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and strengthen the Proliferation Security Initiative (PSI) 
announced by the President on May 31, 2003, with a par-
ticular emphasis on the following: 
(1) Issuing a presidential directive to the rel-
evant government agencies and departments that es-
tablishes a defined annual budget and clear authori-
ties, and provides other necessary resources and 
structures to achieve more efficient and effective 
performance of United States PSI-related activities. 
(2) Working with the United Nations Security 
Council to develop a resolution to authorize the PSI 
under international law. 
(3) Increasing PSI cooperation with non-NATO 
partners. 
(4) Implementing the recommendations of the 
Government Accountability Office (GAO) in the Sep-
tember 2006 report titled ‘‘Better Controls Needed 
to Plan and Manage Proliferation Security Initiative 
Activities’’ (GAO–06–937C), including the following: 
(A) The Department of Defense and the 
Department of State should establish clear PSI 
roles and responsibilities, policies and proce-
dures, interagency communication mechanisms, 
documentation requirements, and indicators to 
measure program results. 
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(B) The Department of Defense and the 
Department of State should develop a strategy 
to work with PSI-participating countries to re-
solve issues that are impediments to conducting 
successful PSI interdictions. 
(5) Expanding and formalizing the PSI into a 
multilateral regime to increase coordination, co-
operation, and compliance among its participating 
states in interdiction activities. 
(b) BUDGET SUBMISSION.—The Secretary of State 
and the Secretary of Defense shall submit a defined budg-
et for the PSI, beginning with the budget submissions for 
their respective departments for fiscal year 2009. 
(c) IMPLEMENTATION REPORT.—Not later than 180 
days after the date of the enactment of this Act, the Presi-
dent shall transmit to the Committee on Armed Services 
and the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Armed Services 
and the Committee on Foreign Relations of the Senate 
a report on the implementation of this section. The report 
shall include— 
(1) the steps taken to implement the rec-
ommendations described in paragraph (4) of sub-
section (a); and 
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(2) the progress made toward implementing the 
matters described in paragraphs (1), (2), (3), and 
(5) of subsection (a). 
(d) GAO ANNUAL REPORT.—The Government Ac-
countability Office shall submit to Congress, beginning in 
fiscal year 2007, an annual report with its assessment of 
the progress and effectiveness of the PSI, which shall in-
clude an assessment of the measures referred to in sub-
section (a). 
SEC. 1222. AUTHORITY TO PROVIDE ASSISTANCE TO COOP-
ERATIVE COUNTRIES. 
(a) IN GENERAL.—The President is authorized to 
provide, on such terms as the President considers appro-
priate, assistance under subsection (b) to any country that 
cooperates with the United States and with other coun-
tries allied with the United States to prevent the transport 
and transshipment of items of proliferation concern in its 
national territory or airspace or in vessels under its control 
or registry. 
(b) TYPES OF ASSISTANCE.—The assistance author-
ized under subsection (a) consists of the following: 
(1) Assistance under section 23 of the Arms 
Export Control Act (22 U.S.C. 2763). 
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(2) Assistance under chapters 4 (22 U.S.C. 
2346 et seq.) and 5 (22 U.S.C. 2347 et seq.) of part 
II of the Foreign Assistance Act of 1961. 
(3) Drawdown of defense excess defense articles 
and services under section 516 of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2321j). 
(c) CONGRESSIONAL NOTIFICATION.—Assistance au-
thorized under this section may not be provided until at 
least 30 days after the date on which the President has 
provided notice thereof to the Committee on Armed Serv-
ices, the Committee on Foreign Affairs, and the Com-
mittee on Appropriations of the House of Representatives 
and the Committee on Armed Services, the Committee on 
Foreign Relations, and the Committee on Appropriations 
of the Senate, in accordance with the procedures applica-
ble to reprogramming notifications under section 634A(a) 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2394- 
1(a)), and has certified to such committees that such as-
sistance will be used in accordance with the requirement 
of subsection (e) of this section. 
(d) LIMITATION.—Assistance may be provided to a 
country under section (a) in no more than three fiscal 
years. 
(e) USE OF ASSISTANCE.—Assistance provided under 
this section shall be used to enhance the capability of the 
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recipient country to prevent the transport and trans-
shipment of items of proliferation concern in its national 
territory or airspace, or in vessels under its control or reg-
istry, including through the development of a legal frame-
work in that country, consistent with any international 
laws or legal authorities governing the PSI, to enhance 
such capability by criminalizing proliferation, enacting 
strict export controls, and securing sensitive materials 
within its borders, and to enhance the ability of the recipi-
ent country to cooperate in operations conducted with 
other participating countries. 
(f) LIMITATION ON SHIP OR AIRCRAFT TRANSFERS 
TO UNCOOPERATIVE COUNTRIES.—Notwithstanding any 
other provision of law, the United States may not transfer 
any excess defense article that is a vessel or an aircraft 
to a country that has not agreed that it will support and 
assist efforts by the United States to interdict items of 
proliferation concern until thirty days after the date on 
which the President has provided notice of the proposed 
transfer to the appropriate congressional committees in 
accordance with the procedures applicable to reprogram-
ming notifications under section 634A(a) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2394-1(a)), in addition 
to any other requirement of law. 
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