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(B) an assessment of the extent to which 
faith-based organizations have been or are in-
volved in the Country Coordinating Mechanism 
(CCM) process of the Global Fund; and 
(2) a description of actions the Global Fund 
has taken and will take to enhance the involvement 
of faith-based organizations in the CCM process, 
particularly in countries in which the involvement of 
faith-based organizations has been underrepresented. 
PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST 
COUNTRIES 
SEC. 626. (a) Funds appropriated for bilateral assist-
ance under any heading of this Act and funds appro-
priated under any such heading in a provision of law en-
acted prior to the enactment of this Act, shall not be made 
available to any country which the President determines— 
(1) grants sanctuary from prosecution to any 
individual or group which has committed an act of 
international terrorism; or 
(2) otherwise supports international terrorism. 
(b) The President may waive the application of sub-
section (a) to a country if the President determines that 
national security or humanitarian reasons justify such 
waiver. The President shall publish each waiver in the 
Federal Register and, at least 15 days before the waiver 
takes effect, shall notify the Committees on Appropria-
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tions of the waiver (including the justification for the waiv-
er) in accordance with the regular notification procedures 
of the Committees on Appropriations. 
DEBT-FOR-DEVELOPMENT 
SEC. 627. 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. 
SEPARATE ACCOUNTS 
SEC. 628. (a) SEPARATE ACCOUNTS
FOR LOCAL 
CURRENCIES.— 
(1) 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— 
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(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— 
(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 the United 
States Agency for International Development 
and that government to monitor and account 
for deposits into and disbursements from the 
separate account. 
(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 (as the case may be), 
for such purposes as— 
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(i) project and sector assistance activi-
ties; or 
(ii) debt and deficit financing; or 
(B) for the administrative requirements of 
the United States Government. 
(3) 
PROGRAMMING
ACCOUNTABILITY.—The 
United States Agency for International Development 
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 (as the case may be), any unencumbered bal-
ances of funds which remain in a separate account 
established pursuant to subsection (a) shall be dis-
posed of for such purposes as may be agreed to by 
the government of that country and the United 
States Government. 
(5) REPORTING REQUIREMENT.—The Adminis-
trator of the United States Agency for International 
Development shall report on an annual basis as part 
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of the justification documents submitted to the Com-
mittees on Appropriations on the use of local cur-
rencies for the administrative requirements of the 
United States Government as authorized in sub-
section (a)(2)(B), and such report shall include the 
amount of local currency (and United States dollar 
equivalent) used and/or to be used for such purpose 
in each applicable country. 
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.— 
(1) If assistance is made available to the gov-
ernment of a foreign country, under chapter 1 or 10 
of part I or chapter 4 of part II of the Foreign As-
sistance Act of 1961, as cash transfer assistance or 
as non-project sector assistance, that country shall 
be required to maintain such funds in a separate ac-
count and not commingle them 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). 
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(3) NOTIFICATION.—At least 15 days prior to 
obligating any such cash transfer or non-project 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-
posed to be made available will be used, with a dis-
cussion of the United States interests that will be 
served by the assistance (including, as appropriate, 
a description of the economic policy reforms that will 
be promoted by such assistance). 
(4) EXEMPTION.—Non-project sector assistance 
funds may be exempt from the requirements of sub-
section (b)(1) only through the notification proce-
dures of the Committees on Appropriations. 
ENTERPRISE FUND RESTRICTIONS 
SEC. 629. (a) Prior to the distribution of any assets 
resulting from any liquidation, dissolution, or winding up 
of an Enterprise Fund, in whole or in part, the President 
shall submit to the Committees on Appropriations, in ac-
cordance with the regular notification procedures of the 
Committees on Appropriations, a plan for the distribution 
of the assets of the Enterprise Fund. 
(b) Funds made available under titles II through V 
of this Act for Enterprise Funds shall be expended at the 
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minimum rate necessary to make timely payment for 
projects and activities. 
FINANCIAL MARKET ASSISTANCE 
SEC. 630. Of the funds appropriated by this Act 
under the headings ‘‘TRADE AND DEVELOPMENT 
AGENCY’’, 
‘‘DEVELOPMENT 
ASSISTANCE’’, 
‘‘TRANSITION INITIATIVES’’, ‘‘ECONOMIC SUP-
PORT FUND’’, ‘‘INTERNATIONAL AFFAIRS TECH-
NICAL ASSISTANCE’’, ‘‘ASSISTANCE FOR THE 
INDEPENDENT STATES OF THE FORMER SO-
VIET UNION’’, ‘‘NONPROLIFERATION, ANTI-TER-
RORISM, DEMINING AND RELATED PROGRAMS’’, 
and ‘‘ASSISTANCE FOR EASTERN EUROPE AND 
BALTIC STATES’’, not less than $40,000,000 should be 
made available for building capital markets and financial 
systems in countries eligible to receive United States as-
sistance. 
AUTHORITIES FOR THE PEACE CORPS, INTER-AMERICAN 
FOUNDATION AND AFRICAN DEVELOPMENT FOUNDATION 
SEC. 631. 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 foreign operations, export financing, and related 
programs, shall not be construed to prohibit activities au-
thorized by or conducted under the Peace Corps Act, the 
Inter-American Foundation Act or the African Develop-
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ment Foundation Act. The agency shall promptly report 
to the Committees on Appropriations whenever it is con-
ducting activities or is proposing to conduct activities in 
a country for which assistance is prohibited. 
IMPACT ON JOBS IN THE UNITED STATES 
SEC. 632. None of the funds appropriated under ti-
tles II through V of this Act may be obligated or expended 
to provide— 
(1) any financial incentive to a business enter-
prise currently located in the United States for the 
purpose of inducing such an enterprise to relocate 
outside the United States if such incentive or in-
ducement is likely to reduce the number of employ-
ees of such business enterprise in the United States 
because United States production is being replaced 
by such enterprise outside the United States; or 
(2) assistance for any program, project, or ac-
tivity that contributes to the violation of internation-
ally recognized workers rights, as defined in section 
507(4) of the Trade Act of 1974, of workers in the 
recipient country, including any designated zone or 
area in that country: Provided, That the application 
of section 507(4) (D) and (E) of such Act should be 
commensurate with the level of development of the 
recipient country and sector, and shall not preclude 
assistance for the informal sector in such country, 
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micro and small-scale enterprise, and smallholder 
agriculture. 
SPECIAL AUTHORITIES 
SEC. 633. (a) AFGHANISTAN, IRAQ, PAKISTAN, LEB-
ANON, MONTENEGRO, VICTIMS
OF WAR, DISPLACED 
CHILDREN, AND DISPLACED BURMESE.—Funds appro-
priated by this Act that are made available for assistance 
for Afghanistan may be made available notwithstanding 
section 612 of this Act or any similar provision of law and 
section 660 of the Foreign Assistance Act of 1961, and 
funds appropriated in titles II and III of this Act that 
are made available for Iraq, Lebanon, Montenegro, Paki-
stan, and for victims of war, displaced children, and dis-
placed Burmese, and to assist victims of trafficking in per-
sons and, subject to the regular notification procedures of 
the Committees on Appropriations, to combat such traf-
ficking, may be made available notwithstanding any other 
provision of law. 
(b) TROPICAL FORESTRY AND BIODIVERSITY CON-
SERVATION ACTIVITIES.—Funds appropriated by this Act 
to carry out the provisions of sections 103 through 106, 
and chapter 4 of part II, of the Foreign Assistance Act 
of 1961 may be used, notwithstanding any other provision 
of law, for the purpose of supporting tropical forestry and 
biodiversity conservation activities and energy programs 
aimed at reducing greenhouse gas emissions: Provided, 
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That such assistance shall be subject to sections 116, 
502B, and 620A of the Foreign Assistance Act of 1961. 
(c) PERSONAL SERVICES CONTRACTORS.—Funds ap-
propriated by this Act to carry out chapter 1 of part I, 
chapter 4 of part II, and section 667 of the Foreign As-
sistance Act of 1961, and title II of the Agricultural Trade 
Development and Assistance Act of 1954, may be used 
by the United States Agency for International Develop-
ment to employ up to 25 personal services contractors in 
the United States, notwithstanding any other provision of 
law, for the purpose of providing direct, interim support 
for new or expanded overseas programs and activities 
managed by the agency until permanent direct hire per-
sonnel are hired and trained: Provided, That not more 
than 10 of such contractors shall be assigned to any bu-
reau or office: Provided further, That such funds appro-
priated to carry out title II of the Agricultural Trade De-
velopment and Assistance Act of 1954, may be made avail-
able only for personal services contractors assigned to the 
Office of Food for Peace. 
(d)(1) WAIVER.—The President may waive the provi-
sions of section 1003 of Public Law 100–204 if the Presi-
dent determines and certifies in writing to the Speaker 
of the House of Representatives and the President pro 
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tempore of the Senate that it is important to the national 
security interests of the United States. 
(2) PERIOD
OF APPLICATION
OF WAIVER.—Any 
waiver pursuant to paragraph (1) shall be effective for no 
more than a period of 6 months at a time and shall not 
apply beyond 12 months after the enactment of this Act. 
(e) SMALL BUSINESS.—In entering into multiple 
award indefinite-quantity contracts with funds appro-
priated by this Act, the United States Agency for Inter-
national Development may provide an exception to the fair 
opportunity process for placing task orders under such 
contracts when the order is placed with any category of 
small or small disadvantaged business. 
(f) RECONSTITUTING CIVILIAN POLICE AUTHOR-
ITY.—In providing assistance with funds appropriated by 
this Act under section 660(b)(6) of the Foreign Assistance 
Act of 1961, support for a nation emerging from insta-
bility may be deemed to mean support for regional, dis-
trict, municipal, or other sub-national entity emerging 
from instability, as well as a nation emerging from insta-
bility. 
(g) WORLD FOOD PROGRAM.—Of the funds managed 
by the Bureau for Democracy, Conflict, and Humanitarian 
Assistance of the United States Agency for International 
Development, from this or any other Act, not less than 
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$10,000,000 shall be made available as a general contribu-
tion to the World Food Program, notwithstanding any 
other provision of law. 
(h) EXTENSION OF AUTHORITY.— 
(1) With respect to funds appropriated by this 
Act that are available for assistance for Pakistan, 
the President may waive the prohibition on assist-
ance contained in section 608 of this Act subject to 
the requirements contained in section 1(b) of Public 
Law 107–57, as amended, for a determination and 
certification, and consultation, by the President 
prior to the exercise of such waiver authority. 
(2) Section 612 of this Act and section 620(q) 
of the Foreign Assistance Act of 1961 shall not 
apply with respect to assistance for Pakistan from 
funds appropriated by this Act. 
(3) Notwithstanding the date contained in sec-
tion 6 of Public Law 107–57, as amended, the provi-
sions of sections 2 and 4 of that Act shall remain 
in effect through the current fiscal year. 
(i) MIDDLE EAST FOUNDATION.—Of the funds ap-
propriated in this Act under the heading ‘‘ECONOMIC 
SUPPORT FUND’’ that are available for the Middle East 
Partnership Initiative, may be made available, including 
as an endowment, notwithstanding any other provision of 
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law and following consultations with the Committees on 
Appropriations, to establish and operate a Middle East 
Foundation, or any other similar entity, whose purposes 
include to support democracy, governance, human rights, 
and the rule of law: Provided, That such funds may be 
made available to the Foundation only to the extent that 
the Foundation has commitments from sources other than 
the United States Government to at least match the funds 
provided under the authority of this subsection: Provided 
further, That provisions contained in section 201 of the 
Support for East European Democracy (SEED) Act of 
1989 (excluding the authorizations of appropriations pro-
vided in subsection (b) of that section and the requirement 
that a majority of the members of the board of directors 
be citizens of the United States provided in subsection 
(d)(3)(B) of that section) shall be deemed to apply to any 
such foundation or similar entity referred to under this 
subsection, and to funds made available to such entity, 
in order to enable it to provide assistance for purposes 
of this section: Provided further, That prior to the initial 
obligation of funds for any such foundation or similar enti-
ty pursuant to the authorities of this subsection, other 
than for administrative support, the Secretary of State 
shall take steps to ensure, on an ongoing basis, that any 
such funds made available pursuant to such authorities 
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are not provided to or through any individual or group 
that the management of the foundation or similar entity 
knows or has reason to believe, advocates, plans, sponsors, 
or otherwise engages in terrorist activities: Provided fur-
ther, That section 629 of this Act shall apply to any such 
foundation or similar entity established pursuant to this 
subsection: Provided further, That the authority of the 
Foundation, or any similar entity, to provide assistance 
shall cease to be effective on September 30, 2010. 
(j) EXTENSION OF AUTHORITY.—The Foreign Oper-
ations Export Financing, and Related Programs Appro-
priations Act, 1990 (Public Law 101–167) is amended— 
(1) in section 599D (8 U.S.C. 1157 note)— 
(A) in subsection(b)(3), before ‘‘2007’’ by 
striking ‘‘and’’, and after ‘‘2007’’ by inserting, 
‘‘and 2008,’’ and 
(B) in subsection (e), by striking ‘‘2007’’ 
each place it appears and inserting ‘‘2008’’; and 
(2) in section 599E (8 U.S.C. 1255 note) in 
subsection (b)(2), by striking ‘‘2007’’ and inserting 
‘‘2008’’. 
ARAB LEAGUE BOYCOTT OF ISRAEL 
SEC. 634. It is the sense of the Congress that— 
(1) the Arab League boycott of Israel, and the 
secondary boycott of American firms that have com-
mercial ties with Israel, is an impediment to peace 
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in the region and to United States investment and 
trade in the Middle East and North Africa; 
(2) the Arab League boycott, which was regret-
tably reinstated in 1997, should be immediately and 
publicly terminated, and the Central Office for the 
Boycott of Israel immediately disbanded; 
(3) all Arab League states should normalize re-
lations with their neighbor Israel; 
(4) the President and the Secretary of State 
should continue to vigorously oppose the Arab 
League boycott of Israel and find concrete steps to 
demonstrate that opposition by, for example, taking 
into consideration the participation of any recipient 
country in the boycott when determining to sell 
weapons to said country; and 
(5) the President should report to Congress an-
nually on specific steps being taken by the United 
States to encourage Arab League states to normalize 
their relations with Israel to bring about the termi-
nation of the Arab League boycott of Israel, includ-
ing those to encourage allies and trading partners of 
the United States to enact laws prohibiting busi-
nesses from complying with the boycott and penal-
izing businesses that do comply. 
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ELIGIBILITY FOR ASSISTANCE 
SEC. 635. (a) ASSISTANCE THROUGH NONGOVERN-
MENTAL ORGANIZATIONS.—Restrictions contained under 
titles II through V of this or any other Act with respect 
to assistance for a country shall not be construed to re-
strict assistance in support of programs of nongovern-
mental 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 Assist-
ance Act of 1961, and from funds appropriated under the 
heading ‘‘ASSISTANCE FOR EASTERN EUROPE 
AND THE BALTIC STATES’’: 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 under the regular notification procedures of those 
committees, including a description of the program to be 
assisted, the assistance to be provided, and the reasons 
for furnishing such assistance: Provided further, That 
nothing in this subsection shall be construed to alter any 
existing statutory prohibitions against abortion or involun-
tary sterilizations contained in this or any other Act. 
(b) PUBLIC LAW 480.—During fiscal year 2008, re-
strictions contained in this or any other Act with respect 
to assistance for a country shall not be construed to re-
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