H. R. 4818—183
LIMITATION ON EXPENSES
SEC. 504. Of the funds appropriated or made available pursuant
to this Act, not to exceed $5,000 shall be for entertainment expenses
of the United States Agency for International Development during
the current fiscal year.
LIMITATION ON REPRESENTATIONAL ALLOWANCES
SEC. 505. Of the funds appropriated or made available pursuant
to this Act, not to exceed $125,000 shall be available for representa-
tion allowances for the United States Agency for International
Development during the current fiscal year: Provided, That appro-
priate steps shall be taken to assure that, to the maximum extent
possible, United States-owned foreign currencies are utilized in
lieu of dollars: Provided further, That of the funds made available
by this Act for general costs of administering military assistance
and sales under the heading ‘‘Foreign Military Financing Program’’,
not to exceed $4,000 shall be available for entertainment expenses
and not to exceed $130,000 shall be available for representation
allowances: Provided further, That of the funds made available
by this Act under the heading ‘‘International Military Education
and Training’’, not to exceed $55,000 shall be available for entertain-
ment allowances: Provided further, That of the funds made available
by this Act for the Inter-American Foundation, not to exceed $2,000
shall be available for entertainment and representation allowances:
Provided further, That of the funds made available by this Act
for the Peace Corps, not to exceed a total of $4,000 shall be available
for entertainment expenses: Provided further, That of the funds
made available by this Act under the heading ‘‘Trade and Develop-
ment Agency’’, not to exceed $4,000 shall be available for representa-
tion and entertainment allowances: Provided further, That of the
funds made available by this Act under the heading ‘‘Millennium
Challenge Corporation’’, not to exceed $115,000 shall be available
for representation and entertainment allowances.
PROHIBITION ON TAXATION OF UNITED STATES ASSISTANCE
SEC. 506. (a) PROHIBITION ON TAXATION.—None of the funds
appropriated by this Act may be made available to provide assist-
ance for a foreign country under a new bilateral agreement gov-
erning the terms and conditions under which such assistance 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 bilateral agreements, as necessary, to conform with
this requirement.
(b) REIMBURSEMENT OF FOREIGN TAXES.—An amount equiva-
lent to 200 percent of the total taxes assessed during fiscal year
2005 on funds appropriated by this Act by a foreign government
or entity against commodities financed under United States assist-
ance programs for which funds are appropriated by this Act, either
directly or through grantees, contractors and subcontractors shall
be withheld from obligation from funds appropriated for assistance
for fiscal year 2006 and allocated for the central government of
such country and for the West Bank and Gaza Program to the
extent that the Secretary of State certifies and reports in writing
H. R. 4818—184
to the Committees 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 obliga-
tion for each country or entity pursuant to subsection (b) shall
be reprogrammed for assistance to countries 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 arrangement that is providing
substantial reimbursement of such taxes; or
(B) the foreign policy interests of the United States
outweigh the policy of this section to ensure that United
States assistance is not subject to taxation.
(2) The Secretary of State shall consult with the Commit-
tees 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 assistance 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 Government 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 of the
United States and such government that describes, among other
things, the treatment for tax purposes that will be accorded
the United States assistance provided under that agreement.
PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN COUNTRIES
SEC. 507. None of the funds appropriated or otherwise made
available pursuant to this Act shall be obligated or expended to
finance directly any assistance or reparations to Cuba, Libya, North
Korea, Iran, or Syria: Provided, That for purposes of this section,
the prohibition on obligations or expenditures shall include direct
loans, credits, insurance and guarantees of the Export-Import Bank
or its agents.
MILITARY COUPS
SEC. 508. None of the funds appropriated or otherwise made
available pursuant to this Act shall be obligated or expended to
finance directly any assistance to the government of any country
whose duly elected head of government is deposed by decree or
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military coup: Provided, That assistance may be resumed to such
government if the President determines and certifies to the Commit-
tees on Appropriations that subsequent to the termination of assist-
ance a democratically elected government has taken office: Provided
further, That the provisions of this section shall not apply to assist-
ance to promote democratic elections or public participation in
democratic processes: Provided further, That funds made available
pursuant to the previous provisos shall be subject to the regular
notification procedures of the Committees on Appropriations.
TRANSFERS
SEC. 509. (a)(1) LIMITATION ON TRANSFERS BETWEEN AGEN-
CIES.—None of the funds made available by this Act may be trans-
ferred to any department, agency, or instrumentality of the United
States Government, except pursuant to a transfer made by, or
transfer authority provided in, this Act or any other appropriation
Act.
(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 provisions of sections
109, 610, and 632 of the Foreign Assistance Act of 1961.
(b) TRANSFERS BETWEEN ACCOUNTS.—None of the funds made
available by this Act may be obligated under an appropriation
account to which they were not appropriated, except for transfers
specifically provided for in this Act, unless the President, not less
than 5 days prior to the exercise of any authority contained in
the Foreign Assistance Act of 1961 to transfer funds, consults
with and provides a written policy justification to the Committees
on Appropriations of the House of Representatives and the Senate.
(c) AUDIT OF INTER-AGENCY TRANSFERS.—Any agreement for
the transfer or allocation of funds appropriated by this Act, or
prior Acts, entered into between the United States Agency for
International Development 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 Office of the Inspector General for the
agency receiving the transfer or allocation of such funds shall
perform periodic program and financial audits of the use of such
funds: Provided, That funds transferred under such authority may
be made available for the cost of such audits.
COMMERCIAL LEASING OF DEFENSE ARTICLES
SEC. 510. Notwithstanding any other provision of law, and
subject to the regular notification procedures of the Committees
on Appropriations, the authority of section 23(a) of the Arms Export
Control Act may be used to provide financing to Israel, Egypt
and NATO and major non-NATO allies for the procurement by
leasing (including leasing with an option to purchase) of defense
articles from United States commercial suppliers, not including
Major Defense Equipment (other than helicopters and other types
of aircraft having possible civilian application), if the President
determines that there are compelling foreign policy or national
security reasons for those defense articles being provided by