PROHIBITION OF PAYMENT OF CERTAIN EXPENSES 
SEC. 7020. None of the funds appropriated or other-
wise made available by this Act under the headings ‘‘Inter-
national Military Education and Training’’ or ‘‘Foreign 
Military Financing Program’’ for Informational Program 
activities or under the headings ‘‘Global Health and Child 
Survival’’, ‘‘Development Assistance’’, and ‘‘Economic 
Support Fund’’ may be obligated or expended to pay for— 
(1) alcoholic beverages; or 
(2) entertainment expenses for activities that 
are substantially of a recreational character, includ-
ing but not limited to entrance fees at sporting 
events, theatrical and musical productions, and 
amusement parks. 
PROHIBITION
ON
ASSISTANCE
TO
FOREIGN
GOVERN-
MENTS
THAT
EXPORT
LETHAL
MILITARY
EQUIP-
MENT TO COUNTRIES SUPPORTING INTERNATIONAL 
TERRORISM 
SEC. 7021. (a) None of the funds appropriated or 
otherwise made available by titles III through VI of this 
Act may be available to any foreign government which pro-
vides lethal military equipment to a country the govern-
ment of which the Secretary of State has determined is 
a government that supports international terrorism for 
purposes of section 6(j) of the Export Administration Act
of 1979. The prohibition under this section with respect 
to a foreign government shall terminate 12 months after 
that government ceases to provide such military equip-
ment. This section applies with respect to lethal military 
equipment provided under a contract entered into after 
October 1, 1997. 
(b) Assistance restricted by subsection (a) or any 
other similar provision of law, may be furnished if the 
President determines that furnishing such assistance is 
important to the national interests of the United States. 
(c) Whenever the President makes a determination 
pursuant to subsection (b), the President shall submit to 
the appropriate congressional committees a report with re-
spect to the furnishing of such assistance. Any such report 
shall include a detailed explanation of the assistance to 
be provided, including the estimated dollar amount of such 
assistance, and an explanation of how the assistance fur-
thers United States national interests. 
PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST 
COUNTRIES 
SEC. 7022. (a) Funds appropriated for bilateral as-
sistance under any heading in titles III through VI of this 
Act and funds appropriated under any such heading in 
a provision of law enacted prior to the enactment of this
Act, shall not be made available to any country which the 
President determines— 
(1) grants sanctuary from prosecution to any 
individual or group which has committed an act of 
international terrorism; or 
(2) otherwise supports international terrorism. 
(b) The President may waive the application of sub-
section (a) to a country if the President determines that 
national security or humanitarian reasons justify such 
waiver. The President shall publish each waiver in the 
Federal Register and, at least 15 days before the waiver 
takes effect, shall notify the Committees on Appropria-
tions of the waiver (including the justification for the waiv-
er) in accordance with the regular notification procedures 
of the Committees on Appropriations. 
AUTHORIZATION REQUIREMENTS 
SEC. 7023. Funds appropriated by this Act, except 
funds appropriated under the heading ‘‘Trade and Devel-
opment Agency’’, may be obligated and expended notwith-
standing section 10 of Public Law 91–672, section 15 of 
the State Department Basic Authorities Act of 1956, sec-
tion 313 of the Foreign Relations Authorization Act, Fis-
cal Years 1994 and 1995 (Public Law 103–236), and sec-
tion 504(a)(1) of the National Security Act of 1947 (50 
U.S.C. 414(a)(1)).
DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY 
SEC. 7024. For the purpose of titles II through VI 
of this Act ‘‘program, project, and activity’’ shall be de-
fined at the appropriations Act account level and shall in-
clude all appropriations and authorizations Acts funding 
directives, ceilings, and limitations with the exception that 
for the following accounts: ‘‘Economic Support Fund’’ and 
‘‘Foreign Military Financing Program’’, ‘‘program, 
project, and activity’’ shall also be considered to include 
country, regional, and central program level funding with-
in each such account; for the development assistance ac-
counts of the United States Agency for International De-
velopment ‘‘program, project, and activity’’ shall also be 
considered to include central, country, regional, and pro-
gram level funding, either as: (1) justified to the Congress; 
or (2) allocated by the executive branch in accordance with 
a report, to be provided to the Committees on Appropria-
tions within 30 days of the enactment of this Act, as re-
quired by section 653(a) of the Foreign Assistance Act 
of 1961. 
AUTHORITIES FOR THE PEACE CORPS, INTER-AMERICAN 
FOUNDATION AND AFRICAN DEVELOPMENT FOUNDATION 
SEC. 7025. Unless expressly provided to the contrary, 
provisions of this or any other Act, including provisions 
contained in prior Acts authorizing or making appropria-
tions for the Department of State, foreign operations, and 
related programs, shall not be construed to prohibit activi-
ties authorized by or conducted under the Peace Corps 
Act, the Inter-American Foundation Act or the African 
Development Foundation Act. The agency shall promptly 
report to the Committees on Appropriations whenever it 
is conducting activities or is proposing to conduct activi-
ties in a country for which assistance is prohibited. 
COMMERCE, TRADE AND SURPLUS COMMODITIES 
SEC. 7026. (a) None of the funds appropriated or 
made available pursuant to titles III through VI of this 
Act for direct assistance and none of the funds otherwise 
made available to the Export-Import Bank and the Over-
seas Private Investment Corporation shall be obligated or 
expended 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-
ductive capacity is expected to become operative and if the 
assistance will cause substantial injury to United States 
producers of the same, similar, or competing commodity: 
Provided, That such prohibition shall not apply to the Ex-
port-Import Bank if in the judgment of its Board of Direc-
tors the benefits to industry and employment in the
United States are likely to outweigh the injury to United 
States producers of the same, similar, or competing com-
modity, and the Chairman of the Board so notifies the 
Committees on Appropriations. 
(b) None of the funds appropriated by this or any 
other Act to carry out chapter 1 of part I of the Foreign 
Assistance Act of 1961 shall be available for any testing 
or breeding feasibility study, variety improvement or intro-
duction, consultancy, publication, conference, or training 
in connection with the growth or production in a foreign 
country of an agricultural commodity for export which 
would compete with a similar commodity grown or pro-
duced in the United States: Provided, That this subsection 
shall not prohibit— 
(1) activities designed to increase food security 
in developing countries where such activities will not 
have a significant impact on the export of agricul-
tural commodities of the United States; or 
(2) research activities intended primarily to 
benefit American producers. 
(c) The Secretary of the Treasury shall instruct the 
United States Executive Directors of the International 
Bank for Reconstruction and Development, the Inter-
national Development Association, the International Fi-
nance Corporation, the Inter-American Development
Bank, the International Monetary Fund, the Asian Devel-
opment Bank, the Inter-American Investment Corpora-
tion, the North American Development Bank, the Euro-
pean Bank for Reconstruction and Development, the Afri-
can Development Bank, and the African Development 
Fund to use the voice and vote of the United States to 
oppose any assistance by these institutions, using funds 
appropriated or made available pursuant to titles III 
through VI of this Act, for the production or extraction 
of any commodity or mineral for export, if it is in surplus 
on world markets and if the assistance will cause substan-
tial injury to United States producers of the same, similar, 
or competing commodity. 
SEPARATE ACCOUNTS 
SEC. 7027. (a) SEPARATE ACCOUNTS FOR LOCAL 
CURRENCIES.— 
(1) If assistance is furnished to the government 
of a foreign country under chapters 1 and 10 of part 
I or chapter 4 of part II of the Foreign Assistance 
Act of 1961 under agreements which result in the 
generation of local currencies of that country, the 
Administrator of the United States Agency for 
International Development shall—
(A) require that local currencies be depos-
ited in a separate account established by that 
government; 
(B) enter into an agreement with that gov-
ernment which sets forth— 
(i) the amount of the local currencies 
to be generated; and 
(ii) the terms and conditions under 
which the currencies so deposited may be 
utilized, consistent with this section; and 
(C) establish by agreement with that gov-
ernment the responsibilities of the United 
States Agency for International Development 
and that government to monitor and account 
for deposits into and disbursements from the 
separate account. 
(2) USES OF LOCAL CURRENCIES.—As may be 
agreed upon with the foreign government, local cur-
rencies deposited in a separate account pursuant to 
subsection (a), or an equivalent amount of local cur-
rencies, shall be used only— 
(A) to carry out chapter 1 or 10 of part 
I or chapter 4 of part II (as the case may be), 
for such purposes as—
(i) project and sector assistance activi-
ties; or 
(ii) debt and deficit financing; or 
(B) for the administrative requirements of 
the United States Government. 
(3) 
PROGRAMMING
ACCOUNTABILITY.—The 
United States Agency for International Development 
shall take all necessary steps to ensure that the 
equivalent of the local currencies disbursed pursuant 
to subsection (a)(2)(A) from the separate account 
established pursuant to subsection (a)(1) are used 
for the purposes agreed upon pursuant to subsection 
(a)(2). 
(4) 
TERMINATION
OF
ASSISTANCE
PRO-
GRAMS.—Upon termination of assistance to a coun-
try under chapter 1 or 10 of part I or chapter 4 of 
part II (as the case may be), any unencumbered bal-
ances of funds which remain in a separate account 
established pursuant to subsection (a) shall be dis-
posed of for such purposes as may be agreed to by 
the government of that country and the United 
States Government. 
(5) REPORTING REQUIREMENT.—The Adminis-
trator of the United States Agency for International 
Development shall report on an annual basis as part
of the justification documents submitted to the Com-
mittees on Appropriations on the use of local cur-
rencies for the administrative requirements of the 
United States Government as authorized in sub-
section (a)(2)(B), and such report shall include the 
amount of local currency (and United States dollar 
equivalent) used and/or to be used for such purpose 
in each applicable country. 
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.— 
(1) If assistance is made available to the gov-
ernment of a foreign country, under chapter 1 or 10 
of part I or chapter 4 of part II of the Foreign As-
sistance Act of 1961, as cash transfer assistance or 
as nonproject sector assistance, that country shall be 
required to maintain such funds in a separate ac-
count and not commingle them with any other 
funds. 
(2) APPLICABILITY OF OTHER PROVISIONS OF 
LAW.—Such funds may be obligated and expended 
notwithstanding provisions of law which are incon-
sistent with the nature of this assistance including 
provisions which are referenced in the Joint Explan-
atory Statement of the Committee of Conference ac-
companying House Joint Resolution 648 (House Re-
port No. 98–1159).
100 
(3) NOTIFICATION.—At least 15 days prior to 
obligating any such cash transfer or nonproject sec-
tor assistance, the President shall submit a notifica-
tion through the regular notification procedures of 
the Committees on Appropriations, which shall in-
clude a detailed description of how the funds pro-
posed to be made available will be used, with a dis-
cussion of the United States interests that will be 
served by the assistance (including, as appropriate, 
a description of the economic policy reforms that will 
be promoted by such assistance). 
(4) EXEMPTION.—Nonproject sector assistance 
funds may be exempt from the requirements of sub-
section (b)(1) only through the regular notification 
procedures of the Committees on Appropriations. 
ELIGIBILITY FOR ASSISTANCE 
SEC. 7028. (a) ASSISTANCE THROUGH NONGOVERN-
MENTAL ORGANIZATIONS.—Restrictions contained in this 
or any other Act with respect to assistance for a country 
shall not be construed to restrict assistance in support of 
programs of nongovernmental organizations from funds 
appropriated by this Act to carry out the provisions of 
chapters 1, 10, 11, and 12 of part I and chapter 4 of 
part II of the Foreign Assistance Act of 1961, and from 
funds appropriated under the heading ‘‘Assistance for Eu-