To establish a fellowship program to enable American teachers and others with expertise necessary for the transition from a communist system to a democratic, market economy system to share their knowledge and skills with the people of the emerging democracies of Eastern Europe.

Directs the Administrator of the United States Information Agency (the Administrator) to establish a fellowship program for American teachers and others with expertise necessary for the transition from a communist system to a democratic, market economy system to share their knowledge and skills with the people of the emerging democracies of Eastern Europe (including Yugoslavia).

Requires solicitation of proposals from relevant U.S. and East European organizations and individuals in determining East European needs and establishing long-range planning guidelines and priorities for the fellowship program. Requires establishment of review panels to advise the Administrator on: (1) planning and priorities; (2) selection of fellowship recipients; and (3) program evaluation.

Limits each fellowship to not more than 24 months.

Authorizes appropriations.