To provide for the transfer of certain military assistance funds allocated for El Salvador for fiscal year 1992 to the Demobilization and Transition Fund.

Directs the President to transfer to the Demobilization and Transition Fund for El Salvador (established pursuant to the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991) a specified amount of funds allocated for foreign military financing for El Salvador for FY 1992 under any joint resolution making continuing appropriations. Requires the transfer to the Fund of 50 percent of funds for such financing for El Salvador provided under such a joint resolution or the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1992 (excluding the funds released by the President) if a pardon (other than a pardon pursuant to an agreement between the parties to the conflict in El Salvador) is granted to any of the army officers convicted of the November 1989 murders at the University of Central America.