(6) Education is a key element of the efforts of 
the United States to promote political, economic, 
and social reform in Arab and predominantly Mus-
lim countries, and is one of the main components of 
the Middle East Partnership Initiative. 
(7) As active, vibrant institutions, American-
sponsored schools play a vital role in their local com-
munities, and help advance public diplomacy inter-
ests of the United States. 
(8) The Department of State currently provides 
funds to American-sponsored schools amounting 
only, on average, to between one and two percent of 
their annual operating expenses. 
(9) The United States has an interest in in-
creasing the level of financial support provided to 
American-sponsored schools in Arab and predomi-
nantly Muslim countries, in order to—
(A) increase the number of students in 
such countries who attend such schools; and 
(B) increase the number of young people 
who may thereby gain at any early age an ap-
preciation for the culture, society, and history 
of the United States. 
(10) The United States has an interest in in-
creasing the number of students in Arab and pre-
dominately Muslim countries who attend American-
sponsored schools beyond those from affluent fami-
lies who are able to afford the cost of tuition, to in-
clude children from lower- and middle-income fami-
lies who otherwise might not be able to afford to at-
tend such schools. 
(11) Many American-sponsored schools have the 
capacity to increase the number of students who at-
tend such schools. 
(12) The Department of State has legal author-
ity under the Mutual Educational and Cultural Ex-
change Act of 1961 (22 U.S.C. 2451 et seq.) (com-
monly referred to as the Fulbright-Hays Act) to pro-
vide increased financial support for American-spon-
sored schools. 
SEC. 3. SENSE OF CONGRESS. 
It is the sense of Congress that, based on the findings 
contained in section 2, additional funds should be made 
available to American-sponsored schools in Arab and pre-
dominately Muslim countries to provide full or partial 
merit-based scholarships to children from lower- and mid-
dle-income families of such countries to attend such 
schools.
SEC. 4. GRANTS TO AMERICAN-SPONSORED SCHOOLS IN 
ARAB AND OTHER PREDOMINANTLY MUSLIM 
COUNTRIES TO PROVIDE SCHOLARSHIPS TO 
STUDENTS. 
(a) GRANTS AUTHORIZED.—The Secretary of State, 
acting through the Director of the Office of Overseas 
Schools of the Department of State, may make grants to 
American-sponsored schools in Arab and predominantly 
Muslim countries for the purpose of providing full or par-
tial merit-based scholarships to students from lower- and 
middle-income families of such countries to attend such 
schools. 
(b) DETERMINATION OF ELIGIBLE STUDENTS.—For 
purposes of expending grant funds, an American-spon-
sored school that receives a grant under subsection (a) is 
authorized to establish criteria to be implemented by such 
school to determine what constitutes lower- and middle-
income families in the country (or region of the country, 
if regional variations in income levels in the country are 
significant) in which such school is located. 
(c) RESTRICTION ON USE OF FUNDS.—Amounts ap-
propriated to the Secretary of State pursuant to the au-
thorization of appropriations in subsection (c) shall be 
used for the sole purpose of making grants under this sec-
tion, and may not be used for the administration of the
Office of Overseas Schools of the Department of State or 
any other activity of the Office. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated for each of fiscal years 
2005 and 2006, $15,000,000 to carry out subsection (a).
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