To provide for the deobligation of certain unexpended balances of funds made available for foreign economic assistance.

Requires the annual congressional presentation materials for foreign economic assistance to include: (1) an identification of foreign economic assistance funds that, as of September 30 of the preceding fiscal year, had been obligated for a period of two years or more but had not been expended; (2) a certification that the purposes for which such funds were obligated remain valid; and (3) the justification for such funds not having been expended, with respect to each project for which such funds remain unexpended.

Directs the Inspector General of the Agency for International Development to report to the appropriate congressional committees: (1) recommendations for reducing the amount of such unexpended balances; and (2) comments with regard to justifications for funds not having been expended.

Requires the President to deobligate and return to the Treasury any foreign economic assistance funds that, as of the end of the preceding fiscal year, have been obligated for a period of more than three years but have not been expended. Authorizes the President, on a case-by-case basis, to waive such requirement if he reports to the appropriate congressional committees that the funds: (1) are being used for a construction project that requires more than three years to complete; or (2) have not been expended because of unforeseen circumstances.