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AUTHORIZATION OF FUNDS 
SEC. 1403. Funds appropriated or made available by 
transfer in this chapter may be obligated and expended not-
withstanding section 15 of the State Department Basic Au-
thorities Act of 1956, section 10 of Public Law 91–672 (22 
U.S.C. 2412), section 504(a)(1) of the National Security Act 
of 1947 (50 U.S.C. 414(a)(1)) and section 313 of the For-
eign Relations Authorization Act, Fiscal Years 1994 and 
1995 (Public Law 103–236). 
PALESTINIAN AUTHORITY 
SEC. 1404. Section 550 of Public Law 109–102 (119 
Stat. 2217) is amended to read as follows: 
‘‘PROHIBITION ON ASSISTANCE FOR THE PALESTINIAN 
AUTHORITY 
‘‘SEC. 550. (a) PROHIBITION ON ASSISTANCE.—None 
of the funds appropriated by this Act or any prior Act mak-
ing appropriations for foreign operations, export financing, 
and related programs, may be obligated or expended for as-
sistance for the Palestinian Authority unless the Secretary 
of State determines, and so reports to the Committees on 
Appropriations, that the Palestinian Authority has— 
‘‘(1) publicly acknowledged Israel’s right to exist 
as a Jewish state; 
‘‘(2) renounced violence; and 
‘‘(3) accepted and is adhering to all previous 
diplomatic Agreements and understandings with the 
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United States Government, the Government of Israel, 
and the international community. 
‘‘(b) WAIVER AUTHORITY.—(1) The President may 
waive subsection (a) with respect to the administrative and 
personal security costs of the Office of the President of the 
Palestinian Authority, for activities of the President of the 
Palestinian Authority to promote democracy and the rule 
of law, and with respect to independent agencies, if the 
President certifies and reports to the Committees on Appro-
priations that— 
‘‘(A) it is in the national security interest of the 
United States to provide such assistance; and 
‘‘(B) the President of the Palestinian Authority, 
the President’s party, and independent agencies are 
not effectively controlled by Hamas or any other for-
eign terrorist organization. 
‘‘(2) Prior to exercising the authority provided in this 
subsection, the President shall consult with, and shall pro-
vide a written policy justification to, the Committees on 
Appropriations and the Committee on International Rela-
tions of the House of Representatives and the Committee 
on Foreign Relations of the Senate. 
‘‘(c) REPORT.—Whenever the waiver authority pursu-
ant to subsection (b) is exercised, the President shall submit 
a report to the Committees on Appropriations describing 
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how the funds will be spent and the accounting procedures 
in place to ensure proper oversight and accountability.’’. 
(RESCISSION) 
SEC. 1405. Of the funds appropriated under the head-
ing ‘‘Subsidy Appropriation’’ for the Export-Import Bank 
of the United States that are available for tied-aid grants 
in title I of Public Law 107–115 and under such heading 
in prior Acts making appropriations for foreign operations, 
export financing, and related programs, $13,200,000 are re-
scinded. 
AUTHORITY TO EQUALIZE ALLOWANCES, BENEFITS, AND 
GRATUITIES
OF
PERSONNEL
ON
OFFICIAL
DUTY
IN 
IRAQ AND AFGHANISTAN 
SEC. 1406. (a) FINDINGS.—Congress makes the fol-
lowing findings: 
(1) As part of the United States effort to bring 
democracy and freedom to Iraq and Afghanistan, em-
ployees of a broad range of Federal agencies are need-
ed to serve in those countries, furnishing expertise to 
their counterpart agencies in the Government of Iraq 
and the Government of Afghanistan. 
(2) While the heads of a number of Federal agen-
cies already possess authority to provide to their per-
sonnel on official duty abroad allowances, benefits, 
and death gratuities comparable to those provided by 
the Secretary of State to similarly-situated Foreign 
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Service personnel on official duty abroad, other agen-
cy heads do not possess such authority. 
(3) In order to assist the United States Govern-
ment in recruiting personnel to serve in Iraq and Af-
ghanistan, and to avoid inequities in allowances, ben-
efits, and death gratuities among similarly-situated 
United States Government civilian personnel on offi-
cial duty in these countries, it is essential that the 
heads of all agencies that have personnel on official 
duty in Iraq and Afghanistan have the same basic 
authority with respect to allowances, benefits, and 
death gratuities for such personnel. 
(b) IN GENERAL.—During any fiscal year, the head 
of an agency may, in the agency head’s discretion, provide 
to an individual employed by, or assigned or detailed to, 
such agency allowances, benefits, and gratuities comparable 
to those provided by the Secretary of State to members of 
the Foreign Service under section 413 and chapter 9 of title 
I of the Foreign Service Act of 1980 (22 U.S.C. 3973; 4081 
et seq.), if such individual is on official duty in Iraq or 
Afghanistan. 
(c) CONSTRUCTION.—Nothing in this section shall be 
construed to impair or otherwise affect the authority of the 
head of an agency under any other provision of law. 
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(d) APPLICABILITY OF CERTAIN AUTHORITIES.—Sec-
tion 912(a) of the Internal Revenue Code of 1986 shall 
apply with respect to amounts received as allowances or 
otherwise under this section in the same manner as section 
912 of the Internal Revenue Code of 1986 applies with re-
spect to amounts received by members of the Foreign Service 
as allowances or otherwise under chapter 9 of title I of the 
Foreign Service Act of 1980. 
DEMOCRACY IN IRAQ 
SEC. 1407. (a) Of the funds provided in this chapter 
for the Economic Support Fund, not less than $104,500,000 
should be made available through the Bureau of Democracy, 
Human Rights, and Labor of the Department of State, in 
coordination with the United States Agency for Inter-
national Development where appropriate, to United States 
nongovernmental organizations for the purpose of sup-
porting democracy assistance programs in Iraq that pro-
mote the long term development of civil society, political 
parties, election processes, the rule of law, reconciliation ac-
tivities, and parliament in that country: Provided, That 
the Secretary of State shall consult with the Committees on 
Appropriations prior to the initial obligation of funds made 
available under this section on the uses of such funds: Pro-
vided further, That of the funds made available under this 
heading, up to $8,500,000 should be made available for the 
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