[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1857 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 267
113th CONGRESS
  1st Session
                                S. 1857

         To reform assistance to Egypt, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 18, 2013

  Mr. Menendez, from the Committee on Foreign Relations, reported the 
    following original bill; which was read twice and placed on the 
                                calendar

_______________________________________________________________________

                                 A BILL


 
         To reform assistance to Egypt, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Egypt Assistance 
Reform Act of 2013''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
   TITLE I--PROHIBITION ON ASSISTANCE TO GOVERNMENTS FOLLOWING COUPS 
                                 D'ETAT

Sec. 101. Prohibition on assistance to governments following coups 
                            d'etat.
              TITLE II--UNITED STATES ASSISTANCE FOR EGYPT

Sec. 201. Suspension and reform of arms sales.
Sec. 202. Suspension and reform of United States economic support to 
                            Egypt.
Sec. 203. Termination.
Sec. 204. Additional oversight of ongoing Egypt funding.
Sec. 205. Sunset of existing authority.
Sec. 206. Appropriate congressional committees defined.

   TITLE I--PROHIBITION ON ASSISTANCE TO GOVERNMENTS FOLLOWING COUPS 
                                 D'ETAT

SEC. 101. PROHIBITION ON ASSISTANCE TO GOVERNMENTS FOLLOWING COUPS 
              D'ETAT.

    (a) In General.--Chapter 1 of part II of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2301 et seq.) is amended by adding at the end the 
following new section:

``SEC. 502C. PROHIBITION ON ASSISTANCE FOLLOWING COUPS D'ETAT.

    ``(a) In General.--After the date of the enactment of the Egypt 
Assistance Reform Act of 2013, except as provided under subsection (b), 
no foreign assistance authorized pursuant to this Act or the Arms 
Export Control Act (22 U.S.C. 2751 et seq.) may be provided to the 
government of a foreign country, and none of the funds appropriated for 
such assistance shall be obligated or expended to finance directly any 
such assistance for such government, whose democratically elected head 
of government is deposed by coup d'etat or decree in which the security 
services of that country play a decisive role.
    ``(b) Exceptions.--The prohibition in subsection (a) shall not 
apply to humanitarian assistance or assistance to promote democratic 
elections or public participation in democratic processes.
    ``(c) Determination and Publication.--
            ``(1) In general.--After the date of the enactment of the 
        Egypt Assistance Reform Act of 2013, not later than 30 days 
        after receiving credible information that the democratically 
        elected head of a national government may have been deposed by 
        coup d'etat or decree in which the security services of that 
        country played a decisive role, the Secretary of State shall 
        determine whether the democratically elected head of government 
        was deposed by coup d'etat or decree in which the security 
        forces of that country played a decisive role.
            ``(2) Transmission of determination.--A determination made 
        under paragraph (1) shall be submitted to the appropriate 
        congressional committees on the day that such determination is 
        made, together with a report reviewing United States assistance 
        programs to that country and assessing the impact on that 
        country and on United States national security interests of a 
        cessation of assistance restricted under subsection (a).
    ``(d) Termination of Restriction.--The restriction in subsection 
(a) shall terminate 15 days after the Secretary of State notifies the 
appropriate congressional committees that a democratically elected 
government has taken office in such country pursuant to elections 
determined to be free and fair.
    ``(e) Waiver.--
            ``(1) In general.--The President may waive the restrictions 
        in subsection (a) for a 180-day period if, not later than 5 
        days before the waiver takes effect, the President certifies to 
        the appropriate congressional committees that--
                    ``(A) providing such assistance is in the vital 
                national security interests of the United States, 
                including for the purpose of combating terrorism; and
                    ``(B) such foreign government is committed to 
                restoring democratic governance and due process of law, 
                and is taking demonstrable steps toward holding free 
                and fair elections in a reasonable timeframe.
            ``(2) Consultation.--Not later than 15 days prior to the 
        submission of the certification required by paragraph (1), the 
        President shall consult with the appropriate congressional 
        committees regarding the use of the waiver authority provided 
        under such paragraph and provide such committees a full 
        briefing on the need for such waiver.
            ``(3) Extension of waiver.--The President may extend the 
        effective period of a waiver under paragraph (1) for additional 
        180-day periods if, not later than 5 days before the extension 
        takes effect, the President submits to the appropriate 
        congressional committees an updated certification meeting the 
        requirements of subparagraphs (A) and (B) of paragraph (1).
    ``(f) Reporting Requirement.--Any certification submitted pursuant 
to subsection (e) shall be accompanied by a report describing the types 
and amounts of assistance to be provided pursuant to the waiver and the 
justification for the waiver, including a description and analysis of 
the foreign government's commitment to restoring democratic governance 
and due process of law and the demonstrable steps being taken by such 
foreign government toward holding free and fair elections.
    ``(g) Appropriate Congressional Committees Defined.--In this 
section, the term `appropriate congressional committees' means the 
Committees on Foreign Relations and Appropriations of the Senate and 
the Committees on Foreign Affairs and Appropriations of the House of 
Representatives.''.
    (b) Application of Coup Provision.--The restrictions and exceptions 
under subsections (a) and (b) of section 502C of the Foreign Assistance 
Act of 1961, as added by subsection (a), shall apply to Fiji, Guinea-
Bissau, Madagascar, and Sudan as of the date of the enactment of such 
section.

              TITLE II--UNITED STATES ASSISTANCE FOR EGYPT

SEC. 201. SUSPENSION AND REFORM OF ARMS SALES.

    (a) In General.--The United States Government may not license, 
approve, facilitate, or otherwise allow the sale, lease, transfer, 
retransfer, or delivery of defense articles or defense services to 
Egypt under section 38(a)(1) of the Arms Export Control Act (22 U.S.C. 
2778(a)(1)) until 15 days after the Secretary of State submits to the 
appropriate congressional committees a certification that--
            (1) providing such assistance is in the national security 
        interests of the United States; and
            (2) the Government of Egypt--
                    (A) continues to implement the Peace Treaty between 
                the State of Israel and the Arab Republic of Egypt, 
                signed at Washington, March 26, 1979;
                    (B) is taking necessary and appropriate measures to 
                counter terrorism, including measures to counter 
                smuggling into the Gaza Strip by, among other measures, 
                detecting and destroying tunnels between Egypt and the 
                Gaza Strip and securing the Sinai peninsula;
                    (C) is allowing the United States Armed Forces to 
                transit the territory of Egypt, including through the 
                airspace and territorial waters of Egypt;
                    (D) is supporting a transition to an inclusive 
                civilian government by demonstrating a commitment to, 
                and making consistent progress toward, holding regular, 
                credible elections that are free, fair, and consistent 
                with internationally accepted standards;
                    (E) is respecting and protecting the political and 
                economic freedoms of all residents of Egypt, including 
                taking measures to address violence against women and 
                religious minorities;
                    (F) is respecting freedom of expression and due 
                process of law, including respecting the rights of 
                women and religious minorities; and
                    (G) has continued to abide by its nuclear non-
                proliferation commitments as a signatory of the Treaty 
                on the Non-Proliferation of Nuclear Weapons, done at 
                London, Moscow, and Washington July 1, 1968, has not 
                detonated a nuclear explosive device, and is not in 
                material violation of IAEA safeguards.
    (b) Exception.--The limitation under subsection (a) shall not apply 
to defense articles and defense services to be used primarily for 
supporting or enabling counterterrorism, border and maritime security, 
or special operations capabilities or operations.
    (c) Waiver.--
            (1) In general.--The President may waive the restrictions 
        in subsection (a) for a 180-day period if, not later than 15 
        days before the waiver takes effect, the President--
                    (A) certifies to the appropriate congressional 
                committees that providing such assistance is in the 
                vital national security interests of the United States;
                    (B) provides to such committees a report detailing 
                the reasons for making the determination that such 
                assistance is in the vital national security interests 
                of the United States; and
                    (C) submits to such committees an analysis of the 
                degree to which providing such assistance is in the 
                national security interests of the United States and 
                the actions of the Government of Egypt do or do not 
                satisfy each of the criteria contained in subparagraphs 
                (A) through (G) of subsection (a)(2).
            (2) Extension of waiver.--
                    (A) Fiscal years 2014 and 2015.--The President may 
                extend the effective period of a waiver under paragraph 
                (1) for the remainder of fiscal year 2014 and an 
                additional fiscal year if the Secretary of State 
                submits the strategy required in subsection (d) to the 
                appropriate congressional committees and, not later 
                than 15 days before the waiver expires, the President 
                submits to the appropriate congressional committees an 
                updated certification, report, and analysis that meet 
                the requirements of subparagraphs (A), (B), and (C), 
                respectively, of paragraph (1).
                    (B) Subsequent fiscal years.--The President may 
                annually extend the effective period of a waiver under 
                paragraph (2)(A) for an additional fiscal year if, not 
                later than 15 days before the prior year waiver 
                expires, the President submits to the appropriate 
                congressional committees an updated certification, 
                report, and analysis that meet the requirements of 
                subparagraphs (A), (B), and (C), respectively, of 
                paragraph (1).
    (d) Strategy to Reform United States Military Assistance to 
Egypt.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of State shall submit 
        to Congress a comprehensive strategy for modernizing and 
        improving United States security cooperation with, and 
        assistance for Egypt. The strategy shall seek to--
                    (A) enhance the ability of the Government of Egypt 
                to detect, disrupt, dismantle, and defeat al Qaeda, its 
                affiliated groups, and other terrorist organizations 
                operating in Egypt, and to counter terrorist ideology 
                and radicalization in Egypt;
                    (B) improve the capacity of the Government of Egypt 
                to prevent human trafficking and the illicit movement 
                of terrorists, criminals, weapons, and other dangerous 
                material across Egypt's borders or administrative 
                boundaries, especially through illicit points of entry 
                into the Gaza Strip;
                    (C) improve the Government of Egypt's operational 
                capabilities in counterinsurgency, counterterrorism, 
                and border and maritime security;
                    (D) enhance the capacity of the Government of Egypt 
                to gather, integrate, analyze, and share intelligence, 
                especially with respect to the threat posed by 
                terrorism and other illicit activity, while also 
                ensuring a proper protection for the civil liberties of 
                Egypt's citizens; and
                    (E) increase transparency, accountability to 
                civilian authority, respect for human rights, and the 
                rule of law within the armed forces of Egypt.
            (2) Elements.--The strategy required under paragraph (1) 
        shall include the following elements:
                    (A) A detailed assessment of the mechanism by which 
                military assistance is provided to Egypt and whether 
                such mechanism should be modified.
                    (B) A detailed summary of the current balance 
                between the levels of economic and military support 
                provided to Egypt, including an assessment of whether 
                funding for economic development and political 
                assistance programs should be increased as a percentage 
                of overall United States foreign assistance to Egypt, 
                and an assessment of whether there should be an 
                increased percentage of foreign military assistance 
                focused on counterinsurgency, counterterrorism, border 
                and maritime security and related training.
                    (C) A process to assess whether current levels of 
                economic and military support provided to Egypt are 
                achieving United States national security objectives 
                and supporting Egypt's transition to democracy.
                    (D) An estimated schedule for completing the 
                baseline conventional modernization of the armed forces 
                of Egypt with United States-origin equipment.
                    (E) An assessment of the extent to which the 
                Government of Egypt is--
                            (i) implementing the 1979 Egypt-Israel 
                        Peace Treaty;
                            (ii) taking effective steps to combat 
                        terrorism on the Sinai Peninsula; and
                            (iii) taking effective steps to eliminate 
                        smuggling networks and to detect and destroy 
                        tunnels between Egypt and the Gaza Strip.
                    (F) An assessment of the abilities of the United 
                States Government to achieve the goals set forth in the 
                strategy if defense articles and services to Egypt are 
                withheld.
            (3) Consultation requirement.--In developing the strategy 
        required under paragraph (1), the Secretary of State shall 
        consult with, among other relevant parties, the appropriate 
        congressional committees and the Government of Egypt.
            (4) Report on contracts.--The Secretary of State shall 
        submit with the strategy required under paragraph (1) a report 
        containing--
                    (A) a summary of all contracts with the Government 
                of Egypt funded through United States assistance over 
                the prior 10 years and a projection of such contracts 
                over the next 5 years; and
                    (B) information on any contracts or purchases made 
                by the Government of Egypt using interest earned from 
                amounts in an interest-bearing account for Egypt 
                related to funds made available under section 23 of the 
                Arms Export Control Act (22 U.S.C. 2763) and whether 
                the use of this interest has furthered the goals 
                described in this section.

SEC. 202. SUSPENSION AND REFORM OF UNITED STATES ECONOMIC SUPPORT TO 
              EGYPT.

    (a) In General.--No bilateral economic assistance may be made 
available to the Government of Egypt pursuant to chapter 4 of part II 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2346 et seq.; relating 
to the Economic Support Fund) until 15 days after the Secretary of 
State certifies to the appropriate congressional committees that--
            (1) providing such assistance is in the national security 
        interest of the United States; and
            (2) the Government of Egypt--
                    (A) continues to implement the Peace Treaty between 
                the State of Israel and the Arab Republic of Egypt, 
                signed at Washington, March 26, 1979;
                    (B) is supporting the transition to an inclusive 
                civilian government by demonstrating a commitment to 
                hold regular, credible elections that are free, fair, 
                and consistent with internationally accepted standards;
                    (C) is respecting and protecting the political, 
                economic, and religious freedoms of all residents of 
                Egypt, including taking measures to address violence 
                against women and religious minorities;
                    (D) is permitting nongovernmental organizations and 
                civil society groups in Egypt to operate freely and 
                consistent with internationally recognized standards; 
                and
                    (E) is demonstrating a commitment to implementing 
                economic reforms, including reforms necessary to reduce 
                the deficit and ensure economic stability and growth.
    (b) Exceptions.--The prohibition in subsection (a) shall not apply 
to humanitarian assistance or assistance to promote democratic 
elections or public participation in democratic processes.
    (c) Waiver.--
            (1) In general.--The President may waive the limitation 
        under subsection (a) for a 180-day period if, not later than 15 
        days before the waiver takes effect, the President--
                    (A) certifies to the appropriate congressional 
                committees that providing such assistance is in the 
                vital national security interests of the United States;
                    (B) submits to such committees a report detailing 
                the reasons for making the determination that such 
                assistance is in the vital national security interests 
                of the United States notwithstanding the fact that the 
                certification required by subsection (a) cannot be 
                made; and
                    (C) submits to such committees an analysis of the 
                degree to which such assistance is in the national 
                security interests of the United States and the actions 
                of the Government of Egypt do, or do not, satisfy the 
                criteria in subsection (a)(2).
            (2) Extension of waiver.--
                    (A) Fiscal years 2014 and 2015.--The President may 
                extend the effective period of a waiver under paragraph 
                (1) for the remainder of fiscal year 2014 and an 
                additional fiscal year if the Secretary of State 
                submits the strategy required in subsection (d) to the 
                appropriate congressional committees and, not later 
                than 15 days before the prior waiver expires, the 
                President submits to the appropriate congressional 
                committees an updated certification, report, and 
                analysis that meet the requirements of subparagraph 
                (A), (B), and (C), respectively, of paragraph (1).
                    (B) Subsequent fiscal years.--The President may 
                annually extend the effective period of a waiver under 
                paragraph (2)(A) for an additional fiscal year if, not 
                later than 15 days before the prior year waiver 
                expires, the President submits to the appropriate 
                congressional committees an updated certification, 
                report, and analysis that meet the requirements of 
                subparagraph (A), (B), and (C), respectively, of 
                paragraph (1).
    (d) Strategy.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of State shall 
        separately provide to Congress a comprehensive foreign 
        assistance strategy for Egypt that--
                    (A) addresses how United States foreign assistance 
                can most effectively--
                            (i) respond to the political and economic 
                        development concerns and aspirations of the 
                        people of Egypt, and seek to advance the United 
                        States' strategic objective of a secure, 
                        democratic, civilian-led, and prosperous Egypt 
                        that is a partner of the United States and 
                        advances peace and security in the region;
                            (ii) support regional stability and 
                        cooperation by strengthening the political and 
                        economic relationships between Egypt and her 
                        neighbors;
                            (iii) encourage and support efforts by the 
                        Government and people of Egypt to foster 
                        democratic norms and institutions, including 
                        rule of law, transparent and accountable 
                        governance, an independent legislature and 
                        judiciary, regular conduct of free and fair 
                        elections, an inclusive political process, and 
                        effective, law-abiding public security forces;
                            (iv) support economic reforms by the 
                        Government of Egypt to encourage private 
                        sector-led growth and job creation, create a 
                        favorable climate for business and investment, 
                        fight corruption, and expand international 
                        trade;
                            (v) seek to foster a vibrant civil society 
                        in Egypt, including the unencumbered operation 
                        of nongovernmental organizations, a free and 
                        independent media, respect for women, and 
                        protections for the political, economic, and 
                        religious freedoms and rights of all citizens 
                        and residents of Egypt; and
                            (vi) seek to support security sector 
                        reform, particularly regarding civilian police 
                        forces;
                    (B) includes an assessment of what actions the 
                Government of Egypt has taken, in law and practice, 
                that advance or inhibit the interests, principles, and 
                goals described within this strategy, including the 
                ability of Egyptian and international nongovernmental 
                organizations to operate inside Egypt, especially for 
                the purposes of promoting political, economic, and 
                religious freedoms and rights, democracy, and 
                education, and what actions the Secretary of State has 
                taken to further the same interests, principles, and 
                goals in Egypt;
                    (C) is based on the best principles and practices 
                of effective international development, the provision 
                of matching funds by the host government, leveraging 
                assistance for greater impact together with the private 
                sector, and the goal of graduation from assistance;
                    (D) includes a detailed assessment of resources and 
                amounts that will be necessary to achieve the goals set 
                forth in this subsection over the next five fiscal 
                years; and
                    (E) includes an assessment of the effects of a 
                cessation of bilateral economic support for Egypt on 
                the Middle East region and United States national 
                security interests in the region.
            (2) Consideration of certain elements.--The strategy 
        required by paragraph (1) shall include consideration of--
                    (A) measures to promote and protect foreign direct 
                investment in the economy of Egypt;
                    (B) programs to assist regional economic engagement 
                by the Government of Egypt and job creation in that 
                country through, among other things, assisting in the 
                establishment of free trade zones in Egypt along the 
                Suez Canal Zone;
                    (C) efforts to improve the business climate in 
                Egypt, including by promoting United States trade with 
                Egypt and investment in that country; and
                    (D) efforts to promote market-based economic 
                reforms and to identify barriers to entry in the 
                economy of Egypt that prevent the efficient flow of 
                capital, goods, and services.
            (3) Consultation requirement.--In developing the strategy 
        required by paragraph (1), the Secretary of State shall consult 
        with, among other relevant parties, the appropriate 
        congressional committees, the Government of Egypt, political 
        opposition groups in Egypt, private sector leaders, 
        nongovernmental organizations, religious and secular groups, 
        women's organizations, and civil society groups, as well as 
        relevant international nongovernmental organizations.
    (e) Funding for Democracy and Governance Programs.--
            (1) In general.--If, in any fiscal year, bilateral economic 
        assistance is provided to Egypt pursuant to chapter 4 of part 
        II of the Foreign Assistance Act of 1961 (22 U.S.C. 2346 et 
        seq.; relating to the Economic Support Fund), not less than 
        $50,000,000 of that assistance shall be provided through the 
        Department of State and the National Endowment for Democracy 
        for democracy and governance programs in Egypt.
            (2) Additional funding if waiver authority invoked.--If, in 
        any fiscal year, the President exercises the waiver authority 
        under subsection (c) and bilateral economic assistance is 
        provided to Egypt pursuant to chapter 4 of part II of the 
        Foreign Assistance Act of 1961, not less than $25,000,000 of 
        that assistance (in addition to the amount provided for under 
        paragraph (1)) shall be provided through the Department of 
        State and the National Endowment for Democracy for democracy 
        and governance programs in Egypt.

SEC. 203. TERMINATION.

    The limitations under section 201 and 202 shall terminate on 
September 30, 2016, if the Secretary of State submits to the 
appropriate congressional committees a certification that the 
Government of Egypt--
            (1) continues to implement the Peace Treaty between the 
        State of Israel and the Arab Republic of Egypt, signed at 
        Washington, March 26, 1979;
            (2) is taking necessary and appropriate measures to counter 
        terrorism, including measures to counter smuggling into the 
        Gaza Strip by, among other measures, detecting and destroying 
        tunnels between Egypt and the Gaza Strip and securing the Sinai 
        peninsula;
            (3) is allowing the United States Armed Forces to transit 
        the territory of Egypt, including through the airspace and 
        territorial waters of Egypt; and
            (4) is supporting a transition to an inclusive civilian 
        government by demonstrating a commitment to, and making 
        consistent progress toward, holding regular, credible elections 
        that are free, fair, and consistent with internationally 
        accepted standards.

SEC. 204. ADDITIONAL OVERSIGHT OF ONGOING EGYPT FUNDING.

    Section 7041(a) of the Consolidated Appropriations Act, 2012 
(Public Law 112-74; 125 Stat. 1222) is amended by striking ``Committees 
on Appropriations'' each place it appears and inserting ``Committees on 
Appropriations and Foreign Relations of the Senate and the Committees 
on Appropriations and Foreign Affairs of the House of 
Representatives''.

SEC. 205. SUNSET OF EXISTING AUTHORITY.

    (a) Repeal.--Section 7008 of the Consolidated Appropriations Act, 
2012 (Public Law 112-74; 125 Stat. 1195) is hereby repealed.
    (b) Termination of Existing Restrictions.--Notwithstanding any 
other provision of law, any restrictions on assistance to a foreign 
government as the result of a coup d'etat that were enacted before the 
date of the enactment of this Act shall terminate as of the date of the 
enactment of this Act and shall no longer apply to the provision of 
such assistance.

SEC. 206. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

    In this title, the term ``appropriate congressional committees'' 
means the Committees on Foreign Relations and Appropriations of the 
Senate and the Committees on Foreign Affairs and Appropriations of the 
House of Representatives.
                                                       Calendar No. 267

113th CONGRESS

  1st Session

                                S. 1857

_______________________________________________________________________

                                 A BILL

         To reform assistance to Egypt, and for other purposes.

_______________________________________________________________________

                           December 18, 2013

                 Read twice and placed on the calendar