819 
PROHIBITION ON ASSISTANCE TO GOVERNMENTS 
SUPPORTING INTERNATIONAL TERRORISM 
SEC. 7021. (a) LETHAL MILITARY EQUIPMENT EX-
PORTS.— 
(1) PROHIBITION.—None of the funds appro-
priated or otherwise made available under titles III 
through VI of this Act may be made available to any 
foreign government which provides lethal military 
equipment to a country the government of which the 
Secretary of State has determined supports inter-
national terrorism for purposes of section 6(j) of the 
Export Administration Act of 1979 as continued in 
effect pursuant to the International Emergency Eco-
nomic Powers Act: Provided, That the prohibition 
under this section with respect to a foreign govern-
ment shall terminate 12 months after that govern-
ment ceases to provide such military equipment: 
Provided further, That this section applies with re-
spect to lethal military equipment provided under a 
contract entered into after October 1, 1997. 
(2) DETERMINATION.—Assistance restricted by 
paragraph (1) or any other similar provision of law, 
may be furnished if the President determines that to 
do so is important to the national interest of the 
United States.
820 
(3) REPORT.—Whenever the President makes a 
determination pursuant to paragraph (2), the Presi-
dent shall submit to the Committees on Appropria-
tions a report with respect to the furnishing of such 
assistance, including a detailed explanation of the 
assistance to be provided, the estimated dollar 
amount of such assistance, and an explanation of 
how the assistance furthers United States national 
interest. 
(b) BILATERAL ASSISTANCE.— 
(1) LIMITATIONS.—Funds appropriated for bi-
lateral assistance in titles III through VI of this Act 
and funds appropriated under any such title in prior 
Acts making appropriations for the Department of 
State, foreign operations, and related programs, 
shall not be made available to any foreign govern-
ment which the President determines— 
(A) grants sanctuary from prosecution to 
any individual or group which has committed 
an act of international terrorism; 
(B) otherwise supports international ter-
rorism; or 
(C) is controlled by an organization des-
ignated as a terrorist organization under sec-
821 
tion 219 of the Immigration and Nationality 
Act (8 U.S.C. 1189). 
(2) WAIVER.—The President may waive the ap-
plication of paragraph (1) to a government if the 
President determines that national security or hu-
manitarian reasons justify such waiver: Provided, 
That the President shall publish each such waiver in 
the Federal Register and, at least 15 days before the 
waiver takes effect, shall notify the Committees on 
Appropriations of the waiver (including the justifica-
tion for the waiver) in accordance with the regular 
notification procedures of the Committees on Appro-
priations. 
AUTHORIZATION REQUIREMENTS 
SEC. 7022. Funds appropriated by this Act, except 
funds appropriated under the heading ‘‘Trade and Devel-
opment Agency’’, may be obligated and expended notwith-
standing section 10 of Public Law 91–672 (22 U.S.C. 
2412), section 15 of the State Department Basic Authori-
ties Act of 1956 (22 U.S.C. 2680), section 313 of the For-
eign Relations Authorization Act, Fiscal Years 1994 and 
1995 (22 U.S.C. 6212), and section 504(a)(1) of the Na-
tional Security Act of 1947 (50 U.S.C. 3094(a)(1)).
822 
DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY 
SEC. 7023. For the purpose of titles II through VI 
of this Act ‘‘program, project, and activity’’ shall be de-
fined at the appropriations Act account level and shall in-
clude all appropriations and authorizations Acts funding 
directives, ceilings, and limitations with the exception that 
for the following accounts: ‘‘Economic Support Fund’’, 
‘‘Assistance for Europe, Eurasia and Central Asia’’, and 
‘‘Foreign Military Financing Program’’, ‘‘program, 
project, and activity’’ shall also be considered to include 
country, regional, and central program level funding with-
in each such account; and for the development assistance 
accounts of the United States Agency for International 
Development, ‘‘program, project, and activity’’ shall also 
be considered to include central, country, regional, and 
program level funding, either as— 
(1) justified to Congress; or 
(2) allocated by the Executive Branch in ac-
cordance with a report, to be provided to the Com-
mittees on Appropriations within 30 days after en-
actment of this Act, as required by section 653(a) 
of the Foreign Assistance Act of 1961 or as modi-
fied pursuant to section 7019 of this Act.
823 
AUTHORITIES FOR THE PEACE CORPS, INTER-AMERICAN 
FOUNDATION AND UNITED STATES AFRICAN DEVEL-
OPMENT FOUNDATION 
SEC. 7024. Unless expressly provided to the contrary, 
provisions of this or any other Act, including provisions 
contained in prior Acts authorizing or making appropria-
tions for the Department of State, foreign operations, and 
related programs, shall not be construed to prohibit activi-
ties authorized by or conducted under the Peace Corps 
Act, the Inter-American Foundation Act or the African 
Development Foundation Act: Provided, That prior to con-
ducting activities in a country for which assistance is pro-
hibited, the agency shall consult with the Committees on 
Appropriations and report to such Committees within 15 
days of taking such action. 
COMMERCE, TRADE AND SURPLUS COMMODITIES 
SEC. 7025. (a) WORLD MARKETS.—None of the 
funds appropriated or made available pursuant to titles 
III through VI of this Act for direct assistance and none 
of the funds otherwise made available to the Export-Im-
port Bank and the Overseas Private Investment Corpora-
tion shall be obligated or expended to finance any loan, 
any assistance, or any other financial commitments for es-
tablishing or expanding production of any commodity for 
export by any country other than the United States, if
824 
the commodity is likely to be in surplus on world markets 
at the time the resulting productive capacity is expected 
to become operative and if the assistance will cause sub-
stantial 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 Appropria-
tions: Provided further, That this subsection shall not pro-
hibit— 
(1) activities in a country that is eligible for as-
sistance from the International Development Asso-
ciation, is not eligible for assistance from the Inter-
national Bank for Reconstruction and Development, 
and does not export on a consistent basis the agri-
cultural commodity with respect to which assistance 
is furnished; or 
(2) activities in a country the President deter-
mines is recovering from widespread conflict, a hu-
manitarian crisis, or a complex emergency. 
(b) EXPORTS.—None of the funds appropriated by 
this or any other Act to carry out chapter 1 of part I
825 
of the Foreign Assistance Act of 1961 shall be available 
for any testing or breeding feasibility study, variety im-
provement or introduction, consultancy, publication, con-
ference, or training in connection with the growth or pro-
duction in a foreign country of an agricultural commodity 
for export which would compete with a similar commodity 
grown or produced 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; 
(2) research activities intended primarily to 
benefit United States producers; 
(3) activities in a country that is eligible for as-
sistance from the International Development Asso-
ciation, is not eligible for assistance from the Inter-
national Bank for Reconstruction and Development, 
and does not export on a consistent basis the agri-
cultural commodity with respect to which assistance 
is furnished; or 
(4) activities in a country the President deter-
mines is recovering from widespread conflict, a hu-
manitarian crisis, or a complex emergency.
826 
(c) INTERNATIONAL FINANCIAL INSTITUTIONS.— 
The Secretary of the Treasury shall instruct the United 
States executive directors of the international financial in-
stitutions to use the voice and vote of the United States 
to oppose any assistance by such institutions, using funds 
appropriated or made available by this Act, for the produc-
tion 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. 
SEPARATE ACCOUNTS 
SEC. 7026. (a) SEPARATE ACCOUNTS FOR LOCAL 
CURRENCIES.— 
(1) AGREEMENTS.—If assistance is furnished to 
the government of a foreign country under chapters 
1 and 10 of part I or chapter 4 of part II of the 
Foreign Assistance Act of 1961 under agreements 
which result in the generation of local currencies of 
that country, the Administrator of the United States 
Agency for International Development shall— 
(A) require that local currencies be depos-
ited in a separate account established by that 
government; 
(B) enter into an agreement with that gov-
ernment which sets forth—
827 
(i) the amount of the local currencies 
to be generated; and 
(ii) the terms and conditions under 
which the currencies so deposited may be 
utilized, consistent with this section; and 
(C) establish by agreement with that gov-
ernment the responsibilities of USAID and that 
government to monitor and account for deposits 
into and disbursements from the separate ac-
count. 
(2) USES OF LOCAL CURRENCIES.—As may be 
agreed upon with the foreign government, local cur-
rencies deposited in a separate account pursuant to 
subsection (a), or an equivalent amount of local cur-
rencies, shall be used only— 
(A) to carry out chapter 1 or 10 of part 
I or chapter 4 of part II of the Foreign Assist-
ance Act of 1961 (as the case may be), for such 
purposes as— 
(i) project and sector assistance activi-
ties; or 
(ii) debt and deficit financing; or 
(B) for the administrative requirements of 
the United States Government.
828 
(3) PROGRAMMING ACCOUNTABILITY.—USAID 
shall take all necessary steps to ensure that the 
equivalent of the local currencies disbursed pursuant 
to subsection (a)(2)(A) from the separate account 
established pursuant to subsection (a)(1) are used 
for the purposes agreed upon pursuant to subsection 
(a)(2). 
(4) 
TERMINATION
OF
ASSISTANCE
PRO-
GRAMS.—Upon termination of assistance to a coun-
try under chapter 1 or 10 of part I or chapter 4 of 
part II of the Foreign Assistance Act of 1961 (as 
the case may be), any unencumbered balances of 
funds which remain in a separate account estab-
lished pursuant to subsection (a) shall be disposed of 
for such purposes as may be agreed to by the gov-
ernment of that country and the United States Gov-
ernment. 
(5) REPORT.—The USAID Administrator shall 
report as part of the congressional budget justifica-
tion submitted to the Committees on Appropriations 
on the use of local currencies for the administrative 
requirements of the United States Government as 
authorized in subsection (a)(2)(B), and such report 
shall include the amount of local currency (and
829 
United States dollar equivalent) used or to be used 
for such purpose in each applicable country. 
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.— 
(1) IN GENERAL.—If assistance is made avail-
able to the government of a foreign country, under 
chapter 1 or 10 of part I or chapter 4 of part II of 
the Foreign Assistance Act of 1961, as cash transfer 
assistance or as nonproject sector assistance, that 
country shall be required to maintain such funds in 
a separate account and not commingle with any 
other funds. 
(2) APPLICABILITY OF OTHER PROVISIONS OF 
LAW.—Such funds may be obligated and expended 
notwithstanding provisions of law which are incon-
sistent with the nature of this assistance including 
provisions which are referenced in the Joint Explan-
atory Statement of the Committee of Conference ac-
companying House Joint Resolution 648 (House Re-
port No. 98–1159). 
(3) NOTIFICATION.—At least 15 days prior to 
obligating any such cash transfer or nonproject sec-
tor assistance, the President shall submit a notifica-
tion through the regular notification procedures of 
the Committees on Appropriations, which shall in-
clude a detailed description of how the funds pro-
830 
posed to be made available will be used, with a dis-
cussion of the United States interests that will be 
served by such assistance (including, as appropriate, 
a description of the economic policy reforms that will 
be promoted by such assistance). 
(4) EXEMPTION.—Nonproject sector assistance 
funds may be exempt from the requirements of para-
graph (1) only through the regular notification pro-
cedures of the Committees on Appropriations. 
ELIGIBILITY FOR ASSISTANCE 
SEC. 7027. (a) ASSISTANCE THROUGH NONGOVERN-
MENTAL ORGANIZATIONS.—Restrictions contained in this 
or any other Act with respect to assistance for a country 
shall not be construed to restrict assistance in support of 
programs of nongovernmental organizations from funds 
appropriated by this Act to carry out the provisions of 
chapters 1, 10, 11, and 12 of part I and chapter 4 of 
part II of the Foreign Assistance Act of 1961 and from 
funds appropriated under the heading ‘‘Assistance for Eu-
rope, Eurasia and Central Asia’’: Provided, That before 
using the authority of this subsection to furnish assistance 
in support of programs of nongovernmental organizations, 
the President shall notify the Committees on Appropria-
tions pursuant to the regular notification procedures, in-
cluding a description of the program to be assisted, the
832 
LOCAL COMPETITION 
SEC. 7028. (a) REQUIREMENTS FOR EXCEPTIONS TO 
COMPETITION
FOR
LOCAL
ENTITIES.—Funds appro-
priated by this Act that are made available to the United 
States Agency for International Development may only be 
made available for limited competitions through local enti-
ties if— 
(1) prior to the determination to limit competi-
tion to local entities, USAID has— 
(A) assessed the level of local capacity to 
effectively implement, manage, and account for 
programs included in such competition; and 
(B) documented the written results of the 
assessment and decisions made; and 
(2) prior to making an award after limiting 
competition to local entities— 
(A) each successful local entity has been 
determined to be responsible in accordance with 
USAID guidelines; and 
(B) effective monitoring and evaluation 
systems are in place to ensure that award fund-
ing is used for its intended purposes; and 
(3) no level of acceptable fraud is assumed. 
(b) REPORT.—In addition to the requirements of sub-
section (a)(1), the USAID Administrator shall report to
833 
the appropriate congressional committees not later than 
45 days after the end of fiscal year 2019 on all awards 
subject to limited or no competition for local entities: Pro-
vided, That such report shall be posted on the USAID 
website: Provided further, That the requirements of this 
subsection shall only apply to awards in excess of 
$3,000,000 and sole source awards to local entities in ex-
cess of $2,000,000. 
(c) EXTENSION OF PROCUREMENT AUTHORITY.— 
Section 7077 of the Department of State, Foreign Oper-
ations, and Related Programs Appropriations Act, 2012 
(division I of Public Law 112–74) shall continue in effect 
during fiscal year 2019. 
INTERNATIONAL FINANCIAL INSTITUTIONS 
SEC. 7029. (a) EVALUATIONS AND REPORT.—The 
Secretary of the Treasury shall instruct the United States 
executive director of each international financial institu-
tion to seek to require that such institution adopts and 
implements a publicly available policy, including the stra-
tegic use of peer reviews and external experts, to conduct 
independent, in-depth evaluations of the effectiveness of 
at least 25 percent of all loans, grants, programs, and sig-
nificant analytical non-lending activities in advancing the 
institution’s goals of reducing poverty and promoting equi-
table economic growth, consistent with relevant safe-
834 
guards, to ensure that decisions to support such loans, 
grants, programs, and activities are based on accurate 
data and objective analysis: Provided, That not later than 
45 days after enactment of this Act, the Secretary shall 
submit a report to the Committees on Appropriations on 
steps taken in fiscal year 2018 by the United States execu-
tive directors and the international financial institutions 
consistent with this subsection compared to the previous 
fiscal year. 
(b) SAFEGUARDS.— 
(1) The Secretary of the Treasury shall instruct 
the United States Executive Director of the Inter-
national Bank for Reconstruction and Development 
and the International Development Association to 
vote against any loan, grant, policy, or strategy if 
such institution has adopted and is implementing 
any social or environmental safeguard relevant to 
such loan, grant, policy, or strategy that provides 
less protection than World Bank safeguards in effect 
on September 30, 2015. 
(2) The Secretary of the Treasury should in-
struct the United States executive director of each 
international financial institution to vote against 
loans or other financing for projects unless such 
projects—
835 
(A) provide for accountability and trans-
parency, including the collection, verification 
and publication of beneficial ownership informa-
tion related to extractive industries and on-site 
monitoring during the life of the project; 
(B) will be developed and carried out in ac-
cordance with best practices regarding environ-
mental conservation; cultural protection; and 
empowerment of local populations, including 
free, prior and informed consent of affected in-
digenous communities; 
(C) do not provide incentives for, or facili-
tate, forced displacement; and 
(D) do not partner with or otherwise in-
volve enterprises owned or controlled by the 
armed forces. 
(c) COMPENSATION.—None of the funds appro-
priated under title V of this Act may be made as payment 
to any international financial institution while the United 
States executive director to such institution is com-
pensated by the institution at a rate which, together with 
whatever compensation such executive director receives 
from the United States, is in excess of the rate provided 
for an individual occupying a position at level IV of the 
Executive Schedule under section 5315 of title 5, United
836 
States Code, or while any alternate United States execu-
tive director to such institution is compensated by the in-
stitution at a rate in excess of the rate provided for an 
individual occupying a position at level V of the Executive 
Schedule under section 5316 of title 5, United States 
Code. 
(d) HUMAN RIGHTS.—The Secretary of the Treasury 
shall instruct the United States executive director of each 
international financial institution to promote human 
rights due diligence and risk management, as appropriate, 
in connection with any loan, grant, policy, or strategy of 
such institution in accordance with the criteria specified 
under this subsection in Senate report 115-282: Provided, 
That prior to voting on any such loan, grant, policy, or 
strategy the executive director shall consult with the As-
sistant Secretary for Democracy, Human Rights, and 
Labor, Department of State, if the executive director has 
reason to believe that such loan, grant, policy, or strategy 
could result in forced displacement or other violation of 
human rights. 
(e) FRAUD AND CORRUPTION.—The Secretary of the 
Treasury shall instruct the United States executive direc-
tor of each international financial institution to promote 
in loan, grant, and other financing agreements improve-
ments in borrowing countries’ financial management and
837 
judicial capacity to investigate, prosecute, and punish 
fraud and corruption. 
(f) BENEFICIAL OWNERSHIP INFORMATION.—The 
Secretary of the Treasury shall instruct the United States 
executive director of each international financial institu-
tion to seek to require that such institution collects, 
verifies, and publishes, to the maximum extent practicable, 
beneficial ownership information (excluding proprietary 
information) for any corporation or limited liability com-
pany, other than a publicly listed company, that receives 
funds from any such financial institution: Provided, That 
not later than 45 days after enactment of this Act, the 
Secretary shall submit a report to the Committees on Ap-
propriations on steps taken in fiscal year 2018 by the 
United States executive directors and the international fi-
nancial institutions consistent with this subsection com-
pared to the previous fiscal year. 
(g) WHISTLEBLOWER PROTECTIONS.—The Secretary 
of the Treasury shall instruct the United States executive 
director of each international financial institution to seek 
to require that each such institution is effectively imple-
menting and enforcing policies and procedures which re-
flect best practices for the protection of whistleblowers 
from retaliation, including best practices for—
838 
(1) protection against retaliation for internal 
and lawful public disclosure; 
(2) legal burdens of proof; 
(3) statutes of limitation for reporting retalia-
tion; 
(4) access to independent adjudicative bodies, 
including external arbitration; and 
(5) results that eliminate the effects of proven 
retaliation. 
DEBT-FOR-DEVELOPMENT 
SEC. 7030. 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 
may place in interest bearing accounts local currencies 
which accrue to that organization as a result of economic 
assistance provided under title III of this Act and, subject 
to the regular notification procedures of the Committees 
on Appropriations, any interest earned on such investment 
shall be used for the purpose for which the assistance was 
provided to that organization. 
FINANCIAL MANAGEMENT AND BUDGET TRANSPARENCY 
SEC. 7031. (a) LIMITATION ON DIRECT GOVERN-
MENT-TO-GOVERNMENT ASSISTANCE.—
839 
(1) REQUIREMENTS.—Funds appropriated by 
this Act may be made available for direct govern-
ment-to-government assistance only if— 
(A)(i) each implementing agency or min-
istry to receive assistance has been assessed 
and is considered to have the systems required 
to manage such assistance and any identified 
vulnerabilities or weaknesses of such agency or 
ministry have been addressed; 
(ii) the recipient agency or ministry em-
ploys and utilizes staff with the necessary tech-
nical, financial, and management capabilities; 
(iii) the recipient agency or ministry has 
adopted competitive procurement policies and 
systems; 
(iv) effective monitoring and evaluation 
systems are in place to ensure that such assist-
ance is used for its intended purposes; 
(v) no level of acceptable fraud is assumed; 
and 
(vi) the government of the recipient coun-
try is taking steps to publicly disclose on an an-
nual basis its national budget, to include in-
come and expenditures, that are in addition to 
steps taken in the previous calendar year;
840 
(B) the recipient government is in compli-
ance with the principles set forth in section 
7013 of this Act; 
(C) the recipient agency or ministry is not 
headed or controlled by an organization des-
ignated as a foreign terrorist organization 
under section 219 of the Immigration and Na-
tionality Act (8 U.S.C. 1189); 
(D) the Government of the United States 
and the government of the recipient country 
have agreed, in writing, on clear and achievable 
objectives for the use of such assistance, which 
should be made available on a cost-reimbursable 
basis; and 
(E) the recipient government is taking 
steps to protect the rights of civil society, in-
cluding freedoms of expression, association, and 
assembly. 
(2) CONSULTATION
AND
NOTIFICATION.—In 
addition to the requirements in paragraph (1), no 
funds may be made available for direct government- 
to-government assistance without prior consultation 
with, and notification of, the Committees on Appro-
priations: Provided, That such notification shall con-
tain an explanation of how the proposed activity
841 
meets the requirements of paragraph (1): Provided 
further, That the requirements of this paragraph 
shall only apply to direct government-to-government 
assistance in excess of $10,000,000 and all funds 
available for cash transfer, budget support, and cash 
payments to individuals. 
(3) SUSPENSION OF ASSISTANCE.—The Admin-
istrator of the United States Agency for Inter-
national Development or the Secretary of State, as 
appropriate, shall suspend any direct government-to- 
government assistance if the Administrator or the 
Secretary has credible information of material mis-
use of such assistance, unless the Administrator or 
the Secretary reports to the Committees on Appro-
priations that it is in the national interest of the 
United States to continue such assistance, including 
a justification, or that such misuse has been appro-
priately addressed. 
(4) SUBMISSION OF INFORMATION.—The Sec-
retary of State shall submit to the Committees on 
Appropriations, concurrent with the fiscal year 2020 
congressional budget justification materials, amounts 
planned for assistance described in paragraph (1) by 
country, proposed funding amount, source of funds, 
and type of assistance.
842 
(5) REPORT.—Not later than 90 days after en-
actment of this Act and every 6 months thereafter 
until September 30, 2020, the USAID Adminis-
trator shall submit to the Committees on Appropria-
tions a report that— 
(A) details all assistance described in para-
graph (1) provided during the previous 6-month 
period by country, funding amount, source of 
funds, and type of such assistance; and 
(B) the type of procurement instrument or 
mechanism utilized and whether the assistance 
was provided on a reimbursable basis. 
(6) DEBT SERVICE PAYMENT PROHIBITION.— 
None of the funds made available by this Act may 
be used by the government of any foreign country 
for debt service payments owed by any country to 
any international financial institution. 
(b) NATIONAL BUDGET
AND CONTRACT TRANS-
PARENCY.— 
(1) 
MINIMUM
REQUIREMENTS
OF
FISCAL 
TRANSPARENCY.—The Secretary of State shall con-
tinue to update and strengthen the ‘‘minimum re-
quirements of fiscal transparency’’ for each govern-
ment receiving assistance appropriated by this Act, 
as identified in the report required by section
843 
7031(b) of the Department of State, Foreign Oper-
ations, and Related Programs Appropriations Act, 
2014 (division K of Public Law 113–76). 
(2) DEFINITION.—For purposes of paragraph 
(1), ‘‘minimum requirements of fiscal transparency’’ 
are requirements consistent with those in subsection 
(a)(1), and the public disclosure of national budget 
documentation (to include receipts and expenditures 
by ministry) and government contracts and licenses 
for natural resource extraction (to include bidding 
and concession allocation practices). 
(3) DETERMINATION AND REPORT.—For each 
government identified pursuant to paragraph (1), 
the Secretary of State, not later than 180 days after 
enactment of this Act, shall make or update any de-
termination of ‘‘significant progress’’ or ‘‘no signifi-
cant progress’’ in meeting the minimum require-
ments of fiscal transparency, and make such deter-
minations publicly available in an annual ‘‘Fiscal 
Transparency Report’’ to be posted on the Depart-
ment of State website: Provided, That the Secretary 
shall identify the significant progress made by each 
such government to publicly disclose national budget 
documentation, contracts, and licenses which are ad-
ditional to such information disclosed in previous fis-