H. R. 244—497 
if the President determines that to do so is important to the 
national interest of the United States. 
(3) REPORT.—Whenever the President makes a determina-
tion pursuant to paragraph (2), the President shall submit 
to the Committees on Appropriations a report with respect 
to the furnishing of such assistance, including a detailed expla-
nation of the assistance to be provided, the estimated dollar 
amount of such assistance, and an explanation of how the 
assistance furthers United States national interest. 
(b) BILATERAL ASSISTANCE.— 
(1) LIMITATIONS.—Funds appropriated for bilateral assist-
ance in titles III through VI of this Act and funds appropriated 
under any such title in prior Acts making appropriations for 
the Department of State, foreign operations, and related pro-
grams, shall not be made available to any foreign government 
which the President determines— 
(A) grants sanctuary from prosecution to any individual 
or group which has committed an act of international ter-
rorism; 
(B) otherwise supports international terrorism; or 
(C) is controlled by an organization designated as a 
terrorist organization under section 219 of the Immigration 
and Nationality Act (8 U.S.C. 1189). 
(2) WAIVER.—The President may waive the application of 
paragraph (1) to a government if the President determines 
that national security or humanitarian reasons justify such 
waiver: Provided, That the President 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 notification procedures 
of the Committees on Appropriations. 
AUTHORIZATION REQUIREMENTS 
SEC. 7022. Funds appropriated by this Act, except funds appro-
priated under the heading ‘‘Trade and Development Agency’’, may 
be obligated and expended notwithstanding section 10 of Public 
Law 91–672 (22 U.S.C. 2412), section 15 of the State Department 
Basic Authorities Act of 1956 (22 U.S.C. 2680), section 313 of 
the Foreign Relations Authorization Act, Fiscal Years 1994 and 
1995 (22 U.S.C. 6212), and section 504(a)(1) of the National Security 
Act of 1947 (50 U.S.C. 3094(a)(1)). 
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 defined at the appro-
priations Act account level and shall include all appropriations 
and authorizations Acts funding directives, ceilings, and limitations 
with the exception that for the following accounts: ‘‘Economic Sup-
port Fund’’, ‘‘Assistance for Europe, Eurasia and Central Asia’’, 
and ‘‘Foreign Military Financing Program’’, ‘‘program, project, and 
activity’’ shall also be considered to include country, regional, and 
central program level funding within each such account; and for 
the development assistance accounts of the United States Agency 
for International Development, ‘‘program, project, and activity’’ shall
H. R. 244—498 
also be considered to include central, country, regional, and program 
level funding, either as— 
(1) justified to Congress; or 
(2) allocated by the Executive Branch in accordance with 
a report, to be provided to the Committees on Appropriations 
within 30 days of the enactment of this Act, as required by 
section 653(a) of the Foreign Assistance Act of 1961 or as 
modified pursuant to section 7019 of this Act. 
AUTHORITIES FOR THE PEACE CORPS, INTER-AMERICAN FOUNDATION 
AND UNITED STATES AFRICAN DEVELOPMENT 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 appropriations for the Department of 
State, foreign operations, and related programs, shall not be con-
strued to prohibit activities authorized by or conducted under the 
Peace Corps Act, the Inter-American Foundation Act or the African 
Development Foundation Act: Provided, That prior to conducting 
activities in a country for which assistance is prohibited, 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) WORLD MARKETS.—None of the funds appro-
priated 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 Overseas Private 
Investment Corporation shall be obligated or expended to finance 
any loan, any assistance, or any other financial commitments for 
establishing or expanding production 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 
productive 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 Export-Import Bank if in the 
judgment of its Board of Directors 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 
commodity, and the Chairman of the Board so notifies the Commit-
tees on Appropriations: Provided further, That this subsection shall 
not prohibit— 
(1) activities in a country that is eligible for assistance 
from the International Development Association, is not eligible 
for assistance from the International Bank for Reconstruction 
and Development, and does not export on a consistent basis 
the agricultural commodity with respect to which assistance 
is furnished; or 
(2) activities in a country the President determines is recov-
ering from widespread conflict, a humanitarian crisis, or a 
complex emergency. 
(b) EXPORTS.—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 introduction, consultancy, publica-
tion, conference, or training in connection with the growth or
H. R. 244—499 
production in a foreign country of an agricultural commodity for 
export which would compete with a similar commodity grown or 
produced in the United States: Provided, That this subsection shall 
not prohibit— 
(1) activities designed to increase food security in devel-
oping countries where such activities will not have a significant 
impact on the export of agricultural commodities of the United 
States; 
(2) research activities intended primarily to benefit United 
States producers; 
(3) activities in a country that is eligible for assistance 
from the International Development Association, is not eligible 
for assistance from the International Bank for Reconstruction 
and Development, and does not export on a consistent basis 
the agricultural commodity with respect to which assistance 
is furnished; or 
(4) activities in a country the President determines is recov-
ering from widespread conflict, a humanitarian crisis, or a 
complex emergency. 
(c) INTERNATIONAL FINANCIAL INSTITUTIONS.—The Secretary of 
the Treasury shall instruct the United States executive directors 
of the international financial institutions, as defined in section 
7034(r)(3) of this Act, to use the voice and vote of the United 
States to oppose any assistance by such institutions, using funds 
appropriated or made available by this Act, for the production 
or extraction of any commodity or mineral for export, if it is in 
surplus on world markets and if the assistance will cause substan-
tial injury to United States producers of the same, similar, or 
competing commodity. 
SEPARATE ACCOUNTS 
SEC. 7026. (a) SEPARATE ACCOUNTS FOR LOCAL CURRENCIES.— 
(1) AGREEMENTS.—If assistance is furnished to the govern-
ment 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 shall— 
(A) require that local currencies be deposited in a 
separate account established by that government; 
(B) enter into an agreement with that government 
which sets forth— 
(i) the amount of the local currencies to be gen-
erated; and 
(ii) the terms and conditions under which the cur-
rencies so deposited may be utilized, consistent with 
this section; and 
(C) establish by agreement with that government the 
responsibilities of USAID and that government to monitor 
and account for deposits into and disbursements from the 
separate account. 
(2) USES OF LOCAL CURRENCIES.—As may be agreed upon 
with the foreign government, local currencies deposited in a 
separate account pursuant to subsection (a), or an equivalent 
amount of local currencies, shall be used only—
H. R. 244—500 
(A) to carry out chapter 1 or 10 of part I or chapter 
4 of part II of the Foreign Assistance Act of 1961 (as 
the case may be), for such purposes as— 
(i) project and sector assistance activities; 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 cur-
rencies 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 PROGRAMS.—Upon termi-
nation of assistance to a country under chapter 1 or 10 of 
part I or chapter 4 of part II of the Foreign Assistance Act 
of 1961 (as the case may be), any unencumbered balances 
of funds which remain in a separate account established pursu-
ant to subsection (a) shall be disposed of for such purposes 
as may be agreed to by the government of that country and 
the United States Government. 
(5) REPORTING REQUIREMENT.—The USAID Administrator 
shall report as part of the congressional budget justification 
submitted to the Committees on Appropriations 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 available 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 with any other 
funds. 
(2) APPLICABILITY
OF
OTHER
PROVISIONS
OF
LAW.—Such 
funds may be obligated and expended notwithstanding provi-
sions of law which are inconsistent with the nature of this 
assistance including provisions which are referenced in the 
Joint Explanatory Statement of the Committee of Conference 
accompanying House Joint Resolution 648 (House Report No. 
98–1159). 
(3) NOTIFICATION.—At least 15 days prior to obligating 
any such cash transfer or nonproject sector assistance, the 
President shall submit a notification through the regular 
notification procedures of the Committees on Appropriations, 
which shall include a detailed description of how the funds 
proposed to be made available will be used, with a discussion 
of the United States interests that will be served by such 
assistance (including, as appropriate, a description of the eco-
nomic policy reforms that will be promoted by such assistance). 
(4) EXEMPTION.—Nonproject sector assistance funds may 
be exempt from the requirements of paragraph (1) only through 
the regular notification procedures of the Committees on Appro-
priations.