I
103D CONGRESS
2D SESSION
H. R. 3775
To achieve budget savings by reducing spending by the Agency for
International Development for development assistance.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 2, 1994
Mr. INGLIS of South Carolina introduced the following bill; which was referred
to the Committee on Foreign Affairs
A BILL
To achieve budget savings by reducing spending by the Agen-
cy for International Development for development assist-
ance.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Agency for Inter-
national Development Efficiency and Effectiveness Act of
1994’’.
SEC. 2. REDUCTIONS IN SPENDING FOR DEVELOPMENT AS-
SISTANCE 
BY 
THE 
AGENCY 
FOR 
INTER-
NATIONAL DEVELOPMENT.
For fiscal years 1995 through 1999, budget authority
and outlays for development assistance shall be less than
the CBO baseline by at least the following amounts:
(1) FISCAL YEAR 1995.—For fiscal year 1995,
budget authority shall be at least $580,000,000 less
and outlays shall be at least $40,000,000 less.
(2) FISCAL YEAR 1996.—For fiscal year 1996,
budget authority shall be at least $600,000,000 less
and outlays shall be at least $290,000,000 less.
(3) FISCAL YEAR 1997.—For fiscal year 1997,
budget authority shall be at least $610,000,000 less
and outlays shall be at least $430,000,000 less.
(4) FISCAL YEAR 1998.—For fiscal year 1998,
budget authority shall be at least $630,000,000 less
and outlays shall be at least $500,000,000 less.
(5) FISCAL YEAR 1999.—For fiscal year 1999,
budget authority shall be at least $640,000,000 less
and outlays shall be at least $560,000,000 less.
SEC. 3. STEPS TO IMPLEMENT REDUCTIONS.
(a) IN GENERAL.—To achieve the budget savings
provided for in section 2, the Agency for International De-
velopment shall narrow its focus and fund fewer develop-
ment assistance projects and activities. This shall be ac-
complished—
(1) by funding only projects and activities that
have objectives that are more attainable than the
numerous objectives that are specified in the provi-
sions of law in effect on the date of enactment of
this Act; and
(2) by funding only projects and activities that
are in the countries that are most likely to benefit
from such development assistance.
(b) REDUCTION IN NUMBER OF RECIPIENT COUN-
TRIES.—
(1) IN
GENERAL.—The Agency for Inter-
national Development shall target development as-
sistance to lower income countries that have eco-
nomic policies designed to encourage growth through
free markets and trade, thereby reducing the num-
ber of countries that receive development assistance
from that agency to approximately 60.
(2) INELIGIBLE COUNTRIES.—The Agency for
International Development may not provide develop-
ment assistance for—
(A) middle income countries, or
(B) lower income countries where develop-
ment assistance has not shown results.
(c) REDUCTION IN NUMBER OF OBJECTIVES.—
(1) IN
GENERAL.—The Agency for Inter-
national Development may provide development as-
sistance only for projects and activities that focus on
alleviating poverty and promoting economic develop-
ment.
(2) TERMINATION
OF
HOUSING
INVESTMENT
GUARANTY PROGRAM.—Guaranties may not be is-
sued under sections 221 and 222 of the Foreign As-
sistance Act of 1961 after September 30, 1994.
(3) TRANSFER OF RESPONSIBILITY FOR OTHER
PROGRAMS TO OTHER AGENCIES.—(A) The Presi-
dent shall transfer responsibility for administering
all development assistance programs that have an
objective other than alleviating poverty and promot-
ing economic development from the Agency for
International Development to an agency of the Unit-
ed States Government whose mission is closer to
that objective.
(B) In carrying out subparagraph (B), the
President—
(i) shall transfer private sector activities
from the Agency for International Development
to the Overseas Private Investment Corpora-
tion; and
(ii) shall transfer responsibility for environ-
mental protection activities in developing coun-
tries to the Environmental Protection Agency.
(4) TRANSFERRED PROGRAMS.—(A) The head
of each agency to which responsibility for a program
is transferred pursuant to paragraph (3) shall deter-
mine, nothwithstanding any other provision of law—
(i) which such programs shall be contin-
ued, and
(ii) what policies and authorities shall be
applicable to any such program that is contin-
ued.
(B) Programs which are transferred from the
Agency for International Development to another
agency pursuant to paragraph (3) and continued
pursuant to subparagraph (A)(i) of this paragraph
shall be carried out by that agency with funds ap-
propriated for that agency rather than with develop-
ment assistance funds or other funds in budget
function 150 (international affairs).
(d) EXISTING PROVISIONS SUPERSEDED.—To the
extent necessary to achieve the budget savings provided
for in section 2, this section supersedes provisions of law
enacted prior to the date of enactment of this Act that
would otherwise be applicable to development assistance
provided by the Agency for International Development.
(e) EFFECTIVE DATE.—This section shall be effective
as of October 1, 1994.
SEC. 4. DEFINITIONS.
As used in this Act—
(1) the term ‘‘CBO baseline’’ means the base-
line budget projections used by the Congressional
Budget Office in preparing its February 1993 re-
ported entitled ‘‘Reducing the Deficit: Spending and
Revenue Options’’, which was submitted to the Com-
mittee on the Budget of the House of Representa-
tives and the Committee on the Budget of the Sen-
ate pursuant to section 202(f) of the Congressional
Budget and Impoundment Control Act of 1974; and
(2) the term ‘‘development assistance’’ means
assistance under chapter 1 of part I of the Foreign
Assistance Act of 1961 (relating to the functional
development assistance accounts) and assistance
under chapter 10 of that part (relating to the Devel-
opment Fund for Africa).
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HR 3775 IH