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existing bilateral agreements, as necessary, to conform with 
this requirement. 
(b) REIMBURSEMENT
OF
FOREIGN
TAXES.—An 
amount equivalent to 200 percent of the total taxes assessed 
during fiscal year 2006 on funds appropriated by this Act 
by a foreign government or entity against commodities fi-
nanced under United States assistance programs for which 
funds are appropriated by this Act, either directly or 
through grantees, contractors and subcontractors shall be 
withheld from obligation from funds appropriated for as-
sistance for fiscal year 2007 and allocated for the central 
government of such country and for the West Bank and 
Gaza Program to the extent that the Secretary of State cer-
tifies and reports in writing to the Committees on Appro-
priations that such taxes have not been reimbursed to the 
Government of the United States. 
(c) DE MINIMIS EXCEPTION.—Foreign taxes of a de 
minimis nature shall not be subject to the provisions of sub-
section (b). 
(d) REPROGRAMMING
OF FUNDS.—Funds withheld 
from obligation for each country or entity pursuant to sub-
section (b) shall be reprogrammed for assistance to countries 
which do not assess taxes on United States assistance or 
which have an effective arrangement that is providing sub-
stantial reimbursement of such taxes.
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(e) DETERMINATIONS.—
(1) The provisions of this section shall not apply 
to any country or entity the Secretary of State deter-
mines—
(A) does not assess taxes on United States 
assistance or which has an effective arrangement 
that is providing substantial reimbursement of 
such taxes; or 
(B) the foreign policy interests of the United 
States outweigh the policy of this section to en-
sure that United States assistance is not subject 
to taxation. 
(2) The Secretary of State shall consult with the 
Committees on Appropriations at least 15 days prior 
to exercising the authority of this subsection with re-
gard to any country or entity. 
(f) IMPLEMENTATION.—The Secretary of State shall 
issue rules, regulations, or policy guidance, as appropriate, 
to implement the prohibition against the taxation of assist-
ance contained in this section. 
(g) DEFINITIONS.—As used in this section—
(1) the terms ‘‘taxes’’ and ‘‘taxation’’ refer to 
value added taxes and customs duties imposed on 
commodities financed with United States assistance
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for programs for which funds are appropriated by 
this Act; and 
(2) the term ‘‘bilateral agreement’’ refers to a 
framework bilateral agreement between the Govern-
ment of the United States and the government of the 
country receiving assistance that describes the privi-
leges and immunities applicable to United States for-
eign assistance for such country generally, or an indi-
vidual agreement between the Government of the 
United States and such government that describes, 
among other things, the treatment for tax purposes 
that will be accorded the United States assistance 
provided under that agreement. 
PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN 
COUNTRIES 
SEC. 6007. None of the funds appropriated or other-
wise made available pursuant to this Act shall be obligated 
or expended to finance directly any assistance or repara-
tions to Cuba, Libya, North Korea, Iran, or Syria: Pro-
vided, That for purposes of this section, the prohibition on 
obligations or expenditures shall include direct loans, cred-
its, insurance and guarantees of the Export-Import Bank 
or its agents. 
MILITARY COUPS 
SEC. 6008. None of the funds appropriated or other-
wise made available pursuant to this Act shall be obligated
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or expended to finance directly any assistance to the govern-
ment of any country whose duly elected head of government 
is deposed by decree or military coup: Provided, That as-
sistance may be resumed to such government if the Presi-
dent determines and certifies to the Committees on Appro-
priations that subsequent to the termination of assistance 
a democratically elected government has taken office: Pro-
vided further, That the provisions of this section shall not 
apply to assistance to promote democratic elections or pub-
lic participation in democratic processes: Provided further, 
That funds made available pursuant to the previous pro-
visos shall be subject to the regular notification procedures 
of the Committees on Appropriations. 
TRANSFERS 
SEC. 6009. (a)(1) LIMITATION ON TRANSFERS BE-
TWEEN AGENCIES.—None of the funds made available by 
titles II through V of this Act may be transferred to any 
department, agency, or instrumentality of the United States 
Government, except pursuant to a transfer made by, or 
transfer authority provided in, this Act or any other appro-
priation Act. 
(2) Notwithstanding paragraph (1), in addition to 
transfers made by, or authorized elsewhere in, this Act, 
funds appropriated by this Act to carry out the purposes 
of the Foreign Assistance Act of 1961 may be allocated or 
transferred to agencies of the United States Government
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pursuant to the provisions of sections 109, 610, and 632 
of the Foreign Assistance Act of 1961. 
(b) TRANSFERS BETWEEN ACCOUNTS.—None of the 
funds made available by this Act may be obligated under 
an appropriation account to which they were not appro-
priated, except for transfers specifically provided for in this 
Act, unless the President, not less than 5 days prior to the 
exercise of any authority contained in the Foreign Assist-
ance Act of 1961 to transfer funds, consults with and pro-
vides a written policy justification to the Committees on 
Appropriations of the House of Representatives and the 
Senate. 
(c) AUDIT
OF
INTER-AGENCY
TRANSFERS.—Any 
agreement for the transfer or allocation of funds appro-
priated by this Act, or prior Acts, entered into between the 
United States Agency for International Development and 
another agency of the United States Government under the 
authority of section 632(a) of the Foreign Assistance Act 
of 1961 or any comparable provision of law, shall expressly 
provide that the Office of the Inspector General for the agen-
cy receiving the transfer or allocation of such funds shall 
perform periodic program and financial audits of the use 
of such funds: Provided, That funds transferred under such 
authority may be made available for the cost of such audits.
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COMMERCIAL LEASING OF DEFENSE ARTICLES 
SEC. 6010. Notwithstanding any other provision of 
law, and subject to the regular notification procedures of 
the Committees on Appropriations, the authority of section 
23(a) of the Arms Export Control Act may be used to pro-
vide financing to Israel, Egypt and NATO and major non-
NATO allies for the procurement by leasing (including leas-
ing with an option to purchase) of defense articles from 
United States commercial suppliers, not including Major 
Defense Equipment (other than helicopters and other types 
of aircraft having possible civilian application), if the 
President determines that there are compelling foreign pol-
icy or national security reasons for those defense articles 
being provided by commercial lease rather than by govern-
ment-to-government sale under such Act. 
AVAILABILITY OF FUNDS 
SEC. 6011. No part of any appropriation contained 
in any title of this Act shall remain available for obligation 
after the expiration of the current fiscal year unless ex-
pressly so provided in this Act: Provided, That funds appro-
priated for the purposes of chapters 1, 8, 11, and 12 of part 
I, section 667, chapters 4, 6, 8, and 9 of part II of the 
Foreign Assistance Act of 1961, section 23 of the Arms Ex-
port Control Act, and funds provided under the heading 
‘‘Assistance for Eastern Europe and the Baltic States’’, 
shall remain available for an additional 4 years from the