1019 
(2) Notwithstanding paragraph (1), in addition 
to transfers made by, or authorized elsewhere in, 
this Act, funds appropriated by this Act to carry out 
the purposes of the Foreign Assistance Act of 1961 
may be allocated or transferred to agencies of the 
United States Government pursuant to the provi-
sions of sections 109, 610, and 632 of the Foreign 
Assistance Act of 1961. 
(3) Any agreement entered into by the United 
States 
Agency 
for 
International 
Development 
(USAID) or the Department of State with any de-
partment, agency, or instrumentality of the United 
States Government pursuant to section 632(b) of the 
Foreign Assistance Act of 1961 valued in excess of 
$1,000,000 and any agreement made pursuant to 
section 632(a) of such Act, with funds appropriated 
by this Act and prior Acts making appropriations 
for the Department of State, foreign operations, and 
related programs under the headings ‘‘Global Health 
Programs’’, ‘‘Development Assistance’’, and ‘‘Eco-
nomic Support Fund’’ shall be subject to the regular 
notification procedures of the Committees on Appro-
priations: Provided, That the requirement in the pre-
vious sentence shall not apply to agreements entered 
into between USAID and the Department of State. 
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1020 
(d) TRANSFERS BETWEEN ACCOUNTS.—None of the 
funds made available under titles II through V of this Act 
may be obligated under an appropriation account to which 
they were not appropriated, except for transfers specifi-
cally provided for in this Act, unless the President, not 
less than 5 days prior to the exercise of any authority con-
tained in the Foreign Assistance Act of 1961 to transfer 
funds, consults with and provides a written policy jus-
tification to the Committees on Appropriations. 
(e) AUDIT
OF INTER-AGENCY TRANSFERS.—Any 
agreement for the transfer or allocation of funds appro-
priated by this Act, or prior Acts, entered into between 
the Department of State or USAID and another agency 
of the United States Government under the authority of 
section 632(a) of the Foreign Assistance Act of 1961 or 
any comparable provision of law, shall expressly provide 
that the Inspector General (IG) for the agency receiving 
the transfer or allocation of such funds, or other entity 
with audit responsibility if the receiving agency does not 
have an IG, shall perform periodic program and financial 
audits of the use of such funds: Provided, That such au-
dits shall be transmitted to the Committees on Appropria-
tions: Provided further, That funds transferred under such 
authority may be made available for the cost of such au-
dits. 
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1021 
REPORTING REQUIREMENT 
SEC. 7010. The Secretary of State shall provide the 
Committees on Appropriations, not later than April 1, 
2012, and for each fiscal quarter, a report in writing on 
the uses of funds made available under the headings ‘‘For-
eign Military Financing Program’’, ‘‘International Mili-
tary Education and Training’’, ‘‘Peacekeeping Oper-
ations’’, and ‘‘Pakistan Counterinsurgency Capability 
Fund’’: Provided, That such report shall include a descrip-
tion of the obligation and expenditure of funds, and the 
specific country in receipt of, and the use or purpose of 
the assistance provided by such funds. 
AVAILABILITY OF FUNDS 
SEC. 7011. No part of any appropriation contained 
in this Act shall remain available for obligation after the 
expiration of the current fiscal year unless expressly so 
provided in this Act: Provided, That funds appropriated 
for the purposes of chapters 1 and 8 of part I, section 
661, chapters 4, 5, 6, 8, and 9 of part II of the Foreign 
Assistance Act of 1961, section 23 of the Arms Export 
Control Act, and funds provided under the headings ‘‘As-
sistance for Europe, Eurasia and Central Asia’’ and ‘‘De-
velopment Credit Authority’’, shall remain available for an 
additional 4 years from the date on which the availability 
of such funds would otherwise have expired, if such funds 
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1022 
are initially obligated before the expiration of their respec-
tive periods of availability contained in this Act: Provided 
further, That notwithstanding any other provision of this 
Act, any funds made available for the purposes of chapter 
1 of part I and chapter 4 of part II of the Foreign Assist-
ance Act of 1961 which are allocated or obligated for cash 
disbursements in order to address balance of payments or 
economic policy reform objectives, shall remain available 
for an additional 4 years from the date on which the avail-
ability of such funds would otherwise have expired, if such 
funds are initially allocated or obligated before the expira-
tion of their respective periods of availability contained in 
this Act: Provided further, That the Secretary of State 
shall provide a report to the Committees on Appropria-
tions at the beginning of each fiscal year, detailing by ac-
count and source year, the use of this authority during 
the previous fiscal year. 
LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT 
SEC. 7012. No part of any appropriation provided 
under titles III through VI in this Act shall be used to 
furnish assistance to the government of any country which 
is in default during a period in excess of one calendar year 
in payment to the United States of principal or interest 
on any loan made to the government of such country by 
the United States pursuant to a program for which funds 
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1023 
are appropriated under this Act unless the President de-
termines, following consultations with the Committees on 
Appropriations, that assistance for such country is in the 
national interest of the United States. 
PROHIBITION ON TAXATION OF UNITED STATES 
ASSISTANCE 
SEC. 7013. (a) PROHIBITION ON TAXATION.—None 
of the funds appropriated under titles III through VI of 
this Act may be made available to provide assistance for 
a foreign country under a new bilateral agreement gov-
erning the terms and conditions under which such assist-
ance is to be provided unless such agreement includes a 
provision stating that assistance provided by the United 
States shall be exempt from taxation, or reimbursed, by 
the foreign government, and the Secretary of State shall 
expeditiously seek to negotiate amendments to existing bi-
lateral agreements, as necessary, to conform with this re-
quirement. 
(b) REIMBURSEMENT
OF
FOREIGN
TAXES.—An 
amount equivalent to 200 percent of the total taxes as-
sessed during fiscal year 2012 on funds appropriated by 
this Act by a foreign government or entity against com-
modities financed under United States assistance pro-
grams for which funds are appropriated by this Act, either 
directly or through grantees, contractors and subcontrac-
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1024 
tors shall be withheld from obligation from funds appro-
priated for assistance for fiscal year 2013 and allocated 
for the central government of such country and for the 
West Bank and Gaza program to the extent that the Sec-
retary of State certifies and reports in writing to the Com-
mittees on Appropriations that such taxes have not been 
reimbursed to the Government of the United States. 
(c) DE MINIMIS EXCEPTION.—Foreign taxes of a de 
minimis nature shall not be subject to the provisions of 
subsection (b). 
(d) REPROGRAMMING OF FUNDS.—Funds withheld 
from obligation for each country or entity pursuant to sub-
section (b) shall be reprogrammed for assistance to coun-
tries which do not assess taxes on United States assistance 
or which have an effective arrangement that is providing 
substantial reimbursement of such taxes. 
(e) DETERMINATIONS.— 
(1) The provisions of this section shall not 
apply to any country or entity the Secretary of State 
determines— 
(A) does not assess taxes on United States 
assistance or which has an effective arrange-
ment that is providing substantial reimburse-
ment of such taxes; or 
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1025 
(B) the foreign policy interests of the 
United States outweigh the purpose of this sec-
tion to ensure that United States assistance is 
not subject to taxation. 
(2) The Secretary of State shall consult with 
the Committees on Appropriations at least 15 days 
prior to exercising the authority of this subsection 
with regard to any country or entity. 
(f) IMPLEMENTATION.—The Secretary of State shall 
issue rules, regulations, or policy guidance, as appropriate, 
to implement the prohibition against the taxation of assist-
ance contained in this section. 
(g) DEFINITIONS.—As used in this section— 
(1) the terms ‘‘taxes’’ and ‘‘taxation’’ refer to 
value added taxes and customs duties imposed on 
commodities financed with United States assistance 
for programs for which funds are appropriated by 
this Act; and 
(2) the term ‘‘bilateral agreement’’ refers to a 
framework bilateral agreement between the Govern-
ment of the United States and the government of 
the country receiving assistance that describes the 
privileges and immunities applicable to United 
States foreign assistance for such country generally, 
or an individual agreement between the Government 
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1026 
of the United States and such government that de-
scribes, among other things, the treatment for tax 
purposes that will be accorded the United States as-
sistance provided under that agreement. 
(h) REPORT.—The Secretary of State shall submit a 
report to the Committees on Appropriations not later than 
90 days after the enactment of this Act detailing steps 
taken by the Department of State to comply with the re-
quirements provided in subsections (a) and (f). 
RESERVATIONS OF FUNDS 
SEC. 7014. (a) Funds appropriated under titles II 
through VI of this Act which are specifically designated 
may be reprogrammed for other programs within the same 
account notwithstanding the designation if compliance 
with the designation is made impossible by operation of 
any provision of this or any other Act: Provided, That any 
such reprogramming shall be subject to the regular notifi-
cation procedures of the Committees on Appropriations: 
Provided further, That assistance that is reprogrammed 
pursuant to this subsection shall be made available under 
the same terms and conditions as originally provided. 
(b) In addition to the authority contained in sub-
section (a), the original period of availability of funds ap-
propriated by this Act and administered by the United 
States Agency for International Development (USAID) 
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that are specifically designated for particular programs or 
activities by this or any other Act shall be extended for 
an additional fiscal year if the USAID Administrator de-
termines and reports promptly to the Committees on Ap-
propriations that the termination of assistance to a coun-
try or a significant change in circumstances makes it un-
likely that such designated funds can be obligated during 
the original period of availability: Provided, That such des-
ignated funds that continue to be available for an addi-
tional fiscal year shall be obligated only for the purpose 
of such designation. 
(c) Ceilings and specifically designated funding levels 
contained in this Act shall not be applicable to funds or 
authorities appropriated or otherwise made available by 
any subsequent Act unless such Act specifically so directs: 
Provided, That specifically designated funding levels or 
minimum funding requirements contained in any other 
Act shall not be applicable to funds appropriated by this 
Act. 
NOTIFICATION REQUIREMENTS 
SEC. 7015. (a) None of the funds made available in 
title I of this Act, or in prior appropriations Acts to the 
agencies and departments funded by this Act that remain 
available for obligation or expenditure in fiscal year 2012, 
or provided from any accounts in the Treasury of the 
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1028 
United States derived by the collection of fees or of cur-
rency reflows or other offsetting collections, or made avail-
able by transfer, to the agencies and departments funded 
by this Act, shall be available for obligation or expenditure 
through a reprogramming of funds that: 
(1) creates new programs; 
(2) eliminates a program, project, or activity; 
(3) increases funds or personnel by any means 
for any project or activity for which funds have been 
denied or restricted; 
(4) relocates an office or employees; 
(5) closes or opens a mission or post; 
(6) creates, reorganizes, or renames bureaus, 
centers, or offices; 
(7) reorganizes programs or activities; or 
(8) contracts out or privatizes any functions or 
activities presently performed by Federal employees; 
unless the Committees on Appropriations are notified 15 
days in advance of such reprogramming of funds: Pro-
vided, That unless previously justified to the Committees 
on Appropriations, the requirements of this subsection 
shall apply to all obligations of funds appropriated under 
title I of this Act for items (5) and (6) above. 
(b) None of the funds provided under title I of this 
Act, or provided under previous appropriations Acts to the 
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agency or department funded under title I of this Act that 
remain available for obligation or expenditure in fiscal 
year 2012, or provided from any accounts in the Treasury 
of the United States derived by the collection of fees avail-
able to the agency or department funded under title I of 
this Act, shall be available for obligation or expenditure 
for activities, programs, or projects through a reprogram-
ming of funds in excess of $1,000,000 or 10 percent, 
whichever is less, that: 
(1) augments existing programs, projects, or ac-
tivities; 
(2) reduces by 10 percent funding for any exist-
ing program, project, or activity, or numbers of per-
sonnel by 10 percent as approved by Congress; or 
(3) results from any general savings, including 
savings from a reduction in personnel, which would 
result in a change in existing programs, activities, or 
projects as approved by Congress; unless the Com-
mittees on Appropriations are notified 15 days in 
advance of such reprogramming of funds. 
(c) None of the funds made available under titles II 
through VI and VIII in this Act under the headings 
‘‘Global Health Programs’’, ‘‘Development Assistance’’, 
‘‘International Organizations and Programs’’, ‘‘Trade and 
Development Agency’’, ‘‘International Narcotics Control 
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