H. R. 1—247 
SEC. 2013. ANNUAL REPORT TO CONGRESS. 
(a) IN GENERAL.—Not later than June 1 of each year until 
December 31, 2009, the Secretary of State shall submit to the 
appropriate congressional committees a report on the efforts of 
predominantly Muslim countries to increase the availability of 
modern basic education and to close educational institutions that 
promote religious extremism and terrorism. 
(b) CONTENTS.—Each report shall include— 
(1) a list of predominantly Muslim countries that are 
making serious and sustained efforts to improve the availability 
of modern basic education and to close educational institutions 
that promote religious extremism and terrorism; 
(2) a list of such countries that are making efforts to 
improve the availability of modern basic education and to close 
educational institutions that promote religious extremism and 
terrorism, but such efforts are not serious and sustained; 
(3) a list of such countries that are not making efforts 
to improve the availability of modern basic education and to 
close educational institutions that promote religious extremism 
and terrorism; and 
(4) an assessment for each country specified in each of 
paragraphs (1), (2), and (3) of the role of United States assist-
ance with respect to the efforts made or not made to improve 
the availability of modern basic education and close educational 
institutions that promote religious extremism and terrorism. 
SEC. 2014. EXTENSION OF PROGRAM TO PROVIDE GRANTS TO AMER-
ICAN-SPONSORED SCHOOLS IN PREDOMINANTLY MUSLIM 
COUNTRIES TO PROVIDE SCHOLARSHIPS. 
(a) FINDINGS.—Congress finds the following: 
(1) Section 7113 of the Intelligence Reform and Terrorism 
Prevention Act of 2004 (Public Law 108–458; 22 U.S.C. 2452 
note) authorized the establishment of a pilot program to provide 
grants to American-sponsored schools in predominantly Muslim 
countries so that such schools could provide scholarships to 
young people from lower-income and middle-income families 
in such countries to attend such schools, where they could 
improve their English and be exposed to a modern education. 
(2) Since the date of the enactment of that section, the 
Middle East Partnership Initiative has pursued implementation 
of that program. 
(b) EXTENSION OF PROGRAM.— 
(1) IN GENERAL.—Section 7113 of the Intelligence Reform 
and Terrorism Prevention Act of 2004 is amended— 
(A) in the section heading by striking ‘‘PILOT’’; and 
(B) in subsection (c)— 
(i) in the subsection heading, by striking ‘‘PILOT’’; 
and 
(ii) by striking ‘‘pilot’’; 
(C) in subsection (d), by striking ‘‘pilot’’ each place 
it appears; 
(D) in subsection (f) by striking ‘‘pilot’’; 
(E) in subsection (g), in the first sentence— 
(i) by inserting ‘‘and April 15, 2008,’’ after ‘‘April 
15, 2006,’’; and 
(ii) by striking ‘‘pilot’’; and 
(F) in subsection (h)—
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(i) by striking ‘‘2005 and 2006’’ and inserting ‘‘2007 
and 2008’’; and 
(ii) by striking ‘‘pilot’’. 
(2) CONFORMING
AMENDMENT.—Section 1(b) of such Act 
is amended, in the table of contents, by striking the item 
relating to section 7113 and inserting after section 7112 the 
following new item: 
‘‘7113. Program to provide grants to American-sponsored schools in predominantly 
Muslim countries to provide scholarships.’’. 
Subtitle B—Democracy and Development 
in the Broader Middle East Region 
SEC. 2021. MIDDLE EAST FOUNDATION. 
(a) PURPOSES.—The purposes of this section are to support, 
through the provision of grants, technical assistance, training, and 
other programs, in the countries of the broader Middle East region, 
the expansion of— 
(1) civil society; 
(2) opportunities for political participation for all citizens; 
(3) protections for internationally recognized human rights, 
including the rights of women; 
(4) educational system reforms; 
(5) independent media; 
(6) policies that promote economic opportunities for citizens; 
(7) the rule of law; and 
(8) democratic processes of government. 
(b) MIDDLE EAST FOUNDATION.— 
(1) DESIGNATION.—The Secretary of State is authorized 
to designate an appropriate private, nonprofit organization that 
is organized or incorporated under the laws of the United 
States or of a State as the Middle East Foundation (referred 
to in this section as the ‘‘Foundation’’). 
(2) FUNDING.— 
(A) AUTHORITY.—The Secretary of State is authorized 
to provide funding to the Foundation through the Middle 
East Partnership Initiative of the Department of State. 
Notwithstanding any other provision of law, the Foundation 
shall use amounts provided under this paragraph to carry 
out the purposes specified in subsection (a), including 
through making grants, using such funds as an endowment, 
and providing other assistance to entities to carry out 
programs for such purposes. 
(B) FUNDING FROM OTHER SOURCES.—In determining 
the amount of funding to provide to the Foundation, the 
Secretary of State shall take into consideration the amount 
of funds that the Foundation has received from sources 
other than the United States Government. 
(3) NOTIFICATION
TO
CONGRESSIONAL
COMMITTEES.—The 
Secretary of State shall notify the appropriate congressional 
committees of the designation of an appropriate organization 
as the Foundation. 
(c) GRANTS FOR PROJECTS.— 
(1) FOUNDATION TO MAKE GRANTS.—The Secretary of State 
shall enter into an agreement with the Foundation that requires
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the Foundation to use the funds provided under subsection 
(b)(2) to make grants to persons or entities (other than govern-
ments or government entities) located in the broader Middle 
East region or working with local partners based in the broader 
Middle East region to carry out projects that support the pur-
poses specified in subsection (a). 
(2) CENTER
FOR
PUBLIC
POLICY.—Under the agreement 
described in paragraph (1), the Foundation may make a grant 
to an institution of higher education located in the broader 
Middle East region to create a center for public policy for 
the purpose of permitting scholars and professionals from the 
countries of the broader Middle East region and from other 
countries, including the United States, to carry out research, 
training programs, and other activities to inform public policy-
making in the broader Middle East region and to promote 
broad economic, social, and political reform for the people of 
the broader Middle East region. 
(3) APPLICATIONS FOR GRANTS.—An entity seeking a grant 
from the Foundation under this section shall submit an applica-
tion to the head of the Foundation at such time, in such 
manner, and containing such information as the head of the 
Foundation may reasonably require. 
(d) PRIVATE CHARACTER OF THE FOUNDATION.—Nothing in this 
section shall be construed to— 
(1) make the Foundation an agency or establishment of 
the United States Government, or to make the officers or 
employees of the Foundation officers or employees of the United 
States for purposes of title 5, United States Code; or 
(2) impose any restriction on the Foundation’s acceptance 
of funds from private and public sources in support of its 
activities consistent with the purposes specified in subsection 
(a). 
(e) LIMITATION ON PAYMENTS TO FOUNDATION PERSONNEL.— 
No part of the funds provided to the Foundation under this section 
shall inure to the benefit of any officer or employee of the Founda-
tion, except as salary or reasonable compensation for services. 
(f) RETENTION OF INTEREST.—The Foundation may hold funds 
provided under this section in interest-bearing accounts prior to 
the disbursement of such funds to carry out the purposes specified 
in subsection (a), and may retain for such purposes any interest 
earned without returning such interest to the Treasury of the 
United States. The Foundation may retain and use such funds 
as an endowment to carry out the purposes specified in subsection 
(a). 
(g) FINANCIAL ACCOUNTABILITY.— 
(1) INDEPENDENT PRIVATE AUDITS OF THE FOUNDATION.— 
The accounts of the Foundation shall be audited annually in 
accordance with generally accepted auditing standards by inde-
pendent certified public accountants or independent licensed 
public accountants certified or licensed by a regulatory 
authority of a State or other political subdivision of the United 
States. The report of the independent audit shall be included 
in the annual report required by subsection (h). 
(2) GAO AUDITS.—The financial transactions undertaken 
pursuant to this section by the Foundation may be audited 
by the Government Accountability Office in accordance with
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such principles and procedures and under such rules and regu-
lations as may be prescribed by the Comptroller General of 
the United States. 
(3) AUDITS OF GRANT RECIPIENTS.— 
(A) IN
GENERAL.—A recipient of a grant from the 
Foundation shall agree to permit an audit of the books 
and records of such recipient related to the use of the 
grant funds. 
(B) RECORDKEEPING.—Such recipient shall maintain 
appropriate books and records to facilitate an audit referred 
to in subparagraph (A), including— 
(i) separate accounts with respect to the grant 
funds; 
(ii) records that fully disclose the use of the grant 
funds; 
(iii) records describing the total cost of any project 
carried out using grant funds; and 
(iv) the amount and nature of any funds received 
from other sources that were combined with the grant 
funds to carry out a project. 
(h) ANNUAL REPORTS.—Not later than January 31, 2008, and 
annually thereafter, the Foundation shall submit to the appropriate 
congressional committees and make available to the public a report 
that includes, for the fiscal year prior to the fiscal year in which 
the report is submitted, a comprehensive and detailed description 
of— 
(1) the operations and activities of the Foundation that 
were carried out using funds provided under this section; 
(2) grants made by the Foundation to other entities with 
funds provided under this section; 
(3) other activities of the Foundation to further the pur-
poses specified in subsection (a); and 
(4) the financial condition of the Foundation. 
(i) BROADER MIDDLE EAST REGION DEFINED.—In this section, 
the term ‘‘broader Middle East region’’ means Afghanistan, Algeria, 
Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, 
Morocco, Oman, Pakistan, Qatar, Saudi Arabia, Syria, Tunisia, 
United Arab Emirates, West Bank and Gaza, and Yemen. 
(j) REPEAL.—Section 534(k) of Public Law 109–102 is repealed. 
Subtitle C—Reaffirming United States 
Moral Leadership 
SEC. 2031. ADVANCING UNITED STATES INTERESTS THROUGH PUBLIC 
DIPLOMACY. 
(a) FINDING.—Congress finds that the report of the National 
Commission on Terrorist Attacks Upon the United States stated 
that ‘‘Recognizing that Arab and Muslim audiences rely on satellite 
television and radio, the government has begun some promising 
initiatives in television and radio broadcasting to the Arab world, 
Iran, and Afghanistan. These efforts are beginning to reach large 
audiences. The Broadcasting Board of Governors has asked for 
much larger resources. It should get them.’’. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that—