H. R. 7148—371 
be transmitted to the Committees on Appropriations by the Depart-
ment of State: Provided further, That funds transferred under such 
authority may be made available for the cost of such audits. 
PROHIBITION AND LIMITATION ON CERTAIN EXPENSES 
SEC. 7010. (a) FIRST-CLASS TRAVEL.—None of the funds made 
available by this Act may be used for first-class travel by employees 
of United States Government departments and agencies funded 
by this Act in contravention of section 301–10.122 through 301– 
10.124 of title 41, Code of Federal Regulations. 
(b) COMPUTER NETWORKS.—None of the funds made available 
by this Act for the operating expenses of any United States Govern-
ment department or agency may be used to establish or maintain 
a computer network for use by such department or agency unless 
such network has filters designed to block access to sexually explicit 
websites: Provided, That nothing in this subsection shall limit the 
use of funds necessary for any Federal, State, Tribal, or local 
law enforcement agency, or any other entity carrying out the fol-
lowing activities: criminal investigations, prosecutions, and adju-
dications; administrative discipline; and the monitoring of such 
websites undertaken as part of official business. 
(c) PROHIBITION
ON PROMOTION
OF TOBACCO.—None of the 
funds made available by this Act shall be available to promote 
the sale or export of tobacco or tobacco products (including electronic 
nicotine delivery systems), or to seek the reduction or removal 
by any foreign country of restrictions on the marketing of tobacco 
or tobacco products (including electronic nicotine delivery systems), 
except for restrictions which are not applied equally to all tobacco 
or tobacco products (including electronic nicotine delivery systems) 
of the same type. 
(d) EMAIL SERVERS OUTSIDE THE .GOV DOMAIN.—None of the 
funds appropriated by this Act under the headings ‘‘Diplomatic 
Programs’’ and ‘‘Capital Investment Fund’’ that are made available 
to the Department of State may be made available to support 
the use or establishment of email accounts or email servers created 
outside the .gov domain or not fitted for automated records manage-
ment as part of a Federal government records management program 
in contravention of the Presidential and Federal Records Act 
Amendments of 2014 (Public Law 113–187). 
(e) REPRESENTATION
AND ENTERTAINMENT EXPENSES.—Each 
Federal department, agency, or entity funded in title I of this 
Act and the Department of the Treasury and independent agencies 
funded in titles III or VI of this Act, shall take steps to ensure 
that domestic and overseas representation and entertainment 
expenses further official agency business and United States foreign 
policy interests, and— 
(1) are primarily for fostering relations outside of the 
Executive Branch; 
(2) are principally for meals and events of a protocol nature; 
(3) are not for employee-only events; and 
(4) do not include activities that are substantially of a 
recreational character. 
(f) LIMITATIONS ON ENTERTAINMENT EXPENSES.—None of the 
funds appropriated or otherwise made available by this Act under 
the headings ‘‘International Military Education and Training’’ or 
‘‘Foreign Military Financing Program’’ for Informational Program
H. R. 7148—372 
activities or under the headings ‘‘Global Health Programs’’ and 
‘‘National Security Investment Programs’’ may be obligated or 
expended to pay for— 
(1) alcoholic beverages; or 
(2) entertainment expenses for activities that are substan-
tially of a recreational character, including entrance fees at 
sporting events, theatrical and musical productions, and amuse-
ment parks. 
ASSISTANCE EFFECTIVENESS AND TRANSPARENCY 
SEC. 7011. (a) STRATEGY.— 
(1) IN GENERAL.—Not later than 180 days after the date 
of enactment of this Act, the Secretary of State shall develop 
and submit to the appropriate congressional committees a 
multi-year strategy to improve the effectiveness of United 
States Government foreign assistance. 
(2) ELEMENTS.—The strategy required by this subsection 
shall include— 
(A) methods used to determine the effectiveness of 
United States Government foreign assistance; 
(B) analysis on using outcomes to inform the allocation 
of such assistance; 
(C) results of impact evaluations carried out within 
the prior 12 months and a plan for incorporating the results 
of such evaluations into the design of future programs 
funded by such assistance; 
(D) analysis of opportunities to enhance the effective-
ness of such assistance by increasing partnerships with 
local organizations, including faith-based organizations, as 
appropriate, including specific plans to provide grants, 
cooperative agreements, and other awards of not more than 
$2,000,000, consistent with the requirements included in 
the explanatory statement described in section 4 (in the 
matter preceding division A of this consolidated Act); and 
(E) estimated costs associated with implementation of 
the strategy. 
(3) SPECIFIC REFORMS.—The strategy required by this sub-
section shall include the following specific reforms— 
(A) an approval process for small grants previously 
managed at the mission level, including public diplomacy 
and cultural preservation programs, by respective Chiefs 
of Mission, the Under Secretary for Public Diplomacy and 
Public Affairs, and the Under Secretary of Political Affairs, 
as appropriate: Provided, That for purposes of this section, 
the term ‘‘small grants’’ means a grant with a value of 
less than $1,000,000; 
(B) a certification process, on a country-by-country 
basis, to ensure that United States assistance supports 
the implementation of a comprehensive assistance strategy 
that promotes American interests abroad, including a 
detailed definition of such interests, consistent with the 
requirements of subparagraphs (C) and (D); 
(C) a plan established prior to the obligation of United 
States assistance for the winding down of such assistance, 
as appropriate, including transition and sustainment of
H. R. 7148—373 
programs and activities to entities other than the United 
States Government; and 
(D) requirements for co-investment by recipient govern-
ments and cost matching from sources other than the 
United States Government, including other international 
donors and the private sector, for assistance made available 
by this Act, as appropriate. 
(4) 
CONCURRENT
RECOMMENDATIONS.—The 
Secretary 
shall— 
(A) convene a panel of experts and practitioners to 
make recommendations for the strategy required by this 
subsection; and 
(B) include all such recommendations in an appendix 
to the strategy whether or not they were incorporated 
into the strategy. 
(5) CONSULTATION.—Not later than 45 days after the date 
of enactment of this Act, the Secretary shall consult with the 
Committees on Appropriations on the requirements of this sub-
section. 
(b) BENEFICIARY FEEDBACK.—Funds appropriated by this Act 
that are made available for monitoring and evaluation of assistance 
under the headings ‘‘National Security Investment Programs’’ and 
‘‘International Humanitarian Assistance’’ shall be made available 
for the regular and systematic collection of feedback obtained 
directly from beneficiaries to enhance the quality and relevance 
of such assistance: Provided, That the Secretary of State shall 
regularly conduct oversight to ensure that such feedback is collected 
and used by implementing partners to maximize the cost-effective-
ness and utility of such assistance. 
(c) EVALUATIONS.—Of the funds appropriated by this Act under 
titles III and IV, not less than $15,000,000, to remain available 
until expended, shall be made available for impact evaluations, 
including ex-post evaluations, of the effectiveness and sustainability 
of United States Government foreign assistance programs: Provided, 
That funds made available pursuant to this subsection are in addi-
tion to funds otherwise made available for such purposes. 
(d) INNOVATION.—The Secretary of State may use funds appro-
priated by this Act under title III to make innovation incentive 
awards in accordance with the terms and conditions of section 
7034(e)(4) of the Department of State, Foreign Operations, and 
Related Programs Appropriations Act, 2019 (division F of Public 
Law 116–6), except that each individual award may not exceed 
$500,000. 
(e) FOREIGN ASSISTANCE WEBSITE.—Funds appropriated by this 
Act under title I, funds made available for any independent agency 
in title III, and funds made available under the headings ‘‘Trade 
and Development Agency’’ and ‘‘United States International 
Development Finance Corporation’’, as appropriate, shall be made 
available to support the provision of additional information on 
United 
States 
Government 
foreign 
assistance 
on 
the 
‘‘ForeignAssistance.gov’’ website: Provided, That all Federal agen-
cies funded under this Act shall provide such information on foreign 
assistance, upon request and in a timely manner, to the Department 
of State.
H. R. 7148—374 
LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT 
SEC. 7012. No part of any appropriation provided under titles 
III through VI in this Act shall be used to furnish assistance 
to the government of any country which is in default during a 
period in excess of 1 calendar year in payment to the United 
States of principal or interest on any loan made to the government 
of such country by the United States pursuant to a program for 
which funds are appropriated under this Act unless the President 
determines, following consultation with the Committees on Appro-
priations, that assistance for such country is in the national interest 
of the United States. 
PROHIBITION ON TAXATION OF UNITED STATES ASSISTANCE 
SEC. 7013. (a) PROHIBITION ON TAXATION.—None of the funds 
appropriated under titles III through VI of this Act may be made 
available to provide assistance for a foreign country under a new 
bilateral agreement governing the terms and conditions under which 
such assistance is to be provided unless such agreement includes 
a provision stating that assistance provided by the United States 
shall be exempt from taxation, or reimbursed, by the foreign govern-
ment, and the Secretary of State shall expeditiously seek to nego-
tiate amendments to existing bilateral agreements, as necessary, 
to conform with this requirement. 
(b) NOTIFICATION AND REIMBURSEMENT OF FOREIGN TAXES.— 
An amount equivalent to 200 percent of the total taxes assessed 
during fiscal year 2026 on funds appropriated by this Act and 
prior Acts making appropriations for the Department of State, 
foreign operations, and related programs by a foreign government 
or entity against United States assistance programs, either directly 
or through grantees, contractors, and subcontractors, shall be with-
held from obligation from funds appropriated for assistance for 
fiscal year 2027 and for prior fiscal years and allocated for the 
central government of such country or for the West Bank and 
Gaza program, as applicable, if, not later than September 30, 2027, 
such taxes have not been reimbursed. 
(c) DE MINIMIS EXCEPTION.—Foreign taxes of a de minimis 
nature shall not be subject to the provisions of subsection (b). 
(d) REPROGRAMMING OF FUNDS.—Funds withheld from obliga-
tion for each foreign government or entity pursuant to subsection 
(b) shall be reprogrammed for assistance for countries which do 
not assess taxes on United States assistance or which have an 
effective arrangement that is providing substantial reimbursement 
of such taxes, and that can reasonably accommodate such assistance 
in a programmatically responsible manner. 
(e) DETERMINATIONS.— 
(1) IN GENERAL.—The provisions of this section shall not 
apply to any foreign government or entity that assesses such 
taxes if the Secretary of State reports to the Committees on 
Appropriations that— 
(A) such foreign government or entity has an effective 
arrangement that is providing substantial reimbursement 
of such taxes; or 
(B) the foreign policy interests of the United States 
outweigh the purpose of this section to ensure that United 
States assistance is not subject to taxation.