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States Code, or while any alternate United States Director
to such institution is compensated by the institution at a
rate in excess of the rate provided for an individual occu-
pying a position at level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(b) For purposes of this section ‘‘international finan-
cial institutions’’ are: the International Bank for Recon-
struction and Development, the Inter-American Develop-
ment Bank, the Asian Development Bank, the Asian Devel-
opment Fund, the African Development Bank, the African
Development Fund, the International Monetary Fund, the
North American Development Bank, and the European
Bank for Reconstruction and Development.
RESTRICTIONS ON VOLUNTARY CONTRIBUTIONS TO UNITED
NATIONS AGENCIES
SEC. 6002. None of the funds appropriated by this Act
may be made available to pay any voluntary contribution
of the United States to the United Nations (including the
United Nations Development Program) if the United Na-
tions implements or imposes any taxation on any United
States persons.
LIMITATION ON RESIDENCE EXPENSES
SEC. 6003. Of the funds appropriated or made avail-
able pursuant to this Act, not to exceed $100,500 shall be
for official residence expenses of the United States Agency
for International Development during the current fiscal
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year: Provided, That appropriate steps shall be taken to as-
sure that, to the maximum extent possible, United States-
owned foreign currencies are utilized in lieu of dollars.
LIMITATION ON EXPENSES
SEC. 6004. None of the funds appropriated or made
available pursuant to this Act may be used for entertain-
ment expenses of the United States Agency for International
Development.
LIMITATION ON REPRESENTATIONAL ALLOWANCES
SEC. 6005. Of the funds appropriated or made avail-
able pursuant to this Act, not to exceed $250,000 shall be
available for representation allowances for the United
States Agency for International Development during the
current fiscal year: Provided, That appropriate steps shall
be taken to assure that, to the maximum extent possible,
United States-owned foreign currencies are utilized in lieu
of dollars: Provided further, That of the funds made avail-
able by this Act for general costs of administering military
assistance and sales under the heading ‘‘Foreign Military
Financing Program’’, not to exceed $4,000 shall be avail-
able for entertainment expenses and not to exceed $130,000
shall be available for representation allowances: Provided
further, That of the funds made available by this Act under
the heading ‘‘International Military Education and Train-
ing’’, not to exceed $55,000 shall be available for entertain-
ment allowances: Provided further, That of the funds made
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available by this Act for the Inter-American Foundation,
not to exceed $2,000 shall be available for entertainment
and representation allowances: Provided further, That of
the funds made available by this Act for the Peace Corps,
not to exceed a total of $4,000 shall be available for enter-
tainment expenses: Provided further, That of the funds
made available by this Act under the heading ‘‘Trade and
Development Agency’’, not to exceed $4,000 shall be avail-
able for representation and entertainment allowances: Pro-
vided further, That of the funds made available by this Act
under the heading ‘‘Millennium Challenge Corporation’’,
not to exceed $115,000 shall be available for representation
and entertainment allowances.
PROHIBITION ON TAXATION OF UNITED STATES
ASSISTANCE
SEC. 6006. (a) PROHIBITION ON TAXATION.—None of
the funds appropriated by this Act may be made available
to provide assistance for a foreign country under a new bi-
lateral agreement governing the terms and conditions under
which such assistance is to be provided unless such agree-
ment includes a provision stating that assistance provided
by the United States shall be exempt from taxation, or reim-
bursed, by the foreign government, and the Secretary of
State shall expeditiously seek to negotiate amendments to
existing bilateral agreements, as necessary, to conform with
this requirement.
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(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.
(e) DETERMINATIONS.—
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(1) The provisions of this section shall not apply
to any country or entity the Secretary of State
determines—
(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
for programs for which funds are appropriated by
this Act; and
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(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: Provided further, That for purposes of this
section, the prohibition shall not include activities of the
Overseas Private Investment Corporation in Libya.
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
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date on which the availability of such funds would other-
wise have expired, if such funds are initially obligated be-
fore the expiration of their respective periods of availability
contained in this Act: Provided further, That, notwith-
standing any other provision of this Act, any funds made
available for the purposes of chapter 1 of part I and chapter
4 of part II of the Foreign Assistance Act of 1961 which
are allocated or obligated for cash disbursements in order
to address balance of payments or economic policy reform
objectives, shall remain available until expended.
LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT
SEC. 6012. No part of any appropriation contained
in this Act shall be used to furnish assistance to the govern-
ment 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 gov-
ernment of such country by the United States pursuant to
a program for which funds are appropriated under this Act
unless the President determines, following consultations
with the Committees on Appropriations, that assistance to
such country is in the national interest of the United States.
COMMERCE AND TRADE
SEC. 6013. (a) None of the funds appropriated or made
available pursuant to this Act for direct assistance and
none of the funds otherwise made available pursuant to this
Act to the Export-Import Bank and the Overseas Private
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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 ca-
pacity 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 Committees on Appropriations.
(b) None of the funds appropriated by this or any other
Act to carry out chapter 1 of part I of the Foreign Assist-
ance Act of 1961 shall be available for any testing or breed-
ing feasibility study, variety improvement or introduction,
consultancy, publication, conference, or training in connec-
tion with the growth or production in a foreign country
of an agricultural commodity for export which would com-
pete with a similar commodity grown or produced in the
United States: Provided, That this subsection shall not
prohibit—
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(1) activities designed to increase food security
in developing countries where such activities will not
have a significant impact on the export of agricul-
tural commodities of the United States; or
(2) research activities intended primarily to ben-
efit American producers.
SURPLUS COMMODITIES
SEC. 6014. The Secretary of the Treasury shall in-
struct the United States Executive Directors of the Inter-
national Bank for Reconstruction and Development, the
International Development Association, the International
Finance Corporation, the Inter-American Development
Bank, the International Monetary Fund, the Asian Devel-
opment Bank, the Inter-American Investment Corporation,
the North American Development Bank, the European
Bank for Reconstruction and Development, the African De-
velopment Bank, and the African Development Fund to use
the voice and vote of the United States to oppose any assist-
ance by these institutions, using funds appropriated or
made available pursuant to 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 substantial injury to United States producers of the
same, similar, or competing commodity.
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NOTIFICATION REQUIREMENTS
SEC. 6015. For the purposes of providing the executive
branch with the necessary administrative flexibility, none
of the funds made available under this Act for ‘‘Child Sur-
vival and Health Programs Fund’’, ‘‘Development Assist-
ance’’, ‘‘International Organizations and Programs’’,
‘‘Trade and Development Agency’’, ‘‘International Nar-
cotics 
Control 
and 
Law 
Enforcement’’, 
‘‘Andean
Counterdrug Initiative’’, ‘‘Assistance for Eastern Europe
and the Baltic States’’, ‘‘Assistance for the Independent
States of the Former Soviet Union’’, ‘‘Economic Support
Fund’’, 
‘‘Global 
HIV/AIDS 
Initiative’’, 
‘‘Democracy
Fund’’, ‘‘Peacekeeping Operations’’, ‘‘Capital Investment
Fund’’, ‘‘Operating Expenses of the United States Agency
for International Development’’, ‘‘Operating Expenses of
the United States Agency for International Development
Office of Inspector General’’, ‘‘Nonproliferation, Anti-ter-
rorism, Demining and Related Programs’’, ‘‘Millennium
Challenge Corporation’’ (by country only), ‘‘Foreign Mili-
tary Financing Program’’, ‘‘International Military Edu-
cation and Training’’, ‘‘Peace Corps’’, and ‘‘Migration and
Refugee Assistance’’, shall be available for obligation for ac-
tivities, programs, projects, type of materiel assistance,
countries, or other operations not justified or in excess of
the amount justified to the Committees on Appropriations