H. R. 1625—533 
LOCAL COMPETITION 
SEC. 7028. (a) REQUIREMENTS FOR EXCEPTIONS TO COMPETITION 
FOR LOCAL ENTITIES.—Funds appropriated by this Act that are 
made available to the United States Agency for International 
Development may only be made available for limited competitions 
through local entities if— 
(1) prior to the determination to limit competition to local 
entities, USAID has— 
(A) assessed the level of local capacity to effectively 
implement, manage, and account for programs included 
in such competition; and 
(B) documented the written results of the assessment 
and decisions made; and 
(2) prior to making an award after limiting competition 
to local entities— 
(A) each successful local entity has been determined 
to be responsible in accordance with USAID guidelines; 
and 
(B) effective monitoring and evaluation systems are 
in place to ensure that award funding is used for its 
intended purposes; and 
(3) no level of acceptable fraud is assumed. 
(b) REPORT.—In addition to the requirements of subsection 
(a)(1), the USAID Administrator shall report to the appropriate 
congressional committees not later than 45 days after the end 
of fiscal year 2018 on all awards subject to limited or no competition 
for local entities: Provided, That such report shall be posted on 
the USAID Web site: Provided further, That the requirements of 
this subsection shall only apply to awards in excess of $3,000,000 
and sole source awards to local entities in excess of $2,000,000. 
(c) EXTENSION OF PROCUREMENT AUTHORITY.—Section 7077 of 
the Department of State, Foreign Operations, and Related Programs 
Appropriations Act, 2012 (division I of Public Law 112–74) shall 
continue in effect during fiscal year 2018. 
INTERNATIONAL FINANCIAL INSTITUTIONS 
SEC. 7029. (a) EVALUATIONS AND REPORT.—The Secretary of 
the Treasury shall instruct the United States executive director 
of each international financial institution to seek to require that 
such institution adopts and implements a publicly available policy, 
including the strategic use of peer reviews and external experts, 
to conduct independent, in-depth evaluations of the effectiveness 
of at least 25 percent of all loans, grants, programs, and significant 
analytical non-lending activities in advancing the institution’s goals 
of reducing poverty and promoting equitable economic growth, con-
sistent with relevant safeguards, to ensure that decisions to support 
such loans, grants, programs, and activities are based on accurate 
data and objective analysis: Provided, That not later than 45 days 
after enactment of this Act, the Secretary shall submit a report 
to the Committees on Appropriations on steps taken in fiscal year 
2017 by the United States executive directors and the international 
financial institutions consistent with this subsection compared to 
the previous fiscal year. 
(b) SAFEGUARDS.— 
(1) The Secretary of the Treasury shall instruct the United 
States Executive Director of the International Bank for
H. R. 1625—534 
Reconstruction 
and 
Development 
and 
the 
International 
Development Association to vote against any loan, grant, policy, 
or strategy if such institution has adopted and is implementing 
any social or environmental safeguard relevant to such loan, 
grant, policy, or strategy that provides less protection than 
World Bank safeguards in effect on September 30, 2015. 
(2) The Secretary of the Treasury should instruct the 
United States executive director of each international financial 
institution to vote against loans or other financing for projects 
unless such projects— 
(A) provide for accountability and transparency, 
including the collection, verification and publication of 
beneficial ownership information related to extractive 
industries and on-site monitoring during the life of the 
project; 
(B) will be developed and carried out in accordance 
with best practices regarding environmental conservation; 
cultural protection; and empowerment of local populations, 
including free, prior and informed consent of affected 
indigenous communities; 
(C) do not provide incentives for, or facilitate, forced 
displacement; and 
(D) do not partner with or otherwise involve enterprises 
owned or controlled by the armed forces. 
(c) COMPENSATION.—None of the funds appropriated under title 
V of this Act may be made as payment to any international financial 
institution while the United States executive director to such 
institution is compensated by the institution at a rate which, 
together with whatever compensation such executive director 
receives from the United States, is in excess of the rate provided 
for an individual occupying a position at level IV of the Executive 
Schedule under section 5315 of title 5, United States Code, or 
while any alternate United States executive director to such institu-
tion is compensated by the institution at a rate in excess of the 
rate provided for an individual occupying a position at level V 
of the Executive Schedule under section 5316 of title 5, United 
States Code. 
(d) HUMAN RIGHTS.—The Secretary of the Treasury shall 
instruct the United States executive director of each international 
financial institution to seek to require that such institution conducts 
rigorous human rights due diligence and risk management, as 
appropriate, in connection with any loan, grant, policy, or strategy 
of such institution: Provided, That prior to voting on any such 
loan, grant, policy, or strategy the executive director shall consult 
with the Assistant Secretary for Democracy, Human Rights, and 
Labor, Department of State, if the executive director has reason 
to believe that such loan, grant, policy, or strategy could result 
in forced displacement or other violation of human rights. 
(e) FRAUD AND CORRUPTION.—The Secretary of the Treasury 
shall instruct the United States executive director of each inter-
national financial institution to promote in loan, grant, and other 
financing agreements improvements in borrowing countries’ finan-
cial management and judicial capacity to investigate, prosecute, 
and punish fraud and corruption. 
(f) BENEFICIAL OWNERSHIP INFORMATION.—The Secretary of the 
Treasury shall instruct the United States executive director of 
each international financial institution to seek to require that such
H. R. 1625—535 
institution collects, verifies, and publishes, to the maximum extent 
practicable, beneficial ownership information (excluding proprietary 
information) for any corporation or limited liability company, other 
than a publicly listed company, that receives funds from any such 
financial institution: Provided, That not later than 45 days after 
enactment of this Act, the Secretary shall submit a report to the 
Committees on Appropriations on steps taken in fiscal year 2017 
by the United States executive directors and the international finan-
cial institutions consistent with this subsection compared to the 
previous fiscal year. 
(g) WHISTLEBLOWER
PROTECTIONS.—The Secretary of the 
Treasury shall instruct the United States executive director of 
each international financial institution to seek to require that each 
such institution is effectively implementing and enforcing policies 
and procedures which reflect best practices for the protection of 
whistleblowers from retaliation, including best practices for— 
(1) protection against retaliation for internal and lawful 
public disclosure; 
(2) legal burdens of proof; 
(3) statutes of limitation for reporting retaliation; 
(4) access to independent adjudicative bodies, including 
external arbitration; and 
(5) results that eliminate the effects of proven retaliation. 
DEBT-FOR-DEVELOPMENT 
SEC. 7030. In order to enhance the continued participation 
of nongovernmental organizations in debt-for-development and debt- 
for-nature exchanges, a nongovernmental organization which is a 
grantee or contractor of the United States Agency for International 
Development may place in interest bearing accounts local currencies 
which accrue to that organization as a result of economic assistance 
provided under title III of this Act and, subject to the regular 
notification procedures of the Committees on Appropriations, any 
interest earned on such investment shall be used for the purpose 
for which the assistance was provided to that organization. 
FINANCIAL MANAGEMENT AND BUDGET TRANSPARENCY 
SEC. 7031. (a) LIMITATION ON DIRECT GOVERNMENT-TO-GOVERN-
MENT ASSISTANCE.— 
(1) REQUIREMENTS.—Funds appropriated by this Act may 
be made available for direct government-to-government assist-
ance only if— 
(A)(i) each implementing agency or ministry to receive 
assistance has been assessed and is considered to have 
the systems required to manage such assistance and any 
identified vulnerabilities or weaknesses of such agency or 
ministry have been addressed; 
(ii) the recipient agency or ministry employs and uti-
lizes staff with the necessary technical, financial, and 
management capabilities; 
(iii) the recipient agency or ministry has adopted 
competitive procurement policies and systems; 
(iv) effective monitoring and evaluation systems are 
in place to ensure that such assistance is used for its 
intended purposes; 
(v) no level of acceptable fraud is assumed; and
H. R. 1625—536 
(vi) the government of the recipient country is taking 
steps to publicly disclose on an annual basis its national 
budget, to include income and expenditures; 
(B) the recipient government is in compliance with 
the principles set forth in section 7013 of this Act; 
(C) the recipient agency or ministry is not headed 
or controlled by an organization designated as a foreign 
terrorist organization under section 219 of the Immigration 
and Nationality Act (8 U.S.C. 1189); 
(D) the Government of the United States and the 
government of the recipient country have agreed, in 
writing, on clear and achievable objectives for the use of 
such assistance, which should be made available on a cost- 
reimbursable basis; and 
(E) the recipient government is taking steps to protect 
the rights of civil society, including freedoms of expression, 
association, and assembly. 
(2) CONSULTATION AND NOTIFICATION.—In addition to the 
requirements in paragraph (1), no funds may be made available 
for direct government-to-government assistance without prior 
consultation with, and notification of, the Committees on Appro-
priations: Provided, That such notification shall contain an 
explanation of how the proposed activity meets the require-
ments of paragraph (1): Provided further, That the require-
ments of this paragraph shall only apply to direct government- 
to-government assistance in excess of $10,000,000 and all funds 
available for cash transfer, budget support, and cash payments 
to individuals. 
(3) SUSPENSION OF ASSISTANCE.—The Administrator of the 
United States Agency for International Development or the 
Secretary of State, as appropriate, shall suspend any direct 
government-to-government assistance if the Administrator or 
the Secretary has credible information of material misuse of 
such assistance, unless the Administrator or the Secretary 
reports to the Committees on Appropriations that it is in the 
national interest of the United States to continue such assist-
ance, including a justification, or that such misuse has been 
appropriately addressed. 
(4) SUBMISSION OF INFORMATION.—The Secretary of State 
shall submit to the Committees on Appropriations, concurrent 
with the fiscal year 2019 congressional budget justification 
materials, amounts planned for assistance described in para-
graph (1) by country, proposed funding amount, source of funds, 
and type of assistance. 
(5) REPORT.—Not later than 90 days after the enactment 
of this Act and every 6 months thereafter until September 
30, 2019, the USAID Administrator shall submit to the Commit-
tees on Appropriations a report that— 
(A) details all assistance described in paragraph (1) 
provided during the previous 6-month period by country, 
funding amount, source of funds, and type of such assist-
ance; and 
(B) the type of procurement instrument or mechanism 
utilized and whether the assistance was provided on a 
reimbursable basis.