El Salvador Military Aid Reduction and Restrictions Act of 1990

El Salvador Military Aid Reduction and Restrictions Act of 1990 - Limits the amount of military assistance for El Salvador for FY 1991. Prohibits the provision of such assistance if the President reports to the Congress that: (1) the Salvadoran Government has declined to participate in negotiations for a permanent settlement and cease-fire to the armed conflict; (2) the Salvadoran Government has failed to support an active role for the United Nations Secretary General in mediating such settlement; (3) the Salvadoran Government has failed to conduct an investigation into, and prosecution of those responsible for, the murders at the University of Central America; (4) the Salvadoran military and security forces are engaging in violent acts against civilians or are failing to control such activities by elements subject to their control; or (5) the Salvadoran Government's representatives are not negotiating in good faith in the United Nations-sponsored negotiations with the Farabundo Marti National Liberation Front (FMLN). Provides for the resumption of such assistance pursuant to a law enacted by the Congress.

Withholds 50 percent of military assistance allocated for FY 1990 and 1991 and of unobligated assistance for prior fiscal years. Releases such assistance only if: (1) the FMLN have declined to participate in settlement negotiations or have refused to accept the Secretary General's role in such settlement; (2) the survival of the Salvadoran Government is being jeopardized by FMLN actions; (3) proof exists that the FMLN is continuing to acquire significant shipments of lethal military assistance from outside El Salvador; (4) the FMLN is engaging in violent acts against civilians or is failing to control such activities by elements subject to its control; or (5) the FMLN representatives are not negotiating in good faith in the United Nations-sponsored negotiations with the Salvadoran Government.

Prohibits U.S. assistance to El Salvador if the elected head of the government is deposed by military coup or decree. Provides for the resumption of such assistance pursuant to a law enacted by the Congress.

Establishes the Demobilization and Transition Fund to assist in monitoring a settlement of the conflict and in demobilizing combatants in such conflict and aiding their transition to peaceful pursuits. Makes amounts in the Fund available only if the President notifies the Congress that a permanent settlement of the conflict has been reached. Transfers withheld military assistance to the Fund on the date of such notification or on September 30, 1991, if no notification has occurred.

Authorizes the delivery of U.S. military assistance to the Salvadoran armed forces only with the prior approval of the elected president of El Salvador.

Directs the Secretary of State, through agreement with the National Endowment for Democracy or other qualified organizations, to establish a program to strengthen democratic political and legal institutions in El Salvador. Makes available economic support fund assistance for such program. Earmarks a specified amount for elections monitoring.

Withholds a specified amount of military assistance for El Salvador until the President reports to the Committees on Appropriations that the Salvadoran Government has pursued all legal avenues to bring to trial those responsible for the murders of certain land reformers, peasants, priests, and unionists.