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PROHIBITION ON ASSISTANCE TO GOVERNMENTS 
SUPPORTING INTERNATIONAL TERRORISM 
SEC. 7021. (a) LETHAL MILITARY EQUIPMENT EX-
PORTS.— 
(1) None of the funds appropriated or otherwise 
made available by titles III through VI of this Act 
may be available to any foreign government which 
provides lethal military equipment to a country the 
government of which the Secretary of State has deter-
mined supports international terrorism for purposes 
of section 6(j) of the Export Administration Act of 
1979 as continued in effect pursuant to the Inter-
national Emergency Economic Powers Act: Provided, 
That the prohibition under this section with respect 
to a foreign government shall terminate 12 months 
after that government ceases to provide such military 
equipment: Provided further, That this section applies 
with respect to lethal military equipment provided 
under a contract entered into after October 1, 1997. 
(2) 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 interests of the United States. 
(3) Whenever the President makes a determina-
tion pursuant to paragraph (2), the President shall
1174 
submit to the Committees on Appropriations a report 
with respect to the furnishing of such assistance, in-
cluding a detailed explanation of the assistance to be 
provided, the estimated dollar amount of such assist-
ance, and an explanation of how the assistance fur-
thers United States national interests. 
(b) BILATERAL ASSISTANCE.— 
(1) Funds appropriated for bilateral assistance 
in titles III through VI of this Act and funds appro-
priated 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 government which the Presi-
dent 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 section 
219 of the Immigration and Nationality Act. 
(2) The President may waive the application of 
paragraph (1) to a government if the President deter-
mines that national security or humanitarian reasons
1175 
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 justification for the waiver) in 
accordance with the regular notification procedures of 
the Committees on Appropriations. 
AUTHORIZATION REQUIREMENTS 
SEC. 7022. Funds appropriated by this Act, except 
funds appropriated under the heading ‘‘Trade and Develop-
ment Agency’’, may be obligated and expended notwith-
standing section 10 of Public Law 91–672, section 15 of 
the State Department Basic Authorities Act of 1956, section 
313 of the Foreign Relations Authorization Act, Fiscal 
Years 1994 and 1995 (Public Law 103–236), and section 
504(a)(1) of the National Security Act of 1947 (50 U.S.C. 
3094(a)(1)). 
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 defined 
at the appropriations Act account level and shall include 
all appropriations and authorizations Acts funding direc-
tives, ceilings, and limitations with the exception that for 
the following accounts: ‘‘Economic Support Fund’’ and 
‘‘Foreign Military Financing Program’’, ‘‘program, project,
1176 
and activity’’ shall also be considered to include country, 
regional, and central program level funding within 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 the Congress; or 
(2) allocated by the Executive Branch in accord-
ance with a report, to be provided to the Committees 
on Appropriations within 30 days of the enactment 
of this Act, as required by section 653(a) of the For-
eign Assistance Act of 1961. 
AUTHORITIES FOR THE PEACE CORPS, INTER-AMERICAN 
FOUNDATION AND UNITED STATES AFRICAN DEVELOP-
MENT 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 Develop-
ment Foundation Act: Provided, That prior to conducting 
activities in a country for which assistance is prohibited,
1177 
the agency shall consult with the Committees on Appropria-
tions and report to such Committees within 15 days of tak-
ing such action. 
COMMERCE, TRADE AND SURPLUS COMMODITIES 
SEC. 7025. (a) 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-Import Bank and the Overseas Pri-
vate Investment Corporation shall be obligated or expended 
to finance any loan, any assistance or any other financial 
commitments for establishing or expanding production 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 productive ca-
pacity 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 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 Appropriations: 
Provided further, That this subsection shall not prohibit—
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(1) activities in a country that is eligible for as-
sistance from the International Development Associa-
tion, is not eligible for assistance from the Inter-
national Bank for Reconstruction and Development, 
and does not export on a consistent basis the agricul-
tural 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) None of the funds appropriated by this or any other 
Act to carry out chapter 1 of part I of the Foreign Assist-
ance Act of 1961 shall be available for any testing or breed-
ing feasibility study, variety improvement or introduction, 
consultancy, publication, conference, or training in connec-
tion with the growth or production in a foreign country 
of an agricultural commodity for export which would com-
pete with a similar commodity grown or produced in the 
United States: Provided, That this subsection shall not pro-
hibit— 
(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;