trans-
parency and to support civil society organizations in 
such countries that promote budget transparency: 
Provided, That such sums shall be in addition to 
funds otherwise made available for such purposes: 
Provided further, That a description of the uses of 
such funds shall be included in the annual ‘‘Fiscal 
Transparency Report’’ required by paragraph (3). 
(c) CORRUPTION
AND
HUMAN
RIGHTS
VIOLA-
TIONS.—— 
(1)(A) Officials of foreign governments and 
their immediate family members about whom the 
Secretary of State has credible information have 
been involved in significant corruption, including 
corruption related to the extraction of natural re-
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117 
(1) The authority contained in section 1115(d) 
of Public Law 111–32 shall remain in effect through 
September 30, 2016. 
(2) Section 824(g) of the Foreign Service Act 
of 1980 (22 U.S.C. 4064(g)) shall be applied by 
substituting ‘‘September 30, 2016’’ for ‘‘October 1, 
2010’’ in paragraph (2). 
(3) Section 61(a) of the State Department 
Basic Authorities Act of 1956 (22 U.S.C. 2733(a)) 
shall be applied by substituting ‘‘September 30, 
2016’’ for ‘‘October 1, 2010’’ in paragraph (2). 
(4) Section 625(j)(1) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2385(j)(1)) shall be applied 
by substituting ‘‘September 30, 2016’’ for ‘‘October 
1, 2010’’ in subparagraph (B). 
(5) The authorities provided in section 1015(b) 
of Public Law 111–212 shall remain in effect 
through September 30, 2016. 
(6) The Foreign Operations, Export Financing, 
and Related Programs Appropriations Act, 1990 
(Public Law 101–167) is amended— 
(A) in section 599D (8 U.S.C. 1157 
note)— 
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smartinez on DSK4TPTVN1PROD with BILLS