(A) the Secretary of State, the Secretary 
of the Treasury, the Administrator of the 
United States Agency for International Devel-
opment, the Chief Executive Officer of the Cor-
poration, and the Secretary of Education; and 
(B) four other individuals with relevant 
international experience with respect to edu-
cation issues who shall be appointed by the 
President, by and with the advice and consent 
of the Senate, of which— 
(i) one individual should be appointed 
from among a list of individuals submitted 
by the majority leader of the House of 
Representatives; 
(ii) one individual should be appointed 
from among a list of individuals submitted 
by the minority leader of the House of 
Representatives; 
(iii) one individual should be ap-
pointed from among a list of individuals 
submitted by the majority leader of the 
Senate; and 
(iv) one individual should be ap-
pointed from among a list of individuals
submitted by the minority leader of the 
Senate. 
(4) TERMS.— 
(A) OFFICERS OF THE FEDERAL GOVERN-
MENT.—Each member of the Board described 
in paragraph (3)(A) shall serve for a term that 
is concurrent with the term of service of the in-
dividual’s position as an officer within the other 
Federal department or agency. 
(B) OTHER MEMBERS.—Each member of 
the Board described in paragraph (3)(B) shall 
be appointed for a term of 3 years and may be 
reappointed for a term of an additional 2 years. 
(C) VACANCIES.—A vacancy in the Board 
shall be filled in the manner in which the origi-
nal appointment was made. 
(5) CHAIRPERSON.—There shall be a Chair-
person of the Board. The Secretary of State shall 
serve as the Chairperson. 
(6) QUORUM.—A majority of the members of 
the Board shall constitute a quorum, which, except 
with respect to a meeting of the Board during the 
135-day period beginning on the date of the enact-
ment of this Act, shall include at least one member 
of the Board described in paragraph (3)(B).
(7) MEETINGS.—The Board shall meet at the 
call of the Chairperson. 
(8) COMPENSATION.— 
(A) OFFICERS OF THE FEDERAL GOVERN-
MENT.— 
(i) IN GENERAL.—A member of the 
Board described in paragraph (3)(A) may 
not receive additional pay, allowances, or 
benefits by reason of the member’s service 
on the Board. 
(ii) TRAVEL
EXPENSES.—Each such 
member of the Board shall receive travel 
expenses, including per diem in lieu of sub-
sistence, in accordance with applicable pro-
visions under subchapter I of chapter 57 of 
title 5, United States Code. 
(B) OTHER MEMBERS.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), a member of the Board de-
scribed in paragraph (3)(B)— 
(I) shall be paid compensation 
out of funds made available for the 
purposes of this Act at the daily 
equivalent of the highest rate payable 
under section 5332 of title 5, United
States Code, for each day (including 
travel time) during which the member 
is engaged in the actual performance 
of duties as a member of the Board; 
and 
(II) while away from the mem-
ber’s home or regular place of busi-
ness on necessary travel in the actual 
performance of duties as a member of 
the Board, shall be paid per diem, 
travel, and transportation expenses in 
the same manner as is provided under 
subchapter I of chapter 57 of title 5, 
United States Code. 
(ii) LIMITATION.—A member of the 
Board may not be paid compensation 
under clause (i)(II) for more than 90 days 
in any calendar year. 
SEC. 5. AUTHORIZATION OF ASSISTANCE. 
(a) ASSISTANCE.—Notwithstanding any other provi-
sion of law (other than a provision of this Act), the Board, 
acting through the Chief Executive Officer, is authorized 
to provide assistance under this section for each country 
that enters into a Universal Education Compact with the 
United States pursuant to section 9 to support policies
and programs that advance the progress of the country 
in achieving lasting education reform and are in further-
ance of the purposes of this Act. 
(b) FORM OF ASSISTANCE.—Assistance under this 
section may be provided in the form of grants, cooperative 
agreements, or contracts to or with eligible entities de-
scribed in subsection (c). Assistance under this section 
may not be provided in the form of loans. 
(c) ELIGIBLE ENTITIES.—An eligible entity referred 
to in subsection (b) is— 
(1) the national government of the eligible 
country; 
(2) regional or local governmental units of the 
country; or 
(3) a nongovernmental organization or a private 
entity. 
(d) APPLICATION.—The Chief Executive Officer, in 
consultation with the Board and working with eligible 
countries selected by the Board for negotiation of Com-
pacts, should develop and recommend procedures for con-
sidering solicited and unsolicited proposals in Compacts 
prior to an approval of the Compacts by the Board. 
(e) LIMITATIONS.— 
(1) PROHIBITION
ON
MILITARY
ASSISTANCE 
AND TRAINING.—Assistance under this section may
not include military assistance or military training 
for a country. 
(2) PROHIBITION ON ASSISTANCE RELATING TO 
UNITED
STATES
JOB
LOSS
OR
PRODUCTION
DIS-
PLACEMENT.—Assistance under this section may not 
be provided for any project that is likely to cause a 
substantial loss of United States jobs or a substan-
tial displacement of United States production. 
(3) PROHIBITION ON ASSISTANCE RELATING TO 
ENVIRONMENTAL, HEALTH, OR SAFETY HAZARDS.— 
Assistance under this section may not be provided 
for any project that is likely to cause a significant 
environmental, health, or safety hazard. 
(4) PROHIBITION ON USE OF FUNDS FOR ABOR-
TIONS
AND
INVOLUNTARY
STERILIZATIONS.—The 
prohibitions on use of funds contained in paragraphs 
(1) through (3) of section 104(f) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2151b(f)(1)–(3)) 
shall apply to funds made available to carry out this 
section to the same extent and in the same manner 
as such prohibitions apply to funds made available 
to carry out part I of such Act. The prohibition on 
use of funds contained in any provision of law com-
parable to the eleventh and fourteenth provisos 
under the heading ‘‘Child Survival and Health Pro-
grams Fund’’ of division E of Public Law 108–7 
(117 Stat. 162) shall apply to funds made available 
to carry out this section for fiscal year 2006. 
(f) COORDINATION.—The provision of assistance 
under this section shall be coordinated with other United 
States foreign assistance programs. 
(g) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the Board should encourage other countries, 
particularly member countries of the European 
Union (EU), and private donors to provide assist-
ance for countries that receive assistance under this 
section for the same purposes for which assistance 
is provided under this section; and 
(2) assistance provided by other countries and 
private donors in accordance with paragraph (1) 
should be coordinated with assistance provided 
under this section. 
SEC. 6. CANDIDATE COUNTRIES. 
(a) LOW INCOME COUNTRIES.— 
(1) FISCAL YEAR 2006.—A country shall be a 
candidate country for purposes of eligibility for as-
sistance for fiscal year 2006 if— 
(A) the country is eligible for assistance 
from the International Development Associa-
tion, and the per capita income of the country 
is equal to or less than the historical ceiling of 
the International Development Association for 
that year, as defined by the International Bank 
for Reconstruction and Development; and 
(B) subject to paragraph (3), the country 
is not ineligible to receive United States eco-
nomic assistance under part I of the Foreign 
Assistance Act of 1961 by reason of the appli-
cation of any provision of the Foreign Assist-
ance Act of 1961 or any other provision of law. 
(2) FISCAL YEAR 2007 AND SUBSEQUENT FIS-
CAL YEARS.—A country shall be a candidate country 
for purposes of eligibility for assistance for fiscal 
year 2007 or a subsequent fiscal year if— 
(A) the per capita income of the country is 
equal to or less than the historical ceiling of the 
International Development Association for the 
fiscal year involved, as defined by the Inter-
national Bank for Reconstruction and Develop-
ment; and 
(B) the country meets the requirements of 
paragraph (1)(B). 
(3) RULE
OF
CONSTRUCTION.—For the pur-
poses of determining whether a country is eligible
for receiving assistance under section 5 pursuant to 
paragraph (1)(B), the exercise by the President, the 
Secretary of State, or any other officer or employee 
of the United States of any waiver or suspension of 
any provision of law referred to in such paragraph, 
and notification to the appropriate congressional 
committees in accordance with such provision of law, 
shall be construed as satisfying the requirement of 
such paragraph. 
(b) LOWER MIDDLE INCOME COUNTRIES.— 
(1) IN GENERAL.—In addition to countries de-
scribed in subsection (a), a country shall be a can-
didate country for purposes of eligibility for assist-
ance for fiscal year 2008 or a subsequent fiscal year 
if the country— 
(A) is classified as a lower middle income 
country in the then most recent edition of the 
World Development Report for Reconstruction 
and Development published by the International 
Bank for Reconstruction and Development and 
has an income greater than the historical ceil-
ing for International Development Association 
eligibility for the fiscal year involved; and 
(B) meets the requirements of subsection 
(a)(1)(B).
(2) LIMITATION.—The total amount of assist-
ance provided to countries described in paragraph 
(1) for fiscal year 2008 or any subsequent fiscal 
year may not exceed 25 percent of the total amount 
of assistance provided to all countries under section 
5 for fiscal year 2008 or the subsequent fiscal year, 
as the case may be. 
(c) IDENTIFICATION BY THE BOARD.—The Board 
shall identify whether a country is a candidate country for 
purposes of this section. 
SEC. 7. ELIGIBLE COUNTRIES. 
(a) DETERMINATION BY THE BOARD.—The Board 
shall determine whether a candidate country is an eligible 
country for purposes of this section. Such determination 
shall be based, to the maximum extent possible, upon ob-
jective and quantifiable indicators of a country’s dem-
onstrated commitment to the criteria in subsection (b), 
and shall, where appropriate, take into account and assess 
the role of women and girls. 
(b) CRITERIA.—A candidate country should be con-
sidered to be an eligible country for purposes of this sec-
tion if the Board determines that the country has dem-
onstrated a commitment to— 
(1) just and democratic governance, including a 
demonstrated commitment to—
(A) promote political pluralism, equality, 
and the rule of law; 
(B) respect human and civil rights, includ-
ing the rights of people with disabilities; 
(C) protect private property rights; 
(D) encourage transparency and account-
ability of government; and 
(E) combat corruption; 
(2) economic freedom, including a demonstrated 
commitment to economic policies that— 
(A) encourage citizens and firms to partici-
pate in global trade and international capital 
markets; 
(B) promote private sector growth and the 
sustainable management of natural resources; 
(C) strengthen market forces in the econ-
omy; and 
(D) respect worker rights, including the 
right to form labor unions; 
(3) investments in the people of such country, 
particularly women and children, including programs 
that— 
(A) promote broad-based primary edu-
cation; and
(B) strengthen and build capacity to pro-
vide quality public health and reduce child mor-
tality; and 
(4) education reform, such as inclusion of 
women in schools and children with special needs in 
schools, school nutrition programs, and curricula to 
promote cultural, religious, and ethnic tolerance. 
(c) SELECTION BY THE BOARD.— 
(1) IN GENERAL.—At the time the Board deter-
mines eligible countries under this section for a fis-
cal year, the Board shall select those eligible coun-
tries with respect to which the United States will ini-
tially seek to enter into a Universal Education Com-
pact pursuant to section 9. 
(2) FACTORS.—In selecting eligible countries 
under paragraph (1), the Board shall consider the 
following factors: 
(A) The extent to which the country clearly 
meets or exceeds the eligibility criteria. 
(B) The opportunity to reduce poverty and 
generate economic growth in the country. 
(C) The availability of amounts to carry 
out this Act. 
(d) ESTABLISHMENT OF CRITERIA AND METHOD-
OLOGY.—The criteria and methodology submitted by the
Board to Congress and published in the Federal Register 
under section 8(b)(2) with respect to a fiscal year shall 
remain fixed for purposes of eligibility determinations for 
such year. 
(e) ANNUAL
MODIFICATION
OF
CRITERIA
AND 
METHODOLOGY.—As appropriate, the Board, acting 
through the Chief Executive Officer, shall review the eligi-
bility criteria and methodology and modify such criteria 
and methodology in subsequent years consistent with sec-
tion 8(b). 
SEC. 8. CONGRESSIONAL AND PUBLIC NOTIFICATION OF 
CANDIDATE COUNTRIES, ELIGIBILITY CRI-
TERIA, AND ELIGIBLE COUNTRIES. 
(a) IDENTIFICATION OF CANDIDATE COUNTRIES.— 
Not later than 90 days prior to the date on which the 
Board determines eligible countries under section 7 for a 
fiscal year, the Chief Executive Officer— 
(1) shall prepare and submit to the appropriate 
congressional committees a report that contains a 
list of all candidate countries identified under sec-
tion 6, and all countries that would be candidate 
countries if the countries met the requirement con-
tained in section 6(a)(1)(B), for the fiscal year; and
(2) shall publish in the Federal Register the in-
formation contained in the report described in para-
graph (1). 
(b) IDENTIFICATION OF ELIGIBILITY CRITERIA AND 
METHODOLOGY.—Not later than 60 days prior to the date 
on which the Board determines eligible countries under 
section 7 for a fiscal year, the Chief Executive Officer— 
(1) shall prepare and submit to the appropriate 
congressional committees a report that contains a 
list of the criteria and methodology described in sub-
sections (a) and (b) of section 7 that will be used 
to determine eligibility for each candidate country 
identified under subsection (a); 
(2) shall publish in the Federal Register the in-
formation contained in the report described in para-
graph (1); and 
(3) may conduct one or more public hearings on 
the eligibility criteria and methodology. 
(c) PUBLIC COMMENT AND CONGRESSIONAL CON-
SULTATION.— 
(1) PUBLIC
COMMENT.—The Chief Executive 
Officer shall, for the 30-day period beginning on the 
date of publication in the Federal Register of the in-
formation contained in the report described in sub-
section (b)(1), accept public comment and consider
such comment for purposes of determining eligible 
countries under section 7. 
(2) 
CONGRESSIONAL
CONSULTATION.—The 
Chief Executive Officer shall consult with the appro-
priate congressional committees on the extent to 
which the candidate countries meet the criteria de-
scribed in section 7(b). 
(d) IDENTIFICATION OF ELIGIBLE COUNTRIES.—Not 
later than five days after the date on which the Board 
determines eligible countries under section 7 for a fiscal 
year, the Chief Executive Officer— 
(1) shall prepare and submit to the appropriate 
congressional committees a report that contains a 
list of all such eligible countries, an identification of 
those countries on such list with respect to which the 
Board will seek to enter into a Compact under sec-
tion 9, and a justification for such eligibility deter-
mination and selection for Compact negotiation; and 
(2) shall publish in the Federal Register the in-
formation contained in the report described in para-
graph (1). 
SEC. 9. UNIVERSAL EDUCATION COMPACT. 
(a) COMPACT.—The Board, acting through the Chief 
Executive Officer of the Corporation, may provide assist-
ance for an eligible country only if the country enters into
an agreement with the United States, to be known as a 
‘‘Universal Education Compact’’, that establishes a multi- 
year plan for achieving shared education reform objectives 
in furtherance of the purposes of this Act. 
(b) ELEMENTS.— 
(1) IN GENERAL.—The Compact should take 
into account the national education reform strategy 
of the eligible country and shall contain— 
(A) the specific objectives that the country 
and the United States expect to achieve during 
the term of the Compact; 
(B) the responsibilities of the country and 
the United States in the achievement of such 
objectives; 
(C) regular benchmarks to measure, where 
appropriate, progress toward achieving such ob-
jectives; 
(D) an identification of the intended bene-
ficiaries, disaggregated by income level, gender, 
and age, to the maximum extent practicable; 
(E) a multi-year financial plan, including 
the estimated amount of contributions by the 
Corporation and the country and proposed 
mechanisms to implement the plan and provide 
oversight, that describes how the requirements
of subparagraphs (A) through (D) will be met, 
including identifying the role of civil society in 
the achievement of such requirements; 
(F) where appropriate, a description of the 
current and potential participation of other do-
nors in the achievement of such objectives; 
(G) a plan to ensure appropriate fiscal ac-
countability for the use of assistance provided 
under section 5; 
(H) where appropriate, a process or proc-
esses for consideration of solicited proposals 
under the Compact as well as a process for con-
sideration of unsolicited proposals by the Cor-
poration and national, regional, or local units of 
government; 
(I) a requirement that open, fair, and com-
petitive procedures are used in a transparent 
manner in the administration of grants or coop-
erative agreements or the procurement of goods 
and services for the accomplishment of objec-
tives under the Compact; 
(J) the strategy of the eligible country to 
sustain progress made toward achieving such 
objectives after expiration of the Compact; and
(K) a description of the role of the United 
States Agency for International Development in 
any design, implementation, and monitoring of 
programs and activities funded under the Com-
pact. 
(2) LOWER MIDDLE INCOME COUNTRIES.—In 
addition to the elements described in subparagraphs 
(A) through (K) of paragraph (1), with respect to a 
lower middle income country described in section 
6(b), the Compact shall identify a contribution, as 
appropriate, from the country relative to its national 
budget, taking into account the prevailing economic 
conditions, toward meeting the objectives of the 
Compact. Any such contribution should be in addi-
tion to government spending allocated for such pur-
poses in the country’s budget for the year imme-
diately preceding the establishment of the Compact 
and should continue for the duration of the Com-
pact. 
(3) DEFINITION.—In this subsection, the term 
‘‘national education reform strategy’’ means any 
strategy to achieve lasting education reform to ben-
efit students that has been developed by the govern-
ment of the country in consultation with a wide vari-
ety of civic participation, including nongovernmental
organizations, private and voluntary organizations, 
academia, women’s and student organizations, local 
trade and labor unions, and the business community. 
(c) ADDITIONAL PROVISION RELATING TO PROHIBI-
TION ON TAXATION.—In addition to the elements de-
scribed in subsection (c), each Compact shall contain a 
provision that states that assistance provided by the 
United States under the Compact shall be exempt from 
taxation by the government of the eligible country. 
(d) LOCAL INPUT.—In entering into a Compact, the 
United States shall seek to ensure that the government 
of an eligible country— 
(1) takes into account the local-level perspec-
tives of the rural and urban poor, including women, 
in the eligible country; and 
(2) consults with private and voluntary organi-
zations, the business community, and other donors 
in the eligible country. 
(e) CONSULTATION.—During any discussions with a 
country for the purpose of entering into a Compact with 
the country, officials of the Corporation participating in 
such discussions shall, at a minimum, consult with appro-
priate officials of the United States Agency for Inter-
national Development, particularly with those officials re-
sponsible for the appropriate region or country on develop-
ment issues related to the Compact. 
(f) COORDINATION WITH OTHER DONORS.—To the 
maximum extent feasible, activities undertaken to achieve 
the objectives of the Compact shall be undertaken in co-
ordination with the assistance activities of other donors. 
(g) ASSISTANCE FOR DEVELOPMENT OF COMPACT.— 
Notwithstanding subsection (a), the Chief Executive Offi-
cer may enter into contracts or make grants for any eligi-
ble country for the purpose of facilitating the development 
and implementation of the Compact between the United 
States and the country. 
(h) 
REQUIREMENT
FOR
APPROVAL
BY
THE 
BOARD.—Each Compact shall be approved by the Board 
before the United States enters into the Compact. 
(i) INCREASE OR EXTENSION OF ASSISTANCE UNDER 
A COMPACT.—Not later than 15 days after making a de-
termination to increase or extend assistance under a Com-
pact with an eligible country, the Board, acting through 
the Chief Executive Officer— 
(1) shall prepare and transmit to the appro-
priate congressional committees a written report and 
justification that contains a detailed summary of the 
proposed increase in or extension of assistance under
the Compact and a copy of the full text of the 
amendment to the Compact; and 
(2) shall publish a detailed summary, full text, 
and justification of the proposed increase in or ex-
tension of assistance under the Compact in the Fed-
eral Register and on the Internet website of the Cor-
poration. 
(j) DURATION
OF COMPACT.—The duration of a 
Compact shall not exceed 5 years. 
(k) SUBSEQUENT COMPACTS.—An eligible country 
and the United States may enter into and have in effect 
only one Compact at any given time under this section. 
An eligible country and the United States may enter into 
one or more subsequent Compacts in accordance with the 
requirements of this Act after the expiration of the exist-
ing Compact. 
SEC. 10. CONGRESSIONAL AND PUBLIC NOTIFICATION OF 
COMPACT. 
(a) CONGRESSIONAL CONSULTATION PRIOR TO COM-
PACT NEGOTIATIONS.—Not later than 15 days prior to 
the start of negotiations of a Compact with an eligible 
country, the Board, acting through the Chief Executive 
Officer—
(1) shall consult with the appropriate congres-
sional committees with respect to the proposed Com-
pact negotiation; and 
(2) shall identify the objectives and mechanisms 
to be used for the negotiation of the Compact. 
(b) CONGRESSIONAL
AND PUBLIC NOTIFICATION 
AFTER ENTERING INTO A COMPACT.—Not later than 10 
days after entering into a Compact with an eligible coun-
try, the Board, acting through the Chief Executive Offi-
cer— 
(1) shall provide notification of the Compact to 
the appropriate congressional committees, including 
a detailed summary of the Compact and a copy of 
the text of the Compact; and 
(2) shall publish such detailed summary and 
the text of the Compact in the Federal Register and 
on the Internet website of the Corporation. 
SEC. 11. SUSPENSION AND TERMINATION OF ASSISTANCE. 
(a) SUSPENSION
AND TERMINATION
OF ASSIST-
ANCE.—After consultation with the Board, the Chief Ex-
ecutive Officer may suspend or terminate assistance in 
whole or in part for a country or entity under section 5 
if the Chief Executive Officer determines that—
(1) the country or entity is engaged in activities 
which are contrary to the national security interests 
of the United States; 
(2) the country or entity has engaged in a pat-
tern of actions inconsistent with the criteria used to 
determine the eligibility of the country or entity, as 
the case may be; or 
(3) the country or entity has failed to adhere to 
its responsibilities under the Compact. 
(b) REINSTATEMENT.—The Chief Executive Officer 
may reinstate assistance for a country or entity under sec-
tion 5 only if the Chief Executive Officer determines that 
the country or entity has demonstrated a commitment to 
correcting each condition for which assistance was sus-
pended or terminated under subsection (a). 
(c) CONGRESSIONAL NOTIFICATION.—Not later than 
3 days after the date on which the Chief Executive Officer 
suspends or terminates assistance under subsection (a) for 
a country or entity, or reinstates assistance under sub-
section (b) for a country or entity, the Chief Executive 
Officer shall submit to the appropriate congressional com-
mittees a report that contains the determination of the 
Chief Executive Officer under subsection (a) or subsection 
(b), as the case may be.
(d) RULE OF CONSTRUCTION.—The authority to sus-
pend or terminate assistance under this section includes 
the authority to suspend or terminate obligations and sub- 
obligations. 
SEC. 12. DISCLOSURE. 
(a) REQUIREMENT FOR DISCLOSURE.—The Corpora-
tion shall make available to the public on at least a quar-
terly basis, the following information: 
(1) For assistance provided under section 5— 
(A) the name of each entity to which as-
sistance is provided; 
(B) the amount of assistance provided to 
the entity; and 
(C) a description of the program or 
project, including— 
(i) a description of whether the pro-
gram or project was solicited or unsolic-
ited; and 
(ii) a detailed description of the objec-
tives and measures for results of the pro-
gram or project. 
(2) For funds allocated or transferred under 
section 19(b)—
(A) the name of each United States Gov-
ernment agency to which such funds are trans-
ferred or allocated; 
(B) the amount of funds transferred or al-
located to such agency; and 
(C) a description of the program or project 
to be carried out by such agency with such 
funds. 
(b) DISSEMINATION.—The information required to be 
disclosed under subsection (a) shall be made available to 
the public by means of publication in the Federal Register 
and on the Internet website of the Corporation, as well 
as by any other methods that the Board determines appro-
priate. 
SEC. 13. ANNUAL REPORT. 
(a) REPORT.—Not later than March 31, 2007, and 
each March 31 thereafter, the President shall submit to 
Congress a report on the assistance provided under section 
5 during the prior fiscal year. 
(b) CONTENTS.—The report shall include the fol-
lowing: 
(1) The amount of obligations and expenditures 
for assistance provided to each eligible country dur-
ing the prior fiscal year.