SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Section 108 of the National Security Act of 
1947 (50 U.S.C. 404a) requires that the President 
shall transmit to Congress each year a comprehen-
sive report on the national security strategy of the 
United States at the same time that the President 
submits the budget for the following fiscal year 
under section 1105 of title 31, United States Code. 
(2) The national security strategy report sets 
forth the national security strategy of the United 
States and includes a comprehensive description and 
discussion of the worldwide interests, goals, and ob-
jectives of the United States that are vital to the na-
tional security of the United States and also the pro-
posed short-term and long-term uses of the political, 
economic, military, and other elements of the na-
tional power of the United States to protect or pro-
mote United States national security interests. 
(3) The Government Performance and Results 
Act of 1993 (Public Law 103–62) requires United 
States Government departments and agencies to set 
goals, measure performance, report on their accom-
plishments, establish long-term strategic goals as 
well as annual goals, define clear missions and de-
sired outcomes, measure performance as a means of 
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gauging progress, and utilize performance informa-
tion as a basis for decisionmaking. 
(4) Under the administration of President 
George W. Bush and in accordance with the Govern-
ment Performance and Results Act of 1993, all 
United States Government departments and agen-
cies were required to conduct performance-based 
budgeting and planning as guided by the Office of 
Management and Budget’s Program Assessment 
Rating Tool (PART), in order to ensure more accu-
rate assessment of program performance and to 
drive a sustained focus on program results. 
(5) In January 2006, Secretary of State 
Condoleezza Rice stated that the United States for-
eign assistance structure risks incoherent policies, 
ineffective programs, and wasted resources when 
spending is not strategically tied to overarching 
United States goals. 
(6) The Department of State and the United 
States 
Agency 
for 
International 
Development 
(USAID) developed a Joint Strategic Plan for Fiscal 
Years 2007–2012, which outlines strategic goals 
shared by both agencies, and implemented a joint 
Department of State-USAID foreign assistance 
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budget process starting with the fiscal year 2008 
budget request. 
(7) In 2008, the Department of State approved 
plans for new Department of State-USAID Country 
Assistance Strategies that would take a comprehen-
sive approach by including the efforts of all United 
States agencies providing foreign assistance in a 
country and by including an overall strategic ap-
proach for such foreign assistance. 
(8) The Department of State and USAID have 
participated in a pilot performance-reporting pro-
gram launched by the Office of Budget and Manage-
ment aimed at streamlining Federal agency report-
ing while retaining ongoing efforts to directly inte-
grate budget and performance planning and report-
ing. 
(9) USAID seeks to apply ‘‘performance man-
agement’’ by implementing a five-step strategic man-
agement process that includes mission performance 
plans, the Department of State and USAID Joint 
Strategic Plan, annual reports, a performance and 
accountability report, agency policy frameworks, and 
bureau strategic frameworks. 
(10) In the report entitled ‘‘Foreign Aid Re-
form: Comprehensive Strategy, Interagency Coordi-
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nation, and Operational Improvements Would Bol-
ster Current Efforts’’, the Government Account-
ability Office found that, until the Department of 
State develops and implements a comprehensive, in-
tegrated United States foreign assistance strategy, it 
will lack assurance that programs are strategically 
tied to overarching United States goals and that, by 
basing its annual operational plans and Country As-
sistance Strategies on a standardized program struc-
ture, the Department of State was, in fact, attempt-
ing to tie its planning and budgeting to strategic 
foreign policy objectives. 
SEC. 3. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1) under the direction of the President, the 
Secretary of State and the Administrator of the 
United States Agency for International Development 
(USAID) should, to the maximum extent prac-
ticable, make funding decisions on the basis of a 
long-term strategy that addresses national security, 
diplomatic, and foreign assistance objectives and 
needs of the United States; and 
(2) while steps already taken towards perform-
ance management and budgeting by the Department 
of State and USAID are commendable, there re-
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mains a need for budget requests for the Depart-
ment of State, USAID, and other foreign affairs 
agencies to be more effectively integrated with na-
tional security objectives and program evaluation 
and management. 
SEC. 4. REPORT ON LONG-TERM STRATEGIES FOR UNITED 
STATES NATIONAL SECURITY, DIPLOMACY, 
AND FOREIGN ASSISTANCE. 
(a) REPORT REQUIRED.—On the date on which the 
President transmits to Congress the comprehensive report 
on the national security strategy of the United States 
under section 108 of the National Security Act of 1947 
and the budget for the following fiscal year under section 
1105 of title 31, United States Code, the President shall 
transmit to the Congress a comprehensive report on— 
(1) the organizational structures of the Depart-
ment of State, the United States Agency for Inter-
national Development (USAID), and other foreign 
affairs agencies; and 
(2) the extent to which the organizational struc-
tures of such departments and agencies and United 
States foreign assistance programs, budget plans, 
personnel decisions, and public diplomacy are related 
to a long-term strategy that advances national secu-
rity objectives and needs of the United States. 
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(b) MATTERS TO BE INCLUDED.—The report re-
quired by subsection (a) shall include the following: 
(1) An outline of the Department of State’s and 
USAID’s staffing and operation of United States 
embassies, consulates, and missions abroad and 
staffing and operation of the Department of State’s 
and USAID’s headquarters and other offices in the 
United States and an analysis of how decisions relat-
ing to organization, staffing, and operations relate to 
and advance specific objectives of the national secu-
rity strategy of the United States. 
(2) A review of the means through which co-
operation is ensured between the Department of 
State and USAID and the Departments of Defense, 
Homeland Security, Treasury, and Commerce and 
the Office of the United States Trade Representa-
tive, the Drug Enforcement Agency, and United 
States intelligence agencies. 
(3) An explanation of the scenarios for possible 
United States responses to crisis management and 
long-term policy challenges and of the processes by 
which the Department of State develops such sce-
narios. 
(4) Recommendations for improving the proc-
esses by which the Department of State develops 
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scenarios for possible United States responses to cri-
sis management and long-term policy challenges in 
order to incorporate nontraditional threat planning 
circumstances and input from other Federal depart-
ments and agencies and nongovernmental organiza-
tions. 
(c) ADDITIONAL MATTERS TO BE INCLUDED.—With 
respect to each foreign assistance funding request of the 
Department of State, USAID, and other foreign affairs 
agencies contained in the budget for the following fiscal 
year under section 1105 of title 31, United States Code, 
the report required by subsection (a) shall include the fol-
lowing: 
(1) The short-term and long-term justification 
for the funding request. 
(2) In the case of a funding request for a new 
program, project, or activity or an increased funding 
request of an existing program, project, or activity, 
a comprehensive explanation of how and the extent 
to which the new or increased funding will meet the 
requirements of this section. 
SEC. 5. REORGANIZATION OF CERTAIN DEPARTMENT OF 
STATE AND USAID OFFICES AND BUREAUS. 
(a) REORGANIZATION.—In furtherance of the objec-
tives and requirements of this Act, the President shall 
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take such actions as are necessary to integrate the offices 
and bureaus described in subsection (b) into a single office 
in the Department of State to be known as the Office of 
Long-Term Planning and Resource Management. 
(b) OFFICES AND BUREAUS DESCRIBED.—The of-
fices and bureaus described in this subsection shall include 
the following: 
(1) The Office of Policy Planning, the Office of 
Resource Management, and the Office of the Direc-
tor of Foreign Assistance of the Department of 
State. 
(2) The Bureau of Budget/Performance/Ac-
countability of the United States Agency for Inter-
national Development. 
SEC. 6. REPORT ON PERFORMANCE-BASED BUDGETING BY 
THE DEPARTMENT OF STATE, USAID, AND 
OTHER FOREIGN AFFAIRS AGENCIES. 
(a) REPORT REQUIRED.—On the date on which the 
President transmits to Congress the comprehensive report 
on the national security strategy of the United States 
under section 108 of the National Security Act of 1947, 
the budget for the following fiscal year under section 1105 
of title 31, United States Code, and the report required 
by section 4 of this Act, the Comptroller General of the 
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United States shall submit to the specified congressional 
committees a report on— 
(1) uses by the Department of State, the 
United States Agency for International Develop-
ment, and other foreign affairs agencies of perform-
ance-based or performance management budgeting 
with 
respect 
to 
foreign 
assistance 
programs, 
projects, and activities; 
(2) the relation of such performance-based or 
performance management budgeting to the require-
ments under the Government Performance and Re-
sults Act of 1993 and the requirements under this 
Act; and 
(3) recommendations for improving such per-
formance-based or performance management budg-
eting. 
(b) SPECIFIED CONGRESSIONAL COMMITTEES.—The 
congressional committees specified in subsection (a) are— 
(1) the Committee on Foreign Affairs and the 
Committee on Appropriations of the House of Rep-
resentatives; and 
(2) the Committee on Foreign Relations and 
the Committee on Appropriations of the Senate. 
Æ 
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