In 1996, Congress established the NADR appropriations account in response to the increased importance of nonproliferation and anti- terrorism efforts and to give the executive branch more flexibility in administering funds for these kinds of activities. While some programs funded through the account have been recently established—such as the Small Arms/Light Weapons Destruction Program, other programs were already in operation when the NADR account was created, including the NDF. Programs funded through this account fall under the jurisdiction of the Department of State and are grouped into three categories: (1) Nonproliferation, (2) Anti-terrorism, and (3) Regional Stability and Humanitarian Assistance. There are three major nonproliferation programs: The NDF funds projects to prevent the proliferation of weapons of mass destruction, their delivery systems, and related materials. The Export Control and Related Border Security Assistance Program assists other governments in implementing effective export control systems to prevent the proliferation of weapons of mass destruction and their missile delivery systems as well as conventional weapons. The Science Centers and Bio-Chem Redirection Program finances civilian research by former Soviet nuclear, biological, and chemical weapons scientists to provide incentives that would prevent them from marketing their skills to other countries. The fiscal year 2005 budget request refers to this program as the Nonproliferation of WMD (weapons of mass destruction) Expertise Program. There are two major anti-terrorism programs: The Anti-terrorism Assistance Program provides training to foreign nationals in such areas as law enforcement, border control, protection of critical infrastructure, and crisis management to develop and sustain other countries’ abilities to impede terrorist activities. The Terrorist Interdiction Program helps countries improve border security through the provision of a computerized database that enables border control officials to identify, detain, or track individuals of interest. Two major programs support regional stability and humanitarian assistance: The Humanitarian Demining Program funds humanitarian assistance programs that remove and destroy land mines and unexploded ordnance from former combat areas. The Small Arms/Light Weapons Destruction Program supports the destruction worldwide of surplus and illicit stocks of military small arms and light weapons that are easily transportable (e.g., small arms, minor explosives, and hand-held missile systems). Table 1 provides the appropriations history for these major programs for fiscal years 1999 through 2005, as applicable. In addition to these major programs, the NADR account funds other activities, including contributions to international organizations that have a more specific focus. For example, the NADR account includes funds that support other nonproliferation activities, including the International Atomic Energy Agency and the International Monitoring System. While some of these activities may have received significant levels of appropriations, we did not conduct in depth review of these activities because they were generally more focused in scope. State officials, nevertheless, consider the funding and programmatic support to the International Atomic Energy Agency to be one of their more important nonproliferation activities, and noted that the appropriations for the U.S. voluntary contribution has been at least $50 million since fiscal year 2001. Table 2 provides a funding history for these activities. All the NADR programs are authorized by law, and program implementation reflects those legislative authorizations. Because the NDF, however, engages in both preplanned and longer-term activities, it also engages in activities that, while legally authorized, appear to go beyond expectations for the scope of the program’s mission of providing a flexible funding source to respond to urgent nonproliferation activities. Program expectations appear in congressional appropriations committee reports and have been reiterated by the Secretary of State and the program’s own mission statement. For example, appropriations committee report language states that the program should focus on “urgent, unanticipated nonproliferation activities of immediate concern to the United States.” Furthermore, the program funds a longer-term export control activity that is designated in committee reports as being outside the scope of the program’s expected activities. That export control activity has not been integrated with State’s Export Control and Related Border Security Assistance Program, which supports development of export control capabilities in other countries. State is authorized to engage in the activities of the major programs funded through the NADR account. The legislative authorities for the programs generally establish the scope of authorized activities, the countries in which the programs may operate, the retention of appropriated funds, and whether the programs can operate regardless of other existing laws. We reviewed the types of activities funded by the major programs in the context of program authorizations and found that these programs engage in activities that are in accord with their legislative authorizations. For example, among the nonproliferation programs, the Science Centers and Bio-Chem Redirection Program is authorized to engage former Soviet weapons scientists in civilian activities, and to facilitate conversion of former Soviet military technologies and capabilities into civilian activities. To fulfill this mission, the Science Centers and Bio-Chem Redirection Program supports two international science centers—the International Science and Technology Center in Moscow and the Science and Technology Center in Ukraine—as well as other activities including those that engage nuclear, biological, and chemical scientists in research projects. These programs help focus on civilian research such as public health, agriculture, the environment, measures to help combat biological and chemical terrorism, and the development of vaccines for infectious diseases. Among the anti-terrorism programs, for example, the Anti-terrorism Assistance Program is authorized to provide assistance to allied countries to enhance their ability to deter terrorists and terrorist groups from engaging in international terrorist acts. To fulfill its mission, this program provides training and equipment to enhance other countries’ abilities to fight and prevent terrorism. The program supports training and equipment in such areas as bomb detection and disposal, management of hostage situations, physical security for personnel, and law enforcement management. Among the regional stability and humanitarian assistance programs, for example, the Humanitarian Demining Program is authorized to provide assistance to help strengthen war-torn countries to develop their resources and improve their living standards. To fulfill this mission, this program assists with the clearance of land mines and unexploded ordnance, provides workshops and classes regarding mine safety for people living in mine-affected regions, and funds research and training for those who run mine action programs. Detailed information on program authorizations and activities, program implementation, and program funding by type of activity and recipient country, as available, are provided in appendixes II (nonproliferation programs), III (anti-terrorism programs), and IV (regional stability and humanitarian assistance programs). The NDF preplans some activities and engages in longer-term activities, including export control activities that, while authorized by law, appear to be inconsistent with expectations for the scope of the program’s mission. According to past language included in appropriations committee reports, and both reiterated by the Secretary of State and incorporated into the program’s mission statement, the NDF is expected to provide a flexible funding source to respond to urgent, unanticipated nonproliferation activities. Furthermore, the longer-term preplanned export control activity supported by the NDF has been, and continues to be, developed and implemented independently from the responsibilities and activities of State’s Export Control and Related Border Security Assistance Program, which is responsible for assisting the development of export control capabilities in other countries. The 1997 congressional conference report on the appropriations for foreign operations for fiscal year 1998 included language that directed the NDF to focus on funding “urgent, unanticipated nonproliferation activities of immediate concern to the United States.” That conference report also stated that “Longer term programmatic activities, such as export controls ”, should be funded separately “outside of the NDF account” so that they would be subject to normal legislative oversight and review. Between 1996 and 2000, the House Appropriations Committee included similar language in committee reports on foreign operations and related appropriations. This congressional appropriations committee report language, however, is not legally binding because it is not part of the program’s statutory authorization. Moreover, the committee has not included similar language since calendar year 2000. Nevertheless, committee reports are a standard source of congressional guidance for program operations. While appropriations reports apply to appropriations for the applicable fiscal year, the NDF’s appropriations are available indefinitely, instead of having to be returned to the U.S. Treasury at the end of a fiscal year if not obligated by then. In testimony before the Senate Committee on Appropriations’ Subcommittee on Foreign Operations in May 2001, the Secretary of State reiterated the emergency response nature of the NDF by characterizing it as a contingency rapid reaction fund, which can meet unanticipated challenges and disperse funds quickly in support of urgent nonproliferation objectives. Also, the NDF acknowledges the nature of the committee report language in its mission statement. In its September 2003 annual report, the program’s mission statement states that the NDF is a “sharply focused fund to permit rapid response to unanticipated (or unusually difficult), high priority requirements/opportunities” in the field of nonproliferation. The “unusually difficult” part of the program’s mission, however, emanates from the program and not language in past congressional committee reports. According to a program official, there are no clear parameters for defining what would constitute an “unusually difficult” activity that warranted support from the NDF. That official stated that a determination of “unusually difficult” is made on a case-by-case basis without standardized formal assessment criteria. The NDF implements its nonproliferation responsibilities through activities such as the removal and/or destruction of weapons and the conversion of weapons testing facilities. However, some activities that the program engages in appear to go beyond the scope of the program’s expected activities. In particular, the NDF (1) preplans some programmatic expenditures and (2) funds at least one major longer-term activity, which is an export control activity.