HR 2764 PP 
UNOBLIGATED BALANCES REPORT 
SEC. 604. Any Department or Agency to which funds 
are appropriated or otherwise made available by this Act 
shall provide to the Committees on Appropriations a quar-
terly accounting of cumulative balances by program, 
project, and activity of the funds received by such Depart-
ment or Agency in this fiscal year or any previous fiscal 
year that remain unobligated and unexpended. 
LIMITATION ON REPRESENTATIONAL ALLOWANCES 
SEC. 605. Of the funds appropriated or made avail-
able pursuant to titles II through V of this Act, not to 
exceed $250,000 shall be available for representation and 
entertainment allowances, of which not to exceed $2,500 
shall be available for entertainment allowances, for the 
United States Agency for International Development dur-
ing the current fiscal year: Provided, That no such enter-
tainment funds may be used for the purposes listed in sec-
tion 647 of this Act: Provided further, That appropriate 
steps shall be taken to assure that, to the maximum extent 
possible, United States-owned foreign currencies are uti-
lized in lieu of dollars: Provided further, That of the funds 
made available by this Act for general costs of admin-
istering 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 representa-
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tion 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 entertainment 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 al-
lowances: Provided further, That of the funds made avail-
able 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 Development Agency’’, 
not to exceed $4,000 shall be available for representation 
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 enter-
tainment allowances. 
PROHIBITION ON TAXATION OF UNITED STATES 
ASSISTANCE 
SEC. 606. (a) PROHIBITION ON TAXATION.—None of 
the funds appropriated under titles II through V of this 
Act may be made available to provide assistance for a for-
eign country under a new bilateral agreement governing 
the terms and conditions under which such assistance is 
to be provided unless such agreement includes a provision 
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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 agree-
ments, as necessary, to conform with this requirement. 
(b)
REIMBURSEMENT
OF
FOREIGN
TAXES.—An 
amount equivalent to 200 percent of the total taxes as-
sessed during fiscal year 2008 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-
tors shall be withheld from obligation from funds appro-
priated for assistance for fiscal year 2009 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-
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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 
(B) the foreign policy interests of the 
United States outweigh the policy 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— 
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(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 
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. 
PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN 
COUNTRIES 
SEC. 607. None of the funds appropriated or other-
wise made available pursuant to this Act shall be obligated 
or expended to finance directly any assistance or repara-
tions to Cuba, Libya, North Korea, Iran, or Syria: Pro-
vided, 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: Provided further, That for purposes 
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of this section, the prohibition shall not include activities 
of the Overseas Private Investment Corporation in Libya: 
Provided further, That the prohibition shall not include di-
rect loans, credits, insurance and guarantees made avail-
able by the Export-Import Bank or its agents for or in 
Libya: Provided further, That the prohibition shall not 
apply
to
funds
made
available
under
the
heading 
‘‘INTERNATIONAL MILITARY EDUCATION AND 
TRAINING’’ for Libya. 
MILITARY COUPS 
SEC. 608. None of the funds appropriated or other-
wise made available pursuant to titles II through V of 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 military coup 
or decree: Provided, That assistance may be resumed to 
such government if the President determines and certifies 
to the Committees on Appropriations that subsequent to 
the termination of assistance a democratically elected gov-
ernment has taken office: Provided further, That the provi-
sions of this section shall not apply to assistance to pro-
mote democratic elections or public participation in demo-
cratic processes: Provided further, That funds made avail-
able pursuant to the previous provisos shall be subject to 
the regular notification procedures of the Committees on 
Appropriations. 
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TRANSFER AUTHORITY 
SEC. 609. (a) DEPARTMENT OF STATE AND BROAD-
CASTING BOARD OF GOVERNORS.—Not to exceed 5 per-
cent of any appropriation made available for the current 
fiscal year for the Department of State under title I of 
this Act may be transferred between such appropriations, 
but no such appropriation, except as otherwise specifically 
provided, shall be increased by more than 10 percent by 
any such transfers: Provided, That not to exceed 5 percent 
of any appropriation made available for the current fiscal 
year for the Broadcasting Board of Governors under title 
I of this Act may be transferred between such appropria-
tions, but no such appropriation, except as otherwise spe-
cifically provided, shall be increased by more than 10 per-
cent by any such transfers: Provided further, That any 
transfer pursuant to this section shall be treated as a re-
programming of funds under section 615 (a) and (b) of 
this Act and shall not be available for obligation or ex-
penditure except in compliance with the procedures set 
forth in that section. 
(b) EXPORT FINANCING TRANSFER AUTHORITIES.— 
Not to exceed 5 percent of any appropriation other than 
for administrative expenses made available for fiscal year 
2008, for programs under title II of this Act may be trans-
ferred between such appropriations for use for any of the 
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purposes, programs, and activities for which the funds in 
such receiving account may be used, but no such appro-
priation, except as otherwise specifically provided, shall be 
increased by more than 25 percent by any such transfer: 
Provided, That the exercise of such authority shall be sub-
ject to the regular notification procedures of the Commit-
tees on Appropriations. 
(c)(1) LIMITATION ON TRANSFERS BETWEEN AGEN-
CIES.—None of the funds made available under titles II 
through V of this Act may be transferred to any depart-
ment, 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 ap-
propriation 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 Govern-
ment pursuant to the provisions of sections 109, 610, and 
632 of the Foreign Assistance Act of 1961. 
(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-
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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 United States Agency for International Development 
and another agency of the United States Government 
under the authority of section 632(a) of the Foreign As-
sistance 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. 610. Notwithstanding any other provision of 
law, and subject to the regular notification procedures of 
the Committees on Appropriations, the authority of sec-
tion 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 
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articles from United States commercial suppliers, not in-
cluding Major Defense Equipment (other than helicopters 
and other types of aircraft having possible civilian applica-
tion), if the President determines that there are compel-
ling foreign policy or national security reasons for those 
defense articles being provided by commercial lease rather 
than by government-to-government sale under such Act. 
AVAILABILITY OF FUNDS 
SEC. 611. (a) 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. 
(b) Funds appropriated for the purposes of chapters 
1, 8, 11, and 12 of part I, section 667, 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 heading ‘‘ASSISTANCE FOR 
EASTERN EUROPE AND THE BALTIC STATES’’, 
shall remain available for an additional four years from 
the date on which the availability of such funds would oth-
erwise have expired, if such funds are initially obligated 
before the expiration of their respective periods of avail-
ability contained in this Act: Provided, That, notwith-
standing any other provision of this Act, any funds made 
available for the purposes of chapter 1 of part I and chap-
ter 4 of part II of the Foreign Assistance Act of 1961 
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which are allocated or obligated for cash disbursements 
in order to address balance of payments or economic policy 
reform objectives, shall remain available until expended. 
LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT 
SEC. 612. No part of any appropriation provided 
under titles II through V in this Act shall be used to fur-
nish 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 
are appropriated under this Act unless the President de-
termines, following consultations with the Committees on 
Appropriations, that assistance to such country is in the 
national interest of the United States. 
COMMERCE AND TRADE 
SEC. 613. (a) None of the funds appropriated or 
made available pursuant to titles II through V of this Act 
for direct assistance and none of the funds otherwise made 
available to the Export-Import Bank and the Overseas 
Private Investment Corporation shall be obligated or ex-
pended to finance any loan, any assistance or any other 
financial commitments for establishing or expanding pro-
duction of any commodity for export by any country other 
than the United States, if the commodity is likely to be 
in surplus on world markets at the time the resulting pro-
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