[House Report 109-486]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-486

======================================================================



 
      FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                       APPROPRIATIONS BILL, 2007

                                _______
                                

  June 5, 2006.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Kolbe, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 5522]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for Foreign Operations, Export Financing, and 
Related Programs, and for sundry independent agencies and 
corporations for the fiscal year ending September 30, 2007, and 
for other purposes.

                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                            Page number

                                                            Bill Report
Summary of the Bill........................................     1
                                                                      2
Committee Recommendations..................................
                                                                      3
Title I--Export and Investment Assistance:                      2
                                                                      5
        Export-Import Bank of the United States............     2
                                                                      5
        Overseas Private Investment Corporation............     4
                                                                      5
        Trade and Development Agency.......................     6
                                                                      6
Title II--Bilateral Economic Assistance:                        6
                                                                      6
        Child Survival and Health Programs Fund............     7
                                                                      7
        Development Assistance.............................    12
                                                                     15
        International Disaster and Famine Assistance.......    13
                                                                     24
        Transition Initiatives.............................    14
                                                                     26
        Development Credit Authority.......................    15
                                                                     27
        Payment to the Foreign Service Retirement and 
            Disability Fund................................    16
                                                                     27
        Operating Expenses of the United States Agency for 
            International Development (USAID)..............    16
                                                                     27
        Capital Investment Fund............................    18
                                                                     31
        Operating Expenses of the Agency for International 
            Development, Office of the Inspector General...    19
                                                                     32
        Economic Support Fund..............................    19
                                                                     32
        International Fund for Ireland.....................    23
                                                                     43
        Assistance for Eastern Europe and the Baltic States    23
                                                                     43
        Assistance for the Independent States of the Former 
            Soviet Union...................................    25
                                                                     45
        Trade Capacity Enhancement Fund....................    28
                                                                     48
        Independent Agencies:                                  29
                                                                     50
        Inter-American Foundation..........................    29
                                                                     50
        African Development Foundation.....................    29
                                                                     51
        Peace Corps........................................    30
                                                                     51
        Millennium Challenge Corporation...................    30
                                                                     51
        Department of State:                                   32
                                                                     53
        Global HIV/AIDS Initiative.........................    32
                                                                     53
        International Narcotics Control and Law Enforcement    32
                                                                     60
        Andean Counterdrug Initiative......................    34
                                                                     62
        Migration and Refugee Assistance...................    37
                                                                     66
        Emergency Refugee and Migration Assistance Fund....    38
                                                                     68
        Nonproliferation, Anti-terrorism, Demining and 
            Related Programs...............................    38
                                                                     68
        Conflict Response Fund.............................
                                                                     69
        Department of the Treasury:                            40
                                                                     70
        International Affairs Technical Assistance.........    40
                                                                     70
        Debt Restructuring.................................    40
                                                                     70
Title III--Military Assistance:                                43
                                                                     71
        International Military Education and Training......    43
                                                                     71
        Foreign Military Financing Program.................    44
                                                                     73
        Peacekeeping Operations............................    47
                                                                     76
Title IV--Multilateral Economic Assistance:                    48
                                                                     77
        Global Environment Facility........................    48
                                                                     77
        International Development Association (IDA)........    48
                                                                     78
        Multilateral Investment Guarantee Agency...........
                                                                     79
        Inter-American Investment Corporation..............
                                                                     80
        Multilateral Investment Fund.......................    48
                                                                     80
        Asian Development Fund (ADF).......................    48
                                                                     81
        African Development Bank...........................    49
                                                                     81
        African Development Fund (AFDF)....................    49
                                                                     81
        European Bank for Reconstruction and Development 
            (EBRD).........................................
                                                                     81
        International Fund for Agricultural Development 
            (IFAD).........................................    49
                                                                     82
        International Organizations and Programs...........    50
                                                                     82
Title V--General Provisions:                                   50
                                                                     83
        House of Representatives Reporting Requirements....   138
                                                                     88

                                Overview

    The fiscal year 2007 budget request for the activities 
under the jurisdiction of the Subcommittee on Foreign 
Operations, Export Financing, and Related Programs is 
$23,687,369,000 in new discretionary budget authority. The 
Committee recommends a total of $21,299,260,000 in new 
discretionary budget authority, a decrease of $2,388,109,000 
from the President's request and an increase of $468,057,000 
over the fiscal year 2006 enacted level, including enacted 
supplemental appropriations.
    The Committee's recommendation, provided in this bill and 
detailed in the accompanying report, reflects the four 
priorities of the Committee:
    1. Oversight of the foreign assistance programs
    2. Supporting our allies in the Global War on Terror
    3. Responding to the global HIV/AIDS pandemic
    4. Supporting innovative approaches to foreign assistance 
through the Millennium Challenge Corporation

           SUPPORT TO OUR ALLIES IN THE GLOBAL WAR ON TERROR

    The Committee's fiscal year 2007 recommendation includes a 
total of $2,650,740,000 for Economic Support Fund (ESF) 
programs and $4,454,900,000 for Foreign Military Financing 
(FMF) programs.
    The vast majority of the ESF and FMF programs support 
ongoing and new assistance for our allies in the War on Terror. 
These funds support traditional methods of providing United 
States taxpayer assistance in the form of programs, projects, 
and activities to improve quality of life, support of existing 
military systems such as radios and spare parts for aircraft 
and trucks, as well as the purchase of new systems such as 
aircraft and radar systems.

                     EMERGENCY PLAN FOR AIDS RELIEF

    The Committee recommends a total of $3,431,472,000 in this 
Act for Global HIV/AIDS and Tuberculosis, which is $751,642,000 
above the enacted level and the same as the request. Within the 
total, $2,772,500,000 is funded under the Global HIV/AIDS 
Initiative account, which is $797,450,000 above the enacted 
level and $121,500,000 below the request. Of the remaining 
funds, $626,621,000 is provided within the Child Survival and 
Health Programs Fund account, and $32,351,000 is provided from 
other accounts, such as the Economic Support Fund, and regional 
accounts for Eastern Europe and the former Soviet Union.
    Within the total, the recommendation includes $444,500,000 
for a United States contribution to the Global Fund to Fight 
AIDS, Tuberculosis and Malaria (Global Fund), which is the same 
as the enacted level and $244,500,000 above the request. Within 
that amount, $200,000,000 is to be derived from the Child 
Survival and Health Programs Fund and $244,500,000 from the 
Global HIV/AIDS Initiative account. Contributions to the Global 
Fund continue to be subject to the provisions in Public Law 
108-25, including the ``matching funding'' provision, and to 
additional provisions carried in prior years and contained in 
this Act.

                    MILLENNIUM CHALLENGE CORPORATION

    The President's budget request includes $3,000,000,000 for 
the fourth year of funding for the Millennium Challenge 
Corporation (MCC). The Committee continues its strong support 
for the innovative approach of the MCC, and recognizes the 
improvements in management and performance that have taken 
place over the last fiscal year. The constraints of the 302(b) 
allocation do not provide the Committee with the flexibility to 
fully fund the President's request for this important 
initiative. The Committee recommendation includes 
$2,000,000,000 for the MCC, an increase of $248,000,000 from 
fiscal year 2006. The Committee provides this substantial 
increase in an effort to respond positively to the President's 
proposal and to encourage the MCC's continued development.

                        LATIN AMERICA: OVERVIEW

    The Committee is disappointed that USAID has not 
implemented prior year Congressional direction urging that 
greater emphasis be provided for programs in Latin America. The 
Committee is concerned that the United States influence and 
interests in the region will suffer should resources decline. 
The Committee does not believe that this reflects the 
priorities of United States economic, trade, humanitarian and 
immigration policies with these neighboring countries. 
Therefore, the Committee has included a provision in title V of 
this Act directing assistance to Latin American nations from 
funds appropriated in title II of this Act at not less than 
that provided in fiscal year 2006. As part of this directive, 
the Committee has included report language under the heading 
``Development Assistance'' directing USAID to provide for this 
region from that account, and from the Trade Capacity 
Enhancement Fund, no less than the amount provided from the 
fiscal year 2006 Development Assistance account. The allocation 
of all resources should be shaped by the following high 
priorities: improved labor rights and environmental capacity, 
basic education, child and maternal health, rural development, 
empowerment of the poor through private property rights, and 
opportunities for farmers to participate in the formal economy. 
Foreign assistance can facilitate the efforts of these 
countries to integrate into the global economy and leverage 
trade for development. Furthermore, such assistance can 
encourage Latin American countries to undertake the changes 
necessary to become eligible for a compact in subsequent years 
if such countries meet the eligibility requirements of the 
Millennium Challenge Corporation.

                            MICROENTERPRISE

    Microfinance is one of the great success stories of United 
States foreign assistance. It is a prime example of how our 
foreign aid can work cost-effectively to give those in need a 
chance to work their way out of poverty. In most developing 
countries, small, informally organized businesses--
microenterprises--constitute the vast majority of business 
enterprises. Microenterprises are the source of employment and 
income for hundreds of millions of people in developing 
countries. To flourish, microenterprises need a supportive 
policy environment and growing markets, as well as capital and 
technical assistance. The Committee expects USAID's programs to 
reach the largest possible number of microenterprises, whether 
through grants to private, nongovernmental organizations that 
on-lend to microenterprises or by sponsoring economic policy 
reforms that directly stimulate such enterprises. The Committee 
directs the Director of Foreign Assistance, in consultation 
with the Director of Trade Capacity Enhancement, to allocate 
from the funds provided in title II of this Act not less than 
$225,000,000 for microenterprise programs.

               TITLE I--EXPORT AND INVESTMENT ASSISTANCE


                Export-Import Bank of the United States


                           INSPECTOR GENERAL




Fiscal year 2006 enacted level........................          $990,000
Fiscal year 2007 request..............................           988,000
Committee recommendation..............................           988,000
    Change from request...............................                 0
    Change from enacted level.........................            -2,000


    The Committee recommends $988,000 for the Inspector General 
of the Export-Import Bank of the United States, the same as the 
request and a decrease of $2,000 from the 2006 enacted level.

                         SUBSIDY APPROPRIATION




Fiscal year 2006 enacted level........................       $74,000,000
Fiscal year 2007 request..............................        26,382,000
Committee recommendation..............................        26,382,000
    Change from request...............................                 0
    Change from enacted level.........................       -47,618,000


    The Committee recommends $26,382,000 for the Subsidy 
Appropriation of the Export-Import Bank of the United States, 
the same as the budget request and a decrease of $47,618,000 
from the 2006 enacted level.

                        ADMINISTRATIVE EXPENSES




Fiscal year 2006 enacted level........................       $72,468,000
Fiscal year 2007 request..............................        75,234,000
Committee recommendation..............................        75,234,000
    Change from request...............................                 0
    Change from enacted level.........................        +2,766,000


    The Committee recommends $75,234,000 for the administrative 
expenses appropriation of the Export-Import Bank of the United 
States, the same as the request and an increase of $2,766,000 
over the fiscal year 2006 enacted level.
    The Committee directs the President of the Export-Import 
Bank to report quarterly to the Committee on the level of 
authorizations, subsidy used, and subsidy balances from current 
and prior years.

                Overseas Private Investment Corporation


                           NONCREDIT ACCOUNT




Fiscal year 2006 enacted level........................       $41,851,000
Fiscal year 2007 request..............................        45,453,000
Committee recommendation..............................        45,453,000
    Change from request...............................                 0
    Change from enacted level.........................        +3,602,000


    The Committee recommends $45,453,000 for the Noncredit 
Account of the Overseas Private Investment Corporation (OPIC) 
for administrative expenses, the same as the request and an 
increase of $3,602,000 over the 2006 enacted level.

  COORDINATION WITH OTHER UNITED STATES AGENCIES THAT OPERATE OVERSEAS

    The Committee commends OPIC for initiating coordination 
with other United States Government agencies that operate 
overseas. The Committee urges OPIC to continue this outreach 
program and to closely coordinate with the Director of Foreign 
Assistance, the United States Agency for International 
Development, the Millennium Challenge Corporation, the Treasury 
Department and other agencies of the United States Government 
to ensure no duplication of effort with providing assistance.

                            PROGRAM ACCOUNT




Fiscal year 2006 enacted level........................       $20,073,000
Fiscal year 2007 request..............................        20,035,000
Committee recommendation..............................        20,035,000
    Change from request...............................                 0
    Change from enacted level.........................           -38,000


    The Committee recommends $20,035,000 for the subsidy 
appropriation for OPIC's direct and guaranteed loan credit 
programs, the same as the request and a decrease of $38,000 
from the fiscal year 2006 enacted level.
    The Committee continues prior year language required by the 
Federal Credit Reform Act and addressing representation 
expenses and availability of funds.

                      Trade and Development Agency





Fiscal year 2006 enacted level........................       $50,391,000
Fiscal year 2007 request..............................        50,300,000
Committee recommendation..............................        50,300,000
    Change from request...............................                 0
    Change from enacted level.........................           -91,000


    The Committee recommends $50,300,000 for the Trade and 
Development Agency (TDA), the same as the request and a 
decrease of $91,000 from the 2006 enacted level.

                 PILOT PROJECT TO IMPROVE PORT SECURITY

    The Committee encourages the TDA to consider a proposal for 
a port security demonstration in Vietnam.

                TITLE II--BILATERAL ECONOMIC ASSISTANCE


                  Funds Appropriated to the President


           United States Agency for International Development


              STRUCTURE OF DEVELOPMENT ASSISTANCE ACCOUNTS

    The Committee appropriates funding for longer-term 
development assistance programs managed by the United States 
Agency for International Development (USAID) in two accounts. 
As in previous fiscal years, the Act includes an account for 
child survival and health programs. It also includes a separate 
development assistance account for other program sectors, 
including economic growth, education, environment, and 
governance. Other accounts, such as the ``Global HIV/AIDS 
Initiative'', are largely implemented by USAID.
    Three existing regional accounts jointly managed by the 
Department of State and USAID are included elsewhere in title 
II. The Committee utilizes the regional accounts to fund most 
economic and political cooperation with Russia, the independent 
states of the former Soviet Union, Central and Eastern European 
States, and several Andean countries.
    Beginning in fiscal year 2007, the Committee has included a 
new appropriation account entitled, ``Trade Capacity 
Enhancement Fund.'' This appropriation will be managed by a new 
Director of Trade Capacity Enhancement at USAID in support of 
trade capacity enhancement strategic goals. Previously, funding 
for trade capacity enhancement had been distributed throughout 
a variety of accounts in title II.
    Finally, authority is provided for the United States to 
make contributions from the Child Survival and Health Programs 
Fund to two international health funds: the Global Fund to 
Fight AIDS, Tuberculosis and Malaria (the ``Global Fund'') and 
The Global Alliance for Vaccines and Immunizations Fund 
(formerly the Vaccine Fund).

                Child Survival and Health Programs Fund


                      [Including transfer of funds]



Fiscal year 2006 enacted level.......................     $1,569,150,000
Fiscal year 2006 emergency appropriation, P.L. 109-           75,200,000
 148.................................................
Fiscal year 2006 emergency supplemental (House)......          5,300,000
Fiscal year 2007 request.............................      1,433,000,000
Committee recommendation.............................      1,565,613,000
    Change from request..............................       +132,613,000
    Change from enacted level........................         -3,537,000


    The Committee recommends $1,565,613,000 for the ``Child 
Survival and Health Programs Fund'', an amount that is 
$132,613,000 above the request and $3,537,000 below the amount 
enacted for fiscal year 2006.
    The Committee has made available a total of $3,431,472,000 
in this Act for HIV/AIDS, and Tuberculosis (TB), of which 
$626,621,000 is funded through the Child Survival and Health 
(CSH) Programs Fund, $2,772,500,000 is funded under the 
``Global HIV/AIDS Initiative'' account, and $32,351,000 is 
provided from other accounts, such as the Economic Support 
Fund, International Disaster Assistance, and regional accounts 
for Eastern Europe and the former Soviet Union.

Allocation of Child Survival and Health Programs Fund

    Unless modifications are subsequently notified and agreed 
to by the Committees on Appropriations, fiscal year 2007 
appropriations for the Child Survival and Health Programs Fund 
are deemed to be allocated as follows:

                         Global Health Funding

        Category                                              Allocation
Child Survival and Health Programs Fund:
    Child Survival and Maternal Health..................    $356,400,000
    Vulnerable Children.................................      25,000,000
    HIV/AIDS (bilateral)................................     346,621,000
    Global Fund to Fight AIDS, TB, and Malaria..........     200,000,000
    Reproductive Health/Voluntary Family Planning.......     350,000,000
    Other Infectious Diseases (including TB and Malaria)     287,592,000
                    --------------------------------------------------------
                    ____________________________________________________
        Subtotal, Child Survival and Health Programs 
          Fund..........................................   1,565,613,000
Other Global Health:
    Global HIV/AIDS Initiative..........................   2,772,500,000
    Economic Support Fund...............................     139,300,000
    Regional Accounts...................................      60,600,000
                    --------------------------------------------------------
                    ____________________________________________________
            Total, Global Health Funding................   4,538,013,000

    A definition of program categories and their components can 
be found on pages 9 through 11 of House Report 107-142 and 
under the heading ``Family Planning/Reproductive Health'' on 
page 12 of Senate Report 107-58. The United States Agency for 
International Development has also issued guidance on this 
matter.
    The Committee is again including language that prohibits 
the use of certain funds in this account for non-project 
assistance, or cash grants, to governments. The provision of 
cash grants as general budget support for governments is no 
longer an appropriate development tool, given current funding 
constraints. To the extent that cash grants are necessary for 
countries in transition or for specific foreign policy goals, 
funds are available through the ``Economic Support Fund''.

Child Survival and Maternal Health

    The Committee directs USAID to allocate $356,400,000 for 
child survival and maternal health in fiscal year 2007, 
$33,400,000 more than requested and the same as the enacted 
level.

Micronutrients

    The Committee continues to support USAID efforts to reduce 
Vitamin A deficiency, a condition that is the cause of death 
for more than 2.8 million children annually. The Committee 
recommends not less than $29,700,000 from all accounts for 
USAID's overall micronutrient program, including at least 
$19,800,000 for activities related to Vitamin A deficiency.
    The Committee understands that iodine deficiency disorder 
(IDD) is the leading preventable cause of mental retardation in 
children. The Committee recommends that USAID maintain support 
of at least $2,000,000 for the Kiwanis/UNICEF IDD partnership 
from the ``Child Survival and Health Programs Fund'' and at 
least $500,000 from Europe and Eurasia regional accounts.

Polio eradication

    Since 1988, the number of polio cases has fallen from an 
estimated 350,000 to less than 2,000 in 2005. Polio has been 
eradicated in more than 200 countries. Yet, it still remains 
endemic in four countries and another five countries have 
reported ``imported'' cases in 2006. The global partnership to 
eradicate polio has had much success, but some of the most 
difficult work remains. Millions of young people are still at 
risk from this disease. The Committee urges USAID to continue 
to support the global polio eradication program at not less 
than the fiscal year 2006 level.

Vaccines and immunization

    The Committee continues its support of the Global Alliance 
for Vaccines and Immunization (GAVI). Since its initiation five 
years ago, more than $1,400,000,000 has been committed to 71 
countries to improve and expand their immunization programs for 
children. As a result, it is estimated that over one million 
premature childhood deaths were averted. The Committee 
recommends not less than $69,300,000 for the GAVI Fund 
(formerly, The Vaccine Fund) in fiscal year 2007, which is the 
same as fiscal year 2006 and $34,182,000 above the request.

Other activities

    The Committee is aware of a proposal from Gift of Life 
International to expand its programs to assist Iraqi children 
as well as from Operation Smile for a Global Standard of Care 
Initiative and encourages USAID to consider support for these 
efforts.
    The Committee also encourages USAID to support the effort 
of Medical Missions for Children to expand its Global 
Telemedicine and Teaching Network to include treatment sites in 
the Middle East, South Asia, and Africa.

Vulnerable Children

    The Committee directs USAID to allocate $25,000,000 for 
displaced children and orphans and blind children in fiscal 
year 2007, $16,000,000 more than requested and $4,701,000 below 
the enacted level. As in previous years, the Committee 
addresses assistance for children affected by HIV/AIDS 
elsewhere in the bill.

Childhood blindness

    The Committee remains concerned that one and a half million 
children are currently blind, and another seven million suffer 
from poor vision. The Committee is aware of the work done by 
Helen Keller International and other organizations such as CBMI 
to assist these children, who can often be helped through 
simple and inexpensive methods of prevention and low cost care. 
The Committee recommends not less than $1,800,000 for USAID's 
childhood blindness program in fiscal year 2007.

Other activities

    The Committee encourages USAID to continue and expand 
support for programs that provide children without parents the 
support and structure they need, such as through adoption or 
long-term mentoring. The Committee encourages USAID to consider 
an initiative of Kidsave International in Colombia to help 
children without parents develop such relationships.
    The Committee is aware of a proposal from the International 
Center to Heal Our Children (ICHOC) to expand its international 
training and observer program in Iraq, Afghanistan and The 
Gambia. The goal of the program is to foster, promote, and 
maintain the emotional health of children traumatized 
psychologically by acts of terrorism, violence and disasters. 
The Committee encourages USAID to give consideration to 
supporting this public/private partnership.

HIV/AIDS

    The Committee directs USAID to allocate $346,621,000 for 
HIV/AIDS from this account in fiscal year 2007. This is 
$21,621,000 above the request and $121,000 above the enacted 
level. Additional language addressing United States bilateral 
HIV/AIDS funding is found under the ``Global HIV/AIDS 
Initiative'' heading.
    As in fiscal years 2005 and 2006, no funding for the 
``focus'' countries is included in ``Child Survival and Health 
Programs Fund'' and funding for the United Nations Joint 
Programme on HIV/AIDS (UNAIDS) is included in the Global HIV/
AIDS Initiative account. The Committee has included $50,000,000 
for the ``non-focus'' countries in the recommendation for the 
Global HIV/AIDS Initiative account and recognizes the formal 
process by which these funds are allocated to agencies to 
ensure that USAID funds are integrated within the overall 
policy and strategic direction of the President's Emergency 
Plan for AIDS Relief (PEPFAR).

Media

    The Committee understands that local and national media can 
provide an effective tool for combating HIV/AIDS. The Committee 
supports the USAID media programs in Kenya, Nigeria, Ethiopia 
and India. The Committee recommends that USAID, in 
collaboration with the Office of the Global HIV/AIDS 
Coordinator, at a minimum sustain its current media programs 
and consider expanding activities in India and to other 
countries in Africa.

Regional programs

    The Committee acknowledges the work of the AIDS 
Responsibility Project in Latin America. The aim of the Project 
is to prevent the spread of HIV/AIDS by ending stigma and 
discrimination. Projects engage the business sector to 
establish business councils that commit to promoting HIV/AIDS 
education and prevention strategies in the workplace and to 
adopt policies that prohibit discrimination against those with 
HIV. The Committee urges USAID to expand the program to other 
countries in Latin America, such as Peru, Argentina, Bolivia, 
Ecuador, Guatemala, Honduras, and El Salvador.
    The Committee understands the difficulty of establishing 
regional solutions to challenges involving the delivery of safe 
and effective HIV/AIDS prevention and treatment services. The 
Committee urges the Office of the Global HIV/AIDS Coordinator 
and USAID to expand support for such regional solutions, 
including a proposal from TREAT Asia, a regional collaborative 
research, education, and training network in the Asia and 
Pacific region. TREAT Asia currently serves as the Secretariat 
for a number of USAID-supported HIV prevention projects in the 
Mekong Delta.
    The Committee is aware of the interest of the Progressive 
United Action Association (PUAA) and the Khmer HIV/AIDS NGO 
Alliance (KHANA) in expanding their work addressing the needs 
of orphans and other vulnerable children affected by HIV/AIDS 
in Cambodia and encourages USAID to support their proposal.
    The Committee recognizes the rise in HIV infection in 
Central Asia and Eastern Europe from 30,000 to 1,600,000, and 
notes a link between an increase in production and traffic in 
heroin and a rise in HIV among injecting drug users in these 
regions. The Committee encourages the Coordinator, in 
collaboration with other donors, to maximize participation of 
injecting drug users in HIV prevention programs and to scale up 
and replicate successful HIV prevention interventions in Asia 
and Eastern Europe.

Voluntary Contribution to the Global Fund To Fight AIDS, Tuberculosis 
        and Malaria

    The President requested $200,000,000 for the Global Fund in 
this Act and an additional $100,000,000 for the Global Fund 
from the Act providing appropriations for the Department of 
Health and Human Services. The Committee recommendation 
includes not less than $444,500,000 from this Act, including 
$200,000,000 from this account to support the Global Fund. 
Further information about the Committee's recommendation is 
found under the heading ``Global HIV/AIDS Initiative''.
    The Committee notes with appreciation that USAID continues 
to be a key contributor of technical assistance to the Global 
Fund and has helped to establish and sustain Country 
Coordinating Mechanisms, monitor grants, and otherwise improve 
the functioning of the Global Fund. The Committee requests that 
USAID, in collaboration with the Global HIV/AIDS Coordinator, 
prepare and submit a report describing the support USAID has 
provided for the Global Fund in fiscal year 2006, the estimate 
for fiscal year 2007, and how such support is coordinated with 
the Global Fund and with other bilateral initiatives.
    The Committee notes that for fiscal year 2007 the bill 
language providing the technical assistance authority has been 
shifted from the Child Survival and Health Programs Fund 
account to the Global HIV/AIDS Initiative account.

Other infectious diseases, including TB and malaria

    The Committee directs USAID to allocate $287,592,000 for 
other infectious diseases, including tuberculosis (TB) and 
malaria, $69,792,000 more than fiscal year 2006 and $94,408,000 
below the request.

Malaria

    The Committee's recommendation includes $177,592,000 for 
malaria from this account. The Committee supports the 
allocation of an additional $1,450,000 from the Economic 
Support Fund as requested in the budget, and estimates that 
$63,830,000 of the recommended contribution to the Global Fund 
would benefit malaria programs. Overall, the Committee 
recommendation includes an estimated $242,872,000 from all 
accounts for malaria programs.

Tuberculosis (TB)

    Each year, more than eight million people develop active 
TB, and at least two million die of the disease. The 
Committee's recommendation includes $80,000,000 for the global 
prevention and control of TB from this account. The Committee 
supports the allocation of an additional $11,553,000 from other 
accounts, including regional accounts, as requested in the 
budget and estimates that an additional $89,389,000 of the 
recommended contribution to the Global Fund would benefit TB 
programs. Overall, the Committee recommendation includes an 
estimated $180,942,000 from all accounts for TB programs.
    The Global TB Drug Facility (GDF) supports expanded access 
to, and availability of, high-quality TB drugs to facilitate 
expanded treatment against the disease. The Committee 
encourages the increased cooperation between GDF and the Global 
Fund to Fight AIDS, TB and Malaria, and urges USAID to provide 
support to the GDF of not less than the level provided in 
fiscal year 2006.

Neglected diseases

    In fiscal year 2006, the Committee provided $14,800,000 to 
support an initiative to test an integrated approach to the 
control of neglected diseases that affect millions of children 
in the developing world. The Committee has provided sufficient 
funds to continue this initiative at no less than the fiscal 
year 2006 level.

Reproductive Health/Voluntary Family Planning

    The Committee recommends a total of $432,000,000 for 
reproductive health/voluntary family planning, $3,000,000 less 
than the fiscal year 2006 level. The Committee directs that not 
less than $350,000,0000 of this total be derived from the Child 
Survival and Health Programs Fund.

Reproductive health/voluntary family planning restrictions

    The Committee has continued prior year language that 
requires that none of the funds appropriated in this Act, or 
any unobligated balances, be made available to any organization 
or program which, as determined by the President, supports and 
participates in the management of a program of coercive 
abortion or involuntary sterilization. The language also states 
that funds cannot be used to pay for the performance of 
abortions as a method of family planning or to motivate or 
coerce any person to practice abortion. Further, the language 
indicates that in order to reduce reliance on abortions in 
developing countries, population funds shall be available only 
to voluntary family planning projects that offer, either 
directly or through referral, information about access to a 
broad range of family planning methods and services. An 
additional provision requires that in awarding grants for 
natural family planning under section 104 of the Foreign 
Assistance Act, no applicant shall be discriminated against 
because of such applicant's religious or conscientious 
commitment to offer only natural family planning.
    The Committee also has continued prior year language that 
states that nothing in the Act is to alter any existing 
statutory prohibitions against abortion that are included under 
section 104 of the Foreign Assistance Act. Further, the 
Committee has continued prior year language which states that 
project service providers or referral agents cannot implement 
or be subject to quotas or other numerical targets of total 
number of births, number of family planning acceptors, or 
acceptors of a particular method of family planning. The 
Committee has continued prior year language requiring that 
information on condom use provided by programs supported by 
funds made available by this Act shall be medically accurate 
and shall include the public health benefits and failure rates 
of such use.

Tiahrt Amendment violation

    The Committee notes that on May 2, 2006, the Committee was 
notified that the ``Tiahrt Amendment'' requirements (1) and 
(2)(B) were violated by one of the Agency's family planning 
implementing partners. Furthermore, because of the seriousness 
of the violation the Agency requested the Regional Inspector 
General for Latin America and the Caribbean to investigate the 
violation in conjunction with the regularly-scheduled audit of 
the USAID/Guatemala family planning program. The Committee 
understands that when the violation was discovered in June of 
2005, the Agency immediately instructed the grantee to 
terminate the system of targets and bonuses that were the basis 
of the violation that began in 2002 and that as of July 2005, 
the Agency confirmed that the contracts had established fixed 
monthly salaries and eliminated targets and bonuses. The 
Committee appreciates the diligence of the USAID Mission in 
Guatemala in seeking a rapid remedy from the grantee in 
question. However, the Committee notes that although USAID is 
required to report to Congress within 60 days after it 
determines a violation has occurred, it took the Mission nine 
months to notify USAID/Washington of the violation and another 
two months for USAID to notify the Committee. This, in the 
Committee's view, is not acceptable. The Committee directs 
USAID and its missions to both investigate and remedy 
violations with dispatch and to ensure that all violations are 
reported in a timely fashion. The Committee also requests that 
upon completion of the Inspector General's investigation that 
USAID report to the Committee on the findings and any further 
actions taken to ensure that requirements related to family 
planning are explicitly communicated to all implementing 
partners and that violations are quickly investigated, remedied 
and communicated to both Agency officials and the Congress.

Research and Development

    Research and development (R&D) of products, including 
vaccines and therapies, is increasingly important for achieving 
critical health and development objectives. The Committee 
commends USAID for its recent report entitled ``Health-Related 
Research and Development Activities at USAID,'' which sets 
forth USAID's strategy for using research funds and the plan 
for stimulating the development and introduction of key 
products to address diseases affecting the developing world and 
countries in transition. The report covers $119,374,000 in 
USAID supported research activities projected for fiscal year 
2006. The balance, roughly $29,000,000, of fiscal year 2006 R&D 
funding is mainly research funded by USAID field missions that 
addresses local questions and needs.
    The Committee notes with appreciation the quality of the 
research plan. The Committee requests USAID, after consultation 
with the Office of the United States Global HIV/AIDS 
Coordinator, and other partners, to include abbreviated 
research plan information in its Congressional budget 
justification for fiscal year 2008, including the spending 
table found on page 57 of the May 2006 Report. The table should 
include funding by health issue and product for fiscal years 
2006, 2007 and estimates for 2008.

Malaria

    The Committee is concerned that malaria kills 2.7 million 
people every year. Seventy-five percent of these deaths are 
children in Africa under the age of five. The Committee 
encourages the development of a malaria program that addresses 
all aspects of the prevention and treatment of this disease. 
The Committee supports efforts initiated in fiscal year 2004 by 
USAID to increase its commitment to assist in the development 
of a malaria vaccine for Africa and other regions. During the 
past year malaria vaccine trials in Africa have proven to be 
effective first steps in this process. The Committee recommends 
that for fiscal year 2007 USAID provide at least $5,000,000 to 
the Malaria Vaccine Initiative.
    The Committee also is aware of USAID's ongoing work with 
the Medicines for Malaria Venture, a non-profit, public-private 
partnership created to replenish and then sustain the global 
pipeline of anti-malarial drugs, and recommends continued 
support at not less than the fiscal year 2006 enacted level.

Microbicides

    The Committee recognizes the disproportional impact of HIV/
AIDS on women and supports methods of prevention that women can 
control. Recognizing that effective microbicides could be 
developed in five to seven years, the Committee supports 
continued USAID investment in microbicide development and 
clinical trial capacity. The Committee directs that not less 
than $45,000,000 should be made available to support research 
and development of microbicides as a means of combating HIV/
AIDS, of which $5,000,000 should be made available to the 
International Partnership for Microbicides. The Committee 
further recommends that USAID and the Office of the Global AIDS 
Coordinator have a plan to support product introduction, 
distribution and use once a safe and effective microbicide has 
been developed.

HIV/AIDS vaccine

    Since 2001, USAID, partnering with other United States 
Government agencies, has supported applied research into all 
phases of HIV vaccine development. Funding has risen from 
$6,000,000 in fiscal year 2001 to $28,710,000 in fiscal year 
2006. The International AIDS Vaccine Initiative (IAVI), a non-
profit research organization dedicated to accelerating the 
development of a safe and effective HIV vaccine that will be 
accessible to the developing world, has been a key USAID 
partner in this endeavor. The Committee recommends that USAID 
continue the partnership with IAVI at not less than the fiscal 
year 2006 level.

Health Care in Africa

Obstetric fistula

    The Committee continues to be concerned about the 
debilitation and ostracism caused by obstetric fistula, which 
affects an estimated 3 million women in the developing world. 
This condition can often be prevented altogether by trained 
birth attendants and improved medical care. The Committee notes 
that USAID has rapidly increased its funding for fistula 
programs from their inception in fiscal year 2004. The 
Committee provides $7,000,000 for obstetric fistula and 
instructs USAID to consult with the Committee not later than 60 
days following enactment of this Act on how these funds will be 
programmed.

Ethiopia

    The Committee encourages USAID to give consideration to 
supporting proposals from the Ethiopian North American Health 
Professionals Association for the Safe Motherhood project in 
Awassa, Ethiopia and from the Fistula Foundation for the Addis 
Ababa Fistula Hospital.

Other

    The Committee recognizes the important work of the AMEC 
Health and Education Foundation in increasing access to health 
care in Zambia, the Democratic Republic of Congo, Rwanda, 
Burundi, and Republic of Congo--Brazzaville, and urges USAID to 
consider proposals for support of this work.
    The Committee understands the James Jordan Foundation has 
launched a public/private partnership to establish a women's 
and children's hospital in Nairobi, Kenya and encourages USAID 
to consider supporting this collaborative venture.

                         Development Assistance


                     [Including transfers of funds]



Fiscal year 2006 enacted level........................    $1,508,760,000
Fiscal year 2007 request..............................     1,282,000,000
Committee recommendation..............................     1,294,000,000
    Change from request...............................       +12,000,000
    Change from enacted level.........................      -214,760,000


    The Committee recommends a total of $1,294,000,000 for 
development assistance for economic growth, trade and 
environment, a $12,000,000 increase to the request and a 
$214,760,000 decrease to the enacted level. Funding in this 
account includes worldwide activities for agriculture, rural 
development, literacy and basic education for children and 
adults, environment, energy, science and technology and other 
programs related to longer-term development.

                        TRADE CAPACITY BUILDING

    In order to better encourage and manage the resources 
devoted to trade capacity building, the Committee has created a 
new appropriation account and a new position, Director of Trade 
Capacity Enhancement. In creating the new Trade Capacity 
Enhancement Fund account, the Committee moved funds from a 
number of accounts, including $214,000,000 from the Development 
Assistance account. This amount is equal to the amount the 
Agency estimates it will spend in fiscal year 2006. The 
movement of trade capacity building funds to the new account 
explains for the majority of the decrease from the President's 
request in this account. Adjusting for trade capacity funds in 
the fiscal year 2006 appropriation results in a comparable 
Development Assistance account of $1,294,760,000. Therefore, 
the Committee's recommendation is only $760,000 below the 
``adjusted'' fiscal year 2006 level.

                     DEVELOPMENT ASSISTANCE FUNDING

    With the creation of the new account and the movement of 
Development Assistance funds to that account, the funding 
assumptions included in the Committee's recommendation for the 
remaining funds in this account are as follows:




Economic Growth and Agriculture.......................    $1,055,112,000
    Agriculture and Natural Resources.................       530,195,000
    Economic Growth...................................       114,184,000
    Education and training............................       410,733,000
        Basic education...............................     [365,000,000]
        Higher Education..............................      [45,733,000]
Democracy and Conflict Management.....................       238,888,000


                HUMAN CAPACITY BUILDING: BASIC EDUCATION

    Education is the foundation for sustained economic growth 
and the creation of democratic institutions in developing 
countries. For that reason, the Committee has been extremely 
supportive of increased funding for basic education, increasing 
it from $126,000,000 in fiscal year 2001 to $465,000,000 in 
fiscal year 2006. This year, the Committee directs $365,000,000 
for basic education in the Development Assistance account. The 
General Provisions section of the Bill directs a total of 
$550,000,000 from Title II of this bill for basic education.
    The Committee notes that, in response to a directive in 
Conference Report 109-265, USAID has provided $50,650,000 of 
the $65,000,000 in increases over the fiscal year 2005 level 
for basic education to support Fast Track Initiative-related 
programming in Ghana, Senegal, Zambia, and Honduras. The 
Committee supports the continuation of these efforts in fiscal 
year 2007, and directs USAID to provide $65,000,000 for these 
efforts after consultation with the Committees on 
Appropriations.
    The Committee again provides $15,000,000 to continue a 
pilot program aimed at increasing access to quality basic 
education in Africa through the reduction or elimination of 
school fees. The Committee notes that USAID has received a 
total of $30,000,000 in fiscal years 2005 and 2006 for such an 
effort in Malawi and the Democratic Republic of the Congo, and 
directs USAID to program fiscal year 2007 funds for this 
purpose only after consultation with the Committees on 
Appropriations.
    The Committee supports the work of Alfalit International, 
an educational nongovernmental organization dedicated to 
promotion of literacy, basic education, preschool, health, 
nutrition and community development in Africa and Latin 
America. Alfalit's proven record during the past four decades 
has helped significantly reduce child and adult illiteracy in 
the countries where it operates. Since 2002, Alfalit and USAID 
have worked together successfully in a number of nations. The 
Committee understands that funding for current Alfalit programs 
will end at the end of fiscal year 2007 and encourages USAID to 
continue this program.
    The Committee directs the Agency to resume school feeding 
programs in Haiti.
    The Committee understands that the Caribbean American 
Mission for Education Research and Action has submitted a 
proposal to develop and implement a model of educational reform 
in Jamaica and urges USAID to consider the proposal.

          HUMAN CAPACITY BUILDING: WOMEN'S LEADERSHIP TRAINING

    The Committee continues to believe a Women in Development 
(WID) office empowered to monitor, assess, and make 
recommendations regarding the quality of gender integration at 
USAID could be of great benefit to the agency. The Committee 
strongly recommends that the Office be funded at $15,000,000 in 
fiscal year 2007. In addition, the Committee has included, 
again this year, bill language to mandate $15,000,000 for 
women's leadership training and directs the Agency to report on 
the amounts it is spending for such purposes and precise 
projects under management.

                       GLOBAL ISSUES: HYDROPOWER

    The Committee continues to recommend a renewed emphasis on 
hydropower and directs the Agency to continue a grant program 
of not less than $3,000,000 to promote the development of 
overseas markets for environmentally-friendly hydropower 
technology manufactured in the United States. The Committee 
recommends consideration of funding for a specialized non-
governmental organization representing the United States 
hydropower industry to provide project development and 
implementation services. The Committee directs USAID to consult 
with the Committee on its plans for the allocation of these 
funds. As with other power and energy sectors, USAID has a key 
role in assisting foreign governments, international financial 
institutions, and the local private sector to establish 
necessary energy and investment framework and governance 
practices in emerging markets.

       GLOBAL ISSUES: ACCESS TO CLEAN WATER AND WATER MANAGEMENT

    Competition for scarce fresh water is predicted to be a 
major source of international conflict during the twenty-first 
century, as it is now within the Middle East. In Africa, 
especially in communities severely impacted by HIV/AIDS, ready 
access to clean water is lacking, resulting in increasing rates 
of water-borne diseases and higher infant mortality rates.
    The Committee urges the President to direct not less than 
$50,000,000 from this Act to build wells in rural areas, and 
secure water delivery systems in urban areas, of African 
communities that lack access to fresh water. Within this level, 
the Committee directs in law $20,000,000 for programs in east 
Africa.
    The Committee also directs $5,000,000 for water 
infrastructure and clean water projects in the south of 
Lebanon. Funding should help support a variety of projects, 
including: development of modern irrigation schemes, domestic 
wastewater treatment plants, and sustainable fertilization 
programs to improve water quality deterioration for the south 
of Lebanon.

                      GLOBAL ISSUES: BIODIVERSITY

    The Committee applauds the accomplishments of USAID in 
integrating biodiversity and forest management in its economic 
and social development programs. The Committee directs USAID to 
provide not less than the requested level of $140,600,000 in 
fiscal year 2007 for its biodiversity and related environment 
programs. Within that amount, the Committee urges USAID to 
support biodiversity efforts in biologically important regions 
in Ecuador, especially the Galapagos Marine Reserve.
    The Committee recommends $200,000 for projects in southern 
Africa that help protect the population of wild cheetah. 
Harvesting otherwise undesirable species of brush and 
processing them into fuel can prevent the ruinous encroachment 
of the brush into woodland savannah where cheetahs hunt for 
food.
    The Committee supports the USAID Parks in Peril program, a 
partnership with the Nature Conservancy, which has leveraged 
hundreds of millions of dollars in non-United States Government 
funds for conservation of imperiled ecosystems throughout Latin 
America. This successful program, first begun in 1990, has 
worked in 17 Latin American countries and on more than 40 
million acres, to protect areas and foster a network of local 
conservation organizations. The Committee understands that 
USAID has begun to identify a successor program and encourages 
the Agency to complete that process with all due speed. In the 
interim, the Committee directs USAID to provide $7,000,000 in 
fiscal year 2007 to continue the Parks in Peril program while 
it completes the process to continue this important program. As 
this process is ongoing, the Committee urges USAID to craft a 
competitive program in which the implementing organization 
minimizes the percentage of indirect costs.
    The Peregrine Fund continues to build a record of 
protecting birds of prey worldwide. The Committee recommends 
$500,000 for The Peregrine Fund's work through the 
International Raptor Program, which will be matched by private 
contributions.
    The Committee remains concerned about environmental 
degradation along the United States/Mexico border. The 
Committee requests USAID to consider programs in Mexico that 
will help ameliorate border region pollution.

                     GLOBAL ISSUES: PROPERTY RIGHTS

    Property rights, sound regulation of commercial activity 
and other components of the rule of law are adversely affected 
by inefficient, lengthy and often corrupt systems of 
registering small business and land titles. The Committee 
endorses programs that promote property rights and create 
private real estate markets in selected countries where USAID 
is active in Latin America and the former Soviet bloc. The 
Committee directs USAID to continue to fully fund its 
cooperative agreement with the Institute for Liberty and 
Democracy and to expand the International Real Property 
Foundation Program into a world wide effort.

        ECONOMIC GROWTH: COLLABORATIVE RESEARCH SUPPORT PROGRAMS

    The Committee recognizes the important contributions the 
Collaborative Research Support Programs (CRSPs) have made in 
the area of agricultural development and human capacity 
building. The Committee believes CRSPs are excellent 
investments and urges USAID to support efforts by CRSPs to 
expand their activities in Africa and South Asia. The Committee 
recommends USAID support the creation of a new CRSP to focus on 
water issues and expand its current horticulture assessment 
into a CRSP. The Committee strongly recommends USAID fund CRSPs 
in fiscal year 2007 at $31,000,000.

     ECONOMIC GROWTH: CREDIT UNIONS, COOPERATIVES AND PARTNERSHIPS

    The Committee recognizes the important role that 
cooperatives and credit unions play in overseas programs. The 
Committee recommends that priority be given to funding overseas 
cooperatives working in the areas of agriculture, financial 
systems, rural electric and telecommunications infrastructure, 
housing and health. Bill language is included to mandate 
$10,000,000 of Development Assistance funds for cooperative 
development programs within the Office of Private and Voluntary 
Cooperation.

                             LATIN AMERICA

    The Committee has continually supported higher funding 
levels for Latin American and the Caribbean. The importance of 
this region and our relationship with its citizens, our 
neighbors, can not be understated. Funding levels allocated to 
Latin America and the Caribbean must reflect the region's 
significance in terms of United States priorities for economic, 
trade, humanitarian and immigration policies with these 
neighboring countries. In fiscal year 2006, this region 
received 17 percent of the Development Assistance account. The 
Committee expects the Agency to provide for this region from 
both ``Development Assistance'' and ``Trade Capacity 
Enhancement Fund'' a combined total no less than the amount 
provided from the fiscal year 2006 Development Assistance 
account.
    The Committee urges USAID to engage with the World Council 
of Credit Unions to alleviate the usurious financial 
transactions related to the repatriation of earnings from 
immigrant workers, especially of Latin American origin. The 
Agency should suggest demonstration programs it could develop 
and implement to address this issue.
    The Committee urges USAID to consider support for the 
Target Mexico Program sponsored by the City of Kansas City. In 
particular the Committee is interested in the beneficial trade 
relationships developed with small and medium-sized companies.

          LATIN AMERICA AND THE CARIBBEAN: SCHOLARSHIP PROGRAM

    The Committee strongly supports the work of the Cooperative 
Association of States for Scholarships (CASS) for its effective 
approaches to providing individuals with the skills that enable 
them to contribute effectively to the economic growth of their 
communities and nations. The Committee notes that the CASS 
program has offered technical education, job training, and 
leadership skills to young adults and leaders from communities 
of Central America and the Caribbean in fields such as 
agriculture, education, business, construction, environmental 
science, health care and technology training. The Committee 
also notes that the CASS program is undertaking new activities 
in Mexico in support of the Administration's efforts to 
strengthen the United States-Mexico relationship, and believes 
the program's long history in Haiti could contribute 
significantly to USAID efforts in that nation, particularly in 
the field of health care training. Recognizing the CASS 
program's record of sustained success and the challenges facing 
a number of states in the region, the Committee strongly 
encourages USAID to enter into a new five-year cooperative 
agreement to maintain CASS operations at no less than the 
current level of funding. The Committee is aware of the 
interest in replicating the CASS program in other countries.

                  SONORAN DESERT BORDERLAND WATERSHEDS

    Recent impacts from prolonged drought, unsustainable 
groundwater pumping, waste discharge and conversion of the 
desert ecosystem have contributed to general riparian stress 
and watershed deterioration on both sides of the Arizona-Sonora 
border. The Committee acknowledges the important environmental 
work of the USAID Mexico Mission, and recommends funding from 
within Mission resources to expand the Mission's watershed 
management strategic element to target the Sonoran Desert 
borderlands region.

                 AMERICAN SCHOOLS AND HOSPITALS ABROAD

    The Committee provides up to $20,000,000 for the American 
Schools and Hospitals Abroad (ASHA) program in fiscal year 
2007. The Committee further expects that support will be 
continued, as new resources are needed, for traditional 
recipients in the Middle East. The Committee expects USAID to 
keep it well informed regarding institutions which have 
received ASHA funding in previous years, but which continue to 
have significant unexpended balances. Within the amount 
provided, the Committee urges USAID to consider a proposal from 
the George Washington Academy in Casablanca, Morocco. In 
addition, funds should be made available for other deserving 
institutions in all geographical regions, especially in sub-
Saharan Africa.
    The Committee notes that innovative medical technology such 
as haptic medical simulation can help train medical personnel 
in medically underserved developing countries. Such technology 
can provide a safe alternative to practicing on human subjects 
for a variety of procedures, such as intravenous therapy and 
endoscopy, and should be considered for use where appropriate.

                           DAIRY DEVELOPMENT

    The Committee continues its strong support for dairy 
industry development as an effective economic development tool. 
The Committee urges USAID to obligate new funding for dairy 
industry development project activities at a minimum of 
$10,000,000 in fiscal year 2007 to strengthen the agency's 
economic growth, rural development and trade initiatives. The 
Committee particularly urges USAID to use no less than 
$5,000,000 of this amount to fund new activities in countries 
not previously engaged in dairy development. The program has 
assisted producers, cooperatives, processors and industry 
associations in recipient countries to increase incomes, create 
jobs and improve the nutritional status of the population. 
While the Committee encourages the use of creative program 
mechanisms, it is important that dairy programs under this 
provision address both United States dairy industry needs as 
well as developmental goals.

                       TORTURE TREATMENT CENTERS

    The Torture Victims Relief Act of 1998 states that 
assistance to foreign treatment centers ``shall be provided in 
the form of grants to treatment centers and programs in foreign 
countries that are carrying out projects or activities 
specifically designed to treat victims of torture for the 
physical and psychological effects of the torture.'' The 
Committee urges USAID to ensure that this program complies with 
the congressional authorization. By so doing, USAID will be 
helping to ensure the growth of indigenous institutions 
providing culturally appropriate care to their torture victims 
and seeking to prevent and eventually eliminate the practice of 
torture in their country. The Committee recommends that USAID 
devote $12,000,000 for this program in fiscal year 2007. The 
Committee requests that USAID report on implementation of these 
recommendations not later than 60 days of enactment of this 
Act.

                                LIBERIA

    The Committee recommendation includes $29,499,000 for 
Liberia, the same as the request.

          COLLABORATION WITH COMMUNITY AND TECHNICAL COLLEGES

    The Committee is aware of the urgent need for education 
throughout the continent of Africa, and that this need can be 
addressed through the incentives created with foreign 
investment. Specifically, the Committee is aware of the 
potential for business groups and community and technical 
colleges to collaborate and provide training and skills to 
African entrepreneurs in concert with established business 
relationships. The Louisville, Kentucky collaboration in the 
nation of Ghana, known as EconVillage, is a good example. The 
Committee encourages USAID to look at more comprehensive 
collaborations between the business community and technical 
assistance providers, such as community and technical colleges, 
to encourage other African nations to broaden educational 
opportunities as well as basic economic development.

       UNITED STATES UNIVERSITY SUPPORT FOR DEVELOPING COUNTRIES

    The Committee continues to receive numerous requests to 
fund specific activities at or through American institutions of 
higher education. The Committee strongly supports activities 
that advance international development and United States 
foreign policy goals. The Committee has reviewed the concepts 
proposed for funding, and recommends that USAID and/or the 
Department of State (as appropriate for the proposed project) 
actively consider proposals submitted by the organizations 
listed below.
    Unless a proposal demonstrates a unique, innovative, or 
proprietary capability, or demonstrates special considerations 
that justify limited or non-competitive treatment, the 
Committee expects that competitive procedures will be applied 
with regard to the proposals on the list that follows. The 
Committee also expects USAID to give priority to proposals that 
have technical merit, realistic budgets, and achievable 
objectives.
    No later than March 1, 2007, the Administrator of USAID 
shall submit a report to the Committee on the status of each 
activity identified below. Such report shall include: (1) the 
status of a funding proposal by the organization associated 
with each activity; (2) the degree to which the proposal is 
consistent with United States development assistance and 
foreign policy goals for the country or region in which the 
activity would take place; (3) the degree to which matching or 
other funds would be provided by the organization to complement 
the Federal contribution; (4) to the extent known at the time, 
any decision by USAID or the Department of State on funding the 
activity, including the proposed funding level; and (5) any 
other relevant information deemed important by USAID or the 
Department of State. The Committee also expects to receive a 
second report on the status of these proposals no later than 
September 1, 2007. In addition, the Committee requests that 
USAID identify an office or organization within the agency, or 
within the Department of State if appropriate, to which 
inquiries can be directed on the status of these proposals.
    With the foregoing in mind, the Committee recommends the 
following proposals for USAID's active consideration:
    A proposal by Alabama A&M University to develop textbooks 
and teaching materials in Ethiopia;
    A proposal by the University of Alabama to conduct a 
feasibility study to establish a Central American Food Export 
Trade Association at the University;
    A proposal by the University of Alaska-Fairbanks to conduct 
activities related to the International Polar Year, including 
workshops, public education and research in polar science;
    A proposal by the University of Alaska-Fairbanks to 
continue efforts in business development and examine missions 
to health and public works efforts in the Russian Far East;
    A project from the University of Arizona and Mexico's 
Consejo Nacional de Ciencia Y Technologia to support a United 
States-Mexico binational optics program with the purpose of 
establishing a program to improve Mexico's competitiveness;
    A proposal by the Associated Colleges of the South to teach 
critical languages and cultures, including: Chinese, Arabic, 
Farsi, Persian, Turkish and Urdu;
    A proposal by California State University Consortium for 
International Development (CSUCID) to, among other objectives, 
enhance training modules for agricultural systems for training 
overseas;
    Proposals by Loma Linda University, California, to expand 
its medical education and health care programs in developing 
countries, including the refurbishment of the Wazir Akbar Khan 
Hospital in Kabul, Afghanistan;
    A proposal by the University of California at San Diego's 
Scripps Institute of Oceanography to assess the impact of air 
pollution and persistent brown haze in Asia;
    A proposal by the University of Miami for a Child Health 
Care Initiative in the Ukraine;
    A proposal by Spelman College, Institute for the Critical 
Study of Global Language, designed to increase the number of 
students who develop advanced proficiency in languages and 
knowledge about regions critical to U.S. national security, 
diplomacy, intelligence and business competitiveness;
    A proposal by Morehouse College, the Building Bridges 
Between African American and South African Emerging Global 
Leaders Program, to provide student/faculty exchanges with 
leading South African institutions of higher education and 
research;
    A proposal by Georgia State University, the University 
Business Education Partnership, to establish business education 
programs to serve the Ukraine and Georgia;
    A proposal by the University of Iowa for the Center for 
Digital Communication in Development and Education, to improve 
international educational opportunities through use of the 
University's eGranary Digital Library;
    A proposal by Bowling Green State University, the 
International Democratic Education Institute, to develop 
distance learning curricula and exchanges in both civics and 
ethics;
    A proposal by Bemidji State University to create a Central 
Asian Institute to facilitate cross-cultural understanding and 
enhance the education of citizens in Central Asia;
    A proposal by the University of Nebraska-Lincoln for a 
program of collaborative teaching and research in Zambia, with 
emphasis on HIV/AIDS research and agricultural development;
    A proposal by Rutgers University, Thomas Edison State 
College and the SAS Institute to jointly provide a program in 
non-profit business and government administration;
    Proposals by Monmouth University to establish an MBA degree 
program for Armenian graduate students, including internships 
opportunities;
    A proposal by the Monmouth University to establish a 
school-based social work initiative with Ghana University at 
Legon to increase primary school retention and to decrease 
human trafficking;
    A proposal by Oregon State University's Program for Water 
Conflict Prevention and Resolution to provide specialized 
resources and skills to individuals that go beyond the 
traditional physical systems approach to water resources 
management;
    A proposal by the Pacem In Terris Institute at La Roche 
College, Pennsylvania, for the International Partners in 
Education Initiative;
    A proposal by Chestnut Hill College to establish a working 
relationship with the International Center for Education and 
Research Distance Learning Center in Ukraine;
    A proposal by the American University in Kosovo to educate 
future political and economic leaders;
    Proposals by the South Dakota School of Mines and 
Technology to provide educational opportunities for foreign 
students, particularly from developing nations, to provide 
engineering services to water and sanitation programs in India, 
to enhance its relationship with the University of Belgrade and 
to enhance its relationship with the Mongolia University of 
Science and Technology;
    A proposal coordinated by the Texas A&M University and 
other partnering universities for the Norman E. Borlaug 
International Science and Technology Fellows Program;
    A proposal by Texas A&M University and other Alabama and 
Texas institutions of higher learning, Aflatoxin Remediation 
for Human and Animal health, to expand research in the United 
States, Ghana and other cooperating countries to further refine 
the technology for remediating the effects of mycotoxins in 
food and feed;
    A proposal by Texas A&M University's Center for the Study 
of Western Hemisphere Trade to study and promote research on 
globalization with special emphasis on the Western Hemisphere;
    A proposal by Texas State University, San Marcos to promote 
and facilitate trade with specific emphasis on small and 
medium-sized enterprises;
    A proposal by Highline Community College for a partnership 
program with several collages in South Africa and Namibia;
    A proposal by Washington State University to expand its 
program in Malawi dedicated to improving the economic self-
sufficiency of Malawians;
    A proposal by the Asian University for Women, Bangladesh, 
to continue its program to educate disadvantaged women from 
diverse backgrounds around Asia in a non-sectarian environment;
    A proposal by the American University of Armenia, 
affiliated with the University of California;
    A proposal by Eastern Michigan University and Wayne State 
University Consortium for a Language Information program to 
provide an authoritative, accessible source of languages 
throughout the world;
    A proposal by the Great Lakes Consortium for International 
Training and Development Center and its partner institutions, 
Bowling Green University, the University of Toledo and Lourdes 
College, to promote international and community partnerships 
around the world;
    A proposal by Brandeis University for an International 
Center for Democracy and Governance;
    A proposal by the John Joseph Moakley Center for Law, 
Justice, and Human Rights at Boston College to promote justice 
and human rights in several countries;
    A proposal by the John W. McCormack Graduate School of 
Policy Studies at the University of Massachusetts Boston to 
assist developing democracies with the development of legal 
systems and the rule of law; and
    A proposal by the New Jersey International Education 
Consortium to enhance civil society in the Middle East and 
South Asia.

              International Disaster and Famine Assistance





Fiscal year 2006 enacted level........................      $361,350,000
Fiscal year 2006 emergency appropriation, P.L. 109-148        56,330,000
Fiscal year 2006 emergency supplemental (House).......       136,290,000
Fiscal year 2007 request..............................       348,800,000
Committee recommendation..............................       348,800,000
  Change from request.................................                 0
  Change from enacted level...........................       -12,550,000


    The Committee recommends a total of $348,800,000 for the 
International Disaster Assistance and Famine Assistance 
account, the same as the request and a $12,550,000 decrease 
from the enacted level, excluding emergency supplemental 
appropriations.
    The Committee encourages the Office of Foreign Disaster 
Assistance (OFDA) to coordinate with the Office of Conflict 
Response and Stabilization (CRS) at the Department of State as 
CRS develops its ``Civilian Response Corps for International 
Disasters''. Any such Corps should take into account the 
existing capacity of OFDA to respond to both man-made and 
natural emergencies and not be duplicative. The Committee 
requests that OFDA consult with the Committee regarding 
opportunities to strengthen OFDA's response capacity if the 
Civilian Response Corps is established including the 
development of a database of civilian responders.

               FAMINE PREVENTION AND RELIEF PILOT PROGRAM

    The Committee's recommendation includes $30,000,000 for 
famine prevention and relief, an increase of $10,000,000 over 
the fiscal year 2006 level and the fiscal year 2007 request.
    The Committee directs USAID to complete with the additional 
funding a pilot program designed to illustrate the relative 
advantages of purchasing local food commodities and shipping 
commodities from abroad. This pilot should be built upon a 
study, performed by USAID, to identify both benefits and 
drawbacks of local commodity purchase programs and strategies 
for maximizing the effectiveness of local purchases.
    This study should, at a minimum:
    1. Examine the cost effectiveness of food assistance 
delivery approaches, including local purchases;
    2. Identify opportunities to speed the provision of food to 
those in need;
    3. Recommend approaches to use integrated United States and 
multidonor assistance programs to reduce the need for emergency 
food programs over time; and
    4. Suggest opportunities for cooperation with United States 
farmers and food commodity transporters.
    The Office of the Director of Foreign Assistance should 
consult with the Committee as it designs the study and pilot 
program. The Committee expects this program to be completed in 
time to inform the fiscal year 2008 budget request.

                                 SUDAN

    The Committee's overall recommendation for Sudan in this 
bill includes the Administration's request, $450,300,000.

                                  SUDAN
------------------------------------------------------------------------
                                     Fiscal year 2007      Committee
                                         request         recommendation
------------------------------------------------------------------------
Darfur:
    International Disaster and            $70,000,000        $70,000,000
     Famine Assistance............
    Transition Initiatives........          2,500,000          2,500,000
    Migration and Refugee                  45,000,000         45,000,000
     Assistance...................
    Economic Support Fund.........         20,000,000         20,000,000
                                   -------------------------------------
        Subtotal, Darfur..........        137,500,000        137,500,000
North/South
    Child Survival and Health              20,400,000         20,400,000
     Programs Fund................
    Development Assistance........         70,000,000         70,000,000
    Economic Support Fund.........         40,000,000         40,000,000
    International Disaster and             93,500,000         93,500,000
     Famine Assistance............
    Non-proliferation, Anti-                4,100,000          4,100,000
     terrorism, Demining and
     Related Programs.............
    Migration and Refugee                  28,000,000         28,000,000
     Assistance...................
    Transition Initiatives........          5,500,000          5,500,000
    Peacekeeping Operations.......         41,400,000         41,400,000
    International Military                    100,000            100,000
     Education and Training.......
    International Narcotics                 9,800,000          9,800,000
     Control and Law Enforcement..
                                   -------------------------------------
        Subtotal, North/South.....        312,800,000        312,800,000
                                   =====================================
            Total Sudan...........        450,300,000        450,300,000
------------------------------------------------------------------------

    The Committee recognizes that this budget request was 
formulated before the signing of the Darfur Peace Agreement of 
May, 2006. The Committee expects that any required changes to 
the fiscal year 2007 budget request due to the signing of this 
agreement will be submitted to the Committee via budget 
amendment or other official communication.
    The Committee is gravely concerned by the length of time 
the Administration has taken to formulate and transmit the 
fiscal year 2006 Sudan plan as required in House Report 107-
152, submitted June 24, 2005. To date, the Committee has not 
received the submission. Sudan is now the largest United States 
taxpayer supported program in Africa, and this tardiness is 
extraordinary.
    The Committee directs that the Administration will update 
the first budget plan following enactment of this Act to 
include United States support to Darfur, including the Darfur 
Peace Agreement, and to continue to update quarterly the Sudan 
assistance plan. The Committee expects that the fiscal year 
2008 request for Sudan will show a shift away from reliance on 
funds appropriated in this account and toward funds 
appropriated in the regular development assistance accounts.
    The Committee has again included a general provision, 
section 569, conditioning funding to the government of Sudan on 
its support for stability in Darfur. The Committee has modified 
the section from previous years to facilitate implementation of 
the Darfur Peace Agreement and to enforce its ceasefire 
provisions.

                       OFFICE OF MILITARY AFFAIRS

    The Committee notes that USAID has requested funding for 
the Office of Military Affairs within the Bureau of Democracy, 
Conflict and Humanitarian Assistance. The office has as its 
primary responsibility the coordination of United States 
military and civilian interaction on joint humanitarian 
operations. While the Committee notes the importance of 
effective civilian-military coordination on humanitarian 
affairs, the Committee is concerned about any overlap or 
duplication with other components of the United States 
government, including the Office of the Coordinator for 
Reconstruction and Stabilization at the Department of State. 
The Committee is also concerned about potential perceptions of 
militarization of humanitarian assistance and notes that USAID 
has acheived effective coordination with the military in past 
joint humanaitarian operations without the establishment of a 
new office. The Committee directs that the Administrator of 
USAID report to the Committees on Appropriations, not later 
than 120 days following enactment of this Act, on the total 
costs and functions of the office, including any resources or 
staff provided by the Department of Defense and the Department 
of State, as well as any overlapping and duplicating roles with 
the Office of the Coordinator for Reconstruction and 
Stabilization.

                         Transition Initiatives





Fiscal year 2006 enacted level........................       $39,600,000
Fiscal year 2006 request..............................        50,000,000
Committee recommendation..............................        40,000,000
    Change from request...............................       -10,000,000
    Change from enacted level.........................          +400,000


    The Committee recommends a total of $40,000,000 for 
Transition Initiatives, a $10,000,000 decrease from the request 
and a $400,000 increase to the enacted level.
    With respect to work in countries in transition, the 
Committee acknowledges the contributions of the International 
Crisis Group (ICG), which has conducted field-based, high-
quality analysis of the causes of conflict in more than 40 
countries around the world and recommends continued support for 
their work. The Committee requests that USAID report on a semi-
annual basis the expenditures and specific use of OTI funds, 
including implementing organization.

                      Development Credit Authority


                      [Including transfer of funds]



Program Account:
Fiscal year 2006 enacted level (by transfer)..........     ($20,790,000)
Fiscal year 2007 request (by transfer)................      (21,000,000)
Committee recommendation (by transfer)................      (21,000,000)
    Change from request...............................                 0
    Change from enacted level.........................          +210,000

Administrative Expenses:
Fiscal year 2006 enacted level........................         7,920,000
Fiscal year 2007 request..............................         8,400,000
Committee recommendation..............................         8,400,000
    Change from request...............................                 0
    Change from enacted level.........................          +480,000


    The Committee recommends a ceiling of $21,000,000, on the 
amount that may be transferred from bilateral economic 
assistance accounts for the subsidy cost of loan guarantees 
under the Development Credit Authority program. This is the 
same as the request and a $210,000 increase to the enacted 
level.
    The Committee has not provided the request of a $5,000,000 
direct appropriation for the African Housing and Infrastructure 
Facility. Funds for that type of activity are more 
appropriately found in the Development Assistance account, 
where the USAID missions can utilize the transfer authority 
should the missions decide this is the best expenditure of 
their funds.
    The Committee recommends $8,400,000 for administrative 
expenses, the same as the budget request and a $480,000 
increase to the enacted level.

     Payment to the Foreign Service Retirement and Disability Fund





Fiscal year 2006 enacted level........................       $41,700,000
Fiscal year 2007 request..............................        38,700,000
Committee recommendation..............................        38,700,000
    Change from request...............................                 0
    Change from enacted level.........................        -3,000,000


    The Committee has provided the budget request for the 
mandatory payment to the Foreign Service Retirement and 
Disability Fund.

   Operating Expenses of the United States Agency for International 
                              Development


                      [including transfer of funds]



Fiscal year 2006 enacted level........................      $623,700,000
Fiscal year 2007 request..............................       678,826,000
Committee recommendation..............................       646,000,000
    Change from request...............................       -32,826,000
    Change from enacted level.........................       +22,300,000


    The Committee recommends a total of $646,000,000 for 
Operating Expenses of the United States Agency for 
International Development, a $32,826,000 decrease from the 
request and a $22,300,000 increase above the enacted level.
    The Committee has not funded the following amounts and 
items requested:
  -$3,900,000 for the Foreign Service Modernization, 
        performance based pay system.
  -$6,600,000 for the Reconstruction and Stabilization Reserve.
  -$2,793,000 from the security request of $15,200,000.
  -$10,000,000 from the $61,900,000 request for Information 
        Technology.
  -$6,083,000 from the $32,400,000 request for ``Other Agency 
        Costs''.
  -$2,500,000 from the $10,300,000 request for Staff Training.
  -$950,000 at the Administrator's discretion.

                USAID MANAGEMENT OF ADMINISTRATIVE COSTS

    The Committee remains concerned about the use of the 
Operating Expenses (OE) account. The Committee believes that 
cost efficiencies and improved effectiveness would stretch the 
``OE Dollar'', allowing the OE appropriation to cover more of 
the activities currently funded in the program accounts. This 
could then have the effect of ``freeing'' program funds for 
more appropriate uses.
    The Committee understands that the Agency has developed a 
report to measure the efficiency with which each bureau and 
each individual mission uses its funds. Once again, the 
Committee suggests that the challenge is to provide incentives 
for more efficient management and then measure mission 
compliance. The Committee anxiously awaits the results of the 
Agency's ``shadow budget'', which allows managers, not the 
central office, to control more of the budget. The expectation 
is that this will provide incentives to managers to make more 
efficient use of their funds.
    The Committee recognizes that some missions manage and use 
their funds more effectively than others. The first step in 
providing incentives for efficient management of administrative 
funds is to determine those factors which make one mission more 
effective than another. Does relative mission size or age 
contribute to effective management? Is location a factor? Do 
regional platforms contribute to better management? The 
Committee directs the Agency to study the concept of 
regionalizing mission administrative functions and report to it 
by September 15, 2006, on the estimated cost savings--if any--
resulting from economies of scale. In addition, the report 
should include an analysis of administrative costs, both from 
OE and program dollars, by Mission and Bureau, with conclusions 
as to the factors that cause efficiencies, the potential for 
dollars saved, and a comparison of newer vs older missions, and 
smaller vs larger missions. Finally, the report should identify 
future actions to ``institutionalize'' the cost saving methods 
identified by the analysis.

                    USAID DOMESTIC LEASING AUTHORITY

    The Committee has included bill language to prohibit USAID 
from using appropriated funds to lease space domestically. The 
Committee has taken this drastic step in response to the 
Agency's recent action to lease additional space in Washington, 
D.C., which resulted in a violation of the Anti-Deficiency Act, 
31 U.S.C. 1341.
    On September 30, 2005, USAID entered into a five year 
agreement to lease space in an office building in downtown 
Washington, D.C. USAID did not use the expertise of the General 
Services Administration (GSA) to negotiate the terms of this 
lease. Instead, the Agency relied on its special statutory 
domestic leasing authority. By executing a lease that did not 
condition future lease payments on the availability of 
appropriated funds, USAID violated the Anti-Deficiency Act. The 
five year cost of this lease is estimated to be $18,000,000. 
Prior to signing the lease, USAID, which occupies approximately 
600,000 square feet of office space in the Ronald Reagan 
Building with workstations for about 2,500 staff, requested 
approval from this Committee. However, in asserting an 
``immediate need'' for space, the Agency overstated the current 
work load requirement by approximately 350 people. In addition, 
USAID's request failed to take into account the Agency's plan 
to move technical staff to the field and to redefine 
headquarters staffing requirements.
    In addition to the bill language, the Committee believes 
other remedial steps are required. The Committee directs USAID 
to adopt adequate internal leasing polices and controls and to 
submit monthly reports to the Committee on the status of the 
termination of the lease in question. These reports shall 
itemize all costs, by appropriation account, associated with 
the lease termination and include the status of the Agency 
efforts to adopt new leasing policies and controls. Further, 
the Agency is directed to utilize the expertise of the GSA to 
satisfy all future domestic leasing requirements.

                     BUDGET JUSTIFICATION MATERIALS

    The Committee expects USAID to provide budget justification 
materials in a timely fashion. To that end, the Committee 
directs that the Agency submit future detailed budget 
justification documents within one week of the President's 
formal budget submission. The Committee found unacceptable the 
Agency's delay in submitting the fiscal year 2007 budget, which 
arrived only days before the first scheduled appropriation 
hearing. The Committee expects future budget justifications to 
provide more detail by appropriation account, which is after 
all the legal framework for its appropriated budget.
    The additional account level detail should include the 
prior year, budget year and requested funds for each sector, 
program and area of special interest financed within that 
account. In addition the justification needs to make clear how 
activities differ by account for each sector, program and area 
funded by multiple accounts. The Agency's justification for the 
OE appropriation must thoroughly explain and justify the 
increases from the prior year in each category it. Finally, the 
Agency is expected to consult with the Committee over the 
summer to ensure that the organization of the fiscal year 2008 
budget justification meets the needs of the Committee on 
Appropriations.

    The Administrator of the United States Agency for 
International Development shall report on an annual basis as 
part of the justification documents submitted to the Committees 
on Appropriations, on the gender composition of certain 
assistance programs. Such a report shall include, for all 
accounts administered by the USAID, gender disaggregated data 
on:
          (1) Employees of enterprises that the United States 
        Agency for International Development has employed as 
        contractors and sub-contractors in post-conflict and 
        post-crisis stabilization and reconstruction 
        initiatives. Such information should include whether 
        employees are United States nationals or residents of 
        post-conflict and post-crisis countries; and
          (2) Participants in job training, trade capacity 
        building and enterprise development programs funded by 
        USAID or the Department of State.

                         AVAILABILITY OF FUNDS

    The Committee again includes a general provision on the 
Availability of Funds. This provision provides an additional 
four years of authority beyond the date on which the 
availability of funds would otherwise expire, if such funds are 
initially obligated before the expiration of their availability 
for obligation contained in the Act. In other words, any funds 
obligated on the last day of availability remain available to 
the Agency for deobligation and reobligated over an additional 
four year period. This authority, which appears unique to the 
funds in this bill, provides a large amount of flexibility for 
the Agency. The Committee will begin to review more closely the 
Agency's use of this authority and to that end, directs USAID 
to submit a report by September 15, 2006, which outlines the 
following: 1. the use of this authority (ie: the amount, fiscal 
year, and description of the original activity/program 
deobligated and the amount/s and new activity for which the 
funds were reobligated); 2. an explanation as to why this 
authority is needed, with specific examples of how it benefits 
the foreign assistance goals of the United States; and, 3. the 
impact of sunsetting this authority in two or three years.

                            WORKFORCE MODEL

    The Committee is encouraged by the Agency's use of the 
workforce model, which is an important tool towards 
``rationalizing'' staffing decisions. The model predicts future 
workload and staffing demands and attempts to identify 
workforce gaps and develop solutions to fill those gaps. The 
Committee expects the Agency to place greater emphasis on 
analyzing the proper mix between Headquarters vs. Overseas 
staff and direct hires vs. non-direct hires. The Committee also 
expects the Agency to increase its efforts to hire technical 
staff as it identifies critical needs.
    The Committee provides the request of $13,400,000 to hire 
100 additional United States direct hires and directs the 
Agency to report on use of these funds, including positions, 
locations, technical expertise associated with these 100 
positions.
    The Committee understands that a one-for-one decrease in 
Personal Service Contractors (PSCs) for each of the 100 
positions filled will not occur immediately. However, the 
Committee does expect to see a continual, steady decrease in 
the number of PSCs. The Committee directs the Agency to provide 
a quarterly workforce profile report. The Committee expects the 
total number of PSCs identified on the fiscal year 2007 end of 
year report to be at least 50 lower than that identified on the 
fiscal year 2006 end of year report.
    The Committee once again has included a general provision 
allowing USAID to use temporary Foreign Service Office (FSO) 
appointments overseas, funded by program accounts. This allows 
the Agency to employ FSOs responsible to the Administrator and 
the USAID management structure, rather than the current 
tendency to hire and rely on Personal Service Contractors 
(PSCs). The general provision continues to authorize up to 175 
temporary FSO positions, an increase of 100 over the request 
and equal to last year. The Committee recognizes that the 
Agency may not have sufficient funds to hire up to 175 in 
fiscal year 2007, but it expects the Agency to take full 
advantage of this authority to the extent practicable.

                        Capital Investment Fund





Fiscal year 2006 enacted level........................       $69,300,000
Fiscal year 2007 request..............................       131,800,000
Committee recommendation..............................       105,300,000
  Change from request.................................       -26,500,000
  Change from enacted level...........................       +36,000,000


    The Committee recommends a total of $105,300,000 for the 
Capital Investment Fund, a $26,500,000 decrease from the 
request and a $36,000,000 increase to the enacted level. In 
total, the Committee recommendation includes $89,000,000 for 
USAID participation in the Capital Security Cost-Sharing 
Program, under which all agencies with overseas staff operating 
under Chief of Mission authority will contribute toward the 
costs of constructing secure embassy compounds, $3,000,000 for 
constructing a new USAID Guatemala mission and $13,300,000 for 
Information Technology.
    All funds made available under the Capital Investment Fund, 
including the obligation of offsetting collections, and the 
capital appropriation in the Economic Support Fund, are subject 
to the regular notification procedures of the Committees on 
Appropriations. The Committee also has included bill language 
under Operating Expenses of the United States Agency for 
International Development that requires congressional 
notification before USAID commits to new overseas missions that 
will require additional capital investments.

                 CAPITAL SECURITY COST-SHARING PROGRAM

    The Committee notes that the President's request includes a 
107 percent increase over fiscal year 2006 for this program. 
While the Committee supports the concept of Capital Security 
Cost-Sharing, such a large increase in one fiscal year is not 
sustainable. In future Congressional Budget Justifications, the 
Committee expects the Agency to provide greater detail on the 
criteria used to assess its contribution to the CSCS program 
and the amounts, by mission, assumed in the request. As with 
all budget justifications, an explanation of change from the 
prior year level should also be included. In order to continue 
progress in this area, the Committee has included bill language 
to provide $89,000,000, which is $10,500,000 below the request. 
The Committee also has provided the full request of $3,000,000 
for constructing a new building to relocate the USAID Guatemala 
mission to a secure office building.

                         INFORMATION TECHNOLOGY

    The Committee has not provided the requested funds for new 
initiatives nor provided increases for existing initiatives. It 
has provided $13,300,000 for Information Technology 
improvements, a $16,000,000 decrease from the request. Within 
that amount, the Committee recommends:
          $5,000,000 for the Joint Assistance Management System
          $5,400,000 for the Joint Financial Management System
          $2,900,000 for the President's Management System
    The fiscal year 2007 request for this account did not 
include funding for either the Phoenix financial management 
system or new procurement system, as implementation is expected 
to be concluded in fiscal year 2006. The Operations and 
Maintenance for those systems is requested in the Operating 
Expenses account.

   Operating Expenses of the United States Agency for International 
              Development, Office of the Inspector General





Fiscal year 2006 enacted level........................       $35,640,000
Fiscal year 2007 request..............................        38,000,000
Committee recommendation..............................        39,000,000
    Change from request...............................        +1,000,000
    Change from enacted level.........................        +3,360,000


    The Committee recommends a total of $39,000,000 for the 
Office of the Inspector General of USAID, a $1,000,000 increase 
to the request and a $3,360,000 increase from the enacted 
level. The Committee again commends the Inspector General for 
his cooperation with the Committee in its oversight of USAID 
management.
    The Committee recommendation includes $3,500,000 for 
Inspector General Activities in Iraq, which is $1,000,000 more 
than requested by the President. In the past, funding for the 
IG activities in Iraq has been funded through Supplemental 
Appropriations. As funding for activities in Iraq becomes 
``normalized'' through regular appropriation accounts, the 
Committee believes it is appropriate to fund the important work 
of the Inspector General through this account. The USAID 
programs and projects in Iraq have been increased by both the 
fiscal year 2006 supplemental appropriation bill and this bill. 
Therefore, to ensure proper use of and accounting for those 
funds, the Committee expects the Inspector General to allocate 
the additional $1,000,000 provided above the request to OIG 
activities in Iraq, at least half of which is for increased 
security costs. The Committee directs the Inspector General to 
submit by September 15, 2006, a plan on priority investigations 
and audits in Iraq and their implementation.

                  Other Bilateral Economic Assistance


                         Economic Support Fund





Fiscal year 2006 enacted level........................    $2,607,660,000
Fiscal year 2006 Emergency supplemental (House).......     1,584,500,000
Fiscal year 2007 Request..............................     3,214,470,000
Committee recommendation..............................     2,650,740,000
    Change from request...............................      -563,730,000
    Change from enacted level.........................       +43,080,000


    The Committee recommends a total of $2,650,740,000 for the 
Economic Support Fund (ESF), a $563,730,000 decrease from the 
request and a $43,080,000 increase to the enacted level, 
excluding emergency supplemental appropriations.

                        TRADE CAPACITY BUILDING

    The Committee has not provided $140,000,000 in the ESF 
appropriation for Trade Capacity Building as requested. 
Instead, the Committee recommends providing these funds in a 
new $522,000,000 appropriation entitled: Trade Capacity 
Enhancement Fund. The Committee allows for transfers from that 
appropriation to the ESF appropriation to accomplish programs 
in support of trade capacity building. Additional information 
on this Fund is found in a latter part of this report.

                                LIBERIA

    The Committee recommends $164,305,000 for ESF programs in 
Africa, the same as the request and $27,805,000 over the 2006 
enacted level. Within this amount, $40,000,000 is included for 
Liberia.
    The Committee recognizes the importance of conflict 
resolution as Liberia enters a new chapter in its history, and 
urges the State Department and USAID to consider a proposal 
from the Liberian Center for Mediation and Conflict Resolution 
to join in this effort.

                                 ISRAEL

    The Committee recommends $120,000,000 for Israel ESF 
programs, the same as the request and a decrease of 
$117,600,000 from the 2006 enacted level.
    The Committee again recommends language directing that 
these funds all be made available on a grant basis as a cash 
transfer to be disbursed within 30 days of enactment of this 
Act.

                                 EGYPT

    The Committee recommends $455,000,000 for Egypt ESF 
programs, as requested and a decrease of $35,050,000 from the 
2006 enacted level. Within the amount provided for project 
assistance, not less than $50,000,000 shall be made available 
for democracy, governance and human rights programs and not 
less than $50,000,000 shall be used for education programs.
    The Committee recommends that not less than 50 percent of 
the funds provided for Egypt for democracy, governance, and 
human rights be provided through nongovernmental organizations 
for the purpose of strengthening Egyptian civil society 
organizations, enhancing their participation in the political 
process, and enhancing their ability to promote and monitor 
human rights. The Committee further recommends that not less 
than 50 percent of the funds provided for Egypt for education 
be used to improve access to basic education. The remainder of 
the funds provided for education shall be used to strengthen 
institutions of higher education, promote academic freedom, and 
fund educational and cultural exchange programs.
    The Committee recommends a new provision, Section 578(b), 
that rescinds funds previously appropriated but not yet 
expended funds provided for cash assistance.
    The Committee intends that these funds be drawn from 
amounts appropriated for Egypt during fiscal years 2003-2006 
for the express purpose of transferring the funds as cash 
assistance as Egypt met certain ``benchmarks'' associated with 
financial sector reform. To date, Egypt has implemented many of 
the reform proposals and the implementation of these proposals 
has had a significant positive impact on Egypt's economy. 
However, some benchmarks have not been met and therefore funds 
have not yet been released by USAID.
    When the Government of Egypt completes additional 
benchmarks of the financial sector reform agreement of March 
2005 and funds are needed by USAID to transfer to Egypt in 
accordance with the agreement, the Committee will consider 
accommodating that requirement at the appropriate time.
    The Committee strongly urges the Department of State and 
the Government of Egypt to continue working on democracy 
reforms and benchmark proposals for implementation at the 
earliest possible opportunity.

                       RELIGIOUS FREEDOM IN EGYPT

    The Committee remains concerned about the problems faced by 
Egypt's Coptic Christian community and believes the Government 
of Egypt needs to do everything possible to provide full 
opportunity for Coptic Christians in employment and education. 
The Committee expects the Department of State to make every 
effort to reinforce the importance of actively enforcing the 
religious freedoms that are, in fact, provided for in the 
Egyptian Constitution.

                          NON-MILITARY EXPORTS

    The Committee strongly urges the President to ensure, in 
providing cash transfer assistance to Egypt and Israel, that 
the level of such assistance does not cause an adverse impact 
on the total level of non-military exports from the United 
States to each such country.

                       ECONOMIC BOYCOTT OF ISRAEL

    The Committee has once again included a provision (section 
535) addressing the Arab League boycott of Israel. The 
Committee strongly opposes this boycott and believes that the 
Department of State must take strong action to combat this 
practice.

                            JORDAN PROGRAMS

    The Committee recommends $250,500,000 for ESF programs in 
Jordan, an increase of $5,500,000 over the request and the 2006 
enacted level.
    The Committee notes, with appreciation, Jordan's strong 
support for the United States, most especially in the Global 
War on Terror. The Committee expresses its continued support 
for Jordan, a victim of terrorist attacks in late 2005.
    Furthermore, Jordan has played a leadership role in 
facilitating efforts to bring peace between Israelis and 
Palestinians. The Committee believes the amount provided for 
ESF assistance will help Jordan accommodate economic issues as 
it continues to implement economic reforms.

                            MOROCCO PROGRAMS

    The Committee recommends $15,000,000 for ESF programs in 
Morocco, a decrease of $3,000,000 from the request and 
$4,100,000 over the 2006 current estimate. This reduction is 
taken without prejudice.

                      WEST BANK AND GAZA PROGRAMS

    The Committee includes no appropriation for ESF programs in 
the West Bank and Gaza territories, a decrease of $150,000,000 
from the request and the 2006 enacted level.

                             IRAQ PROGRAMS

    The Committee recommends $305,770,000 for ESF programs in 
Iraq, a decrease of $173,000,000 from the request and 
$245,380,000 over the 2006 enacted level. This reduction is 
taken without prejudice.

                          AFGHANISTAN PROGRAMS

    The Committee recommends $510,770,000 for ESF programs in 
Afghanistan, a decrease of $99,230,000 from the request and 
$85,070,000 over the 2006 current estimate. The Committee has 
included language that limits the expenditure of these funds to 
not more than $225,000,000 until the Secretary of State 
certifies to the Committee on Appropriations, that the 
Government of Afghanistan at both the national and local level, 
is cooperating fully with United States funded eradication and 
interdiction efforts in Afghanistan. Understanding the 
certification may include sensitive or classified information 
the Department of State may submit the certification to the 
Committee in the form of a classified report.
    The Committee is greatly concerned that a few provincial 
governments are not fully supporting efforts to eradicate poppy 
growth and interdict the heroin byproduct of these poppies. 
Without full cooperation and support of the government, most 
especially the provincial governments, for eradication and 
interdiction programs, the Committee believes the illegal drug 
trade of Afghanistan will flourish. The Committee cannot 
condone increasing assistance for Afghanistan if the government 
is not willing to fully participate in ending the growth and 
trade of an illegal drug that tears apart the fabric of society 
and has the potential to undermine the legitimacy of the 
government.
    Within available funds, the Committee recommends up to 
$5,000,000 for USAID to continue its project designed for the 
refurbishment of the existing Wazir Akbar Kahn Hospital and the 
management of health care delivery in Kabul. The Committee 
understands that this hospital has been a tremendous success 
and is ably serving the residents of Kabul.
    In general, the Committee is opposed to a disproportionate 
implementation of the proposed reduction in spending levels 
that more negatively impacts projects in support of health, 
education, and women's programs. The Committee expects the 
Director of Foreign Assistance to ensure the appropriate 
application of funds to these items of congressional interest.

                               INDONESIA

    The Committee recommends $70,000,000 for ESF programs in 
Indonesia, a decrease of $10,000,000 from the request and the 
same as the 2006 enacted level. This reduction is taken without 
prejudice.
    The Committee recognizes the tremendous accomplishments of 
the Government of Indonesia in its drive toward democracy. In 
2004, Indonesia held a successful series of elections that 
culminated in the direct democratic election of a new 
president. These elections and further government reforms that 
are being implemented, give the Committee confidence that 
Indonesia is an emerging success story in South East Asia.

                          SOUTH ASIA REGIONAL

    The Committee recommends $1,000,000 for ESF programs in the 
South Asia Regional program, a decrease of $1,000,000 from the 
request and same as the 2006 enacted level.

                          EL SALVADOR PROGRAMS

    The Committee recommends $6,000,000 for ESF programs in El 
Salvador, a $4,000,000 decrease from the request. There was no 
request and no appropriation provided in fiscal year 2006.

                     MIDDLE EAST REGIONAL PROGRAMS

    The need for fresh water is a reality for all parties in 
the Middle East. Fresh water is essential for economic 
development, agriculture, health, and improving the quality of 
life for everyone in the region. Therefore the Committee 
strongly supports the continued efforts of the International 
Arid Lands Consortium in addressing the critical issues of 
water, energy, and agriculture and land use in the Middle East 
and Central Asia, and urges USAID to make available $2,500,000 
to the Consortium for this work. These funds are to be 
allocated from bilateral, centrally managed or regional 
programs either in this account or in other accounts funded by 
this Act.

                           IRISH VISA PROGRAM

    The Committee recommends funding for the Walsh Irish Visa 
program of $3,500,000, as requested. This program, authorized 
since 1998, assists young people who are residents of Northern 
Ireland and the border counties of Ireland with developing job 
skills and conflict resolution abilities. Eligible youth 
receive non-immigrant visas that enable them to work for up to 
three years in the United States.

                            LEBANON PROGRAM

    The Committee recommends $35,500,000 for Lebanon programs. 
The Committee directs that not less than $6,000,000 should be 
used for scholarships and other direct support of the American 
educational institutions in Lebanon. Providing an American 
education to the young people of Lebanon and the region makes a 
unique contribution to the long term development of political 
and economic stability in that country. Broadening 
understanding of American values in the Middle East is 
particularly important to the efforts of the United States to 
counter violence and terrorism.

                   MIDDLE EAST PARTNERSHIP INITIATIVE

    The Committee recommends $75,000,000 for the Middle East 
Partnership Initiative (MEPI), a decrease of $45,000,000 from 
the request and a decrease of $24,000,000 from the 2006 current 
estimate.
    The Committee directs that within the funds provided for 
MEPI, up to $6,000,000 be set aside to establish a scholarship 
program to educate students from countries with significant 
Muslim populations at the American educational institutions in 
those countries. The American educational institutions are 
uniquely positioned to improve understanding and strengthen 
shared values with the Muslim world. The Committee notes the 
work of the Middle East Media Research Institute (MEMRI) in 
providing timely translations of Arabic, Farsi, and Turkish 
media, as well as original analysis of political, ideological, 
intellectual, social, cultural, and religious trends in the 
Middle East. The Committee urges support for the work of 
organizations which provide accurate translations and balanced 
analysis.

                               EAST TIMOR

    The Committee recommends $13,500,000 for programs in East 
Timor, as requested, to support income producing projects and 
other reconstruction activities.
    The Committee welcomes the report of East Timor's 
Commission for Reception, Truth and Reconciliation and urges 
the Government of Indonesia, East Timor and other interested 
nations to examine, consider, and respond to recommendations 
made in the report. The Committee also welcomes the report of 
the U.N. Secretary General's Commission of Experts to evaluate 
judicial processes for serious crimes committed in East Timor 
in 1999 and urges the Government of Indonesia to work to 
implement the report's recommendations.

                                 TIBET

    The Committee recommends not less than $4,000,000 in 
assistance for programs that preserve cultural traditions, and 
promote economic development and environmental conservation in 
Tibetan communities.
    The Committee is aware of the valuable assistance the 
Bridge Fund has provided to promote Tibetan-owned and operated 
businesses and educational, cultural and natural resource 
conservation projects in Tibet and recommends that $2,000,000 
of these funds should be provided to the Bridge Fund.
    The Committee recommends that $250,000 be made available 
through a nongovernmental organization, such as the National 
Endowment for Democracy, for the purpose of providing training 
and education of Tibetans in democracy activities, and 
monitoring the human rights situation in Tibet. The Committee 
supports the use of a greater portion of the funds made 
available, for activities that have a primary impact inside 
Tibet, to the extent practicable. The Committee encourages 
USAID to work closely with the Office of the Special 
Coordinator on Tibetan Issues in carrying out these programs.
    At the same time, the Committee encourages organizations 
involved in China rule of law programs to seek out 
opportunities to conduct programs that can improve the human 
rights situation and the administration of justice in Tibetan 
areas, including Tibetan areas outside the Tibetan Autonomous 
Region (TAR).

                                 CYPRUS

    The Committee recommends $15,000,000 for Cyprus as 
requested only for educational and other bicommunal projects. 
These funds provide a basis for mutual cooperation and 
preparation for the two communities of Cyprus to live together 
harmoniously by increasing inter-communal contacts. These funds 
provide funding for Fulbright scholarships, the Bicommunal 
Support Program, the United Nations Office for Project Service, 
and other related activities. The Committee believes that the 
key to successful mutual cooperation is balanced economic 
growth throughout Cyprus.

                    HUMAN RIGHTS AND DEMOCRACY FUND

    The Committee recommends $27,000,000 for the Human Rights 
and Democracy Fund, a decrease of $8,000,000 from the request 
and the same as the level recommended in 2006. The Committee 
further recommends that $1,200,000 should be provided to 
support the Reagan/Fascell Democracy Fellows Program of the 
National Endowment for Democracy to enable activists, scholars, 
journalists, and practitioners from around the world to help 
make contributions to the strengthening of democracy in their 
respective countries. This program was authorized in section 
104(a)(2)(B) of H.R. 3427 as enacted into law as part of Public 
Law 106-113, and helps keep alive the legacy of our former 
President.

                DEMOCRATIC GOVERNANCE IN THE ARAB WORLD

    The Committee recognizes the importance of efforts to 
promote democratic governance and civic participation in the 
Arab world, and commends the State Department for supporting 
``Street Law'' in its creation of an Arab-language curriculum, 
Islam and Democracy: Toward Effective Citizenship.
    The Committee urges the State Department, through the 
Middle East Partnership Initiative, the Bureau of Democracy, 
Human Rights, and Labor, or another appropriate program, to 
provide $2,000,000 to establish a Global Center for Education 
about Democracy and Islam to adopt and disseminate the 
curriculum in various countries throughout the Arab world.

           CREATION OF JOB OPPORTUNITIES AND CAREER TRAINING

    The Committee recognizes the valuable work of the Education 
for Employment (EFE) Foundation in creating job opportunities 
and providing career training to unemployed youth in the Middle 
East, North Africa, and throughout the Muslim world. The 
Committee believes that EFE's work to build public-private 
sector partnerships to promote education reform and economic 
development contributes to efforts to achieve stability and 
prosperity in these regions.

                          ROLE OF TRADE UNIONS

    The Committee recognizes the important role that trade 
unions play in promoting democracy, the rule of law, and 
sustainable economic development, and recommends that the 
United States Agency for International Development maintain a 
robust global program to support the development of democratic 
trade unions.

                IRAQ PROGRAMS--COMMUNITY ACTION PROGRAM

    The Iraq Community Action Program (CAP), funded by USAID, 
is operating in Iraq and building community-based democracy. 
The CAP program has generated a network of more than 1,300 
community associations across 17 governorates in Iraq and has 
trained over 17,000 community association members. This is a 
successful program for empowering communities to improve their 
lives. The Committee directs that $50,000,000 of the funds 
provided for Iraq programs, be used to support the CAP.

                         AFGHAN WOMEN AND GIRLS

    The Committee directs that $7,500,000 of the funds made 
available for Afghanistan be provided as grants to support 
training and equipment to improve the capacity of women-led 
Afghan nongovernmental organizations and to support the 
activities of such organizations.

                  INDEPENDENT HUMAN RIGHTS COMMISSION

    The Committee directs that $2,000,000 of the funds made 
available for Afghanistan be provided to the Afghan Independent 
Human Rights Commission and other Afghan human rights 
organizations.

                           PAKISTAN PROGRAMS

    The Committee recommends $300,000,000 for ESF programs in 
Pakistan, a decrease of $50,000,000 from the request and the 
same as the 2006 enacted level. This reduction shall be applied 
to the request designated as budgetary support.
    The Committee urges that within the amount provided, 
$10,00,000 be used for rural access, health and education needs 
in South and North Waziristan Provinces. The Committee directs 
the Director of Foreign Assistance to submit a report by May 
15, 2007, which details the expenditure of the funds provided 
in 2006 and 2007. This report should, at a minimum, address the 
programs, projects, and activities supported with these funds, 
and an analysis of the impact on access to health and education 
needs to these provinces.
    The Committee is concerned about what appears to be the 
Government of Pakistan's increasing lack of respect for human 
rights, especially women's rights and the lack of progress on 
improving democratic governance and rule of law. The level of 
violence and discrimination against women has not significantly 
abated and women's groups and advocates who bring attention to 
abuses against women are often threatened by officials.
    Therefore, within the recommended funding level, the 
Committee directs that $10,000,000 be provided through local 
and international NGOs working on human rights, women's 
empowerment and justice sector reform issues in Pakistan. The 
Committee does not intend for these funds to detract from 
education and health programs in Pakistan. The Committee 
further directs the Secretary to report to the Congress not 
later than 180 days after enactment, on the following: (1) 
Steps taken by the Government of Pakistan to establish a 
transparent system of judicial appointments to the High Courts 
that expands accountability for such appointments; (2) An 
assessment whether and how the special anti-terrorism and 
accountability courts in Pakistan have been incorporated into 
the ordinary judiciary; (3) Steps taken by the Government of 
Pakistan to ensure that law enforcement and judicial processes 
at all levels respect international human rights, including the 
rights of women, and make efforts to mitigate traditional and 
religious practices imposed by tribal and village councils that 
are harmful to women; (4) Status of the establishment of an 
independent federal election commission; (5) An analysis of the 
data on incidences of unlawful arrests, detentions and other 
harassment of opposition leaders to determine if there has been 
a decline in such incidences over the past five years.

                                COLOMBIA

    The Committee has provided $135,000,000 for ESF programs in 
Colombia, with language allowing funds to be transferred to the 
Development Assistance (DA) appropriation as necessary to 
accomplish programs designed for specific assistance programs.
    This recommendation is based on the Committee's view that 
the time has come to transition from assistance directed at 
counter-narcotics programs, to assistance designed to develop 
and promote the stable democracy that Colombia has become.
    The Committee directs that these funds be allocated to 
USAID for continued support of ongoing programs. The Committee 
believes that for at least the first year of this transition, 
it would be beneficial to maintain established oversight of 
these programs. However, the Committee directs that as part of 
its overall strategy for assistance for Colombia, that the 
Office of the Director of Foreign Assistance complete a review 
of these programs and recommend as part of the fiscal year 2008 
budget request, adequate assistance funds for Colombia.

                             BURMA PROGRAMS

    The Committee recommends $7,000,000 for ESF programs in 
Burma. These funds are critical to supporting democracy 
activities in Burma, programs along the Burma-Thailand border, 
activities of Burmese student groups and other organizations 
located outside Burma.

                               BANGLADESH

    The Committee recommends $5,000,000 for ESF programs in 
Bangladesh as requested.
    The Committee recognizes the steps taken by the Government 
of Bangladesh to combat terrorism and extremism and notes the 
challenges posed to the government by Islamic fundamentalism. 
However, the committee is troubled by the Government of 
Bangladesh handling of the case of Salah Uddin Shoaib 
Choudhury, an advocate of religious freedom and interfaith 
dialogue who was recently released from prison after being held 
for eighteen months without due process of law. The Committee 
remains concerned about the sedition charges still facing Mr. 
Choudhury and the potential for a death sentence in the event 
of a conviction.

                         INDONESIA HUMAN RIGHTS

    The Committee remains concerned about the climate for human 
rights advocates and activists in Indonesia. While the 
Committee welcomes the conviction of one of those responsible 
for the poisoning death of human rights lawyer Munir Said 
Thalib in September 2004, the Committee notes that President 
Yudhoyono has failed to release the report of the Presidential 
fact-finding team investigating the assassination and 
emphasizes the need to fully investigate any past or present 
senior government or military officials implicated by that 
report. The Committee directs the Department of State, no later 
than 90 days after enactment of this Act, to report on the 
current climate for human rights defenders in Indonesia, 
including conditions of general safety, levels of threat and 
intimidation, and success in prosecution and punishment of 
serious crimes committed against human rights defenders.

              EDUCATIONAL INSTITUTIONS IN THE MIDDLE EAST

    The Committee believes the four United States chartered 
educational institutions in Lebanon--Lebanese American 
University, American University of Beirut, International 
College, and American Community School--are critical components 
in broadening educational opportunities for Lebanese students. 
Given the importance of United States support for these 
institutions and the Committee's intent to increase funding for 
these schools, the Committee is concerned about ASHA's decision 
to reduce funding for the long-standing programs with these 
schools. The Committee believes ASHA should work with the 
Lebanese American University, American University in Beirut, 
International College and the American Community School to 
overcome any shortcomings in the application and implementation 
process to ensure adequate funding for these long-standing 
programs.

                              CUBA PROGRAM

    The Committee recognizes the work of the United States 
Agency for International Development (USAID) Cuba Program for 
its role in promoting democracy and strengthening civil 
society. The Committee recognizes the successes of the Cuba 
Program in promoting democracy and humanitarian assistance 
programs and urges USAID to continue to promote this program 
with its goals of freedom and democracy in Cuba.

            CONFLICT RESOLUTION AND RECONCILIATION PROGRAMS

    The Committee recommends a total of $15,000,000 for 
Conflict Resolution and Reconciliation Programs. Within this 
amount, the Committee recommends that $6,000,000 be used to 
establish a new reconciliation program, the Middle East People-
to People Coexistence Program. All funds for the Middle East 
People-to-People Coexistence Program shall be distributed 
through a competitive grant program organized by the State 
Department. The Department of State shall develop application 
and evaluation procedures for selecting NGO entities for grants 
as well as for reviewing program accomplishments.
    The Committee recognizes the importance of conflict 
resolution and reconciliation programs as a tool for creating a 
climate of peace in regions of conflict. The Conflict 
Resolution and Reconciliation Programs bring together 
individuals of different ethnic, religious, and political 
backgrounds from areas of civil conflict and war. Within the 
$15,000,000 provided for these Programs, funding should be made 
available through an established process for organizations that 
provide such programming.
    The Committee recommends that the Department of State give 
active consideration to proposals provided by the following 
organizations and entities:
          Playing for Peace
          Seeds of Peace
          Tanenbaum Center for Inter-Religious Understanding
          One Voice
          Hand in Hand
          International Exchange
          Jerusalem International YMCA Project Children
          Interns for Peace
    With the establishment of the Middle East People-to-People 
Coexistence Program, the Committee recognizes that the 
historical application of funds for Conflict Resolution and 
Reconciliation Programs will change. Therefore, the Committee 
requests the Department of State devise an equitable funding 
distribution of these funds to ensure that the grant 
application and award process recognizes projects that fall 
into the category of Middle East People-to-People Coexistence 
Program and other areas of conflict.
    The Committee requests that the Department of State 
initiate an annual report on the status of applications and 
funding for these and other organizations supported through 
this program. Such report should be provided to the Committee 
not later than May 1 of each year.

                     TRAFFICKING IN PERSONS PROGRAM

    The Committee recommends $8,000,000 for the Trafficking in 
Persons program.

                    TRADE CAPACITY BUILDING PROGRAM

    The Committee recommends no appropriation for the Trade 
Capacity Building program, a $20,000,000 decrease from the 
request. These funds were instead appropriated in a new 
appropriation, the Trade Capacity Enhancement Fund (TCEF) 
addressed later in this report.

                    ASIA-PACIFIC PARTNERSHIP PROGRAM

    The Committee recommends no appropriation for the Asia-
Pacific Partnership Program, a decrease of $26,000,000 from the 
request. There was no request and no appropriation provided for 
this program in fiscal year 2006. This recommendation comes 
without prejudice because the Committee did not receive 
detailed budget material in time for careful examination. 
Therefore, the Committee will work with the Administration 
during the appropriations process to better understand the 
justification for this program.

                        PARLIAMENTARY EXCHANGES

    The Committee recommends $1,000,000 for the House Democracy 
Assistance Commission, an increase of $1,000,000 from the 
request and the same as the 2006 enacted level.
    The Committee notes that this program is not included in 
the fiscal year 2007 justification material and is therefore 
subject to the notification requirements of section 515.

               FOUNDATION FOR SECURITY AND SUSTAINABILITY

    The Committee recommends that up to $3,000,000 be provided 
to continue regional stability, conflict management and 
mitigation efforts. The Committee continues to support the work 
of the Foundation for Environmental Security and Sustainability 
(FESS) to address critical United States national security 
interests in the context of regional instability arising from 
resource scarcity and management practices, natural hazards, 
and other environmental stresses. The Committee recognizes the 
continuing importance of FESS's conflict management and 
mitigation efforts, in particular, FESS's new initiative to 
develop a regional/global approach for extractive industries 
that promote stability and security in some of the most 
troubled areas of the world.

                     International Fund for Ireland





Fiscal year 2006 enacted level........................       $13,365,000
Fiscal year 2007 request..............................                 0
Committee recommendation..............................        10,800,000
    Change from request...............................       +10,800,000
    Change from enacted level.........................        -2,565,000


    The Committee recommends a total of $10,800,000 for the 
International Fund for Ireland in support of the Anglo-Irish 
Accord, a $10,800,000 increase to the request and a $2,565,000 
decrease from the enacted level. The Committee encourages the 
Fund to address the important issue of social reintegration, by 
promoting long-term development work and education.

          Assistance for Eastern Europe and the Baltic States





Fiscal year 2006 enacted level........................      $357,390,000
Fiscal year 2007 request..............................       273,900,000
Committee recommendation..............................       227,900,000
    Change from request...............................       -46,000,000
    Change from enacted level.........................      -129,490,000


    The Committee recommends a total of $227,900,000 for 
Assistance for Eastern Europe and the Baltic States, a 
$46,000,000 decrease from the request and a $129,490,000 
decrease from the enacted level.
    The Committee recommends no appropriation from this account 
for trade capacity building programs, resulting in a 
$41,300,000 reduction from the request. These funds are 
appropriated under ``Trade Capacity Enhancement Fund''. 
Adjusting for this shift in appropriations, the recommendation 
for this account is $4,700,000 below the request and 
$88,190,000 below the fiscal year 2006 enacted level.
    The Committee notes that funds provided from this account 
shall be used for assistance and for related programs for 
Eastern Europe and the Baltic States. Programs which 
predominantly benefit other regions of the world shall not be 
funded from this account.
    The Committee has recommended the same bill language as in 
previous Acts that authorizes the President to withhold funds 
for economic revitalization for Bosnia if he determines that 
Bosnia is not in compliance with the Dayton Accord regarding 
the presence of foreign forces and has not terminated 
intelligence cooperation with Iranian officials. All funds are 
subject to the provisions of section 529 of this Act.
    The following table compares fiscal year 2006 funding for 
the programs covered by this account, as well as the 
President's request for fiscal year 2007 and the Committee 
recommendation:

                               ASSISTANCE TO EASTERN EUROPE AND THE BALTIC STATES
----------------------------------------------------------------------------------------------------------------
                                                          Fiscal year 2006   Fiscal year 2007      Committee
                                                              enacted            request         recommendation
----------------------------------------------------------------------------------------------------------------
Albania................................................        $27,700,000        $20,000,000        $20,000,000
Bosnia and Herzegovina.................................         39,600,000         31,000,000         31,000,000
Bulgaria...............................................         19,800,000                  0                  0
Croatia................................................         14,900,000                  0                  0
Kosovo.................................................         74,300,000         79,000,000         77,700,000
Macedonia..............................................         34,700,000         27,000,000         27,000,000
Romania................................................         19,800,000                  0                  0
Serbia and Montenegro..................................         84,450,000         70,500,000         70,000,000
    Serbia.............................................       [69,300,000]    [not specified]       [60,000,000]
    Montenegro.........................................       [14,850,000]    [not specified]       [10,000,000]
Regional...............................................         42,500,000         46,400,000         43,500,000
    OSCE...............................................    [not specified]       [28,500,000]       [28,500,000]
    Southern...........................................    [not specified]       [17,900,000]       [15,000,000]
Appropriated in Trade Capacity Enhancement Fund........  .................  .................       [41,300,000]
                                                        --------------------------------------------------------
        Total..........................................        357,390,000        273,900,000        227,900,000
----------------------------------------------------------------------------------------------------------------

                               MONTENEGRO

    The Committee continues its strong support for the Republic 
of Montenegro. The Committee recommendation includes 
$10,000,000 for Montenegro, a reduction of $4,850,000 below 
fiscal year 2006. The Committee expects the Department of State 
and USAID to consult with the Committee prior to the 
programming of funds for Montenegro for fiscal year 2007.

                           REGIONAL PROGRAMS

    The Committee recommendation includes $43,500,000 for 
regional programs. This category funds environmental 
infrastructure, independent media support, civil society and 
rule of law, health promotion and care, economic development 
and other programs. The Committee urges USAID to consider an 
application from Olive Branch International to support the 
programs of its Teen Rescue program in Estonia.

                              RULE OF LAW

    The Committee views efforts to promote the rule of law 
worldwide as a critical component of United States foreign 
policy. The Committee strongly supports the public service 
projects initiated by the American Bar Association (ABA) to 
strengthen democracy through programs that promote the rule of 
law in transitional countries. These effective programs rely 
predominantly on the volunteer efforts of American lawyers and 
have achieved sustainable results. The Committee recommends 
continued funding through cooperative agreements for the ABA's 
programs at a level comparable to the fiscal year 2006 level, 
taking into account the overall reduction in this account. The 
Committee notes that ABA should not rely upon United States 
funding to renovate or build facilities, but should instead use 
private financing as agreed in 2003.
    The ABA has expanded its legal reform efforts into Asia, 
Africa, Latin America and the Caribbean, and the Middle East, 
with programs in Jordan, Bahrain, Morocco, Iraq, Afghanistan, 
Rwanda, Kenya, Liberia, China, Indonesia, the Philippines, 
Ecuador, Costa Rica, and Mexico. The Committee recommends 
support for such programs from the appropriate accounts. The 
Committee continues to support the use of cooperative 
agreements for funding such programs.

                         TRAINING AND EXCHANGES

    The Committee directs USAID to extend the East Central 
European Scholarship Program (ECESP) cooperative agreement in 
both Albania and Macedonia during fiscal year 2007 and consult 
with the Committee not later than September 30, 2006, regarding 
future utilization of ECESP's unique services.
    The Committee recommendation includes funding for the 
Russian, Eurasian, and East European Research and Training 
Program (Title VIII) comparable to the fiscal year 2006 level. 
The Committee also encourages the use of Title VIII funds to 
include comparative research and language training concerning 
Eurasian countries critical to the war against terrorism. The 
Committee expects the fiscal year 2008 budget request to shift 
funding for this program to accounts which focus on 
educational, research, and exchange activities.

    Assistance for the Independent States of the Former Soviet Union





Fiscal year 2006 enacted level........................      $508,860,000
Fiscal year 2007 request..............................       441,000,000
Committee recommendation..............................       371,280,000
    Change from request...............................       -69,720,000
    Change from enacted level.........................      -137,580,000


    The Committee recommends a total of $371,280,000 for the 
Independent States of the Former Soviet Union, a $69,720,000 
decrease from the request and a $137,580,000 decrease from the 
enacted level.
    The Committee recommends no appropriation from this account 
for trade capacity building programs, resulting in a 
$64,200,000 reduction from the request. These funds are 
appropriated under ``Trade Capacity Enhancement Fund''. 
Adjusting for this shift in appropriations, the recommendation 
for this account is $5,520,000 below the request and 
$73,380,000 below the fiscal year 2006 enacted level.
    The Committee notes that funds provided from this account 
shall be used for assistance and for related programs for 
states of the former Soviet Union. Programs which predominantly 
benefit other regions of the world shall not be funded from 
this account.
    The Committee continues in subsection (a) prior year 
language applying the provisions of section 498B(j) of the 
Foreign Assistance Act. A general provision (section 517) also 
includes long-standing language on human rights, and non-use of 
funds for enhancing military capacities, and providing all 
funds subject to separate notification.
    The following table compares fiscal year 2006 funding for 
the programs covered by this account, as well as the 
President's request for fiscal year 2007 and the Committee 
recommendation:

                              ASSISTANCE FOR THE STATES OF THE FORMER SOVIET UNION
----------------------------------------------------------------------------------------------------------------
                                                          Fiscal year 2006   Fiscal year 2007      Committee
                                                              enacted            request         recommendation
----------------------------------------------------------------------------------------------------------------
Europe and Eurasia:
    Armenia............................................        $74,250,000        $50,000,000        $62,000,000
    Azerbaijan.........................................         34,650,000         28,000,000         29,000,000
    Belarus............................................         11,880,000         10,000,000         10,000,000
    Georgia............................................         66,330,000         58,000,000         55,000,000
    Moldova............................................         18,810,000         16,000,000         15,000,000
    Russia.............................................         79,200,000         58,000,000         58,000,000
    Ukraine............................................         83,160,000         85,000,000         80,000,000
    OSCE-Regional......................................                  0         12,000,000         12,000,000
    Regional FSA.......................................         42,570,000         29,430,000         24,480,000
                                                        --------------------------------------------------------
        Subtotal, Europe and Eurasia...................        410,850,000        346,430,000        345,480,000
South Asia:
    Kazakhstan.........................................         24,750,000         19,000,000         19,000,000
    Kyrgyz Republic....................................         24,750,000         32,000,000         29,000,000
    Tajikistan.........................................         23,760,000         22,000,000         22,000,000
    Turkmenistan.......................................          4,950,000          5,000,000          5,000,000
    Uzbekistan.........................................         19,800,000         15,000,000         15,000,000
    Central Asia-Regional..............................                  0          1,570,000                  0
                                                        --------------------------------------------------------
        Subtotal, South Asia...........................         98,010,000         94,570,000         90,000,000
                                                        --------------------------------------------------------
Trade Capacity Building transfer out...................  .................  .................         64,200,000
                                                        --------------------------------------------------------
    Total..............................................        508,860,000        441,000,000        371,280,000
----------------------------------------------------------------------------------------------------------------

                       CHILD SURVIVAL AND HEALTH

    The Committee notes the strong support of the 
Administration for programs to address adverse maternal and 
environmental health conditions and the increasing incidence of 
TB/HIV in Russia, Ukraine, and the Central Asian Republics. As 
this account is phasing down, the Administration should be 
developing strategies to continue these important programs from 
other accounts. In order to demonstrate its support for these 
high priority activities, the Committee has included bill 
language allocating not less than $41,000,000 for health and 
child survival activities. The Committee notes that the Primary 
Health Care Initiative of the World Council of Hellenes is an 
important project, and the Committee urges USAID to continue 
robust support for this program in fiscal year 2007. In 
addition, the Committee notes that the Firefly Children's 
Network is working in Russia to help children with 
disabilities.
    The Committee recognizes the contribution made by the 
Eurasian Medical Education Program of the American College of 
Physicians to the problems of HIV/AIDS and chronic disease in 
Russia. The Committee expects that funding afforded this 
program for its activities in western and eastern Russia in 
fiscal year 2007 will be comparable with that in fiscal year 
2006.

                              RUSSIA-IRAN

    The Committee has carried for several years language 
restricting assistance for the government of Russia due to its 
support for the Iranian nuclear program. Russian cooperation 
with Iran has, at the minimum, contributed to Iran's recently 
demonstrated uranium enrichment capability. In addition, 
Russia's continued support for Iran's ballistic missile 
capacity has directly contributed to increasing regional 
instability. The Committee expects the President to make this 
ongoing cooperation a central issue at the G8 Summit in St. 
Petersburg. The Committee continues its restrictions on funding 
for the Russian government again this year.

       SUPPORT OF PEACEFUL RESOLUTION OF SOUTH CAUCASUS CONFLICTS

    The Committee continues its strong support for confidence-
building measures among the parties to the Nagorno-Karabakh 
conflict. The Committee expects the State Department to use its 
authority under section 498B of the Foreign Assistance Act as 
necessary to carry out such programs.
    The Committee continues to be concerned about the plight of 
the victims of the Nagorno-Karabakh conflict, and recommends 
that up to $5,000,000 should be made available to address 
ongoing humanitarian needs in Nagorno-Karabakh.
    The Committee has included renewed authority for the 
President to provide humanitarian assistance to the region, 
notwithstanding the restrictions of section 907 of the FREEDOM 
Support Act. The bill language is unchanged from previous 
years.

                       DEMOCRACY AND HUMAN RIGHTS

    The Committee recognizes the excellent work of the Eurasia 
Foundation in promoting democratic change at the grass roots 
level throughout the independent states of the former Soviet 
Union. The Foundation has recently embarked on an initiative to 
create self-sustaining legacy foundations in several countries. 
The Committee recommends that the Foundation receive funding 
comparable to previous years.
    The Committee notes the many accomplishments of the 
Civilian Research and Development Foundation (CRDF), which has, 
for the last decade, helped to channel the research activities 
of weapons scientists in the Former Soviet Union (FSU) in 
constructive directions. The Committee recommends continued 
funding for CRDF from this account at a level comparable to 
fiscal year 2006 for activities which primarily benefit this 
region. CRDF is expanding its activities globally, including 
work with scientists and engineers from the Middle East, North 
Africa, and elsewhere outside the FSU region, and the Committee 
expects the Administration to fund these activities from the 
appropriate accounts.
    The Committee recognizes the value of the work that the 
Moscow School of Political Studies has done to educate young 
Russian professionals and public servants on how to participate 
honestly and productively in running their own country. The 
School's seminars and publications are an invaluable 
contribution to democracy-building in Russia, and the Committee 
directs the State Department to provide $500,000 in fiscal year 
2007 to support its programs.

                                UKRAINE

    The Committee believes that the greatest hope for Ukrainian 
democracy rests with realizing the economic aspirations of the 
Ukrainian people. The Committee thus supports the 
Administration's emphasis on strengthening Ukrainian economic 
growth.
    However, the Committee is concerned with the amount of time 
that has passed since the March, 2006 elections without the 
formation of a new coalition government. The Committee strongly 
supports United States efforts to strengthen Ukraine's 
democratic institutions and encourages the Office of the 
Director of Foreign Assistance to prioritize funding for such 
programs which are selected through a competitive process and 
are consistent with United States policy. The Committee notes 
that the Ukrainian Congress Committee of America and the U.S.-
Ukraine Foundation have worked in this area.

                                BELARUS

    The Committee is deeply concerned with the increasingly 
repressive regime in Belarus and encourages the government of 
Belarus to return to the democratic community. The Committee 
supports the efforts of the State Department, USAID, and the 
European states to help the Belarusian people access accurate 
and timely information.

                               AZERBAIJAN

    The Committee is encouraged by the steps taken by the 
government of Azerbaijan toward a democratic state and 
appreciates the government of Azerbaijan's support for the 
global war on terror.

                    Trade Capacity Enhancement Fund





Fiscal year 2006 enacted level........................  ................
Fiscal year 2007 request..............................  ................
Committee recommendation..............................      $522,000,000
    Change from request...............................      +522,000,000
    Change from enacted...............................      +522,000,000


 DIRECTOR OF TRADE CAPACITY ENHANCEMENT AND TRADE CAPACITY ENHANCEMENT 
                                  FUND

    The Committee recommends a provision (Sec. 586) that 
establishes a new office, the Director of Trade Capacity 
Enhancement, within the United States Agency for International 
Development (USAID).
    This new office would be responsible for implementing all 
of USAID's trade capacity building programs, managing the 
implementation of all programs developed by the State 
Department for trade capacity building, monitoring 
applicability of the appropriations financed in title I and 
title IV of the Foreign Operations bill for the enhancement of 
trade capacity, and coordinating the government-wide trade 
capacity building efforts. Most especially, the Director shall 
ensure that countries desirous of applying for, or enhancing 
existing, trade capacity building agreements are provided 
sufficient support from the United States through his efforts 
at building trade capacity.
    The term trade capacity enhancement is defined to mean the 
following set of programs and activities: (1) Trade 
Facilitation assistance in lowering the costs of engaging in, 
or eliminating obstacles to international trade flows; (2) 
Human Resources and Labor Standards assistance to support the 
enforcement of labor standards and worker rights, development 
of trade unions and dispute resolution mechanisms, strategies 
for workforce development and worker training, and the 
elimination of child labor; (3) Physical Infrastructure 
Development assistance to establish trade-related telecoms, 
transport, ports, airports, power, water, and industrial zones; 
(4) Trade-Related Agricultural Development support for trade-
related aspects of the agriculture and agribusiness sectors; 
(5) Environmental Sector Trade & Standards assistance to 
establish environmental standard or to promote environmental 
technology; (6) Governance/Transparency & Inter-Agency 
Coordination support for legal and institutional reform to 
improve governance and make policies more transparent, as well 
as assistance to help the different agencies of a host country 
government function more effectively in the trade policy arena; 
(7) Financial Sector Development & Good Governance support for 
financial sector work, monetary and fiscal policy, exchange 
rates, commodity markets, and capital markets; (8) Competition 
Policy & Foreign Investment support for the design and 
implementation of antitrust laws, as well as of laws and 
regulations related to investment and investor protections; (9) 
Services Trade Development: support to help developing 
countries and transition economies increase their flows of 
trade in services; (10) WTO Awareness, Accession and 
Agreements: assistance to help governments and private sector 
institutions benefit from membership in the WTO, or to 
understand fully the benefits of membership; assistance to help 
countries in the WTO Accession process meet the requirements of 
accession; and assistance that enables countries to better 
participate in, and benefit from, particular WTO Agreements. 
The Committee expects such assistance programs will address 
social and economic inequities and seek to ensure that the 
benefits of trade are accessible to all segments of society, 
particularly women and minority or marginalized communities.
    The Director of Foreign Assistance has communicated to the 
Committee that it is his intent that the United States Embassy 
personnel in overseas locations will be required, at the 
direction of the United States Ambassador to the country, to 
develop strategic goals and implementation plans for these 
goals. This office of the Director of Trade Capacity 
Enhancement would be responsible for ensuring that country 
strategic plans, as appropriate, include a trade capacity 
enhancement strategic goal and for monitoring the 
implementation plan for achieving this goal.
    In addition, the Committee recommends a new appropriation, 
the Trade Capacity Enhancement Fund. This $522,000,000 
appropriation shall be managed by the Director of Trade 
Capacity Enhancement in support of trade capacity enhancement 
strategic goals. At least $40,000,000 must be made available 
for implementing the Central American Free Trade Agreement 
(CAFTA), including supporting labor and environmental capacity 
building programs related to CAFTA, and at least $40,000,000 
must be made available for implementing free trade agreements 
with the United States agreed to in 2006 and later.
    The Committee has provided authority for the Director to 
transfer funds as necessary to implement programs in the 
following appropriations as necessary to meet trade capacity 
enhancement strategic goals by country: Development Assistance, 
Economic Support Fund, Assistance for Eastern Europe and the 
Baltic States, Andean Counterdrug Initiative, and Assistance 
for the Independent States of the Former Soviet Union (FSA).
    For a number of years, Congress has provided assistance for 
trade capacity building by setting aside a total amount of 
funds from the Foreign Operations, Export Financing, and 
Related Programs appropriations bills. In fiscal year 2005, 
Congress set aside a total of $507,000,000, and in fiscal year 
2006, Congress set aside a total of $522,000,000 for trade 
capacity building.
    According to USAID officials, this Congressional direction 
has been implemented through various appropriations included in 
the Foreign Operations bills. For fiscal year 2007, the 
Committee believes that the following amounts in the following 
appropriations accounts would be used to implement programs, 
projects and activities in support of the fiscal year 2007 
trade capacity building efforts of the USAID and State 
Department. To ``capitalize'' the Trade Enhancement Fund in 
fiscal year 2007, the Committee has made the appropriate 
reductions in the amounts requested for these appropriations 
and moved this money to the Trade Capacity Enhancement Fund for 
management by the Director of Trade Capacity Enhancement:
          Development Assistance, $214,000,000
          Economic Support Fund, $140,000,000
          Assistance for Eastern Europe and the Baltic States, 
        $41,300,000
          Assistance for the Independent States of the Fonner 
        Soviet Union, $64,200,000
          Andean Counterdrug Initiative, $62,500,000

                          INDEPENDENT AGENCIES


                       Inter-American Foundation





Fiscal year 2006 enacted level........................       $19,305,000
Fiscal year 2007 request..............................        19,268,000
Committee recommendation..............................        19,268,000
    Change from request...............................                 0
    Change from enacted level.........................           -37,000


    The Committee recommends $19,268,000 for the Inter-American 
Foundation, the same as the request and $37,000 below the 
fiscal year 2006 level.

                     African Development Foundation





Fiscal year 2006 enacted level........................       $22,770,000
Fiscal year 2007 request..............................        22,726,000
Committee recommendation..............................        22,726,000
    Change from request...............................                 0
    Change from enacted level.........................           -44,000


    The Committee recommends $22,726,000 for the African 
Development Foundation, the same as the request and $44,000 
below the fiscal year 2006 level.
    The Committee continues to strongly support the African 
Development Foundation's efforts to identify and leverage non-
appropriated resources. The Committee requests the President of 
the Foundation to include this data in the congressional budget 
justification accompanying the fiscal year 2008 budget request.
    The Committee maintains bill language carried in prior 
years on investments authorized by the Foundation's Board; 
interest earned; ability of Board to waive $250,000 cap on 
grants in exceptional circumstances; and requirement to report 
to the Committee if such authority is exercised. It also adds 
language requested in the budget to permit a project for which 
the Board has waived the $250,000 cap to exceed the cap by up 
to $10,000 if the increase is due solely to foreign currency 
fluctuations.

                              Peace Corps





Fiscal year 2006 enacted level........................      $318,780,000
Fiscal year 2007 request..............................       336,700,000
Committee recommendation..............................       324,587,000
    Change from request...............................       -12,113,000
    Change from enacted level.........................        +5,807,000


    The Committee recommends $324,587,000 for the Peace Corps, 
an amount that is $12,113,000 below the request and $5,807,000 
above the amount enacted for fiscal year 2006.
    The Committee again has included language permitting the 
Peace Corps Director to transfer up to $2,000,000 to establish 
an account to help mitigate the effects of currency exchange 
fluctuation. The Committee also expects the Peace Corps to 
transfer into this account net gains due to beneficial currency 
fluctuations when applicable.
    The Committee recommendation includes a new section 
(Section 570), as requested in the budget, establishing a fund 
for the Peace Corps to provide separation pay for host country 
resident personal services contractors of the Peace Corps. The 
fund will be maintained by annual government contributions 
which are appropriated within this account.

                    Millennium Challenge Corporation





Fiscal year 2006 enacted level........................    $1,752,300,000
Fiscal year 2007 request..............................     3,000,000,000
Committee recommendation..............................     2,000,000,000
    Change from request...............................    -1,000,000,000
    Change from enacted level.........................      +247,700,000


    The Committee recommends a total of $2,000,000,000 for the 
Millennium Challenge Corporation (MCC), a $1,000,000,000 
decrease from to the request and a $247,700,000 increase to the 
enacted level.
    The recommended reduction solely reflects the constrained 
budgetary situation in fiscal year 2007, and more specifically 
the Committee's allocation relative to the President's request 
and the need to address funding increases for other 
Presidential initiatives. A funding limitation of $95,000,000 
is set for administrative expenses.
    The Committee continues its strong support for the MCC and 
regards it as a significant step forward in the provision of 
accountable and transformative foreign assistance. The 
Committee notes the MCC's early and frequent consultations 
regarding potential compact and threshold assistance and 
expects such consultations to continue in fiscal year 2007.

                          THRESHOLD COUNTRIES

    The Committee has again included a provision authorizing 10 
percent of funds for threshold country programs. The Committee 
notes that the MCC has determined that countries can be 
simultaneously eligible for Compacts and for threshold 
programs. The Committee recognizes that country eligibility may 
often be tenuous and in need of continued support. In cases 
where the MCC had initiated a threshold program with a country 
previously ineligible for an MCA compact, the Committee 
supports the continuation of the threshold program even if the 
country subsequently becomes eligible for a Compact. However, 
the Committee notes that the primary purpose of threshold 
assistance is to help countries ineligible for Compacts address 
the deficiencies which prevent them becoming eligible. The 
Committee expects the MCC to clarify its threshold program 
guidance to reflect the circumstances under which countries may 
be eligible for both categories of funding.

                          MULTI-YEAR COMPACTS

    The Committee includes once again a provision that requires 
the MCC to only enter into Compacts for which it has complete 
funding available from existing appropriations. The Committee 
will not allow the MCC to commit future Congresses to funding 
prior year Compacts.

                     LOWER MIDDLE INCOME COUNTRIES

    The Committee reiterates its support for the provisions 
under section 609(b)(2) of the Millennium Challenge Act of 2003 
which requires lower middle income countries to make an 
incremental contribution relative to their national budget in 
support of the poverty reduction objectives of the compact. The 
Committee expects this information to be detailed in each 
appropriate Compact.

                   COMPACTS WITH REGIONAL GOVERNMENTS

    As in previous years, the Committee requires the MCC to 
consult with the Committee immediately upon determining that 
the national government of an eligible country is not an 
appropriate partner with which to negotiate Compacts, and that 
engagement with a regional or other sub-national entity is 
required.

                           COMPACT EXTENSION

    The Committee notes that the development priorities of many 
Compact-eligible countries may include significant rural 
development programs. As a result, the MCC has received, and 
approved, proposals for complicated infrastructure and 
agricultural development projects. However, the five-year 
limitation on compact duration may have a dampening effect on 
the types of projects that the MCC can fund.
    The Committee requests that the MCC, if necessary, 
recommend to the appropriate authorizing committees legislative 
changes to address this problem.

                             609(G) FUNDING

    The Committee is concerned that the flexibilities of 609(g) 
may be misinterpreted by some Compact-eligible countries. 
Congress provided 609(g) authority as a last resort to overcome 
otherwise insurmountable obstacles to Compact development and 
implementation. The Committee directs the MCC to include in its 
country notification paperwork guidance on the 609(g) function.

                          DEPARTMENT OF STATE


                       Global HIV/AIDS Initiative





Fiscal year 2006 enacted level........................    $1,975,050,000
Fiscal year 2007 request..............................     2,894,000,000
Committee recommendation..............................     2,772,500,000
    Change from request...............................      -121,500,000
    Change from enacted level.........................      +797,450,000


    The Committee appropriates $2,772,500,000 for the ``Global 
HIV/AIDS Initiative'' account, $797,450,000 more than enacted 
in fiscal year 2006 and $121,500,000 less than requested by the 
President. As in the previous year, the Committee appropriates 
all funding for the fifteen focus countries in this account.
    This account is the primary source of funding for the 
Emergency Plan for AIDS Relief (PEPFAR). Amounts under Child 
Survival and Health Programs Fund, other accounts in this Act, 
and funding provided from other appropriations Acts are also 
included in PEPFAR.
    The Committee has included total Emergency Plan funding of 
$3,431,472,000 as outlined in the table below. This is 
$751,642,000 above the enacted level and the same as the 
request. In addition to the amounts within this Act, the 
Committee notes that the President's budget request includes 
another $589,958,000 within the Department of Health and Human 
Services and $10,000,000 from the P.L. 480, Food for Peace 
Program, for global HIV/AIDS activities. The Committee also 
notes that it has included up to $444,500,000 for the United 
States contribution to the Global Fund to Fight AIDS, 
Tuberculosis and Malaria in this Act, $200,000,000 within the 
Child Survival and Health Programs Fund and $244,500,000 within 
this account. This is $244,500,000 more than requested by the 
President.

                        Global HIV/AIDS Funding



------------------------------------------------------------------------
                      Category                            Allocation
------------------------------------------------------------------------
Global HIV/AIDS Initiative Funds...................       $2,772,500,000
CSHF--HIV/AIDS (bilateral).........................          426,621,000
CSHF--Global Fund to Fight AIDS, TB, and Malaria...          200,000,000
Other Accounts.....................................           32,351,000
                                                    --------------------
    Subtotal--Foreign Operations...................        3,431,472,000
HHS--Bilateral Programs (request)..................          589,958,000
P.L. 480 (request).................................           10,000,000
                                                    ====================
    Total--Global HIV/AIDS.........................        4,031,430,000
------------------------------------------------------------------------


    Within the amounts outlined above, the recommendation 
includes $91,553,000 for TB programs. These amounts are more 
fully described under the heading ``Child Survival and Health 
Programs Fund''. In addition, it is estimated that $89,389,000 
of the United States contribution to the Global Fund will 
support TB prevention and control programs and $63,830,000 will 
support malaria related activities.
    The Committee commends the United States Office of the 
Global AIDS Coordinator for its continued efforts at 
transparency. The Committee requests the Office of the Global 
AIDS Coordinator to continue to submit quarterly obligation and 
transfer reports as required in prior years.

Non-focus countries

    The Committee again includes not less than $50,000,000 in 
this account for ``non-focus'' country programs. The Committee 
notes that information regarding the non-focus country programs 
receiving additional assistance in fiscal year 2007 was not 
incorporated into the Office of the Global AIDS Coordinator's 
congressional budget justification for fiscal year 2007 as 
requested in last year's Committee Report. Therefore, the 
Committee again requests that the Office of the Global AIDS 
Coordinator submit to the Committee within 60 days of enactment 
a list of the non-focus countries that will receive additional 
``Global HIV/AIDS Initiative'' funding in fiscal year 2007. In 
addition, the Committee directs that the non-focus country 
information be incorporated into congressional budget 
justification accompanying the fiscal year 2008 request.

Voluntary contribution to the Global Fund To Fight AIDS, Tuberculosis 
        and Malaria

    The fiscal year 2007 budget request for the United States 
contribution to the Global Fund To Fight AIDS, Tuberculosis and 
Malaria (Global Fund) totals $300,000,000. Of that amount, 
$200,000,000 is to be derived from this Act and $100,000,000 
from the Act providing appropriations for the Department of 
Health and Human Services. The Committee recommendation 
includes up to $200,000,000 from the ``Child Survival and 
Health Programs Fund'', and $244,500,000 from this account, for 
a total of $444,500,000 for the United States contribution to 
the Global Fund.
    This funding is subject to provisions in Public Law 108-25, 
including the ``matching funding'' provision, and to additional 
provisions contained in this Act. Any funding not released to 
the Global Fund due to the provisions in this Act or Public Law 
108-25 should be used by the Office of the Global AIDS 
Coordinator for programs to strengthen the Global Fund and for 
bilateral activities, including additional funding to ``non-
focus'' countries. The Committee expects the Office of the 
Global AIDS Coordinator to consult with the Committee on the 
use of such funds.
    The Committee is aware that the Global Fund's Policy and 
Strategy Committee (PSC) is currently deliberating the Global 
Fund's business model and structures. This process is intended 
to set the strategic course of the Global Fund from 2007-2010. 
The Committee strongly urges that the Global AIDS Coordinator 
(Coordinator) underscore to officials of the Global Fund the 
commitment of the United States to funding a performance-based, 
results-oriented, financing instrument to combat HIV/AIDS, 
tuberculosis, and malaria. The Committee remains concerned 
about efforts within the donor community to expand the mandate 
of the Global Fund to broader, general support for national 
Health Ministries or to alter its operating structure to become 
more of an implementing organization. Furthermore, the 
Committee directs the Coordinator to notify the Committee of 
any proposal and/or action that would move the Global Fund from 
project support to budget support, erode the Global Fund's 
results-based disbursement structure, lesson the role of the 
technical review panel, or weaken the Comprehensive Funding 
Policy in order to fund new grant rounds.
    The Committee notes that in fiscal year 2005, the 
Coordinator exercised the five percent option to provide 
technical assistance to grants of the Global Fund. The 
Committee is pleased with the high-level of interagency 
coordination and cooperation that is guiding the use of these 
technical assistance resources. The Committee encourages the 
Coordinator to continue supporting the Global Fund and United 
States efforts to help establish and sustain Country 
Coordinating Mechanisms (CCM's) and Principal Recipients, 
monitor grants, and otherwise improve the performance of Global 
Fund grants. The Committee also encourages the Global Fund 
Secretariat to accelerate initiatives to share grant 
performance information with technical partners, like the 
United States, and urges the Global Fund to complete its 
comprehensive ``Early Alert and Response System.'' The 
Committee again has included permissive authority for the 
Coordinator to use up to five percent of the funds made 
available in this Act for contribution to the Global Fund to 
provide technical assistance to Global Fund grants. The 
Committee directs that this funding should not be used to 
provide assistance for writing applications since other donors 
provide such assistance. Finally the Committee notes that for 
fiscal year 2007 the bill language providing this authority has 
been shifted from the Child Survival and Health Programs Fund 
account to the Global HIV/AIDS Initiative account.
    In fiscal year 2006, twenty percent of the United States 
contribution to the Global Fund was conditioned on certain 
steps the Global Fund needed to take to improve its efficiency, 
transparency, and accountability. The Committee has included a 
modified version of this provision for fiscal year 2007 
(Section 525). The Committee recognizes that the Global Fund 
Secretariat has taken several significant steps to improve its 
operations, especially the establishment of an independent 
Office of Inspector General. The Committee will continue to 
closely monitor the implementation of these decisions and urges 
the Office of the Global AIDS Coordinator to provide updates to 
the Committee on the development of the Global Fund's Office of 
Inspector General, the implementation of the CCM guidelines, 
and coordination of technical assistance.
    In addition, the Committee notes with interest the 
Secretariat's potential, as stated in the Executive Director's 
report to the 13th Board Meeting, for listing on the Global 
Fund's website the performance grades that grants receive for 
each disbursement, information not yet publicly available. The 
Committee also expresses its interest in the launch of the 
five-year evaluation process of the Global Fund under the 
guidance of the Technical Evaluation Reference Group. Finally, 
the Committee believes that the evaluation must focus on 
outcomes, not process indicators, and measure the country-level 
and global impact of financial decisions made by the Global 
Fund in the fight against the three diseases in order for both 
donor and recipient nations to adequately assess the efficacy 
of Global Fund activities and expenditures.

Palliative care

    The Committee understands that in fiscal year 2005, the 
Emergency Plan committed $121,000,000 to support the delivery 
of palliative care to 1.7 million individuals suffering from 
HIV/AIDS. The Committee also understands that inadequate human 
capacity remains a major challenge to ensuring quality of care 
for people living with HIV/AIDS, with nurses and health care 
providers in very short supply in many PEPFAR countries. The 
Committee requests that the Coordinator be prepared to report 
on palliative care expenditures and activities, particularly 
steps taken to address shortages in both health care 
professionals and lay workers and volunteers, during the 
hearing on the fiscal year 2008 budget request.

UNAIDS

    The Committee reiterates its commitment to ensuring 
coordination of all donor assistance for HIV/AIDS at the 
country level, and acknowledges the important role of UNAIDS in 
ensuring in-country coordination, capacity building, and 
monitoring and evaluation activities. These are critical 
functions which must be supported to keep pace with both the 
epidemic and the growing global response to it. The Committee 
expects that the Coordinator will provide funding to UNAIDS at 
not less than the amount requested.

Microbicides

    The Committee is alarmed by the dramatic increase in HIV 
infections among girls and women, and notes that being female, 
married, and poor are often the most significant risk factors 
for acquiring HIV, particularly in sub-Saharan Africa. The 
Committee believes that this feminization of the HIV/AIDS 
pandemic justifies increasing support for research and 
development of prevention technologies that women can initiate 
and control, such as microbicides. The Committee urges the 
Coordinator to consider allocating additional PEPFAR funds to 
support the development of safe, effective microbicides and to 
support clinical trials, including treatment for those who 
become infected during those trials.

Orphans and vulnerable children

    The United States Leadership Against HIV/AIDS Tuberculosis, 
and Malaria Act of 2003, sets aside not less than 10 percent of 
PEPFAR funding for assistance to orphans and vulnerable 
children affected by HIV/AIDS. The Committee supports these 
critical programs and urges the Coordinator to ensure that the 
statutory mandate is met and that resources are directed to 
both build the long-term capacity of local organizations and 
communities to support and deliver services and the capacity of 
families to identify, locate, protect and care for orphans and 
vulnerable children affected by HIV/AIDS.

Tuberculosis (TB)

    The Committee notes that TB is a leading killer of people 
with AIDS, and therefore recommends that the Global AIDS 
Coordinator, in concert with host country governments and other 
donors, work in focus countries toward: (1) expanding 
investment in TB-HIV in order to increase TB treatment of co-
infected individuals; (2) developing national strategies to 
offer TB patients counseling and testing for HIV, and screen 
and appropriately diagnose people living with HIV for TB; (3) 
ensuring national guidelines for the care and treatment of TB/
HIV infected individuals are in place; and (4) coordinating 
with other donors and the WHO for technical support for TB-HIV 
programs to ensure collaboration of efforts.

Gender-based violence follow-up

    The Committee understands that the Office of the Global 
AIDS Coordinator (OGAC) has placed an emphasis on ensuring that 
initiatives to address the relationship between HIV/AIDS and 
gender-based violence (GBV) are integrated into PEPFAR 
programs. The Committee commends the Coordinator for the 
establishment of the Gender Technical Working Group, which has 
the goal of improving the way in which PEPFAR addresses the 
complexities of gender within its programs. The Committee notes 
the importance of a wide range of interventions in addressing 
the relationship between HIV/AIDS and GBV, including the 
provision of post-exposure prophylaxis (PEP) and psychosocial 
support services, addressing GBV-related issues in youth-
targeted prevention programs, and programs aimed at increasing 
constructive male engagement in pregnancy and antenatal care. 
The Committee urges the Coordinator to undertake efforts to 
expand the availability of PEP to areas outside of urban 
centers, increase awareness of PEP availability among target 
populations in both urban and rural areas, and expand the 
integration of anti-GBV messages in programs aimed at 
adolescents. The Committee directs the Office of the Global 
AIDS Coordinator to report, not later than 120 days after 
enactment of this Act, on plans to achieve these objectives.

Mother-to-child transmission

    The Committee continues to support expanding funding for 
programs to prevent mother-to-child transmission (MTCT) of HIV 
as an integral component of a comprehensive approach to 
fighting HIV/AIDS. The Committee understands that to facilitate 
expansion and to provide more access to MTCT services and 
expanded care and treatment programs, infrastructure 
improvements and education and training of health care workers 
still are needed, as well as improved linkages between MTCT and 
comprehensive care and treatment services. The Committee urges 
the Coordinator to consider expanding access to MTCT services 
and encourage stronger linkages between MTCT and care and 
treatment programs.

Pediatric HIV/AIDS treatment and prevention

    Children comprised an estimated 7 percent of ART patients 
in 2005. However, they also represented an estimated 14 percent 
of new infections that year. As access to care and treatment 
programs expands globally, without an effective strategy for 
including pediatric populations, children are at serious risk 
of being left behind. The Committee commends the Coordinator 
for emphasizing the need to treat children in Emergency Plan 
programs. In an effort to keep pace with the number of new 
pediatric infections, the Committee requests that the 
Coordinator consider setting a goal of at least 15 percent of 
patients receiving treatment through the Emergency Plan be 
infants and children. The Committee further requests that the 
Coordinator be prepared to report on the Emergency Plan's 
strategies for ensuring that treatment and care for children 
with HIV/AIDS is expanded, including the notion of setting 
numeric goals for serving this vulnerable population, during 
the hearing on the fiscal year 2008 budget request.

Safe blood program

    The Committee remains concerned about the problem of unsafe 
or contaminated blood as a source of HIV infection in the 
developing world. According to the March 2006 Report on Blood 
Safety, submitted by the Office of the Global AIDS Coordinator, 
``substantial problems have been documented'' across all 
components of safe blood programs in developing countries. Many 
hospitals in the developing world do not have effective or 
complete screening of blood, and as a result, there can be a 
risk of transfusion-transmitted infectious diseases. The 
prevalence of contaminated blood acutely impacts women 
requiring blood transfusions due to complications from 
pregnancy and childbirth, as well as children with life-
threatening illnesses such as anemia.
    Worldwide the major risk is hepatitis followed by HIV, 
malaria and syphilis. The Committee recognizes that there are a 
wide array of challenges in order to achieve adequate capacity 
and sustainability to support blood transfusion services in 
developing countries, including adequate infrastructure (such 
as reliable electricity for refrigeration), staff recruitment 
and training, laboratory equipment, effective legislation/
policy, and financial/management systems to support blood 
services.
    The Committee understands that the Emergency Plan currently 
supports the Ministries of Health or the government's National 
Blood Transfusion Service (NBTS) in fourteen of the fifteen 
focus countries for the purpose of developing nationally 
directed regionalized blood systems. The Committee strongly 
supports these activities and the Emergency Plan's goal of 
establishing high-quality, sustainable blood transfusion-safety 
programs in each country. The Committee notes that the bill 
includes an over 40 percent increase in bilateral funding for 
focus countries and urges the Coordinator to increase 
significantly funding for safe blood programs over fiscal year 
2006 levels.
    The Committee also recognizes that capacity building and 
infrastructure development are processes that require a period 
of years which realistically must be approached incrementally. 
In the Committee's view, to achieve success in advancing blood 
safety requires a comprehensive and coordinated strategy among 
Ministries of Health, local communities, donors, and experts in 
blood transfusion. Therefore, the Committee requests that the 
Office of the United States Global AIDS Coordinator, working in 
coordination with other health sectors in USAID and HHS, and in 
consultation with WHO, other blood safety experts, and private 
foundations active in global health, develop and submit to the 
Committee a comprehensive, integrated multi-year strategic plan 
for PEPFAR focus countries to achieve the following:
          1. A sufficient supply of safe blood to meet the 
        needs of the country;
          2. A continuous and adequate supply of voluntary non-
        remunerated blood donation from the safest possible 
        donors from low risk populations;
          3. The universal testing of donated blood, including 
        quality assured screening of all donated blood for 
        infectious diseases; and
          4. The reduction of unnecessary transfusions; safe 
        and rational blood utilization, and the use of 
        alternatives to transfusions whenever possible.
    The pace and resource requirements of the plan should 
consider the other medical (e.g. mother-to-child transmission 
and safe medical injections) and non-medical prevention 
activities in PEPFAR countries and the impact of the strategic 
plan on maintaining a diversified prevention portfolio. The 
Committee further requests the Office of the Global AIDS 
Coordinator, working in coordination with the aforementioned 
agencies and non-governmental organizations, develop and submit 
to the Committee a comprehensive implementation strategy for 
non-focus countries that achieves standardized operation and 
controls of blood collection, adequate training, documentation, 
and assessment measures. The strategic plans for both focus and 
non-focus countries shall be submitted to the Committee no 
later than 180 days of enactment.
    Finally, the plan also should examine expenditure rates and 
factor them into the recommendations in order to ensure the 
timely obligation and expenditure of funds.
    The Committee also continues its support for the multi-
country blood safety training program of Safe Blood for Africa 
begun in fiscal year 2006. The Committee recommends that the 
Coordinator, in consultation with USAID, consider increasing 
support for the program to $2,000,000 in fiscal year 2007.

New Partners Initiative

    The Committee understands that the Coordinator launched in 
fiscal year 2006 a ``New Partners Initiative'' as part of the 
Emergency Plan. The initiative's purpose is to increase the 
number of Emergency Plan partners by establishing a competitive 
grants process for organizations with the desire and the 
ability to help implement PEPFAR objectives, but which may have 
little or no experience in working with the Federal Government. 
Additionally, the initiative is to develop indigenous capacity 
so affected countries can address HIV/AIDS on their own and 
decrease dependence on foreign organizations and foreign 
skills. The Committee is aware of the following proposals and 
urges the Coordinator to consider incorporating them as part of 
the New Partners Initiative in fiscal year 2007:
    Lott Carey International, to expand services for displaced 
children and orphans in Africa, India, and Haiti;
    The Life Matters Media Center, California Institute of the 
Arts, to bring together expert animators and health care 
specialists to develop effective health care navigation 
programs for minority communities;
    A proposal to test the efficacy of point of use forward 
osmosis technology to provide single use portions of infant 
formula to children of HIV-infected mothers and to provide re-
hydration therapy to victims of diarrhea disease; and
    The GRAIDS project, to design effective, culturally-
relevant, communications methodologies to combat the spread of 
HIV/AIDS in PEPFAR countries through the use of visual media.
    The Committee expects that all grantees supported through 
the New Partners Initiative, including those mentioned above, 
will meet the Initiative's eligibility criteria and be subject 
to the competitive review process.

          International Narcotics Control and Law Enforcement





Fiscal year 2006 enacted level........................      $472,428,000
Fiscal year 2006 Emergency Supplemental (House-passed)       107,700,000
Fiscal year 2007 request..............................       795,490,000
Committee recommendation..............................       703,600,000
    Change from request...............................       -91,890,000
    Change from enacted level.........................      +231,172,000


    The Committee recommends $703,600,000 for ``International 
Narcotics Control and Law Enforcement'', a decrease of 
$91,890,000 from the request and $231,172,000 above the fiscal 
year 2006 enacted level, excluding the emergency supplemental 
appropriations. A limitation of $33,484,000 is recommended for 
administrative expenses.

                        NARCOTICS AND TERRORISM

    Organized crime and terrorist groups throughout the world 
have long used narcotics as a means to generate revenues to 
support armed conflict and the means to spread turmoil. The 
Committee continues to support a strong United States 
counternarcotics assistance program in order to protect United 
States communities from the ravages of drugs, but increasingly 
to deny drug profits that are often used to finance terrorist 
activities.

                                 MEXICO

    The Committee provides $40,000,000 for programs in Mexico, 
an increase of $1,000,000 from the request and $400,000 over 
the enacted level.
    The recommended increase should be used to strengthen 
Mexico's northern border infrastructure, thereby improving the 
security of the United States while promoting the efficient 
flow of legal goods.
    The Committee is concerned about increasing instability 
along the Texas/Mexico border, including reports that members 
of drug cartels have crossed the border wearing Mexican 
military uniforms and carrying and firing assault weapons. The 
Committee requests that the Department of State consult with 
the Committee on the use of funds made available for Mexico 
under ``International Narcotics Control and Law Enforcement'' 
to ensure such funds are used only to support the fight against 
drug and weapon smuggling. The Committee directs the Department 
of State to work with the Department of Homeland Security to 
obtain reports of investigations into incursions and to make 
those available to the Committee.
    The Committee is pleased to note that the Administration's 
fiscal year 2007 program for border and port security, seeks to 
expand its coverage of Mexico's southern border to stem illegal 
trafficking of drugs, arms, cash, and people. The Committee is 
very supportive of these efforts.

                      AFGHANISTAN COUNTERNARCOTICS

    The Committee recommends $235,000,000 for counternarcotics 
programs in Afghanistan, $62,390,000 less than the request and 
$2,350,000 over the 2006 current estimate. The Committee fully 
supports the program, but limited resources prevented fully 
funding the Administration's request.

                                  CUBA

    The Committee has again included a general provision, 
section 572, prohibiting counternarcotics assistance to the 
Government of Cuba. Full reporting and transparency by the 
Cuban Government and United States monitoring of the use of 
counternarcotics assistance in Cuba would be difficult if not 
impossible, according to the State Department, given Cuban 
general hostility toward the United States Government. 
Additionally, provision of assistance to the maritime drug 
interdiction force (the TGF) would, according to both Amnesty 
International and the State Department's Country Reports on 
Human Rights Practices, violate section 551 of this Act, the 
so-called Leahy amendment.

                  INTERNATIONAL DRUG DEMAND REDUCTION

    The Committee recommends that within the funds provided for 
International Narcotics and Law Enforcement, that an additional 
$10,000,000 be provided for the drug demand reduction program. 
Such funding would be available to reduce worldwide drug abuse 
and the incidence of international HIV/AIDS through intravenous 
drug use.

                         INTELLECTUAL PROPERTY

    The Committee recommends $5,000,000 for programs to combat 
intellectual property piracy.

               USAID LAW ENFORCEMENT ASSISTANCE TO INDIA

    The Committee recognizes the importance of assisting law 
enforcement agencies within the Government of India with 
respect to disaster management and response, access to justice 
for women, and trafficking of persons. The Committee urges the 
Administrator of USAID to seek authority to support such 
programs if such authority does not currently exist.

                     Andean Counterdrug Initiative





Fiscal year 2006 level................................      $727,155,000
Fiscal year 2007 request..............................       721,500,000
Committee recommendation..............................       506,850,000
    Change from request...............................     -$214,650,000
    Change from enacted level.........................     -$220,305,000


    The Committee recommends $506,850,000 for the Andean 
Counterdrug Initiative, a $214,650,000 decrease to the request 
and a $220,305,000 decrease from the enacted level. The Andean 
Counterdrug Initiative is the continuation of the 
Administration's multi-year counterdrug assistance efforts 
designed to sustain and expand programs initially funded by 
Plan Colombia in the fiscal year 2000 emergency supplemental 
appropriations Act. A limitation of $18,060,000 is recommended 
for administrative expenses for the Department of State and 
$7,800,000 for USAID.
    At first glance, the amount provided in this account would 
appear to be a significant reduction from prior years. In 
reality this is not the case, as the Committee has not reduced 
its commitment to the Andean Region, but rather has 
strengthened it in a number of ways.
    First, the Committee moved $62,500,000 from this account to 
the new Trade Capacity Enhancement Fund, an amount equal to the 
Administration's estimates of what it will spend from this 
account on these types of activities in fiscal year 2006. 
Adjusting for the movement of the trade capacity funds in the 
fiscal year 2006 appropriation, results in a comparable ACI 
account of $664,655,000. In addition, bill language has been 
included to allow these funds to be transferred back to the 
originating account.
    Second, the Committee has initiated a restructuring of the 
ACI in order to begin ``normalizing'' our relationship with 
Colombia, a major strategic partner in the region. To begin 
this ``normalization'', the Committee has moved a total of 
$161,150,000 to be the ``Economic Support Fund'' (ESF) and the 
``International Narcotics Control and Law Enforcement'' (INCLE) 
accounts. Those funds, $135,000,000 in ESF and $26,150,000 in 
INCLE, are designated for Colombia. In total, for these four 
accounts (TCEF, ACI, ESF and INCLE) Colombia will receive 
approximately $545,200,000, a $48,859,000 increase over the 
prior year for activities once funded solely in the ACI 
account.
    The Committee notes the requirement in the bill that the 
Director of Foreign Assistance shall provide to the Committees 
on Appropriations not later than 45 days after the date of the 
enactment of this Act and prior to the initial obligation of 
funds appropriated under this heading, a report on the proposed 
uses of all funds under this heading on a country-by-country 
basis for each proposed program, project, or activity.
    The Committee requests that the Director of Foreign 
Assistance submit to the Appropriations Committees a semi-
annual report with respect to the Andean Counterdrug 
Initiative, including those funds for Colombia in ESF and 
INCLE. Each report shall include an accounting of all aircraft, 
vehicles, boats and lethal equipment (other than ammunition) 
transferred to the militaries or police of any nation with 
funds made available under this heading. Additionally, the 
Committee requires that the personnel cap and Plan Colombian 
reports as required in the fiscal year 2000 emergency 
supplemental also be submitted to the Committees on the 
Appropriations.

                                COLOMBIA

    Recognizing the strategic importance of Colombia, the 
Committee has taken the significant step to ``restructure'' the 
way it provides assistance to Colombia, for a number of 
reasons. First, the Committee has noted the successes of Plan 
Colombia and the measurable improvements that have resulted in 
the everyday lives of the Colombian people. Some have declared 
Colombia the ``greatest success story in Latin America.'' In 
fact, the Colombian Government's success in combating the 
cultivation of drugs and in restoring democracy can be measured 
in may ways:
          Coca eradication through spraying has gone 
        from 47,000 hectares the first year of Plan Colombia to 
        138,775 last year;
          By regaining sovereignty over most of its air 
        space, Colombia has decreased by 56 percent suspected 
        drug trafficker flights;
          Drug flow to the United States has dropped to 
        7 percent;
          Kidnappings are down 51 percent and homicides 
        13 percent;
          All 1098 Colombian municipalities have a 
        permanent government presence;
          Over 30,000 paramilitary have been 
        demobilized;
          200,000 acres of legal crops have been 
        planted and 64,000 farm families have a ``legal'' 
        farming option;
          Unemployment has dropped from 20 percent to 
        an estimated 11 percent;
          In December, implementation of the Free Trade 
        Agreement with the United States is expected to drop 
        unemployment even more.
    Clearly, Colombia has made remarkable progress. The 
Committee believes it is time to fund assistance to Colombia 
through the same mechanisms used to fund other strategic 
partners. In a budget sense, that means providing funding for 
some of the activities, carried out by Plan Colombia, in the 
ESF and INCLE accounts. It is from these two accounts that the 
other United States strategic partners receive funding for 
similar activities. The Committee provides $135,000,000 in ESF, 
an amount $10,000,000 more than the enacted level, for 
Alternative Development and Institution Building in Colombia. 
These funds will help to strengthen the strong democratic 
presence needed to counter the negative effects of illicit 
activity; establish and strengthen social, institutional and 
economic preconditions necessary to promote economic growth; 
and support vulnerable groups and displaced persons. The 
Committee also provides $26,150,000 in INCLE to promote Rule of 
Law activities.
    It is important, however, to note that the Committee 
continues to provide significant funding for Colombia through 
this account. The Committee provides, through the ACI account, 
a total of $384,050,000 for Colombia, of which $313,850,000 is 
for Interdiction and Eradication activities. This is equal to 
the request. The Committee believes that it is important to 
maintain our efforts on this front. In addition, the Committee 
provides, within the ACI account, $70,200,000 for the Critical 
Flight Safety Program, which is an increase of $29,000,000 over 
the request. With this increase, the Committee has provided 
sufficient funding for the purchase of one Black Hawk 
helicopter, the conversion of two additional UH-1s to Huey IIs, 
and 1 flight simulator. The funds are for the purchase of the 
simulator and not intended for the design and construction of 
infrastructure to house the simulator.
    Now that Plan Colombia, conceived as a six year plan, has 
come to an end, the Committee remains concerned about the 
Administration's follow up program. The Committee expects a 
follow up strategy to normalize funding for Colombia, similar 
to the approach used in this bill, and lead towards an eventual 
``nationalization'' of the Colombian program. The Committee 
directs the Secretary of State, in consultation with the 
Secretary of Defense, to report to the Committee no later than 
60 days after enactment of this Act on the future, multiyear 
strategy of the United States assistance program to Colombia. 
The strategy should include all aspects of current and future 
United States assistance. In addition, the Committee directs 
the Director of Foreign Assistance to carefully review all 
Colombian activities to determine the most appropriate 
appropriation account for funding. Specifically, the fiscal 
year 2008 Congressional Budget Justification should provide, as 
appropriate, funding for Alternative Development in the 
``Development Assistance'' and the ``Economic Support Fund'' 
accounts and, as appropriate, funding for Interdiction/
Eradication in the ``Foreign Military Financing'' or the 
``International Narcotics Control and Law Enforcement'' 
accounts.
    The Committee again has extended the availability of funds 
provided for assistance for Colombia to support a unified 
campaign against narcotics trafficking, against activities by 
organizations designated as terrorist organizations, and to 
take actions to protect health and human welfare. The Committee 
directs the Secretary of State to consult with the Committee if 
the implementation of the expanded authorities changes from 
that described in the May 2003 report to Congress. The 
Committee has retained language requiring consultation and 
notification before the obligation of funds for demobilization 
of paramilitaries.

                                  PERU

    The Committee directs that not less than $109,000,000 from 
funds under this heading shall be available for Peru. The 
Committee does not accept the Administration's request to 
reduce funding for Peru in the account by almost $9,000,000 
from enacted levels. The Committee believes that there is a 
very real danger of increased coca production and of drug 
trafficking through Peru if other countries in the Region act 
on threats to decrease their efforts. This so called ``balloon 
effect'' can be seen in the increased number of hectares in 
coca production in Peru.
    The United States Government estimates that there are 
38,000 hectares of coca cultivation in Peru, including 4,000 
hectares in new areas. There are reports that the coca farmers 
are becoming more violent and better organized and that 
terrorist organizations have openly identified with the coca 
growers. The Committee does not believe that now is the time to 
reduce our efforts in Peru. Of the funds provided for Peru in 
this account, $63,000,000 shall be available for Interdiction/
Eradication and $46,000,000 for Alternative Development/
Institution Building.
    The Committee urges USAID to consider extending its 
agreement with The Field Museum of Chicago on the Cordillera 
Azul National Park project in central Peru, at current funding 
levels after the original agreement period ends in 2007. The 
Committee understands that this alternative community 
development and conservation education project has already 
demonstrated effective use of ACI funds to prevent coca 
cultivation and urges the Agency to consider entering into 
similar agreements elsewhere in the region.

                                BOLIVIA

    The Committee is concerned by recent reports from Bolivia 
that would indicate a lessening of that country's commitment to 
fighting drugs in the region. Because of those reports, the 
Committee has reduced the funds requested in this account for 
Bolivia to $51,000,000. Of this amount, the Committee directs 
that $20,000,000 shall be for Interdiction and Eradication, a 
reduction of $15,000,000 from the request and, $31,000,000 
shall be for Alternative Development/Institution Building. The 
Committee has eliminated funding for Bolivia Critical Flight 
Safety.

                    FUNDING BY COUNTRY AND ACTIVITY

    From funds appropriated under this heading, the Committee 
directs the following amounts for each activity by country:




Bolivia:
    Interdiction/Eradication..........................       $20,000,000
    Alter Dev/Inst.Building...........................        31,000,000
    Critical Flight Safety............................                 0
Colombia:
    Interdiction/Eradication..........................       313,850,000
    Critical Flight Safety............................        70,200,000
Ecuador:
    Interdiction/Eradication..........................         8,900,000
    Alter Dev/Inst. Building..........................         8,400,000
Peru:
    Interdiction/Eradication..........................        63,000,000
    Alter Dev/Inst.Building...........................        46,000,000
Brazil................................................         4,000,000
Panama................................................         4,000,000
Venezuela.............................................                 0
Guatemala.............................................                 0
Nicaragua.............................................                 0
Trade Capacity Enhancement Fund transfer out..........       -62,500,000


                              HUMAN RIGHTS

    The committee calls on the Department of State to ensure 
that all United States laws regarding human rights, including 
section 551 of this Act, are strictly applied in Colombia and 
each of the Andean nations. The Committee again includes a 
general provision requiring that the Secretary of State certify 
that certain human rights conditions have been met before 25 
percent of funds may be made available for assistance for the 
Colombian Armed Forces.
    The Committee urges the USAID to continue the Andean 
Countries Cocoa Export Support Opportunity (ACCESO). This 
innovative, public-private partnership supports sustainable 
cocoa and tree crops development in Colombia, Peru, Bolivia and 
Ecuador. The Committee believes that the potential to restore a 
robust, sustainable cocoa economy to the region remains 
promising.

                    Migration and Refugee Assistance





Fiscal year 2006 enacted level........................      $783,090,000
Fiscal year 2007 request..............................       832,900,000
Committee recommendation..............................       750,206,000
    Change from request...............................       -82,694,000
    Change from enacted level.........................       -32,884,000


    The Committee recommends a total of $750,206,000 for 
Migration and Refugee Assistance, a $82,694,000 decrease from 
the request and a $32,884,000 decrease from the enacted level. 
A limitation of $23,000,000 is recommended for administrative 
expenses. The Committee's recommendation includes not less than 
$548,000,000 for overseas assistance programs.

                     IRAQ AND AFGHANISTAN PROGRAMS

    The Committee supports the Administration's request to 
normalize its Iraq and Afghanistan programs funded from this 
account and includes the President's request for Iraq and 
Afghanistan in its recommendation.

                            TIBETAN REFUGEES

    The Committee recommends not less than $2,500,000 from this 
account for Tibetan refugees in Nepal and India. The Committee 
remains concerned about the situation of Tibetan refugees 
transiting through Nepal to resettlement in India, and in 
particular the recent decision by Nepal to close two Tibetan-
run offices in Kathmandu that provide vital services to 
refugees. In light of recent events in Nepal, the Committee 
expects that the Government of Nepal will fulfill its 
commitment to provide safe passage to Tibetans fleeing 
repression in their homeland, and respect the rights of the 
legally resident Tibetan refugee community that lives in Nepal.

                         GENDER-BASED VIOLENCE

    Sexual exploitation and violence against women and girls is 
an ongoing problem among internally displaced and refugee 
populations. The Committee notes that despite stated Committee 
intent, the State Department has not scaled up resources and 
targeted funding for programs to address these issues in fiscal 
year 2006. The Committee asks again this year that the 
Department of State highly prioritize funding to address these 
critical issues. The Committee also expects that the Department 
will provide, not later than 120 days following enactment of 
this Act, a report on United States Government funding from 
this account during fiscal year 2006 and proposed increases in 
funding during fiscal year 2007, for programs that target 
gender-based violence.

             PROTECTION OF CHILDREN IN CONFLICT AND CRISIS

    The Committee believes that the protection needs of women 
and children should be a priority for the Department of State, 
and directs the Secretary of State to be prepared to report to 
the Committee, not later than 120 days after enactment of the 
Act, on activities of the Government of the United States to 
protect children affected by humanitarian emergencies. The 
report shall include: an assessment of when and how the United 
States government incorporates the protection needs of children 
in its emergency response plan, including protection from 
physical harm, exploitation, rape, psychosocial distress, 
recruitment into armed groups, family separation, abuses 
related to forced displacement, and the denial of access to 
quality education; documentation on the role of quality 
education in the protection of children affected by 
humanitarian emergencies; guidelines and recommendations for 
ensuring that the United States and international response 
systems include good education services as a first line 
response during emergencies and the reconstruction period to 
ensure that the development and safety of children are 
protected.

                              NORTH KOREA

    Assistance for refugees from North Korea continues to be a 
high priority for the Committee. The Committee expects the 
State Department to continue its consultation with the 
Committee on how best to assist these refugees.

                         RESETTLEMENT IN ISRAEL

    The Committee recommendation includes $40,000,000 in this 
account to help humanitarian migrants from Ethiopia, the former 
Soviet Union, and other countries of distress resettle in 
Israel. Since 1989, Israel has accepted more than one million 
such migrants. The Committee understands that Israel plans to 
bring all eligible humanitarian migrants in Ethiopia to Israel 
within the next three years, and expects the need for such 
funding to diminish after the initial influx of migrants. 
Consequently, the Committee expects funding for this program to 
be reduced by $5,000,000 in fiscal year 2009, and to be reduced 
an additional $10,000,000 in fiscal year 2010.

                        MAGEN DAVID ADOM SOCIETY

    The Committee is encouraged by positive steps that the 
International Committee of the Red Cross (ICRC) has taken to 
admit the Magen David Adom (MDA) Society of Israel to the 
International Red Cross and Red Crescent Movement. The 
Committee notes that a decision will be made in June, 2006, 
regarding the MDA's admission into the Movement. Until that 
decision is made, the Committee is recommending a continuation 
of prior year bill language that would withhold the annual 
headquarters contribution made by the Department of State 
unless the MDA is given the opportunity to participate in the 
activities of the Movement. This limitation will not, and is 
not intended to, restrict funding for humanitarian assistance 
programs that may be programmed through the ICRC using other 
funds provided in this and other accounts. It is only intended 
to affect the funding the United States provides on an annual 
basis to the ICRC bureaucracy in Geneva.

             UNITED NATIONS RELIEF AND WORKS AGENCY (UNRWA)

    The election of Hamas to a leadership position in the 
Palestinian Legislative Council (PLC) has necessitated a 
reassessment of United States assistance to the Palestinian 
Territories. The Committee supports the Administration's plan 
for increased humanitarian assistance to the Palestinian 
people, including through UNRWA.
    The Committee is aware of concerns that UNRWA's internal 
accounting procedures and oversight mechanisms do not 
adequately ensure against misuse of funding. Oversight of UNRWA 
is performed at two levels. Internal oversight is the 
responsibility of an Audit Office reporting to the UNRWA 
Commissioner General. Additionally, every two years the United 
Nations Board of Auditors (BOA) provides an independent audit, 
which conforms to Generally Accepted Accounting Principles, of 
UNRWA's financial statements.
    The Committee understands that an independent body with 
internationally-recognized expertise in auditing and oversight 
procedures, PricewaterhouseCoopers, is in the process of 
assessing UNRWA's oversight and accounting procedures and 
policies as part of a broader review of United Nations 
oversight.
    The Committee requests that the State Department provide an 
update to Committees on Appropriations not later than June 30, 
2006 regarding this review, any recommendations contained 
therein, and the status of implementation for those 
recommendations. The Committee will address this issue again, 
if necessary, following this consultation.

     United States Emergency Refugee and Migration Assistance Fund





Fiscal year 2006 enacted level........................       $29,700,000
Fiscal year 2007 request..............................        55,000,000
Committee recommendation..............................        30,000,000
    Change from request...............................       -25,000,000
    Change from enacted level.........................          +300,000


    The Committee recommends $30,000,000 for the Emergency 
Refugee and Migration Assistance Fund, a $25,000,000 decrease 
from the request and a $300,000 increase to the enacted level. 
The Committee does not include language requested by the 
President to waive the $100,000,000 cumulative limit on this 
account.

    Nonproliferation, Anti-Terrorism, Demining and Related Programs





Fiscal year 2006 enacted level........................      $405,999,000
Fiscal year 2007 request..............................       449,430,000
Committee recommendation..............................       425,010,000
    Change from request...............................       -24,420,000
    Change from enacted level.........................       +19,011,000


    The Committee recommends a total appropriation of 
$425,010,000 for ``Nonproliferation, Anti-terrorism, Demining 
and Related Programs'', a decrease of $24,420,000 below the 
request and $19,011,000 over the fiscal year 2006 enacted 
level.
    The following table compares fiscal year 2006 funding for 
the programs covered by this account, as well as the 
President's request for fiscal year 2007 and the Committee 
recommendation:

                         NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED PROGRAMS
----------------------------------------------------------------------------------------------------------------
                                                                 Fiscal year     Fiscal year       Committee
                                                                2006  enacted   2007  request    recommendation
----------------------------------------------------------------------------------------------------------------
Nonproliferation Programs:
    Nonproliferation and Disarmament Fund....................     $37,125,000     $38,000,000        $38,000,000
    Export Control & Border Security.........................      42,966,000      45,050,000         44,000,000
    Science Centers/Nonproliferation of WMD..................      52,074,000      56,200,000         53,430,000
    IAEA Voluntary Contribution..............................      49,500,000      50,000,000         50,000,000
    International Monitoring System..........................      14,207,000      19,800,000         16,800,000
                                                              --------------------------------------------------
        Subtotal Nonproliferation............................     195,872,000     209,050,000        202,230,000
Anti-Terrorism Programs:
    Anti-terrorism Assistance................................     122,265,000     135,600,000        125,500,000
    Terrorist Interdiction Program...........................       5,445,000      11,800,000          8,000,000
    Counterterrorism Financing...............................       7,425,000       9,080,000          9,080,000
    CT Engagement w/Allies...................................       1,984,000       2,000,000          1,000,000
                                                              --------------------------------------------------
        Subtotal Anti-Terrorism..............................     136,125,000     157,480,000        143,580,000
Regional Stability and Humanitarian Assistance:
    Humanitarian Demining....................................      55,449,000      64,300,000         60,600,000
    International Trust Fund.................................       9,900,000      10,000,000         10,000,000
    Small Arms/Light Weapons Destruction.....................       8,663,000       8,600,000          8,600,000
                                                              --------------------------------------------------
        Subtotal Regional Stability/Humanitarian Assistance..      74,003,000      82,900,000         79,200,000
                                                              ==================================================
        Total................................................     406,000,000     449,430,000        425,010,000
----------------------------------------------------------------------------------------------------------------

                        INTERNATIONAL TRUST FUND

    The Committee recommends $10,000,000 for the International 
Trust Fund, as requested and the same as last year. The 
Committee recognizes the significance of the assistance 
provided by the Trust Fund for assistance to victims. However, 
overall budgetary constraints did not provide sufficient 
opportunity for the Committee to increase the requested funding 
level.

                         Conflict Response Fund





Fiscal year 2006 enacted level........................                $0
Fiscal year 2007 Request..............................        75,000,000
Committee recommendation..............................                 0
    Change from request...............................       -75,000,000
    Change from enacted level.........................                 0


                        COMMITTEE RECOMMENDATION

    The Committee recommendation includes no funding for the 
Conflict Response Fund, a decrease of $75,000,000 from the 
request and the same as the fiscal year 2006 enacted level. 
While the Committee recognizes the need for quick disbursement 
of funding for international crises, the Administration has for 
the past four years failed to provide, upon request, the 
necessary documentation detailing the proposed expenditure of 
these funds. In lieu of a comprehensive strategy, detailing how 
the Office of the Coordinator for Reconstruction and 
Stabilization will utilize these funds to respond to 
international crises and post-conflict contingencies, the 
Committee believes it has no choice but to deny this request. 
The Committee urges the Administration to take into account the 
Committee's view when formulating its fiscal year 2008 budget 
request.

                       DEPARTMENT OF THE TREASURY


               International Affairs Technical Assistance





Fiscal year 2006 enacted level........................       $19,800,000
Fiscal year 2007 request..............................        23,700,000
Committee recommendation..............................        23,700,000
    Change from request...............................                 0
    Change from enacted level.........................        +3,900,000


    The Committee recommends a total of $23,700,000 for 
international technical assistance by the Department of the 
Treasury, as requested and a $3,900,000 increase above the 
enacted level. In operation since 1991, Treasury's Office of 
Technical Assistance provides expert fiscal and monetary policy 
advisors to developing and in transition countries. The 
Committee notes that in any given year, requests for assistance 
and expertise provided by the Office of Technical Assistance 
far exceed either the budget request or the Committee's ability 
to fund. The Committee directs the Department to include more 
useful information in its future budget requests, including the 
countries, projects, project costs assumed in the request 
level, and an explanation of change from the prior year. The 
Committee directs the Office of Technical Assistance (OTA) to 
notify the Committee prior to the obligation of funds for the 
compensation or travel expenses of any individual who is not an 
employee of the Department of the Treasury.

                           Debt Restructuring





Fiscal year 2006 enacted level........................       $64,350,000
Fiscal year 2007 request..............................       182,799,000
Committee recommendation..............................        20,000,000
    Change from request...............................      -162,799,000
    Change from enacted level.........................       -44,350,000


    The Committee recommends a total of $20,000,000 for 
international debt restructuring by the Department of the 
Treasury, a $162,799,000 decrease from the request and a 
$44,350,000 decrease from the enacted level. The Committee 
makes $20,000,000 under this heading available for the Tropical 
Forest Conservation Act (TFCA) programs and does not fund the 
enhanced HIPC initiative request. Funds in this account are 
subject to the regular notification procedures of the 
Committees on Appropriations.

                TROPICAL FOREST CONSERVATION ACT (TFCA)

    Over the course of the life of this program, Congress has 
provided over $111,000,000. The Committee directs the 
Department to provide a report by December 15, 2006, on 
potential debt reduction/restructuring initiatives for any 
unallocated balances remaining at the end of fiscal year 2006. 
The Committee expects the Department of the Treasury to consult 
with the Committee 15 days prior to the Treasury determination 
that additional countries are found eligible for TFCA.

                                 CONGO

    The Committee notes that all disbursed funds provided by 
the United States to the HIPC Trust Fund in fiscal year 2004, 
$74,600,000, were made available for debt relief for the 
Democratic Republic of the Congo (DRC). In addition, Treasury 
has provided, or has available to provide to the DRC, 
$124,000,000 from funds provided by Congress for bilateral HIPC 
debt reduction. Therefore, over a three year time frame, almost 
$200,000,000 has been provided by Congress for debt relief to 
the DRC.

                     TITLE III--MILITARY ASSISTANCE


                  Funds Appropriated to the President


             International Military Education and Training





Fiscal year 2006 enacted level........................       $85,877,000
Fiscal year 2007 request..............................        88,900,000
Committee recommendation..............................        88,000,000
    Change from request...............................          -900,000
    Change from enacted...............................        +2,123,000


    The Committee recommends $88,000,000 for the International 
Military Education and Training (IMET) program which is 
$900,000 below the fiscal year 2007 requested level and 
$2,123,000 above the 2006 enacted level.
    IMET is part of the overall United States security 
assistance program, and through it the United States Government 
provides training to predominantly military students from 
allied and friendly nations. The IMET program exposes students 
to the United States professional military establishment and 
the American way of life, including democratic values and rule 
of law, and respect for individual and human rights. In 1990, 
Congress directed the Department of Defense to establish a 
program within IMET--called Expanded-IMET or ``E-IMET''--
focused on training foreign civilian and military officials in 
three areas: managing and administering military establishments 
and budgets; creating and maintaining effective military 
judicial systems and military codes of conduct, and fostering 
greater respect for the principle of civilian control of the 
military.

                               UZBEKISTAN

    The fiscal year 2007 budget includes $95,000 for IMET 
programs for Uzbekistan. The Committee remains concerned about 
ongoing turmoil in this country and therefore recommends no 
funding for IMET for Uzbekistan.

                                 NEPAL

    The fiscal year 2007 budget request includes $790,000 for 
IMET programs for Nepal, an increase of $146,000 over the 
fiscal year 2006 current estimate. The Committee recommends no 
funds for IMET programs for Nepal.
    The Committee is concerned that the recent democracy 
protests in Nepal may have been met with a disproportionate 
military response. The Committee understands that there is a 
potential concern that members of the military who may have 
been involved with this response could have been previous 
recipients of IMET.
    Therefore, the Committee believes the Department of State 
and the Department of Defense should review this potential 
concern before further implementing the fiscal year 2006 IMET 
program for Nepal.

                               INDONESIA

    The fiscal year 2007 budget request includes $1,285,000 for 
IMET programs for Indonesia, an increase of $493,000 over the 
fiscal year 2006 current estimate.
    The Committee notes that the increased funding request is 
not accompanied by an increase in the anticipated number of 
students. Therefore, the Committee does not recommend the 
increase in funding as requested.

                           ARGENTINA PROGRAMS

    The Committee recommends $1,135,000 for Argentina IMET 
programs, as requested and an increase of $46,000 over the 
enacted level.
    The Committee is aware that the Government of Argentina has 
not implemented Federal Court orders including two default 
judgments and daily sanctions rendered by the United States 
District Court of Northern Illinois. Should the Government of 
Argentina fail to comply with these court orders in a timely 
fashion, the Department of State, in consultation with the 
Department of Defense, should withhold funds provided for 
Argentina's IMET program.

                               EAST TIMOR

    The fiscal year 2007 budget request includes $320,000 for 
IMET programs for East Timor, an increase of $23,000 over the 
fiscal year 2006 current estimate.
    The Committee is very concerned about the recent violence 
between the police and the military in Dili, the capital of 
East Timor. Therefore, the Committee recommendation does not 
include the $23,000 increase in funding for the IMET programs 
in East Timor.
    The Committee believes the Department of State and the 
Department of Defense should review these concerns before 
further implementing the fiscal year 2006 and the 2007 IMET 
programs for East Timor.

                                UKRAINE

    The fiscal year 2007 budget request includes $1,725,000 for 
IMET programs for Ukraine, an increase of $42,000 over the 
fiscal year 2006 current estimate. The Committee notes that the 
increased funding request is not accompanied by an increase in 
the anticipated number of students. Therefore, the Committee 
does not recommend the increase in funding as requested.

                                 GREECE

    The Committee recognizes the country of Greece as a friend 
and ally and urges at least $2,000,000 in funding assistance 
for Greece from the funds appropriated under this heading.

                                 RUSSIA

    The fiscal year 2007 budget request includes $790,000 for 
IMET programs for Russia, an increase of $47,000 over the 
fiscal year 2006 current estimate. The Committee notes that the 
increased funding request is not accompanied by an increase in 
the anticipated number of students. Therefore, the Committee 
does not recommend the increase in funding as requested.

                                TUNISIA

    The fiscal year 2007 budget request includes $1,975,000 for 
IMET programs for Tunisia, an increase of $119,000 over the 
fiscal year 2006 current estimate. The Committee notes that 
this increased funding request supports an additional 2 
students, an average of $60,000 per student, approximately 
twice the previous average. Therefore, the Committee recommends 
a total of $1,881,000 for IMET programs for Tunisia, an 
increase of $25,000 over the fiscal year 2006 current estimate.

                         ARMENIA AND AZERBAIJAN

    The Committee recommends IMET assistance levels of $790,000 
for each of the countries of Armenia and Azerbaijan.

                   Foreign Military Financing Program





Fiscal year 2006 enacted level........................    $4,455,000,000
Fiscal year 2007 request..............................     4,550,900,000
Committee recommendation..............................     4,454,900,000
    Change from requested level.......................       -96,000,000
    Change from 2006 enacted level....................          -100,000


    The Committee recommends $4,454,900,000 for the Foreign 
Military Financing Program, which is $96,000,000 below the 
fiscal year 2007 request and $100,000 below the fiscal year 
2006 enacted level.
    The Foreign Military Financing (FMF) assistance program 
provides grants for the acquisition of United States defense 
equipment, services and training. The FMF program enables key 
allies and friendly nations to improve defensive capabilities, 
and fosters bilateral military relationships with the United 
States and interoperability with United States forces.

                                 ISRAEL

    The Committee recommends a total FMF program of not less 
than $2,340,000,000 in grants for Israel, which shall be 
available within 30 days of enactment of this Act. Of this 
amount, approximately $1,447,400,000 is for continuation and 
maintenance of ongoing acquisition programs, $282,500,000 is 
for potential new acquisition programs, and $610,000,000 is for 
off shore procurement of military equipment.
    This recommendation is the same as the fiscal year 2007 
budget request and $83,000,000 over the fiscal year 2006 
enacted level. The level appropriated in the Foreign 
Operations, Export Financing, and Related Programs 
Appropriations Act, 2006 (Public Law 109-102), $2,280,000,000 
was reduced by $23,000,000 with the application of Section 3801 
of Public Law 109-148, resulting in a 2006 enacted level of 
$2,257,000,000.
    The Committee remains committed to helping Israel maintain 
security. Therefore, the Committee is convinced the United 
States must make every effort to carry out its long-standing 
policy of assisting our ally Israel to maintain its 
technological advantage.

                            ISRAEL PROGRAMS

    The Committee recommends that within the funds provided for 
FMF programs for Israel, that the Department of Defense and the 
Government of Israel consider the purchase of fast response 
boats.

                                 JORDAN

    The Committee recommends a total FMF program of 
$216,000,000 for Jordan, an increase of $10,000,000 over the 
fiscal year 2007 request and $8,100,000 over the fiscal year 
2006 enacted level.
    The Committee strongly supports the Administration's 
efforts to improve Jordanian security. Under the leadership of 
King Abdullah, Jordan plays a critical role in supporting peace 
and security in the Middle East.
    The Committee is well aware that Jordan's security 
requirements are extensive, particularly in the areas of ground 
force modernization and border security.
    The Committee recommendation includes $11,000,000 for 
enhancing border security in Jordan.

                                 EGYPT

    The Committee recommends a total FMF program of 
$1,300,000,000 in grants for Egypt, which shall be transferred 
within 30 days of enactment of this Act. Of this amount, 
$1,102,900,000 is for continuation and maintenance of ongoing 
acquisition programs and $197,100,000 is for potential new 
acquisition programs.
    This recommendation is the same as the fiscal year 2007 
budget request and $13,000,000 over the fiscal year 2006 
enacted level. The level appropriated in the Foreign 
Operations, Export Financing, and Related Programs 
Appropriations Act, 2006 (Public Law 109-102), $1,300,000,000, 
was reduced by $13,000,000 with the application of Section 3801 
of Public Law 109-148, resulting in a 2006 enacted level of 
$1,287,000,000.
    The Committee is convinced that continued military 
cooperation between Egypt and the United States remains in the 
national security interests of both countries. However, the 
Committee believes that Egypt must initiate a significant 
modernization of its military structure to transform it to a 
modern, professional, and efficient military force. The 
Committee notes that U.S. military representatives from the 
U.S. Central Command (USCENTCOM) have been encouraging the 
Egyptian military to initiate programs designed to transform 
its military force but these programs have not yet been 
embraced by the Egyptians. The Committee strongly recommends 
that the Egyptian military work with the USCENTCOM to develop 
and implement programs that will lead to a more modern and 
professional Egyptian military. Furthermore, the Committee 
directs the Department of State, with submission of the fiscal 
year 2008 budget request, include in the accompanying 
justification material a list of the projects included in the 
request for such transformational efforts.

                                PAKISTAN

    The Committee recommends a total FMF program of 
$200,000,000 for Pakistan, a decrease of $100,000,000 from the 
fiscal year 2007 request and a decrease of $97,000,000 from the 
fiscal year 2006 enacted level. The Committees notes that 
Pakistan has been a reliable ally of the United States in the 
War on Terrorism and this reduction is not a reflection of a 
lessening of the Committee's appreciation for Pakistan's 
support. Rather, the intention of the reduction is to once 
again call into question what is clearly the Administration's 
plan to incrementally finance Pakistan's foreign military 
acquisition program. It has long been the position of the 
Committee on Appropriations that full funding of the 
acquisition of weapons systems provides budgetary 
accountability, transparency, and accuracy in determining 
taxpayer debt.
    The Committee directs the Department of State and the 
Department of Defense, to review the implementation of 
Pakistan's fiscal year 2006 FMF program as well as the fiscal 
year 2007 program to ensure full funding of weapons systems 
acquisition. The fiscal year 2008 budget request shall be 
submitted with consideration given to the Committee's concerns.

                                LEBANON

    The Committee recommends a total FMF program for Lebanon of 
$4,800,000, the same as the fiscal year 2007 request and 
$3,810,000 over the fiscal year 2006 enacted level.
    The Committee is encouraged that the United States is 
reaching out to the Lebanese government to assist with the 
purchase of spare parts, maintenance, and training for its 
military. However, the Committee is mindful that areas of the 
country, most particularly in the south, remain under the 
influence of both Syria and Iran. The Committee directs the 
Department of State to work closely with the Department of 
Defense to ensure that the FMF program for Lebanon supports 
equipment and training for the Lebanese military that will not 
support in any way terrorist groups that continue to operate in 
certain parts of the country.
    The Committee notes that it is in the national security 
interests of the United States to achieve a variety of goals in 
Lebanon, including the disarmament of all militias in Lebanon 
and the extension of Lebanese sovereignty throughout the 
country. The Committee directs the Secretary of State, in 
consultation with the Secretary of Defense, to submit a report 
to the Committee on Appropriations no later than 180 days after 
enactment of this Act, on progress made on advancing these 
goals and protecting Lebanon's eastern border.

                               INDONESIA

    The Committee recommends a total FMF program for Indonesia 
of $4,500,000, a reduction of $2,000,000 from the fiscal year 
2007 request and $3,510,000 over the fiscal year 2006 enacted 
level.
    The Committee makes this recommendation mindful of 
continuing concern about the professionalism of the Indonesian 
military and strongly supports the efforts of the civilian 
authorities in Indonesia to promote the rule of law, including 
efforts to exert control over the Indonesian military forces 
(TNI). This $3,510,000 recommended increase over the 2006 
enacted level, in no way signals decreased concern about the 
poor human rights record of the Indonesian military forces and 
is intended only as a sign of measured support for the 
continuing efforts of the civilian Government of Indonesia.
    The government of Indonesia is a strategic ally of the 
United States, especially in the continuing Global War on 
Terrorism and these funds will be used to purchase such things 
as spare parts and communications equipment.
    Included in the 2007 request is $500,000 for Defense 
Structure Reform Review and within the $4,500,000 appropriation 
recommended by the Committee, no less than $500,000 shall be 
provided for this Review. The Committee is encouraged and 
supportive of the efforts of United States military 
representatives of the U.S. Pacific Command (USPACOM) to work 
with the Indonesian military to transform its structure into a 
modern, professional and efficient military force.

                                ROMANIA

    The Committee recommends a total FMF program for Romania of 
$13,000,000, a reduction of $2,000,000 from the request and 
$130,000 over the fiscal year 2006 enacted level.

                         ARMENIA AND AZERBAIJAN

    The Committee recommends a FMF program of $3,500,000 for 
each of the countries of Armenia and Azerbaijan.

                        ADMINISTRATIVE EXPENSES

    The Committee recommends $42,500,000 for FMF administrative 
expenses, a decrease of $1,000,000 from the fiscal year 2007 
request and $1,414,000 over the fiscal year 2006 enacted level.

                        Peacekeeping Operations





Fiscal year 2006 enacted level........................      $173,250,000
Fiscal year 2006 emergency supplemental (House).......       173,000,000
Fiscal year 2007 request..............................       200,500,000
Committee recommendation..............................       170,000,000
    Change from request...............................       -30,500,000
    Change from enacted...............................        -3,250,000


    The Committee recommends $170,000,000 for Peacekeeping 
Operations that are not funded through mechanisms of the United 
Nations, a $30,500,000 decrease from the request and a 
$3,250,000 decrease to the enacted level, excluding emergency 
supplemental appropriations.
    Africa.--Within the amount provided, not less than 
$67,000,000 is provided for programs in Africa, a $13,100,000 
increase over the fiscal year 2006 level and $9,100,000 below 
the Administration's request. The Committee recommendation 
includes funding for additional support to the new 
administration in Liberia and to the Comprehensive Peace 
Agreement in Sudan. This level does not include operations to 
be funded from the Global Peace Operations Initiative.
    The Committee requests that the Department of State and 
USAID submit a report detailing the funding and operations of 
the Trans-Sahara Counter Terrorism Initiative. This report 
should describe how programs funded from this account are 
complemented by programs funded from USAID's development 
accounts.
    Multinational Force Observers (MFO).--Within the amount 
provided, not less than $21,000,000, as requested, is for the 
MFO program to support, among other initiatives, the ongoing 
peace efforts in the Middle East.
    Global Peace Operations Initiative (GPOI).--In fiscal year 
2005, the Group of Eight Nations launched a new collaboration, 
the Global Peace Operations Initiative (GPOI). The goal of this 
five-year program is to increase the capacity of countries to 
deploy to international peace support operations by training 
75,000 peace support troops worldwide, increase the number of 
gendarme units deployable to international operations and 
facilitate deployments by providing equipment and 
transportation for these peacekeeping units. The Committee 
recommendation includes $82,000,000 for these efforts, a 
reduction of $20,600,000 below the request and $18,400,000 
below the fiscal year 2006 level.
    The Committee expects the fiscal year 2008 budget request 
for GPOI to include a detailed summary of the achievements of 
GPOI to date and specific information linking the budget 
request to fiscal year 2008 performance objectives. The 
Administration may submit the achievement summary before the 
fiscal year 2008 budget request.
    In order for GPOI countries to be effective partners in 
multinational operations, their military leaders should be 
educated in the same core competencies and curriculum. The 
Committee strongly encourages the Secretary of State to 
consider sending GPOI participants to common educational 
programs in the United States, including the Naval Postgraduate 
School.
    The Committee recommendation does not include authorization 
for GPOI funds to be used notwithstanding section 660 of the 
Foreign Assistance Act. The Administration requested this 
authority to provide support to the Center of Excellence for 
Stability Police Units, a center in Italy at which GPOI 
partners can build a professional gendarme capacity. The 
Committee supports the proposed program and expects other G8 
nations to support this program, or the Administration to use 
funding from other accounts with the necessary authority, such 
as ``International Narcotics Control and Law Enforcement''.

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE


                  International Financial Institutions


                      Global Environment Facility





Fiscal year 2006 enacted level........................       $79,200,000
Fiscal year 2007 request..............................        56,250,000
Committee recommendation..............................        56,250,000
    Change from request...............................                 0
    Change from enacted level.........................       -22,950,000


    The Committee recommends a total of $56,250,000 for the 
Global Environment Facility (GEF), administered by the World 
Bank, as requested and a $22,950,000 decrease from the enacted 
level. It provides the Administration's request, pending 
completion of negotiation on the GEF-4 replenishment.
    The Committee recognizes the reforms that the GEF has 
successfully adopted in the past year and encourages the GEF to 
implement a performance-based allocation framework GEF-wide by 
2010 and other commitments made during GEF-3. The allocation 
framework should be applied to all GEF focal areas. In 
addition, the Committee expects the GEF to implement fiduciary 
standards, such as hotlines and whistler blower protections and 
best-practices procurement policies. Once the GEF agrees to 
implement a system where governance, performance, and other 
measurable results are key determinants in how it distributes 
its grants, and after the GEF-4 negotiations are complete, the 
Committee may consider reviewing this recommendation.
    The Committee directs the Secretaries of the Treasury and 
State to report by December 15, 2006, on their consideration of 
transferring responsibility for the GEF from the Department of 
the Treasury to the Department of State. Any transfer of 
responsibility would have to continue the strong commitment to 
reforms, thus ensuring transparency so that American taxpayers 
know their funds are spent efficiently and effectively. Should 
the Secretaries' consideration result in a recommendation to 
transfer oversight, the report should include a request for 
legislative changes required to implement the transfer.

       Contribution to the International Development Association





Fiscal year 2006 enacted level........................      $940,500,000
Fiscal year 2007 request..............................       950,000,000
Committee recommendation..............................       950,000,000
    Change from request...............................                 0
    Change from enacted level.........................        +9,500,000


    The Committee recommends a total of $950,000,000 for the 
regularly scheduled United States contribution to the 
International Development Association (IDA) equal to the 
request and a $9,500,000 increase to the enacted level. The 
recommended level is intended for the second of three payments 
under the fourteenth replenishment of IDA.

                                 GRANTS

    The Committee is encouraged by the increase in the IDA's 
award of grants between fiscal years 2004 and 2005 and expects 
that trend to continue in fiscal years 2006 and 2007. The 
Committee awaits with interest the July 1, 2006 implementation 
of the recently approved Multilateral Debt Relief Initiative. 
Although disappointed in the IDA's low PART score rating for 
results/accountability, the Committee is encouraged that IDA's 
new results measurement system will give it the necessary tools 
to track progress in meeting this objective.

           CONCERNS ABOUT THE MULTILATERAL DEVELOPMENT BANKS

                      AVAILABILITY OF INFORMATION

    The Committee again requests copies of all annual reports 
and information about the basic functions of each institution 
as they become available, including the European Bank for 
Reconstruction and Development and the International Fund for 
Agricultural Development. Future and continued support for the 
banks cannot be guaranteed unless future requests are justified 
by the Department of the Treasury as well as the management of 
each individual institution.

                             BUDGET SUPPORT

    The Committee continues to be concerned about the recent 
trend of providing World Bank loans and grants through budget 
support in lieu of project level support. The Committee 
believes that providing assistance by means of budget support 
should be employed only as an emergency measure and, if 
excessive or frequent, can undermine the principle of 
encouraging countries to become fiscally responsible and good 
stewards of internal resources. Furthermore, it thwarts the 
Committee's ability to effectively monitor implementation of 
foreign assistance to ensure effective expenditure of 
appropriated dollars. Future support for funding increases of 
the World Bank and the other MDBs cannot be guaranteed if the 
MDBs increase their reliance further on budget support. The 
Committee directs the Secretary of the Treasury to consult with 
the Committee before any changes in budget support ceilings are 
adopted by any of the MDBs.

                       ANTICORRUPTION PROVISIONS

    The Committee has been pleased at the level of transparency 
reforms that the Secretary of the Treasury has instigated at 
the multilateral development banks. Specifically these reforms 
have been key in the fight against corruption at all levels of 
the Bank's operations. The Committee was encouraged by recent 
efforts by the Inter-American Development Bank and the Asian 
Development Bank to begin adopting these standard procedures. 
However, the Committee is dismayed to learn that the Department 
of the Treasury has yet to receive sufficient information from 
the World Bank to allow the Secretary to certify World Bank 
compliance with the Anti-corruption general provision included 
in the fiscal year 2006 appropriations bill. The Committee has 
elected to rescind 20 percent of the fiscal year 2006 budget 
rather than repeat the fiscal year 2006 general provision.

      Contribution to the Multilateral Investment Guarantee Agency





Fiscal year 2006 enacted level........................        $1,287,000
Fiscal year 2007 request..............................                 0
Committee recommendation..............................                 0

(Limitation on callable capital subscriptions)
Fiscal year 2006 enacted level........................       (8,127,000)
Fiscal year 2007 request..............................               (0)
Committee recommendation..............................               (0)


    The Committee has not provided funding for the Multilateral 
Investment Guaranty Agency (MIGA), as requested. The 
Administration has requested all scheduled annual commitments 
to the most recent capital increases.

       Contribution to the Inter-American Investment Corporation





Fiscal year 2006 enacted level........................        $1,725,000
Fiscal year 2007 request..............................                 0
Committee recommendation..............................                 0


    The Committee has not provided funding for the Inter-
American Investment Corporation, as requested. The 
Administration has requested all scheduled annual commitments 
to the most recent capital increases.

Contribution to the Enterprise for the Americas Multilateral Investment 
                                  Fund





Fiscal year 2006 enacted level........................        $1,725,000
Fiscal year 2007 request..............................        25,000,000
Committee recommendation..............................        23,000,000
    Change from request...............................        -2,000,000
    Change from enacted level.........................       +21,275,000


    The Committee recommends a total of $23,000,000 for the 
first of six installments of the MIF-II replenishment, a 
$2,000,000 decrease to the request and a $21,275,000 increase 
to the enacted level. The Committee understands the MIF-II 
replenishment negotiated by the Administration, and currently 
before Congress for authorization, is $150,000,000 over six 
years. The Committee is encouraged by the MIF's progress in 
improving transparency and adopting reforms. The Committee 
notes that MIF's plan to make public its Project Performance 
Monitoring Reports and Project Completion Reports is a first 
for a multilateral development institution.
    The Committee urges the Inter-American Development Bank 
Group, of which the Multilateral Investment Fund is a part, to 
study the feasibility of providing a revolving loan guarantee 
for small coffee farmers. A significant increase in the 
availability of revolving loan guarantees will stimulate the 
flow of capital to small farmer's marketing cooperatives and 
thus enhance their effectiveness in increasing small farmer 
incomes through more efficient market participation.

               Contribution to the Asian Development Bank





Fiscal year 2006 enacted level........................                $0
Fiscal year 2007 request..............................        23,750,000
Committee recommendation..............................                 0
    Change from request...............................       -23,750,000
    Change from enacted level.........................                 0


    The Committee does not include $23,750,000 requested for 
the Asian Development Fund. Although the budget requests these 
funds for the Asia-Pacific Partnership on Clean Development and 
the Climate, none of the budget material received by the 
Committee in support of the Asia-Pacific Partnership referenced 
these funds. The Committee understands that the Asian 
Development Bank Account has been used as a ``placeholder'' 
until the successful completion of the negotiations with the 
Global Environmental Facility on the GEF-4. The Committee does 
not choose to ``hold'' almost $25,000,000 in scarce resources 
awaiting the outcome of these negotiations. Should GEF-4 
negotiations be completed in a timely fashion, with commitments 
to reform and transparency, the Committee may revisit the 
amount provided to the GEF.

               Contribution to the Asian Development Fund





Fiscal year 2006 enacted level........................       $99,000,000
Fiscal year 2007 request..............................       115,250,000
Committee recommendation..............................       115,250,000
    Change from request...............................                 0
    Change from enacted level.........................       +16,250,000


    The Committee recommends a total of $115,250,000 for the 
Asian Development Fund, the concessional facility of the Asian 
Development Bank (AsDB), as requested and a $16,250,000 
increase to the enacted level. The Committee recommends the 
full amount be made available for the second scheduled payment 
of four to the ninth replenishment of the Asian Development 
Fund.

              Contribution to the African Development Bank





Fiscal year 2006 enacted level........................        $3,602,000
Fiscal year 2007 request..............................         5,018,000
Committee recommendation..............................         5,018,000
    Change from request...............................                 0
    Change from enacted level.........................        +1,416,000

(Limitation on callable capital subscriptions)
Fiscal year 2006 enacted level........................      (88,334,000)
Fiscal year 2007 request..............................      (78,621,847)
Committee recommendation..............................      (78,621,847)


    The Committee recommends a total of $5,018,000, for the 
final of eight annual payments under the GCI-5 agreement, as 
requested, and a $1,416,000 increase to the enacted level.

              Contribution to the African Development Fund





Fiscal year 2006 enacted level........................      $134,343,000
Fiscal year 2007 request..............................       135,700,000
Committee recommendation..............................       135,700,000
    Change from request...............................                 0
    Change from enacted level.........................        +1,357,000


    The Committee recommends a total of $135,700,000 for the 
concessional African Development Fund, as requested, and a 
$1,357,000 increase to the enacted level. This amount is for 
the second installment of a three-year commitment under the 
agreement for the tenth replenishment of AfDF.

  Contribution to the European Bank for Reconstruction and Development





Fiscal year 2006 enacted level........................        $1,006,000
Fiscal year 2007 request..............................                 0
Committee recommendation..............................                 0

(Limitation on callable capital subscriptions)
Fiscal year 2006 level................................       (2,250,000)
Fiscal year 2007 request..............................               (0)
Committee recommendation..............................               (0)


    The Committee has not provided funding for the European 
Bank for Reconstruction and Development, as requested. The 
United States has made all scheduled annual commitments to the 
most recent capital increases.

  Contribution to the International Fund for Agricultural Development





Fiscal year 2006 enacted level........................       $14,850,000
Fiscal year 2007 request..............................        18,000,000
Committee recommendation..............................        18,000,000
    Change from request...............................                 0
    Change from enacted level.........................        +3,150,000


    The Committee recommends a total of $18,000,000 for the 
International Fund for Agricultural Development (IFAD), equal 
to the request and a $3,150,000 increase to the enacted level. 
This funds the first of three payments under the seventh 
replenishment. IFAD-7, which was concluded in December 2005, 
included a United States pledge of $54,000,000 over three 
years.

                International Organizations and Programs





Fiscal year 2006 enacted level........................      $326,163,000
Fiscal year 2007 request..............................       289,000,000
Committee recommendation..............................       327,570,000
    Change from request...............................       +38,750,000
    Change from enacted level.........................        +1,407,000


    The Committee has recommended a total of $327,570,000 for 
International Organizations and Programs, a $38,750,000 
increase to the request and a $1,407,000 increase to the 
enacted level. The United Nations Population Fund (UNFPA) is 
discussed in section 560.
    The Committee recommendation continues prior year bill 
language prohibiting the use of funds for the International 
Atomic Energy Agency (IAEA). Funding for IAEA is addressed 
elsewhere.
    The following table compares fiscal year 2006 funding for 
the programs covered by this account, as well as the 
President's request for fiscal year 2007 and the Committee 
recommendation:

                International Organizations and Programs



----------------------------------------------------------------------------------------------------------------
                                                          Fiscal year 2006   Fiscal year 2007      Committee
                                                              enacted            request         recommendation
----------------------------------------------------------------------------------------------------------------
Center for Human Settlements...........................           $149,000           $400,000           $300,000
IMO Marine Security Programs...........................            396,000            400,000            396,000
International Civil Aviation Organization..............            941,000            950,000            941,000
International Conservation Programs....................          5,890,000          5,906,000          5,890,000
International Contributions for Scientific,                        990,000          1,000,000            990,000
 Educational, and Cultural Activities..................
International Development Law Association..............                  0            300,000            100,000
International Panel on Climate Change/UN Framework               5,940,000          5,320,000          5,320,000
 Convention on Climate Change..........................
Montreal Protocol Multilateral Fund....................         21,285,000         19,000,000         19,000,000
OAS Development Assistance Programs....................          4,702,000          5,225,000          4,702,000
OAS Fund for Strengthening Democracy...................          2,475,000          2,500,000          2,475,000
Reserve to be Allocated................................         22,275,000                  0         22,725,000
UN Children's Fund (UNICEF)............................        125,730,000        123,000,000        127,000,000
UN Democracy Fund (UNIDF)..............................                  0         10,000,000          4,911,000
UN Development Fund for Women..........................          3,218,000            950,000          3,250,000
UN Development Program.................................        108,900,000         94,500,000        109,000,000
UN Environment Program.................................         10,159,000          9,524,000          9,524,000
UN Office for the Coordination of Humanitarian Affairs             805,000          1,000,000          1,000,000
 (UN OCHA).............................................
UN Voluntary Fund for the Technical Cooperation in the           1,485,000          1,425,000          1,425,000
 Field of Human Rights.................................
UN Voluntary Fund for Victims of Torture...............          6,517,000          4,750,000          4,750,000
UNIFEM Trust Fund......................................          1,485,000                  0          1,500,000
World Meteorological Organization......................          1,881,000          1,900,000          1,881,000
World Trade Organization...............................            940,000            950,000            940,000
    Total..............................................        326,163,000        289,000,000        327,570,000
----------------------------------------------------------------------------------------------------------------

                   UNITED NATIONS DEVELOPMENT PROGRAM

    The Committee recommends a level not less than $109,000,000 
in International Organizations and Programs funding to support 
the United Nations Development Program (UNDP), $14,500,000 more 
than the request and $100,000 more than provided in 2006.
    The fiscal year 2007 budget request included $24,500,000 
for UNDP's Democratic Governance Thematic Trust Fund and 
$20,000,000 for the Thematic Trust Fund for Crisis Prevention 
and Recovery. The Committee is greatly concerned that 
redirecting funding away from the core budget to thematic funds 
or country programs will indicate reduced support for UNDP's 
valuable programs. The Committee includes $109,000,000 from 
this account for UNDP's core budget.
    While the Committee commends UNDP for steps in recent years 
to undertake reforms, the Committee is aware of the 
Administration's concerns that the method by which UNDP 
allocates some of its core funding may not always adequately 
provide incentives to recipient countries to make positive 
democratic and economic changes or otherwise reflect United 
States interests. The Committee requests the State Department 
to consult with the Committee not later than 180 days following 
enactment of this Act on recommended changes to the allocation 
process and the status of the State Department's consultations 
with UNDP on their recommendations. The Committee will consider 
further changes in the fiscal year 2008 budget request, if 
necessary.

                     UNITED NATIONS CHILDREN'S FUND

    UNICEF is an essential partner of the United States in 
achieving child survival and health objectives, especially 
those in the areas of immunization, HIV/AIDS, and early 
childhood development. The Committee recommendation includes 
not less than $127,000,000 for a contribution to UNICEF. This 
does not preclude USAID from providing additional funding for 
specific UNICEF projects.

               UNITED NATIONS DEVELOPMENT FUND FOR WOMEN

    The Committee supports a total of $4,750,000 for the United 
Nations Development Fund for Women (UNIFEM) including a 
$3,250,000 contribution to the Fund and a $1,500,000 
contribution to the Trust Fund in Support of Actions to 
Eliminate Violence Against Women.

                      TITLE V--GENERAL PROVISIONS

    The Committee recommends that 26 of the general provisions 
carried in the fiscal year 2006 Act be deleted. These 
provisions (sections 526, 570, 572, 578, 582, 585, 586, 587, 
588, 589, 590, 591, 592, 593, 594, 595, 596, 597, 598, 599, 
599A, 599B, 599C, 599D, 599F, and 599G) are either addressed 
elsewhere in permanent law, have been considered by the 
appropriate authorizing committee, or are no longer necessary.
    The Committee recommends the following new and revised 
general provisions:
    Sec. 511. ``Availability of Funds'' is modified by 
including funds appropriated in ``International Military 
Education and Training'' within the expiration flexibilities 
provided by this section.
    Sec. 515. ``Reprogramming Notifications, and Transfer 
Guidelines'' is modified to include language in subsections (a) 
and (b). Subsection (a) forbids any funding being made 
available for programs specifically denied by Congress in this 
or prior Acts making appropriations for foreign operations, 
export financing, and related programs. The Committee notes 
that the report accompanying the bill is a further 
clarification of Committee intent. Programs, activities, and 
projects denied in this report as well as in the Act shall be 
included in the implementation of subsection (a).
    Subsection (b) forbids any funding to be used to start or 
terminate a program without prior notification of the 
Committees on Appropriations. Existing language is continued 
providing a waiver if failure to do so would provide a 
substantial risk to human health or welfare.
    Sec. 517. ``Independent States of the Former Soviet Union'' 
is modified by deleting ``Kazakhstan'' from the list of 
notification countries.
    Sec. 522. ``Child Survival and Health Activities'' is 
revised by removing a requirement for a Comptroller General 
audit, making a technical correction, and by reverting to prior 
year bill language on family planning/reproductive health 
spending.
    Sec. 523. ``Afghanistan'' is modified by changing a 
``shall'' to a ``should''.
    Sec. 525. ``Global Fund to Fight AIDS, Tuberculosis, and 
Malaria'' is modified by changing the name from ``HIV/AIDS'' 
and reverting to prior year bill language conditioning 25 
percent of the funding for the Global Fund.
    Sec. 526. ``Democracy Programs'' is a new general provision 
that includes prior year bill language providing funding for 
democracy programs.
    Sec. 531. ``Financial Market Assistance in Transition 
Countries'' is modified to include $20,000,000 specifically for 
not-for-profit organizations and volunteers. The provision 
designates a minimum level of $40,000,000 to be provided for 
helping countries in transition build and improve capital 
markets and financial market systems. These funds should be 
allocated in accordance with the Secretary's program for 
transformational diplomacy. Effective and efficient financial 
markets are vital cornerstones of economic development. 
Countries in transition need technical assistance building and 
developing stock exchanges, central banks, financial regulatory 
institutions and private financial intermediaries. The 
Committee strongly supports the work of not-for-profit 
organizations and volunteers with experience in the private 
sector in developing countries and designated not less than 
$20,000,000 for such organizations. The Committee also affirms 
the principle of rigorous competitive selection of proposals 
based on technical merit and cost-effectiveness.
    Sec. 534. ``Special Authorities'', is modified by deleting 
subsections (f), (1), and (m) of the fiscal year 2006 Act. 
Subsection (j) has been modified to include incentives for 
private enterprise development. Subsection (h) is a new 
subsection allowing equipment purchased for security of the 
Cano Limon pipeline to be used for other purposes.
    Sec. 538. This provision has altered the use of certain 
terminology and is referred to as, ``Designated Funding 
Levels''. The Committee has included a provision it has carried 
for a number of years, but altered the use of certain words. 
For purposes of this provision, and Section 537, the term 
``designated'' means a specific amount identified in 
legislative language for a specific purpose or in support of a 
specific purpose.
    Sec. 549. ``Haiti'' is modified to delete section (a) of 
the fiscal year 2006 Act and delete the word ``Transitional''.
    Sec. 554. ``Cambodia'' is modified by deleting all after 
the first subsection in the 2006 Act and by inserting prior 
year bill language instructing the Secretary of the Treasury.
    Sec. 559. ``West Bank and Gaza Program'' is modified to 
delete subsections (a) and (b), which reference funds 
appropriated under the heading ``Economic Support Fund''. No 
funds for the West Bank and Gaza Program are appropriated under 
that heading in this bill.
    Sec. 560. ``Contributions to the United Nations Population 
Fund'' is identical to section 560 of the fiscal year 2006 Act 
except for technical date changes and a change providing for 
$22,275,000 for United Nations Population Fund from 
``International Organizations and Programs'' if permissible by 
law.
    Sec. 563. ``Serbia'' is modified by deleting the 
certification requirement regarding Radovan Karadzic.
    Sec. 567. ``Basic Education'' is modified by changing the 
dollar figure to $550,000,000.
    Sec. 568. ``Reconciliation Programs'' is modified by 
changing a ``shall'' to a ``should''.
    Sec. 569. ``Sudan'' is modified by removing subsection (a) 
of the fiscal year 2006 Act, exempting support for the Darfur 
Peace Agreement from restrictions under this section, and 
updating the certification provision to include ceasefire 
commitments made in the Darfur Peace Agreement.
    Sec. 570. ``Peace Corps Personal Services Contractors 
Separation Pay'' is a new provision establishing a Treasury 
fund for severance pay of Peace Corps host country resident 
contractors.
    Sec. 571. ``Excess Defense Articles for Central and South 
European Countries and Certain Other Countries'' is modified by 
deleting ``Uzbekistan''.
    Sec. 572. ``Cuba'' is the same general provision as 
included in the House-Reported Foreign Operations, Export 
Financing and Related Programs Bill, 2006 and prohibits 
counternarcotics assistance in this Act to the Government of 
Cuba.
    Sec. 574. ``Limitation on Economic Support Fund Assistance 
for Certain Foreign Governments That Are Parties to the 
International Criminal Court'' is modified by deleting 
subsection (e) of the fiscal year 2006 Act.
    Sec. 576. ``Western Hemisphere'' is modified by changing 
the name from ``Central America'' and adding a new subsection 
(d).
    Sec. 578. ``Rescission'' is a new general provision with 
two subsections. Subsection (a) rescinds $188,100,000 from 
funds appropriated in title IV of Public Law 109-102. 
Subsection (b) rescinds $200,000,000 from funds appropriated 
for cash assistance under the title ``Economic Support Fund'' 
in Public Law 109-102 and prior Acts making appropriations for 
foreign operations, export financing, and related programs.
    Sec. 579. ``OPIC Transfer Authority'' is modified to 
specify Iraq programs and to eliminate references to earmarks.
    Sec. 582. ``IMF Hiring Ceilings'' is a new provision.
    The Committee recognizes that a sound fiscal position is 
necessary for macroeconomic stability and poverty reduction. In 
this regard, the Committee is concerned that country 
authorities, in response to International Monetary Fund (IMF) 
efforts to promote prudent fiscal positions, may limit the 
hiring of new teachers and health workers, as well as the 
building of new schools and health facilities. The Committee 
directs the United States Executive Director to urge IMF 
management and staff to encourage governments to protect social 
spending on poor people while keeping overall budget spending 
within a level that does not undermine economic stability.
    Sec. 584. ``Reporting Requirements'' is changed to 
eliminate the reference to April 1, 2006.
    Sec. 586. ``Office of the Director of Trade Capacity 
Enhancement'' is a new provision establishing the Director at 
USAID.
    Sec. 587. ``Enhancing Women's Economic Opportunities'' is a 
new provision to ensure developmental assistance projects and 
activities address and advance issues related to women's 
economic empowerment.
    Sec. 588. A new provision is included which provides 
authorization for the United States participation in, and 
appropriations for, the United States contribution to the first 
replenishment of the resources of the Enterprise for the 
Americas Multilateral Investment Fund.

                PROVISIONS RETAINED FROM FISCAL YEAR 2006

    The following general provisions from the fiscal year 2006 
Act are retained in the fiscal year 2007 Act unchanged except 
for technical corrections, references to fiscal year 2006, and 
new section numbers where appropriate:
    Sec. 501. Compensation for United States Executive 
Directors to International Financial Institutions.
    Sec. 502. Restrictions on Voluntary Contributions to United 
Nations Agencies.
    Sec. 503. Limitation on Residence Expenses.
    Sec. 504. Unobligated Balances Report.
    Sec. 505. Limitation on Representational Allowances.
    Sec. 506. Prohibition on Taxation of United States 
Assistance.
    Sec. 507. Prohibition Against Direct Funding for Certain 
Countries.
    Sec. 508. Military Coups.
    Sec. 509. Transfers.
    Sec. 510. Commercial Leasing of Defense Articles.
    Sec. 512. Limitation on Assistance to Countries in Default.
    Sec. 513. Commerce and Trade.
    Sec. 514. Surplus Commodities.
    Sec. 516. Limitation on Availability of Funds for 
International Organizations and Programs.
    Sec. 518. Prohibition on Funding for Abortions and 
Involuntary Sterilization.
    Sec. 519. Export Financing Transfer Authorities.
    Sec. 520. Special Notification Requirements.
    Sec. 521. Definition of Program, Project, and Activity.
    Sec. 524. Notification of Excess Defense Equipment.
    Sec. 527. Prohibition on Bilateral Assistance to Terrorist 
Countries.
    Sec. 528. Debt-For-Development.
    Sec. 529. Separate Accounts.
    Sec. 530. Enterprise Fund Restrictions.
    Sec. 532. Authorities for the Peace Corps, InterAmerican 
Foundation and African Development Foundation.
    Sec. 533. Impact on Jobs in the United States.
    Sec. 535. Arab League Boycott of Israel.
    Sec. 536. Eligibility for Assistance.
    Sec. 537. Reservations of Funds.
    Sec. 539. Prohibition on Publicity and Propaganda.
    Sec. 540. Prohibition of Payments to United Nations 
Members.
    Sec. 541. Nongovernmental Organizations--Documentation.
    Sec. 542. Prohibition on Assistance to Foreign Governments 
that Export Lethal Military Equipment to Countries Supporting 
International Terrorism.
    Sec. 543. Withholding of Assistance for Parking Fines Owed 
by Foreign Governments.
    Sec. 544. Limitation on Assistance for the PLO for the West 
Bank and Gaza.
    Sec. 545. War Crimes Tribunals Drawdown.
    Sec. 546. Landmines.
    Sec. 547. Restrictions Concerning the Palestinian 
Authority.
    Sec. 548. Prohibition of Payment of Certain Expenses.
    Sec. 550. Limitation on Assistance to the Palestinian 
Authority.
    Sec. 551. Limitation on Assistance to Security Forces.
    Sec. 552. Foreign Military Training Report.
    Sec. 553. Authorization Requirement.
    Sec. 555. Palestinian Statehood.
    Sec. 556. Colombia.
    Sec. 557. Illegal Armed Groups.
    Sec. 558. Prohibition on Assistance to the Palestinian 
Broadcasting Corporation.
    Sec. 561. War Criminals.
    Sec. 562. User Fees.
    Sec. 564. Community Based Police Assistance.
    Sec. 565. Special Debt Relief for the Poorest.
    Sec. 566. Authority to Engage in Debt Buybacks or sales.
    Sec. 573. Gender-Based Violence Training.
    Sec. 575. Tibet.
    Sec. 577. United States Agency for International 
Development Management.
    Sec. 580. Limitation on Funds Relating to Attendance of 
Federal Employees at Conferences Occurring Outside the United 
States.
    Sec. 581. Limitation on Assistance to Foreign Countries 
that Refuse to Extradite to the United States Any Individual 
Accused in the United States of Killing a Law Enforcement 
Officer.
    Sec. 583. Governments that Have Failed to Permit Certain 
Extraditions.
    Sec. 585. Assistance for Demobilization and Disarmament of 
Former Irregular Combatants in Colombia.

            House of Representatives Reporting Requirements


                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following is submitted describing 
the transfer of funds provided in the accompanying bill.
    Under ``Child Survival and Health Programs'' up to 
$6,000,000 may be transferred to and merged with funds under 
the heading ``Operating Expenses of the United States Agency 
for International Development.''
    Under ``Development Credit Authority'' up to $21,000,000 is 
authorized to be transferred to the account from a variety of 
sources. In addition, $8,400,000 may be transferred to and 
merged with funds appropriated under the heading ``Operating 
Expenses of the United States Agency for International 
Development''.
    Under ``Trade Capacity and Enhancement Fund'' up to 
$522,000,000 may be transferred to and merged with funds under 
the headings ``Development Assistance'', ``Economic Support 
Fund'', ``Assistance for Eastern Europe and the Baltic 
States,'' ``Assistance for the Independent States of the Former 
Soviet Union,'' and ``Andean Counterdrug Initiative.''
    Under the ``Economic Support Fund'', $135,000,000 may be 
transferred to fund appropriated by the Act for ``Development 
Assistance''.
    Under ``Peace Corps'', not to exceed $2,000,000 may be 
transferred to the Foreign Currency Fluctuations Account to 
help mitigated exchange rate losses.
    Under section 579, ``OPIC Transfer Authority'', up to 
$30,000,000 of funds under title II may be transferred to funds 
appropriated by this Act for the Overseas Private Investment 
Corporation Program Account.

                              Rescissions

    Pursuant to clause 3(f)(2) of the rule XIII of the Rules of 
the House of Representatives, the following is submitted 
describing the rescissions recommended in the accompanying 
bill:
    Under ``General Provisions'' in title V, section 578(a) 
rescinds $188,100,000 from funds appropriated in title IV of 
Public Law 109-102 under the heading ``Funds Appropriated to 
the President, International Financial Institutions, 
Contribution to the International Development Association''. 
Subsection (b) rescinds $200,000,000 from funds appropriated 
for cash assistance under the title ``Economic Support Fund'' 
in Public Law 109-102 and prior Acts making appropriations for 
foreign operations, export financing, and related programs.

                  Rescissions Recommended in the Bill

        Department or Activity        Amounts Recommended for Rescission
Funds Appropriated to the President, International 
    Financial Institutions, Contribution to the 
    International Development Association of Title IV of 
    Public Law 109-102..................................    $188,100,000
Economic Support Fund of Public Law 109-102 and prior 
    Acts making appropriations for foreign operations, 
    export financing, and related programs..............    $200,000,000

                        Constitutional Authority

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives states that:

        Each report of a committee on a bill or joint 
        resolution of a public character shall include a 
        statement citing the specific powers granted to the 
        Congress in the Constitution to enact the law proposed 
        by the bill or joint resolution.

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America which 
states:

          No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * *

    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

               Changes in the Application of Existing Law

    Pursuant to clause 3(f), rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the effects of provisions in the 
accompanying bill which directly or indirectly change the 
application of existing law. Most of the language has been 
provided in previous measures including supplementals for the 
departments and agencies carried in the accompanying bill.
    1. The bill contains appropriations for a number of items 
for which authorizations for fiscal year 2007 have not yet been 
enacted. The bill allows funds appropriated in the bill to be 
obligated in the absence of a prior authorization of 
appropriations.
    2. The bill provides that a few of the appropriations shall 
remain available for obligation beyond the current fiscal year. 
In all cases it is deemed desirable to carry such language in 
order to provide for orderly administration of such programs 
and effective use of funds.
    3. The bill contains a number of general provisions and 
other language that have been carried in the bill in past 
years.
    4. Under ``Export-Import Bank of the United States'', 
authority is provided for Sections 1(a) and (b) of Public Law 
103-428 to remain in effect until October 1, 2007. Under 
``Export-Import Bank of the United States, Subsidy 
Appropriations'', funds are appropriated for the cost of direct 
loans, loan guarantees, insurance, and tied-aid grants. Such 
costs shall be as defined in section 502 of the Congressional 
Budget Act of 1974 and may be used for the disbursement of 
direct loans, loan guarantees, and insurance and tied-aid 
grants obligated in fiscal years 2007, 2008, 2009, and 2010. 
These funds are available for obligation until September 30, 
2025. Under ``Export-Import Bank of the United States, 
Administrative Expenses'', authority is provided to extend 
subsection (a) of section 117 of the Export Enhancement Act of 
1992 until October 1, 2007.
    5. Under ``Overseas Private Investment Corporation, Program 
Account'', funds are appropriated for the cost of direct and 
guaranteed loans, to be derived by transfer from the Overseas 
Private Investment Corporation Noncredit Account. Such costs 
shall be as defined in section 502 of the Congressional Budget 
Act of 1974 and may be used for direct loan and loan guaranty 
commitments incurred or made during fiscal years 2007, 2008, 
and 2009. These funds are available for obligation until 2014, 
2015, and 2016, depending on the initial date of obligation. 
Authority is provided for OPIC to undertake programs in Iraq.
    6. Under ``Child Survival and Health Programs Fund'' 
language is provided that indicates how the funds should be 
allocated among various activities; not to exceed $350,000, in 
addition to funds otherwise available for such purposes, may be 
used to monitor and provide oversight of programs for displaced 
and orphaned children and victims of war; funds under the 
heading are authorized to be made available for a contribution 
to The GAVI Fund; and language is included that provides not 
less than $200,000,000, subject to matching contributions, for 
a contribution to the Global Fund to Fight AIDS, Tuberculosis 
and Malaria, which shall be expended at the minimum rate 
necessary to make timely payments for projects and activities.
    7. Under ``Development Assistance'', language is provided 
that indicates how the funds should be allocated among various 
activities, including $365,000,000 for basic education, 
$20,000,000 for drinking water supply projects in east Africa. 
Also, $15,000,000 shall be made available only for programs to 
improve women's leadership capacity in recipient countries and 
$10,000,000 for the Office of Private and Voluntary 
Cooperation.
    8. Under ``Transition Initiatives'', authority is provided 
to utilize up to $15,000,000 of funds appropriated to carry out 
part I of the Foreign Assistance Act of 1961 in excess of funds 
appropriated under this heading.
    9. Under ``Development Credit Authority'', authorized 
transfers, when added to the funds transferred pursuant to the 
authority contained under this heading in Public Law 107-115, 
shall not exceed $21,000,000. Such costs shall be as defined in 
section 502 of the Congressional Budget Act of 1974. The 
Provisions of section 107A(d) of the Foreign Assistance Act of 
1961, as contained in section 306 of H.R. 1486 as reported by 
the House Committee on International Relations on May 9, 1997, 
shall be applicable to direct loans and loan guarantees.
    10. Under ``Operating Expenses of the United States Agency 
for International Development'', USAID is prohibited from 
entering into domestic leases, except when necessary for 
continuity of operations, and to terminate a lease executed on 
September 30, 2005. Language is included permitting the 
Secretary of State to utilize sections 610 and 109 of the 
Foreign Assistance Act to transfer funds to this account from 
funds appropriated to carry out chapter 1 of part I of that 
Act.
    11. Under ``Capital Investment Fund'', the Administrator of 
USAID is authorized to charge fair and reasonable rent in 
buildings constructed using funds appropriated under this 
heading, and such rental payments are designated as offsetting 
collections; and the assignment of employees or contractors to 
buildings is subject to the concurrence of the Administrator of 
USAID. Language is included that limits funding for 
implementing the Capital Security Cost Sharing Program to 
$89,000,000.
    12. Under ``Economic Support Fund'', not less than 
$120,000,000 is made available only for Israel and is required 
to be disbursed as a cash grant within 30 days of enactment of 
this Act; and not less than $455,000,000 is made available only 
for Egypt of which not less than $135,000,000 shall be for 
project assistance, of which $50,000,000 is for democracy 
programs and not less than $50,000,000 is for education; 
$135,000,000 is available only for Colombia; $250,500,000 
should be made available only for assistance for Jordan; not 
less than $35,500,000 should be available for Lebanon of which 
not less than $6,000,000 should be available for American 
educational institutions for scholarships and other programs; 
$1,000,000 is available for administrative expenses from funds 
available for Timor-Leste; funds may be spent for programs and 
activities for the Central Highlands of Vietnam; and not less 
than $15,000,000 should be available for Cyprus; prohibits any 
funding for West Bank and Gaza.
    13. Under ``Assistance for the Independent States of the 
Former Soviet Union'', limits to administrative expenses for 
programs under section 807 of Public Law 102-511 to 6 percent, 
and directs that not less than $41,000,000 should be made 
available for assistance for child survival and health 
activities.
    14. Under ``African Development Foundation'', funds made 
available to grantees may be invested for project purposes when 
authorized by the Board of Directors, instead of by the 
President as in current law; authorizes the limitation in 
section 505(a)(2) of $250,000 to be waived in exceptional 
circumstances, but only up to $10,000.
    15. Under ``Peace Corps'', permits the Director to transfer 
up to $2,000,000 to help mitigate exchange rate losses.
    16. Under ``Millennium Challenge Corporation'', language is 
included allowing up to 10 percent of funds for assistance to 
threshold countries but restricting the availability of funds 
until after the submission of a report describing the proposed 
implementation of the threshold program for fiscal year 2007. 
Section 605(e)(4) of the relevant authorization act is also 
applied to funds appropriated under this heading. 
Administrative expenses are limited to $95,000,000. Language is 
included requiring the MCC to fully fund compacts.
    17. Under ``Global HIV/AIDS Initiative'', not less than 
$244,500,000 is made available for a contribution to the Global 
Fund to Fight AIDS, Tuberculosis and Malaria, which shall be 
expended at the minimum rate necessary to make timely payments 
for projects and activities. Language is also included to 
provide up to five percent of the Global Fund contribution to 
be used for technical assistance related to the activities of 
the Global Fund.
    18. Under ``International Narcotics Control and Law 
Enforcement'', the Department of State is given the authority 
to use section 608 of the Foreign Assistance Act of 1961 to 
provide excess property to a foreign country; provides not less 
than $16,250,000 for International Law Enforcement Academies; 
provides $26,100,000 only for programs in Colombia; the account 
funds demand reduction programs at $10,000,000; and a 
limitation of $33,484,000 is placed on administrative expenses.
    19. Under ``Andean Counterdrug Initiative'', assistance for 
Colombia is made available consistent with the provisions 
authorizing and limiting such assistance as are contained in 
Public Law 107-206; section 482(b) of the Foreign Assistance 
Act is waived, subject to notification; the Secretary of State, 
in consultation with the Administrator of USAID, shall provide 
to the Committee 45 days after the date of enactment a report 
on the proposed uses of all funds under this heading on a 
country-by-country basis for each proposed program, project or 
activity; $85,400,000 apportioned directly to USAID; in 
addition, a limitation of $18,060,000 is placed on 
administrative expenses of the Department of State; requires a 
certification in order to provide assistance for the Bolivian 
military; and not more than $7,800,000 may be available for 
administrative expenses of the United States Agency for 
International Development.
    20. Under ``Migration and Refugee Assistance'', limits 
administrative expenses to $23,000,000; provides $40,000,000 to 
resettle humanitarian migrants to Israel; and conditions a 
headquarters contribution to the International Committee of the 
Red Cross on full participation of the Magen David Adom Society 
in the International Red Cross and Red Crescent Movement.
    21. Under ``Nonproliferation, Anti-terrorism, Demining, and 
Related Programs'', a limitation of $38,000,000 is placed on 
funding for the Nonproliferation and Disarmament Fund with 
authority to use such funds outside of the Independent States 
of the former Soviet Union and international organizations when 
it is in the national security interests of the United States 
to do so; conditions a contribution to the IAEA on a 
determination that Israel is not denied the right to 
participate in that Agency; administrative expenses for 
operation and management of the demining program are limited to 
$700,000; and extends availability of ``Anti-terrorism 
Assistance'' and ``Export Control and Border Security'' funding 
to 2008.
    22. Under ``International Affairs Technical Assistance'', 
provides funds notwithstanding any other provision of law that 
restricts assistance to foreign countries.
    23. Under ``Debt Restructuring'' funds are provided for the 
cost of selling, reducing or canceling debts owed to the United 
States, of modifying concessional credit agreements with least 
developed countries, and of canceling amounts owed as a result 
of loans or guarantees; provides $20,000,000 to carry out part 
V of the Foreign Assistance Act of 1961; funds are provided for 
the Secretary of Treasury to pay the Heavily Indebted Poor 
Countries Trust Fund amounts for the benefits of countries that 
are eligible for debt reduction; provides that section 411 of 
the Agricultural Trade Development and Assistance Act of 1954 
shall not apply to funds under this heading; denies funding for 
Sudan or Burma until a determination that a democratically 
elected government has taken office.
    24. Under ``International Military Education and 
Training'', provides up to $3,000,000 available until expended.
    25. Under ``Foreign Military Financing Program'' not less 
than $2,340,000,000 is appropriated for Israel, of which not 
less than $610,000,000 shall be available for the procurement 
in Israel of defense articles and defense services and that all 
funds for Israel must be disbursed within 30 days of enactment 
of this Act; $1,300,000,000 shall be made available for grants 
only for Egypt; a limitation of $42,500,000 is provided for 
administrative expenses; $216,000,000 should be made available 
for Jordan; and a limitation of $359,000,000 from certain other 
funds may be obligated for expenses incurred pursuant to 
section 43(b) of the Arms Export Control Act.
    26. Under title IV, funds for a number of international 
financial institutions are made available for contributions; 
funds are made available for the United States share of the 
paid-in portion of the increase in capital stock of certain 
institutions; and limitations are placed on callable capital 
subscriptions.
    27. Under ``General Provisions'':
    Sec. 511, ``Availability of Funds'' is modified by 
including funds appropriated in ``International Military 
Education and Training'' within the expiration flexibilities 
provided by this section.
    Sec. 515, ``Notification Requirements'' is modified to 
include new language, subsections (a) and (b). Subsection (a) 
forbids any funding being made available for programs 
specifically denied by Congress in this or prior Acts making 
appropriations for foreign operations, export financing, and 
related programs. Subsection (b) forbids any funding to be used 
to start or terminate a program without prior notification of 
the Committees on Appropriations. Existing language is 
continued providing a waiver if failure to do so would provide 
a substantial risk to human health or welfare.
    Sec. 517, ``Independent States of the Former Soviet Union'' 
is modified by deleting ``Kazakhstan'' from the list of 
notification countries.
    Sec. 522, ``Child Survival and Health Activities'' is 
revised by removing a requirement for a Comptroller General 
audit, making a technical correction, and by reverting to prior 
year bill language on family planning/reproductive health 
spending.
    Sec. 523, ``Afghanistan'' is modified by changing a 
``shall'' to a ``should''.
    Sec. 525, ``Global Fund to Fight AIDS, Tuberculosis, and 
Malaria'' is modified by changing the name from ``HIV/AIDS'' 
and reverting to prior year bill language conditioning 25 
percent of the funding for the Global Fund.
    Sec. 526, ``Democracy Programs'' is a new general provision 
that includes prior year bill language providing funding for 
democracy programs.
    Sec. 531, ``Financial Market Assistance in Transition 
Countries'' is modified to include $20,000,000 specifically for 
not-for-profit organizations and volunteers. The provision 
designates a minimum level of $40,000,000 to be provided for 
helping countries in transition build and improve capital 
markets and financial market systems. These funds should be 
allocated in accordance with the Secretary's program for 
transformational diplomacy. Effective and efficient financial 
markets are vital cornerstones of economic development. 
Countries in transition need technical assistance building and 
developing stock exchanges, central banks, financial regulatory 
institutions and private financial intermediaries. The 
Committee strongly supports the work of not-for-profit 
organizations and volunteers with experience in the private 
sector in developing countries and designated not less than 
$20,000,000 for such organizations. The Committee also affirms 
the principle of rigorous competitive selection of proposals 
based on technical merit.
    Sec. 534, ``Special Authorities'', is modified by deleting 
subsections (f), (l), and (m) of the fiscal year 2006 Act. 
Subsection (j) has been modified to include incentives for 
private enterprise development. Subsection (h) is a new 
subsection allowing equipment purchased for security of the 
Cano Limon pipeline to be used for other purposes.
    Sec. 538, ``Ceilings and Earmarks'' has been renamed 
``Designated Funding Levels''.
    Sec. 549, ``Haiti'' is modified to delete section (a) of 
the fiscal year 2006 Act and delete the word ``Transitional''.
    Sec. 554, ``Cambodia'' is modified by deleting all after 
the first subsection in the 2006 Act and by inserting prior 
year bill language instructing the Secretary of the Treasury.
    Sec. 559, ``West Bank and Gaza Program'' is modified to 
deleted subsections (a) and (b), which reference funds 
appropriated under the heading ``Economic Support Fund''. No 
funds for the West Bank and Gaza Program are appropriated under 
that heading in this bill.
    Sec. 560, ``Contributions to the United Nations Population 
Fund'' is identical to section 560 of the fiscal year 2006 Act 
except for technical date changes and a change providing for 
$22,275,000 for United Nations Population Fund from 
``International Organizations and Programs'' if permissible by 
law.
    Sec. 563, ``Serbia'' is modified by deleting the 
certification requirement regarding Radovan Karadzic.
    Sec. 567, ``Basic Education'' is modified by changing the 
figure to $550,000,000.
    Sec. 568, ``Reconciliation Programs'' is modified by 
changing a ``shall'' to a ``should''.
    Sec. 569, ``Sudan'' is modified by removing subsection (a) 
of the fiscal year 2006 Act, exempting support for the Darfur 
Peace Agreement from restrictions under this section, and 
updating the certification provision to include ceasefire 
commitments made in the Darfur Peace Agreement.
    Sec. 570, ``Peace Corps Personal Services Contractors 
Separation Pay'' is a new provision establishing a Treasury 
fund for severance pay of Peace Corps host country resident 
contractors.
    Sec. 571, ``Excess Defense Articles for Central and South 
European Countries and Certain Other Countries'' is modified by 
deleting ``Uzbekistan''.
    Sec. 572, ``Cuba'' is the same general provision as 
included in the House-Reported Foreign Operations, Export 
Financing and Related Programs Bill, 2006 and prohibits 
counternarcotics assistance in this Act to the Government of 
Cuba.
    Sec. 574, ``Limitation on Economic Support Fund Assistance 
for Certain Foreign Governments That Are Parties to the 
International Criminal Court'' is modified by deleting 
subsection (e) of the fiscal year 2006 Act.
    Sec. 576, ``Western Hemisphere'' is modified by changing 
the name from ``Central America'' and adding a new subsection 
(d).
    Sec. 578, ``Rescission'' is a new general provision with 
two subsections. Subsection (a) rescinds $188,100,000 from 
funds appropriated in title IV of Public Law 109-102.
    Subsection (b) rescinds $200,000,000 from funds 
appropriated for cash assistance under the title ``Economic 
Support Fund'' in Public Law 109-102 and prior Acts making 
appropriations for foreign operations, export financing, and 
related programs.
    Sec. 579, ``OPIC Transfer Authority'' is modified to 
specify Iraq programs and to eliminate references to earmarks.
    Sec. 582, ``IMF Hiring Ceilings'' is a new provision. The 
Committee recognizes that a sound fiscal position is necessary 
for macroeconomic stability and poverty reduction. In this 
regard, the Committee is concerned that country authorities, in 
response to International Monetary Fund (IMF) efforts to 
promote prudent fiscal positions, may limit the hiring of new 
teachers and health workers, as well as the building of new 
schools and health facilities. The Committee directs the United 
States Executive Director to urge IMF management and staff to 
encourage governments to protect social spending on poor people 
while keeping overall budget spending within a level that does 
not undermine economic stability.
    Sec. 584, ``Reporting Requirements'' is changed to 
eliminate the reference to April 1, 2006.
    Sec. 586, ``Office of the Director of Trade Capacity 
Enhancement'' is a new provision establishing the Director at 
USAID.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following table lists the 
appropriations in the accompanying bill which, in whole or in 
part, are not authorized by law:

----------------------------------------------------------------------------------------------------------------
                                                                           Appropriations in
         Agency/Activity               Last year         Authorization       last year of      Appropriations in
                                      authorized             level           authorization         the bill
----------------------------------------------------------------------------------------------------------------
Export/Import Bank Subsidy        2006..............  $100,000,000......  $74,000,000.......  $26,382,000
 Appropriation.
Export/Import Bank                2006..............  $73,200,000.......  $72,468,000.......  $75,234,000
 Administrative Expenses.
Export/Import Bank Inspector      2006..............  $1,000,000........  $990,000..........  $988,000
 General.
Overseas Private Investment       2003..............  Such sums as may    $39,626,000.......  $45,453,000
 Corporation Administrative                            be necessary.
 Expenses.
Overseas Private Investment       2003..............  Such sums as may    $23,844,000.......  $20,035,000
 Corporation Noncredit Account.                        be necessary.
Child Survival and Health         Population (1987);  Population          Population          $1,565,613,000
 Programs Fund (see note below).   Health and          ($290,000,000);     ($234,625,000);     (includes
                                   Disease             Health and          Health and          $350,000,000 for
                                   Prevention          Disease             Disease             Population).
                                   (1987); Child       Prevention          Prevention
                                   Survival Fund       ($180,000,000);     ($166,762,000);
                                   (1987).             Child Survival      Child Survival
                                                       Fund                Fund
                                                       ($75,000,000).      ($75,000,000).
Development Assistance (see note  Agriculture;        Agriculture         Agriculture         $1,294,000,000
 below).                           (1987) Education    ($760,000,000);     ($693,613,000);     (includes:
                                   (1987); Energy      Education           Education           $365,000,000 for
                                   and selected        ($180,000,000);     ($155,000,000);     basic education;
                                   development         Energy and          Energy and          other programs
                                   activities (1987).  selected            selected            difficult to
                                                       development         development         determine due to
                                                       activities          activities          changing
                                                       ($207,000,000).     ($149,990,000).     definitions of
                                                                                               programs since
                                                                                               last authorized).
International Disaster and        1987..............  $25,000,000.......  $70,000,000.......  $348,800,000
 Famine Assistance.
Transition Initiatives..........  None (same          NA................  NA................  $40,000,000
                                   authorities as
                                   International
                                   Disaster
                                   Assistance).
Development Credit Authority....  None..............  NA................  NA................  $21,000,000 (by
                                                                                               transfer).
Development Credit Authority--    None..............  NA................  NA................  $8,400,000
 administrative expenses.
Payment to the Foreign Service    None--mandatory     NA................  NA................  $38,700,000
 Retirement and Disability Fund.   program.
Operating Expense of the United   1987..............  $387,000,000......  $340,600,000......  $646,000,000
 States Agency for International
 Development.
Capital Investment Fund.........  None..............  NA................  NA................  $105,300,000
Operating Expenses of the United  1987..............  $21,750,000.......  $21,000,000.......  $39,000,000
 States Agency for International
 Development--Inspector General.
Economic Support Fund...........  1987..............  $3,800,000,000....  $3,555,000,000....  $2,650,740,000
International Fund for Ireland..  1988..............  $35,000,000.......  $35,000,000.......  $10,800,000
Assistance for Eastern Europe     None..............  NA................  NA................  $227,900,000
 and the Baltic States (see note
 below).
Assistance for the Independent    1993..............  $410,000,000......  $417,000,000......  $371,280,000
 States of the Former Soviet
 Union.
Trade Capacity Enhancement Fund.  None..............  NA................  NA................  $522,000,000
Inter-American Foundation.......  1993..............  $31,000,000.......  $30,960,000.......  $19,268,000
African Development Foundation..  1987..............  $3,872,000........  $6,500,000........  $22,726,000
Peace Corps.....................  2003..............  $365,000,000......  $295,069,000......  $324,587,000
Millennium Challenge Corporation  2005..............  Such sums as may    $1,488,000,000....  $2,000,000,000
                                                       be necessary.
International Narcotics Control   1994..............  $171,500,000......  $100,000,000......  $703,600,000
 and Law Enforcement.
Andean Counterdrug Initiative...  None..............  NA................  NA................  $506,850,000
Migration and Refuge Assistance.  2003..............  $820,000,000......  $781,884,000......  $750,206,000
U.S. Emergency Refugee and        1962..............  Such amounts as     NA................  $30,000,000
 Migration Assistance Fund (see                        may be necessary.
 note below).
Nonproliferation, Anti-           None..............  NA................  NA................  $425,010,000
 terrorism, Demining and Related
 Programs (see note below).
International Affairs Technical   1999..............  $5,000,000........  $1,500,000........  $23,700,000
 Assistance.
International Military Education  2003..............  $85,000,000.......  $79,480,000.......  $88,000,000
 and Training.
Foreign Military Financing......  2003..............  $4,107,000,000....  $6,104,632,000....  $4,454,900,000
Peacekeeping Operations.........  1999..............  $83,000,000.......  $76,500,000.......  $170,000,000
Multilateral Investment Fund....  1997..............  $100,000,000......  $27,500,000.......  $23,000,000
----------------------------------------------------------------------------------------------------------------
Note: Programs recommended herein under ``Child Survival and Health Programs Fund'' and ``Development
  Assistance'' were last authorized under a different account structure than that recommended in this bill; the
  account structure included a number of functional accounts, as described above. Microenterprise programs were
  reauthorized in 2004, covering the period through 2009. In addition assistance for orphans and other
  vulnerable children and activities to assist victims of torture are authorized through fiscal year 2007.
  Finally, safe water and sanitation programs are authorized indefinitely.
Note: Programs recommended herein under ``Support for Eastern Europe and the Baltic States'' were last
  authorized in the Support for East European Democracy (SEED) Act of 1989; however, these funds were authorized
  for discrete programs and not for the account as a whole. In fiscal year 1991, the first general
  appropriations act after enactment of the SEED Act included $369,675,000 for this account.
Note: Funds for the United States Emergency Refugee and Migration Assistance Program (ERMA) are authorized in
  such amounts as may be necessary; however, appropriations which would result in a balance in the fund of more
  than $100,000,000 are prohibited (22 U.S.C. 2601(c)) absent a waiver of this provision of law.
Note: Programs recommended herein under ``Nonproliferation, Anti-terrorism, Demining, and Related Programs''
  include some major programs for which authorizations of appropriations were provided for fiscal year 2002;
  these programs include $73,000,000 authorized for antiterrorism assistance and $142,000,000 authorized for
  nonproliferation activities. In addition, some programs now in this account were previously in accounts which
  had authorizations of appropriations in prior years.
Note: The Tropical Forest Conservation Act of 1998 was reauthorized in 2004, including program authorization
  through 2007.

                   Comparison With Budget Resolution

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives requires an explanation of compliance with 
section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974. (Public Law 93-344), as 
amended, which requires that the report accompanying a bill 
providing new budget authority contain a statement detailing 
how the authority compares with the reports submitted under 
section 302 of the Act for the most recently agreed to 
concurrent resolution on the budget for the fiscal year from 
the Committee's section 302(a) allocation.

                        [In millions of dollars]
------------------------------------------------------------------------
                                302(b) allocation--      This bill--
                               -----------------------------------------
                                  Budget               Budget
                                authority   Outlays  authority   Outlays
------------------------------------------------------------------------
Discretionary.................     21,300    23,441     21,299    23,440
Mandatory.....................         39        39         39        39
------------------------------------------------------------------------

                      Five-Year Outlay Projections

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following table contains 
five-year projections, in millions of dollars, associated with 
the budget authority provided in the accompanying bill:




Projection of outlays associated with the
 recommendation.......................................
    2007..............................................         \1\$8,872
    2008..............................................             6,594
    2009..............................................             2,685
    2010..............................................             1,557
    2011 and future years.............................             1,395

\1\ Excludes outlays from prior-year budget authority.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

          Financial Assistance to State and Local Governments

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-44), as amended, the financial assistance to 
State and local governments is as follows:
    The amounts recommended in the accompanying bill contain no 
budget authority or budget outlays for State or local 
governments.

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

INTER-AMERICAN DEVELOPMENT BANK ACT

           *       *       *       *       *       *       *



SEC. 39. FIRST REPLENISHMENT OF THE RESOURCES OF THE ENTERPRISE FOR THE 
                    AMERICAS MULTILATERAL INVESTMENT FUND.

  (a) Contribution Authority.--
          (1) In general.--The Secretary of the Treasury may 
        contribute on behalf of the United States $150,000,000 
        to the first replenishment of the resources of the 
        Enterprise for the Americas Multilateral Investment 
        Fund.
          (2) Subject to appropriations.--The authority 
        provided by paragraph (1) may be exercised only to the 
        extent and in the amounts provided for in advance in 
        appropriations Acts.
  (b) Limitations on Authorization of Appropriations.--For the 
United States contribution authorized by subsection (a), there 
are authorized to be appropriated not more than $150,000,000, 
without fiscal year limitation, for payment by the Secretary of 
Treasury.



             ADDITIONAL VIEWS OF REPRESENTATIVE DAVID OBEY

    I am deeply disappointed that the Committee did not accept 
my amendment to condition $200 million of the funds for Egypt 
under Foreign Military Financing on the enactment of future 
legislation. My amendment would ultimately not have reduced 
overall assistance to Egypt but rather delayed a portion of it, 
thereby providing Congress with an opportunity to assess any 
efforts by Egypt to improve its record on human rights. My 
amendment was not offered out of anger at Egypt, it was offered 
out of concern. For over three decades, I have been a strong 
supporter of Egypt and have backed the over $60 billion in 
economic and military aid that the United States has provided 
to Egypt during my tenure in Congress. I continue to believe 
that Egypt plays an important and stabilizing role in the 
Middle East and is a strong ally of the United States.
    However, I am increasingly concerned that Egypt is headed 
in a direction domestically that puts at risk not only U.S. 
interests in the region but the very stability of Egypt. I am 
deeply troubled by the reversal in political freedoms and human 
rights over the past year. The continued imprisonment of Ayman 
Nour, a leading opposition candidate in the presidential 
elections, the crackdown on pro democracy protestors, the 
narrowing of judicial independence, extension of the emergency 
laws for an additional two years and the harassment of 
political parties and moderate opposition leaders have sent a 
chilling message throughout Egypt. Yet, as political choice and 
free speech through legitimate means are denied to the Egyptian 
people, the effect has been to strengthen the appeal of more 
extremist ideologies. If the United States and other allies in 
the region are not able to influence the current government in 
Egypt to open up the political system and allow greater 
participation now, any future transition from the current 
regime is more likely to result in chaos, violence and the 
growing power of more extremist political parties.
    By rejecting the amendment, I fear that the Committee sent 
a message to the government of Egypt that as long as Egypt 
continues to be of strategic importance to the United States, 
the issues of human rights and democracy will take a back seat; 
that short-term geopolitical considerations will continue to 
take precedence over long-term stability and security 
interests. That message may suit the short-term interests of 
the United States, but it will prove disastrous in the long run 
to both our national interest and the values of political and 
civil decency for which we are supposed to stand.

                                                        David Obey.

                                  
