To provide assistance for free and fair elections in Nicaragua.

Authorizes the Administrator of the Agency for International Development (AID) to use specified amounts of unexpended funds for assistance for the promotion of democracy and national reconciliation in Nicaragua. Restricts the use of such funds to assistance to internal groups, including political organizations, independent elements of the media, labor unions, business groups, support for the election process and monitoring, and support intended to ensure the conduct of free, fair, and open elections consistent with the charter of the National Endowment for Democracy. Earmarks funds for the Council of Freely-Elected Heads of Government, the Center for Democracy, and the Center for Training and Election Promotion.

Requires AID to report to the appropriate congressional committees prior to the obligation of funds under this Act.

Expresses the sense of the Congress that the National Opposition Union's representative on the Supreme Electoral Council will seek to ensure that any funds going to the Council are used solely for technical electoral purposes, such as ballot boxes and ballot printing.

Makes funds under this Act available until February 28, 1990.