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to implement the prohibition against the taxation of assist-
ance contained in this section. 
(f) 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 
(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 
privileges and immunities applicable to United 
States foreign assistance for such country generally, 
or an individual agreement between the Government 
of the United States and such government that de-
scribes, among other things, the treatment for tax 
purposes that will be accorded the United States as-
sistance provided under that agreement. 
PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN 
COUNTRIES 
SEC. 507. 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
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on obligations or expenditures shall include direct loans, 
credits, insurance and guarantees of the Export-Import 
Bank or its agents. 
MILITARY COUPS 
SEC. 508. None of the funds appropriated or other-
wise made available pursuant to this Act shall be obligated 
or expended to finance directly any assistance to the gov-
ernment of any country whose duly elected head of govern-
ment is deposed by decree or military coup: Provided, That 
assistance may be resumed to such government if the 
President determines and certifies to the Committees on 
Appropriations that subsequent to the termination of as-
sistance a democratically elected government has taken of-
fice: Provided further, That the provisions of this section 
shall not apply to assistance to promote democratic elec-
tions or public participation in democratic processes: Pro-
vided further, That funds made available pursuant to the 
previous provisos shall be subject to the regular notifica-
tion procedures of the Committees on Appropriations. 
TRANSFERS 
SEC. 509. (a)(1) LIMITATION ON TRANSFERS BE-
TWEEN AGENCIES.—None of the funds made available by 
this Act may be transferred to any department, agency, 
or instrumentality of the United States Government, ex-
cept pursuant to a transfer made by, or transfer authority 
provided in, this Act or any other appropriation Act.
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(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 Govern-
ment pursuant to the provisions of sections 109, 610, and 
632 of the Foreign Assistance Act of 1961. 
(b) None of the funds made available by this Act may 
be obligated under an appropriation account to which they 
were not appropriated, except for transfers specifically 
provided for in this Act, unless the President, not less than 
five days prior to the exercise of any authority contained 
in the Foreign Assistance Act of 1961 to transfer funds, 
consults with and provides a written policy justification 
to the Committees on Appropriations of the House of Rep-
resentatives and the Senate. 
(c) Any agreement for the transfer or allocation of 
funds appropriated by this Act, or prior Acts, entered into 
between the United States Agency for International Devel-
opment and another agency of the United States Govern-
ment 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 agency receiving the transfer or allocation 
of such funds shall perform periodic program and financial
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audits of the use of such funds: Provided, That funds 
transferred under such authority may be made available 
for the cost of such audits. 
COMMERCIAL LEASING OF DEFENSE ARTICLES 
SEC. 510. Notwithstanding any other provision of 
law, and subject to the regular notification procedures of 
the Committees on Appropriations, the authority of sec-
tion 23(a) of the Arms Export Control Act may be used 
to provide financing to Israel, Egypt and NATO and 
major non-NATO allies for the procurement by leasing 
(including leasing with an option to purchase) of defense 
articles from United States commercial suppliers, not in-
cluding Major Defense Equipment (other than helicopters 
and other types of aircraft having possible civilian applica-
tion), if the President determines that there are compel-
ling foreign policy or national security reasons for those 
defense articles being provided by commercial lease rather 
than by government-to-government sale under such Act. 
AVAILABILITY OF FUNDS 
SEC. 511. No part of any appropriation contained in 
this Act shall remain available for obligation after the ex-
piration of the current fiscal year unless expressly so pro-
vided in this Act: Provided, That funds appropriated for 
the purposes of chapters 1, 8, 11, and 12 of part I, section 
667, chapter 4 of part II of the Foreign Assistance Act 
of 1961, as amended, section 23 of the Arms Export Con-
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trol Act, and funds provided under the heading ‘‘Assist-
ance for Eastern Europe and the Baltic States’’, shall re-
main available for an additional four years from the date 
on which the availability of such funds would otherwise 
have expired, if such funds are initially obligated before 
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 chap-
ter 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. 512. 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 one 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 consulta-
tions with the Committees on Appropriations, that assist-
ance to such country is in the national interest of the 
United States.
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COMMERCE AND TRADE 
SEC. 513. (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 Investment Corporation shall be obligated or ex-
pended to finance any loan, any assistance or any other 
financial commitments for establishing or expanding pro-
duction 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 pro-
ductive 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 Ex-
port-Import Bank if in the judgment of its Board of Direc-
tors 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 com-
modity, 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 
Assistance Act of 1961 shall be available for any testing 
or breeding feasibility study, variety improvement or intro-
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duction, consultancy, publication, conference, or training 
in connection with the growth or production in a foreign 
country of an agricultural commodity for export which 
would compete with a similar commodity grown or pro-
duced in the United States: Provided, That this subsection 
shall not prohibit—
(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 
benefit American producers. 
SURPLUS COMMODITIES 
SEC. 514. 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 Corpora-
tion, the North American Development Bank, the Euro-
pean Bank for Reconstruction and Development, the Afri-
can Development Bank, and the African Development 
Fund to use the voice and vote of the United States to 
oppose any assistance by these institutions, using funds 
appropriated or made available pursuant to this Act, for
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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. 
NOTIFICATION REQUIREMENTS 
SEC. 515. 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’’, ‘‘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 Account’’ (by country only), ‘‘Foreign Military 
Financing Program’’, ‘‘International Military Education 
and Training’’, ‘‘Peace Corps’’, and ‘‘Migration and Ref-
ugee Assistance’’, shall be available for obligation for ac-
tivities, programs, projects, type of materiel assistance,
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countries, or other operations not justified or in excess of 
the amount justified to the Committees on Appropriations 
for obligation under any of these specific headings unless 
the Committees on Appropriations of both Houses of Con-
gress are previously notified 15 days in advance: Provided, 
That the President shall not enter into any commitment 
of funds appropriated for the purposes of section 23 of 
the Arms Export Control Act for the provision of major 
defense equipment, other than conventional ammunition, 
or other major defense items defined to be aircraft, ships, 
missiles, or combat vehicles, not previously justified to 
Congress or 20 percent in excess of the quantities justified 
to Congress unless the Committees on Appropriations are 
notified 15 days in advance of such commitment: Provided 
further, That this section shall not apply to any re-
programming for an activity, program, or project for 
which funds are appropriated under Title II of this Act 
of less than 10 percent of the amount previously justified 
to the Congress for obligation for such activity, program, 
or project for the current fiscal year: Provided further, 
That the requirements of this section or any similar provi-
sion of this Act or any other Act, including any prior Act 
requiring notification in accordance with the regular noti-
fication procedures of the Committees on Appropriations, 
may be waived if failure to do so would pose a substantial
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risk to human health or welfare: Provided further, That 
in case of any such waiver, notification to the Congress, 
or the appropriate congressional committees, shall be pro-
vided as early as practicable, but in no event later than 
3 days after taking the action to which such notification 
requirement was applicable, in the context of the cir-
cumstances necessitating such waiver: Provided further, 
That any notification provided pursuant to such a waiver 
shall contain an explanation of the emergency cir-
cumstances. 
LIMITATION ON AVAILABILITY OF FUNDS FOR 
INTERNATIONAL ORGANIZATIONS AND PROGRAMS 
SEC. 516. Subject to the regular notification proce-
dures of the Committees on Appropriations, funds appro-
priated under this Act or any previously enacted Act mak-
ing appropriations for foreign operations, export financ-
ing, and related programs, which are returned or not made 
available for organizations and programs because of the 
implementation of section 307(a) of the Foreign Assist-
ance Act of 1961, shall remain available for obligation 
until September 30, 2005. 
INDEPENDENT STATES OF THE FORMER SOVIET UNION 
SEC. 517. (a) None of the funds appropriated under 
the heading ‘‘Assistance for the Independent States of the 
Former Soviet Union’’ shall be made available for assist-
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ance for a government of an Independent State of the 
former Soviet Union—
(1) unless that government is making progress 
in implementing comprehensive economic reforms 
based on market principles, private ownership, re-
spect for commercial contracts, and equitable treat-
ment of foreign private investment; and 
(2) if that government applies or transfers 
United States assistance to any entity for the pur-
pose of expropriating or seizing ownership or control 
of assets, investments, or ventures. 
Assistance may be furnished without regard to this sub-
section if the President determines that to do so is in the 
national interest. 
(b) None of the funds appropriated under the heading 
‘‘Assistance for the Independent States of the Former So-
viet Union’’ shall be made available for assistance for a 
government of an Independent State of the former Soviet 
Union if that government directs any action in violation 
of the territorial integrity or national sovereignty of any 
other Independent State of the former Soviet Union, such 
as those violations included in the Helsinki Final Act: Pro-
vided, That such funds may be made available without re-
gard to the restriction in this subsection if the President
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determines that to do so is in the national security interest 
of the United States. 
(c) None of the funds appropriated under the heading 
‘‘Assistance for the Independent States of the Former So-
viet Union’’ shall be made available for any state to en-
hance its military capability: Provided, That this restric-
tion does not apply to demilitarization, demining or non-
proliferation programs. 
(d) Funds appropriated under the heading ‘‘Assist-
ance for the Independent States of the Former Soviet 
Union’’ for the Russian Federation, Armenia, Georgia, 
and Ukraine shall be subject to the regular notification 
procedures of the Committees on Appropriations. 
(e) Funds made available in this Act for assistance 
for the Independent States of the former Soviet Union 
shall be subject to the provisions of section 117 (relating 
to environment and natural resources) of the Foreign As-
sistance Act of 1961. 
(f) Funds made available for Enterprise Funds shall 
be expended at the minimum rate necessary to make time-
ly payment for projects and activities. 
(g) In issuing new task orders, entering into con-
tracts, or making grants, with funds appropriated in this 
Act or prior appropriations Acts under the heading ‘‘As-
sistance for the Independent States of the Former Soviet
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Union’’ and under comparable headings in prior appro-
priations Acts, for projects or activities that have as one 
of their primary purposes the fostering of private sector 
development, the Coordinator for United States Assistance 
to the New Independent States and the implementing 
agency shall encourage the participation of and give sig-
nificant weight to contractors and grantees who propose 
investing a significant amount of their own resources (in-
cluding volunteer services and in-kind contributions) in 
such projects and activities. 
PROHIBITION ON FUNDING FOR ABORTIONS AND 
INVOLUNTARY STERILIZATION 
SEC. 518. None of the funds made available to carry 
out part I of the Foreign Assistance Act of 1961, as 
amended, may be used to pay for the performance of abor-
tions as a method of family planning or to motivate or 
coerce any person to practice abortions. None of the funds 
made available to carry out part I of the Foreign Assist-
ance Act of 1961, as amended, may be used to pay for 
the performance of involuntary sterilization as a method 
of family planning or to coerce or provide any financial 
incentive to any person to undergo sterilizations. None of 
the funds made available to carry out part I of the Foreign 
Assistance Act of 1961, as amended, may be used to pay 
for any biomedical research which relates in whole or in 
part, to methods of, or the performance of, abortions or
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involuntary sterilization as a means of family planning. 
None of the funds made available to carry out part I of 
the Foreign Assistance Act of 1961, as amended, may be 
obligated or expended for any country or organization if 
the President certifies that the use of these funds by any 
such country or organization would violate any of the 
above provisions related to abortions and involuntary steri-
lizations. 
EXPORT FINANCING TRANSFER AUTHORITIES 
SEC. 519. Not to exceed 5 percent of any appropria-
tion other than for administrative expenses made available 
for fiscal year 2004, for programs under title I of this 
Act may be transferred between such appropriations for 
use for any of the purposes, programs, and activities for 
which the funds in such receiving account may be used, 
but no such appropriation, except as otherwise specifically 
provided, shall be increased by more than 25 percent by 
any such transfer: Provided, That the exercise of such au-
thority shall be subject to the regular notification proce-
dures of the Committees on Appropriations. 
SPECIAL NOTIFICATION REQUIREMENTS 
SEC. 520. None of the funds appropriated by this Act 
shall be obligated or expended for Liberia, Sudan, 
Zimbabwe, the Democratic Republic of the Congo, or 
Cambodia except as provided through the regular notifica-
tion procedures of the Committees on Appropriations.
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DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY 
SEC. 521. For the purpose of this Act, ‘‘program, 
project, and activity’’ shall be defined at the appropria-
tions Act account level and shall include all appropriations 
and authorizations Acts earmarks, ceilings, and limita-
tions with the exception that for the following accounts: 
Economic Support Fund and Foreign Military Financing 
Program, ‘‘program, project, and activity’’ shall also be 
considered to include country, regional, and central pro-
gram level funding within each such account; for the devel-
opment assistance accounts of the United States Agency 
for International Development ‘‘program, project, and ac-
tivity’’ shall also be considered to include central, country, 
regional, and program level funding, either as: (1) justified 
to the Congress; or (2) allocated by the executive branch 
in accordance with a report, to be provided to the Commit-
tees on Appropriations within 30 days of the enactment 
of this Act, as required by section 653(a) of the Foreign 
Assistance Act of 1961. 
CHILD SURVIVAL AND HEALTH ACTIVITIES 
SEC. 522. Up to $13,500,000 of the funds made 
available by this Act for assistance under the heading 
‘‘Child Survival and Health Programs Fund’’, may be 
used to reimburse United States Government agencies, 
agencies of State governments, institutions of higher 
learning, and private and voluntary organizations for the
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full cost of individuals (including for the personal services 
of such individuals) detailed or assigned to, or contracted 
by, as the case may be, the United States Agency for 
International Development for the purpose of carrying out 
activities under that heading: Provided, That up to 
$3,500,000 of the funds made available by this Act for 
assistance under the heading ‘‘Development Assistance’’ 
may be used to reimburse such agencies, institutions, and 
organizations for such costs of such individuals carrying 
out other development assistance activities: Provided fur-
ther, That funds appropriated by this Act that are made 
available for child survival activities or disease programs 
including activities relating to research on, and the preven-
tion, treatment and control of, HIV/AIDS may be made 
available notwithstanding any other provision of law ex-
cept for the provisions under the heading ‘‘Child Survival 
and Health Programs Fund’’, section 515 of this Act, and 
sections 104(c), 104A, 104B, and 104C of the Foreign 
Assistance Act of 1961: Provided further, That funds ap-
propriated under titles II and III of this Act may be made 
available pursuant to section 301 of the Foreign Assist-
ance Act of 1961 if a primary purpose of the assistance 
is for child survival and related programs. 
AFGHANISTAN 
SEC. 523. Of the funds appropriated by titles II and 
III of this Act, not less than $600,000,000 shall be made
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available for humanitarian, reconstruction, and related as-
sistance for Afghanistan: Provided, That of the funds 
made available pursuant to this section, not less than 
$150,000,000 should be from funds appropriated under 
the heading ‘‘Economic Support Fund’’. 
NOTIFICATION ON EXCESS DEFENSE EQUIPMENT 
SEC. 524. Prior to providing excess Department of 
Defense articles in accordance with section 516(a) of the 
Foreign Assistance Act of 1961, the Department of De-
fense shall notify the Committees on Appropriations to the 
same extent and under the same conditions as are other 
committees pursuant to subsection (f) of that section: Pro-
vided, That before issuing a letter of offer to sell excess 
defense articles under the Arms Export Control Act, the 
Department of Defense shall notify the Committees on 
Appropriations in accordance with the regular notification 
procedures of such Committees if such defense articles are 
significant military equipment (as defined in section 47(9) 
of the Arms Export Control Act) or are valued (in terms 
of original acquisition cost) at $7,000,000 or more, or if 
notification is required elsewhere in this Act for the use 
of appropriated funds for specific countries that would re-
ceive such excess defense articles: Provided further, That 
such Committees shall also be informed of the original ac-
quisition cost of such defense articles.
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USAID OVERSEAS PROGRAM 
SEC. 525. Funds appropriated by this and subse-
quent appropriations Acts to carry out the provisions of 
Part I of the Foreign Assistance Act of 1961, including 
funds appropriated under the heading ‘‘Assistance for 
Eastern Europe and the Baltic States’’, may be made 
available to employ individuals overseas on a limited ap-
pointment basis pursuant to the authority of sections 308 
and 309 of the Foreign Service Act of 1980: Provided, 
That in fiscal year 2004 the authority of this section may 
be used to employ not more than 85 individuals. 
TIBET 
SEC. 526. Notwithstanding any other provision of law 
not to exceed $3,000,000 of the funds appropriated by this 
Act to carry out the provisions of chapter 4 of part II 
of the Foreign Assistance Act of 1961 may be made avail-
able to United States nongovernmental organizations lo-
cated outside the People’s Republic of China to support 
activities which preserve cultural traditions and promote 
sustainable development and environmental conservation 
in Tibetan communities in Tibet: Provided, That funds 
made available for programs, projects, and activities for 
the Peoples’s Republic of China shall be subject to the 
regular notification procedures of the Committees on Ap-
propriations.
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PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST 
COUNTRIES 
SEC. 527. (a) Funds appropriated for bilateral assist-
ance under any heading of this Act and funds appro-
priated under any such heading in a provision of law en-
acted prior to the enactment of this Act, shall not be made 
available to any country which the President determines—
(1) grants sanctuary from prosecution to any 
individual or group which has committed an act of 
international terrorism; or 
(2) otherwise supports international terrorism. 
(b) The President may waive the application of sub-
section (a) to a country if the President determines that 
national security or humanitarian reasons justify such 
waiver. The President shall publish each waiver in the 
Federal Register and, at least 15 days before the waiver 
takes effect, shall notify the Committees on Appropria-
tions of the waiver (including the justification for the waiv-
er) in accordance with the regular notification procedures 
of the Committees on Appropriations. 
DEBT-FOR-DEVELOPMENT 
SEC. 528. In order to enhance the continued partici-
pation of nongovernmental organizations in debt-for-devel-
opment and debt-for-nature exchanges, a nongovern-
mental organization which is a grantee or contractor of 
the United States Agency for International Development