Special Central American Assistance Act of 1979
PL 96-257 (H.R.6081), enacted 05/31/1980

94 STAT. 422 
PUBLIC LAW 96-257—MAY 31, 1980 
Public Law 96-257 
96th Congress 
An Act 
May 31, 1980 
[H.R. 6081] 
Special Central 
American 
Assistance Act of 
1979. 
22 u s e 2151 
note. 
22 u s e 2346e. 
Appropriation 
authorization. 
22 u s e 2346. 
Human rights 
violations. 
Presidential 
encouragement 
of human rights 
22 u s e 2304. 
22 u s e 2151n. 
Report to 
congressional 
committees. 
To amend the Foreign Assistance Act of 1961 to authorize assistance in support of 
peaceful and democratic processes of development in Central America. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, That this Act may be 
cited as the "Special Central American Assistance Act of 1979". 
SEC. 2. Chapter 4 of part II of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new section: 
"SEC. 536. CENTRAL AMERICAN ECONOMIC SUPPORT.—(a) The Con-
gress finds that peaceful and democratic development in Central 
America is in the interest of the United States and of the community 
of American States generally, that the recent civil strife in Nicaragua 
has caused great human suffering and disruption to the economy of 
that country, and that substantial external assistance to Nicaragua is 
necessary to help alleviate that suffering and to promote economic 
recovery within a peaceful and democratic process. The Congress 
further finds that peaceful and democratic development in certain 
other Central American countries will be significantly assisted by 
additional economic support at this time. 
"(b) There are authorized to be appropriated to the President for 
use in carr5dng out section 531 for the purposes set forth in subsection 
(a) of this section, in addition to funds otherwise available for such 
purposes, $80,000,000 for the fiscal year 1980, which are authorized to 
remain available until expended. 
"(c) In furnishing assisteuice under this chapter to the Government 
of Nicaragua, the President shall take into account the extent to 
which that Government has engaged in violations of the right to 
organize and operate labor unions free from political oppression, has 
engaged in or permitted violations of human rights, has engaged in 
violations of the right to fi-eedom of the press, or has engaged in 
violations of the right to freedom of religion. 
"(d) The President shall encourage the Government of Nicaragua 
to respect the right to freedom of the press, the right to organize and 
operate free labor unions, the right to freedom of religion, as well as 
all other fundamental human rights. 
"(e) The Congress reaffirms the requirement of section 502B(a)(l) of 
this Act that a principal goal of the foreign policy of the United States 
shall be to promote the increased observance of internationally 
recognized human rights by all countries. In furtherance of that goal, 
assistance to Nicaragua under this section shall be terminated, in 
accordance with sections 116 and 502B of this Act, if the Government 
of Nicaragua engages in a consistent pattern of gross violations of 
internationally recognized human rights. 
"(f) The Secretary of State shall transmit to the Speaker of the 
House of Representatives and the Committee on Foreign Relations of 
the Senate a report for each six-month period in which funds are 
expended for Nicaragua under the authorization contained in subsec-
tion (b) of this section. Each such report shall discuss fully and 
PUBLIC LAW 96-257—MAY 31, 1980 
94 STAT. 423 
completely the status of respect in Nicaragua for human rights, 
political pluralism, freedom of the press and assembly, freedom of 
religion, and freedom of labor to organize and bargain collectively. 
"(g) The President shall transmit to the Speaker of the House of 
Representatives and the Committee on Foreign Relations of the 
Senate, certification prior to releasing any assistance to the Govern-
ment of Nicaragua under this chapter, that the Government of 
Nicaragua has not cooperated with or harbors any international 
terrorist organization or is aiding, abetting, or supporting acts of 
violence or terrorism in other countries. In the event that the 
President transmits such a certification, but at a later date he 
determines that the Government of Nicaragua cooperates with or 
harbors any international terrorist organization or is aiding, abet-
ting, or supporting acts of violence or terrorism in other countries, 
the President shall terminate assistance to the Government of 
Nicaragua under this chapter and the outstanding balance of any 
loan to the Government of Nicaragua, or any of its agencies or 
instrumentalities, with funds authorized to be appropriated by this 
chapter shall become immediately due and payable. 
"(h) It is the sense of the Congress that the United States should 
support those traditionally faithful allies of the United States, 
including Guatemala, El Salvador, Costa Rica, Panama, Nicaragua, 
and Honduras, which are responsible members of the Organization of 
American States against terrorism and external subversion. 
"(i) Funds made available under this chapter for the National 
School of Agriculture in Nicaragua shall be used under an under-
standing with the Autonomous National University of Nicaragua 
that the National School of Agriculture will cooperate in programs 
with United States institutions of higher education. 
"(j) Any agreement between the United States and the Government 
of Nicaragua regarding the use of funds authorized to be appropri-
ated under this chapter, which are to be made available in the form of 
loans, shall specifically require that at least 60 per centum of such 
loan funds, and any local currency generated in conjunction there-
with, shall be used for assistance to the private sector. "Insofar as 
practicable, local currency used for assistance to the private sector in 
Nicaragua shall, consistent with the accomplishment of the purposes 
set forth in subsection (a) of this section, be used in ways which will 
strengthen private financial institutions which will help keep the 
private sector in Nicaragua financially independent." 
"Local currency loan programs in Nicaragua shall be monitored 
and audited in accordance with section 624(g) of the Foreign Assist-
ance Act. The President shall report on the implementation of this 
provision in the report required under subsection (e) of this section.". 
"(k) The President shall terminate assistance to the Government of 
Nicaragua under this chapter if he determines and reports to the 
Congress that Soviet, Cuban, or other foreign combat military forces 
are stationed or situated within the borders of Nicaragua and that 
the presence of such forces constitutes a threat to the national 
security of the United States or to any Latin American ally of the 
United States. 
"(k) The President shall terminate assistance to Nicaragua under 
this section if he determines that the Government of Nicaragua has 
engaged in a consistent pattern of violations of the right to organize 
and operate labor unions free from political oppression.". 
"(k) The President shall encourage the holding of free, open 
elections in Nicaragua within a reasonable period of time and shall. 
Certification of 
nonterrorism; 
transmittal to 
the Speaker of 
the House and 
the Senate 
Committee on 
Foreign 
Relations. 
U.S. support of 
OAS members 
against 
terrorism. 
Loan funds, 
private sector 
use. 
Local currency 
loan programs. 
22 u s e 2384. 
Assistance 
termination, 
conditions. 
Free, open 
elections. 
94 STAT. 424 
PUBLIC LAW 96-257—MAY 31, 1980 
Loan funds, U.S. 
goods or services 
purchase. 
Report to 
Congress. 
in providing any additional assistance to Nicaragua, take into consid-
eration the progress which is being made toward holding such 
elections.". 
"(k) None of the funds authorized under this chapter may be used 
for assistance for anv school or other educational instrumentality or 
facility which would house, employ or be made available to Guoan 
personnel." 
"(k) The President shall terminate assistance under this chapter if 
he determines that the Government of Nicaragua engages in system-
atic violations of 
free speech and press." 
"(k) Any agreement between the United States and the Govern-
ment of Nicaragua regarding the use of funds authorized to be 
appropriated under this chapter, made available in the form of loans, 
shall specifically require that such loan funds shall be used for the 
purchase of 
goods or services of U.S. origin.". 
"(k) Up to one per centum of 
the funds made available to Nicaragua 
from amounts authorized in subsection (b) shall be used to make 
publicly known to the people of Nicaragua the extent of US. aid 
programs to them. The President shall periodically report to the 
Congress on the effectiveness of his efforts to carry out this subsec-
tion." 
Approved May 31, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-713 (Comm. on Foreign Affairs). 
SENATE REPORT No. 96-522 accompanying S. 2012 (Comm. on Foreign Relations). 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
Jan. 29, S. 2012 considered and passed Senate. 
Feb. 22, 25-27, considered and passed House. 
May 19, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 16, No. 23: 
May 31, Presidential statement.