H. R. 2029—526 
which are authorized to be provided: Provided, That amounts 
made available under this paragraph for the costs of such 
guarantees shall not be considered assistance for the purposes 
of provisions of law limiting assistance to a country. 
(2) ENTERPRISE
FUNDS.—Funds appropriated under the 
heading ‘‘Economic Support Fund’’ in this Act may be made 
available to establish and operate one or more enterprise funds 
for Egypt and Tunisia: Provided, That the first, third and 
fifth provisos under section 7041(b) of the Department of State, 
Foreign Operations, and Related Programs Appropriations Act, 
2012 (division I of Public Law 112–74) shall apply to funds 
appropriated by this Act under the heading ‘‘Economic Support 
Fund’’ for an enterprise fund or funds to the same extent 
and in the same manner as such provision of law applied 
to funds made available under such section (except that the 
clause excluding subsection (d)(3) of section 201 of the SEED 
Act shall not apply): Provided further, That in addition to 
the previous proviso, the authorities in the matter preceding 
the first proviso of such section may apply to any such enter-
prise fund or funds: Provided further, That the authority of 
any such enterprise fund or funds to provide assistance shall 
cease to be effective on December 31, 2026. 
(3) CONSULTATION AND NOTIFICATION.—Funds made avail-
able by this subsection shall be subject to prior consultation 
with the appropriate congressional committees, and subject to 
the regular notification procedures of the Committees on Appro-
priations. 
(p) ASSESSMENT OF INDIRECT COSTS.—Not later than 90 days 
after enactment of this Act and following consultation with the 
Committees on Appropriations, the Secretary of State and the 
Administrator of the United States Agency for International 
Development (USAID) shall submit to such Committees an assess-
ment of the effectiveness of current policies and procedures in 
ensuring that payments for indirect costs, including for negotiated 
indirect cost rate agreements (NICRA), are reasonable and comply 
with the Federal Acquisition Regulations (FAR), as applicable, and 
title 2, part 200 of the Code of Federal Regulations (CFR); an 
assessment of potential benefits of setting a cap on such indirect 
costs to ensure the cost-effective use of appropriated funds; a plan 
to revise such policies and procedures to strengthen compliance 
with the FAR and CFR and ensure that indirect costs are reason-
able; and a timeline for implementing such plan. 
(q) SMALL GRANTS AND ENTITIES.— 
(1) Of the funds appropriated by this Act under the 
headings ‘‘Development Assistance’’ and ‘‘Economic Support 
Fund’’, not less than $45,000,000 shall be made available for 
the Small Grants Program pursuant to section 7080 of the 
Department of State, Foreign Operations, and Related Pro-
grams Appropriations Act, 2015 (division J of Public Law 113– 
235), as amended by this Act, which may remain available 
until September 30, 2020. 
(2) Not later than 45 days after enactment of this Act, 
the Administrator of the United States Agency for International 
Development (USAID) shall post on the USAID Web site 
detailed information describing the process by which small 
nongovernmental organizations, educational institutions, and 
other small entities seeking funding from USAID for unsolicited
H. R. 2029—527 
proposals through grants, cooperative agreements, and other 
assistance mechanisms and agreements, can apply for such 
funding: Provided, That the USAID Administrator should 
ensure that each bureau, office, and overseas mission has 
authority to approve, and sufficient funds to implement, such 
grants or other agreements that meet appropriate criteria for 
unsolicited proposals. 
(3) Section 7080 of Public Law 113–235 is amended as 
follows: 
(A) in subsections (b) and (c), strike ‘‘Grants’’, and 
insert ‘‘Awards’’; 
(B) in subsection (c)(1), delete ‘‘or’’ after ‘‘proposals;’’; 
(C) in subsection (c)(2) delete the period after ‘‘process’’, 
and insert ‘‘; or’’; 
(D) after subsection (c)(2), insert ‘‘(3) as otherwise 
allowable under Federal Acquisition Regulations and 
USAID procurement policies.’’; and 
(E) in subsection (e)(3), strike ‘‘12’’, and insert ‘‘20’’, 
and strike ‘‘administrative and oversight expenses associ-
ated with managing’’ and insert ‘‘administrative expenses, 
and other necessary support associated with managing and 
strengthening’’. 
(4) For the purposes of section 7080 of Public Law 113– 
235, ‘‘eligible entities’’ shall be defined as small local, inter-
national, and United States-based nongovernmental organiza-
tions, educational institutions, and other small entities that 
have received less than a total of $5,000,000 in USAID funding 
over the previous five years: Provided, That departments or 
centers of such educational institutions may be considered 
individually in determining such eligibility. 
(r) DEFINITIONS.— 
(1) Unless otherwise defined in this Act, for purposes of 
this Act the term ‘‘appropriate congressional committees’’ shall 
mean the Committees on Appropriations and Foreign Relations 
of the Senate and the Committees on Appropriations and For-
eign Affairs of the House of Representatives. 
(2) Unless otherwise defined in this Act, for purposes of 
this Act the term ‘‘funds appropriated in this Act and prior 
Acts making appropriations for the Department of State, foreign 
operations, and related programs’’ shall mean funds that 
remain available for obligation, and have not expired. 
(3) For the purposes of this Act ‘‘international financial 
institutions’’ shall mean the International Bank for Reconstruc-
tion and Development, the International Development Associa-
tion, the International Finance Corporation, the Inter-American 
Development Bank, the International Monetary Fund, the 
Asian Development Bank, the Asian Development Fund, the 
Inter-American Investment Corporation, the North American 
Development Bank, the European Bank for Reconstruction and 
Development, the African Development Bank, the African 
Development Fund, and the Multilateral Investment Guarantee 
Agency. 
(4) Any reference to Southern Kordofan in this or any 
other Act making appropriations for the Department of State, 
foreign operations, and related programs shall be deemed to 
include portions of Western Kordofan that were previously part
H. R. 2029—528 
of Southern Kordofan prior to the 2013 division of Southern 
Kordofan. 
ARAB LEAGUE BOYCOTT OF ISRAEL 
SEC. 7035. It is the sense of the Congress that— 
(1) the Arab League boycott of Israel, and the secondary 
boycott of American firms that have commercial ties with Israel, 
is an impediment to peace in the region and to United States 
investment and trade in the Middle East and North Africa; 
(2) the Arab League boycott, which was regrettably 
reinstated in 1997, should be immediately and publicly termi-
nated, and the Central Office for the Boycott of Israel imme-
diately disbanded; 
(3) all Arab League states should normalize relations with 
their neighbor Israel; 
(4) the President and the Secretary of State should continue 
to vigorously oppose the Arab League boycott of Israel and 
find concrete steps to demonstrate that opposition by, for 
example, taking into consideration the participation of any 
recipient country in the boycott when determining to sell 
weapons to said country; and 
(5) the President should report to Congress annually on 
specific steps being taken by the United States to encourage 
Arab League states to normalize their relations with Israel 
to bring about the termination of the Arab League boycott 
of Israel, including those to encourage allies and trading part-
ners of the United States to enact laws prohibiting businesses 
from complying with the boycott and penalizing businesses 
that do comply. 
PALESTINIAN STATEHOOD 
SEC. 7036. (a) LIMITATION ON ASSISTANCE.—None of the funds 
appropriated under titles III through VI of this Act may be provided 
to support a Palestinian state unless the Secretary of State deter-
mines and certifies to the appropriate congressional committees 
that— 
(1) the governing entity of a new Palestinian state— 
(A) has demonstrated a firm commitment to peaceful 
co-existence with the State of Israel; and 
(B) is taking appropriate measures to counter terrorism 
and terrorist financing in the West Bank and Gaza, 
including the dismantling of terrorist infrastructures, and 
is cooperating with appropriate Israeli and other appro-
priate security organizations; and 
(2) the Palestinian Authority (or the governing entity of 
a new Palestinian state) is working with other countries in 
the region to vigorously pursue efforts to establish a just, 
lasting, and comprehensive peace in the Middle East that will 
enable Israel and an independent Palestinian state to exist 
within the context of full and normal relationships, which 
should include— 
(A) termination of all claims or states of belligerency; 
(B) respect for and acknowledgment of the sovereignty, 
territorial integrity, and political independence of every 
state in the area through measures including the establish-
ment of demilitarized zones;
H. R. 2029—529 
(C) their right to live in peace within secure and recog-
nized boundaries free from threats or acts of force; 
(D) freedom of navigation through international water-
ways in the area; and 
(E) a framework for achieving a just settlement of 
the refugee problem. 
(b) SENSE
OF CONGRESS.—It is the sense of Congress that 
the governing entity should enact a constitution assuring the rule 
of law, an independent judiciary, and respect for human rights 
for its citizens, and should enact other laws and regulations 
assuring transparent and accountable governance. 
(c) WAIVER.—The President may waive subsection (a) if the 
President determines that it is important to the national security 
interest of the United States to do so. 
(d) EXEMPTION.—The restriction in subsection (a) shall not 
apply to assistance intended to help reform the Palestinian 
Authority and affiliated institutions, or the governing entity, in 
order to help meet the requirements of subsection (a), consistent 
with the provisions of section 7040 of this Act (‘‘Limitation on 
Assistance for the Palestinian Authority’’). 
RESTRICTIONS CONCERNING THE PALESTINIAN AUTHORITY 
SEC. 7037. None of the funds appropriated under titles II 
through VI of this Act may be obligated or expended to create 
in any part of Jerusalem a new office of any department or agency 
of the United States Government for the purpose of conducting 
official United States Government business with the Palestinian 
Authority over Gaza and Jericho or any successor Palestinian gov-
erning entity provided for in the Israel-PLO Declaration of Prin-
ciples: Provided, That this restriction shall not apply to the acquisi-
tion of additional space for the existing Consulate General in Jeru-
salem: Provided further, That meetings between officers and 
employees of the United States and officials of the Palestinian 
Authority, or any successor Palestinian governing entity provided 
for in the Israel-PLO Declaration of Principles, for the purpose 
of conducting official United States Government business with such 
authority should continue to take place in locations other than 
Jerusalem: Provided further, That as has been true in the past, 
officers and employees of the United States Government may con-
tinue to meet in Jerusalem on other subjects with Palestinians 
(including those who now occupy positions in the Palestinian 
Authority), have social contacts, and have incidental discussions. 
PROHIBITION ON ASSISTANCE TO THE PALESTINIAN BROADCASTING 
CORPORATION 
SEC. 7038. None of the funds appropriated or otherwise made 
available by this Act may be used to provide equipment, technical 
support, consulting services, or any other form of assistance to 
the Palestinian Broadcasting Corporation. 
ASSISTANCE FOR THE WEST BANK AND GAZA 
SEC. 7039. (a) OVERSIGHT.—For fiscal year 2016, 30 days prior 
to the initial obligation of funds for the bilateral West Bank and 
Gaza Program, the Secretary of State shall certify to the Commit-
tees on Appropriations that procedures have been established to