Economic Assistance Reform Act of 1991 - Amends the Foreign Assistance Act of 1961 and the International Security and Development Cooperation Act of 1985 to repeal provisions relating to the earmarking of foreign assistance program funds.
Authorizes the President to furnish assistance for infrastructure development. Specifies that such assistance shall include: (1) development of energy resources; (2) programs of reconstruction following natural or manmade disasters and programs of disaster preparedness; and (3) programs designed to help solve special development problems in the poorest countries and to make possible proper utilization of infrastructure and related projects funded with earlier U.S. assistance.
Authorizes the President to furnish assistance to: (1) schools and libraries outside the United States serving as study and demonstration centers for ideas and practices of the United States; and (2) hospital centers for medical education and research outside the United States, founded or sponsored by U.S. citizens.
Authorizes appropriations for foreign economic assistance by regions of the world. Specifies such regions as: (1) Africa; (2) Asia; (3) Central America; (4) Europe; (5) Latin America and the Caribbean; and (6) the Near East.
Requires the Administrator of the Agency for International Development (AID) to administer the programs, projects, and activities for which such funds are appropriated. Requires that on or after October 1, 1991, authorizations of appropriations shall be made with reference to such regions.
Expresses the sense of the Congress that the President should continue to make efforts to improve the management of the foreign assistance program, including efforts to: (1) streamline the project development process; (2) increase decentralization of field missions; (3) reduce the number and increase the duration and sustainability of projects which are funded; (4) decrease recurring costs; (5) prepare a more detailed analysis of the impact of AID projects for inclusion in the annual congressional presentation materials; (6) expand overseas tours for personnel and streamline mid-level management; (7) streamline the contract process; and (8) coordinate the U.S. economic assistance effort. Requires the Administrator of AID to report to the Congress concerning proposals to improve the management of the foreign assistance program. Requires the President to conduct a study on the feasibility and impact of reducing the number of countries receiving economic assistance and the feasibility of incorporating the AID into the Department of State.
Expresses the sense of the Congress that: (1) the foreign assistance program should be funded on a two-year cycle; (2) the President should begin preparing a foreign assistance budget for FY 1994 and 1995; (3) funds appropriated for foreign assistance should remain available for expenditure without fiscal year limitations; and (4) the appropriations and authorization committees of each House of the Congress should hold joint hearings on the foreign assistance program and should coordinate their duties with the Committee on the Budget of each House of the Congress.
Increases from ten to 25 percent the percentage of funds that may be transferred between foreign assistance accounts. Removes a limitation on the amount by which an account may be increased through the receipt of transferred funds.
Revises the restrictions on economic aid to debtor countries to allow such aid for a period of three years after a default of one calendar year if the President certifies that the likelihood of repayment by such country would be increased by such waiver.
S 378 IS 102d CONGRESS 1st Session S. 378 To amend the Foreign Assistance Act of 1961 to improve management of economic assistance, and for other purposes. IN THE SENATE OF THE UNITED STATES February 6, 1991 Mrs. KASSEBAUM introduced the following bill; which was read twice and referred to the Committee on Foreign Relations A BILL To amend the Foreign Assistance Act of 1961 to improve management of economic assistance, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SHORT TITLE SECTION 1. This Act may be cited as the `Economic Assistance Reform Act of 1991'. ELIMINATION OF EARMARKS IN EXISTING LAW SEC. 2. (a)(1) The Congress finds that excessive earmarking of funds by the Congress has imposed severe constraints on the management of the foreign assistance program. (2) The Congress hereby expresses its intention to eliminate in the future any further earmarks imposed on the funding of economic assistance. (b)(1) Section 123(f) of the Foreign Assistance Act of 1961 is repealed. (2) Section 904 of the International Security and Development Cooperation Act of 1985 is repealed. PROVISION OF INFRASTRUCTURE ASSISTANCE; CONSOLIDATION OF ECONOMIC ASSISTANCE ACCOUNTS SEC. 3. (a)(1) Chapter 1 of part I of the Foreign Assistance Act of 1961 is amended by adding at the end thereof the following new section: `SEC. 129. INFRASTRUCTURE ASSISTANCE- (a) The Congress finds that infrastructure development is a vital element in the development process. Without the basic, underlying framework of communication and transportation facilities, the development process is severely limited. The Congress is concerned that unless a focus is given to infrastructure development, other development efforts to promote human welfare and economic growth will be undermined. Investments to increase the supply of food and to improve education and health facilities as well as economic growth will not be effective without the development of an infrastructure which will enhance market accessibility and development of an effective communications network. Improving the infrastructure in developing countries will help to improve the sustainability of overall development efforts. `(b) The President is authorized to furnish assistance to develop, rehabilitate, expand, and maintain communications, marketing, and transportation networks in order to stimulate production, make food distribution easier, enhance health and education efforts, and improve overall economic growth by making market accessibility and trade easier and more affordable. `(c) The President is authorized to furnish assistance, on such terms and conditions as he may determine, for the following activities, to the extent that such activities are not authorized by sections 103, 104, and 105 of this Act: `(1) assistance to enable developing countries to prepare for and undertake development of their energy resources and to encourage private investment in energy infrastructure; `(2) programs of reconstruction following natural or manmade disasters and programs of disaster preparedness, including the prediction of and contingency planning for natural disasters abroad; and `(3) programs designed to help solve special development problems in the poorest countries and to make possible proper utilization of infrastructure and related projects funded with earlier United States assistance.'. (2) Section 102(b)(5) of such Act is amended by inserting `infrastructure development;' after `human resources development;'. (b)(1) Section 105 of the Foreign Assistance Act of 1961 is amended by adding at the end thereof the following new subsection: `(c)(1) The President is authorized to furnish assistance, on such terms and conditions as he may specify, to schools and libraries outside the United States founded or sponsored by United States citizens and serving as study and demonstration centers for ideas and practices of the United States. `(2) The President is authorized, notwithstanding the provisions of the Mutual Defense Assistance Control Act of 1951 (22 U.S.C. 1611 et seq.) to furnish assistance, on such terms and conditions as he may specify, to institutions referred to in paragraph (1), and to hospital centers for medical education and research outside the United States, founded or sponsored by United States citizens. `(3) Notwithstanding the provisions of paragraph (2), funds available under this section may be used for assistance to centers for pediatric plastic and reconstructive surgery established by Children's Medical Relief International, except that assistance may not be furnished for the domestic operations of any such center located in the United States, its territories or possessions.'. (2) Section 214 of such Act is repealed. (c) Section 104(c)(2) of such Act is amended-- (1) by striking out `(A)' after `(2)'; and (2) by striking out subparagraphs (B) and (C). AUTHORIZATION OF APPROPRIATIONS FOR ECONOMIC ASSISTANCE BY REGIONS OF THE WORLD SEC. 4. (a) Chapter 1 of part I of the Foreign Assistance Act of 1961, as amended by section 3(a)(1) of this Act, is further amended by adding at the end thereof the following new section: `SEC. 130. AUTHORIZATION OF APPROPRIATIONS- (a)(1) There are authorized to be appropriated to the President to carry out the following activities with respect to the following regions of the world: `(A) Africa-- `(i) to carry out this chapter (relating to economic development assistance), $ for the fiscal year 1992 and $ for the fiscal year 1993, and `(ii) to carry out chapter 4 of part II (relating to economic support assistance), $ for the fiscal year 1992 and $ for the fiscal year 1993, `(B) Asia-- `(i) to carry out this chapter (relating to economic development assistance), $ for the fiscal year 1992 and $ for the fiscal year 1993, and `(ii) to carry out chapter 4 of part II (relating to economic support assistance), $ for the fiscal year 1992 and $ for the fiscal year 1993, `(C) Central America-- `(i) to carry out this chapter (relating to economic development assistance), $ for the fiscal year 1992 and $ for the fiscal year 1993, and `(ii) to carry out chapter 4 of part II (relating to economic support assistance), $ for the fiscal year 1992 and $ for the fiscal year 1993, `(D) Europe-- `(i) to carry out this chapter (relating to economic development assistance), $ for the fiscal year 1992 and $ for the fiscal year 1993, and `(ii) to carry out chapter 4 of part II (relating to economic support assistance), $ for the fiscal year 1992 and $ for the fiscal year 1993, `(E) Latin America and the Caribbean-- `(i) to carry out this chapter (relating to economic development assistance), $ for the fiscal year 1992 and $ for the fiscal year 1993, and `(ii) to carry out chapter 4 of part II (relating to economic support assistance), $ for the fiscal year 1992 and $ for the fiscal year 1993, and `(F) the Near East-- `(i) to carry out this chapter (relating to economic development assistance), $ for the fiscal year 1992 and $ for the fiscal year 1993, and `(ii) to carry out chapter 4 of part II (relating to economic support assistance), $ for the fiscal year 1992 and $ for the fiscal year 1993. `(2) Amounts appropriated under this section are authorized to remain available until expended. `(b) Subject to the foreign policy guidance of the Secretary of State, the Administrator of the Agency for International Development, or of any successor agency, shall administer the programs, projects, and activities for which funds are appropriated under this section. `(c) Appropriations pursuant to this section may be referred to as `Economic Assistance'. (b)(1) On or after October 1, 1991, any reference to an authorization of appropriations contained in chapter 1 of part I of such Act or contained in chapter 4 of part II of such Act, or to appropriations made pursuant to any such chapter, shall be deemed to be a reference to an authorization of appropriations contained in section 130 of the Foreign Assistance Act of 1961 or appropriations made pursuant to such section, as the case may be. (2) On or after October 1, 1991-- (A) assistance provided under chapter 1 of part I of such Act may be referred to as `Economic Development Assistance'; and (B) assistance provided under chapter 4 of part II of such Act may be referred to as `Economic Support Assistance'. (c) The amendment made by subsection (a) shall take effect on October 1, 1991. TECHNICAL AMENDMENTS SEC. 5. (a) Section 103(a)(2) of the Foreign Assistance Act of 1961 is amended-- (1) by striking out the first sentence; and (2) in the second sentence, by striking out `Of these amounts' and inserting in lieu thereof `Of the assistance provided under this section'. (b) Section 104(g) of such Act is repealed. (c) Section 105(a) of such Act is amended by striking out the second sentence thereof. (d) Section 106 of such Act is repealed. (e) Sections 120 and 121 of such Act are repealed. (f)(1) The heading for chapter 4 of part II of the Foreign Assistance Act of 1961 is amended to read as follows: `CHAPTER 4--ECONOMIC SUPPORT ASSISTANCE'. (2) Section 531 of such Act is amended-- (A) by redesignating subsection (c) as subsection (c)(1); (B) in the second sentence of subsection (c)(1), as redesignated by this paragraph, by striking out `transfers,' and all that follows through `chapter' and inserting in lieu thereof `transfers and the amounts and kinds of budgetary and balance-of-payments support provided with funds made available under this chapter'; and (C) by adding at the end of subsection (c)(1), as redesignated by this paragraph, the following new paragraph: `(2) The authorities of this chapter shall not be available for the furnishing of project assistance.'. (3) Section 532 of such Act is repealed. POLICY ON FURTHER MANAGEMENT REFORM SEC. 6. (a) The Congress hereby expresses its intention, with respect to the foreign assistance program, to minimize the number of reporting requirements, changes in policy direction, and other attempts to micromanage the program. (b) It is the sense of the Congress that the President should continue to make efforts to improve the management of the foreign assistance program, including efforts-- (1) to streamline the project development process and shorten the time from project conception to implementation; (2) to increase decentralization of field missions; (3) to reduce the number of projects and to increase the duration, and to increase the sustainability, of projects which are funded; (4) to decrease recurring costs; (5) to prepare a more detailed analysis of the impact of Agency for International Development projects for inclusion in the annual congressional presentation materials, together with a more thorough economic justification for the program for the next fiscal year; (6) to expand overseas tours for personnel and streamline mid-level management; (7) to streamline the contract process; and (8) to coordinate the United States economic assistance effort, including examination of the adequacy of the existing interagency coordinating mechanism, the need to reinvigorate the Development Coordination Committee, and the need and importance of multidonor coordination in Washington, D.C., and in field missions. (c) Not later than February 1, 1992, the Administrator of the Agency for International Development shall prepare and transmit to the Speaker of the House of Representatives and the chairman of the Committee on Foreign Relations of the Senate a report-- (1) describing whatever recommendations and actions have been taken by the Agency with respect to paragraphs (1) through (6) of subsection (b) and any other proposals to improve management of the foreign assistance program; and (2) setting forth the findings of the study described in subsection (d). (d) The President shall conduct a study on the feasibility and impact of reducing the number of countries receiving economic assistance and also the feasibility of incorporating the Agency for International Development into the Department of State. (e) It is further the sense of the Congress that-- (1) the foreign assistance program should be funded on a two-year cycle; (2) the President should begin preparing a foreign assistance budget for the fiscal years 1994 and 1995; (3) funds appropriated for foreign assistance should remain available for expenditure without fiscal year limitations; and (4) the appropriations and authorization committees of each House of Congress should hold joint hearings on the foreign assistance program and should otherwise coordinate their duties with the Committee on the Budget of each House of Congress. TRANSFER BETWEEN ACCOUNTS SEC. 7. Section 610 of the Foreign Assistance Act of 1961 is amended-- (1) by striking out `10 per centum' and inserting in lieu thereof `25 per centum'; and (2) by striking out `, except that' and all that follows through `such provision'. ASSISTANCE FOR DEBTOR COUNTRIES SEC. 8. Section 620(q) of the Foreign Assistance Act of 1961 is amended-- (1) by striking out `(q) No' and inserting in lieu thereof `(q)(1) Subject to paragraph (2), no'; and (2) by adding at the end thereof the following new paragraph: `(2) The prohibition contained in paragraph (1) shall not apply to a country for a period of 3 years after a default of one calendar year by such country if the President certifies that the likelihood of repayment by such country would be increased thereby.'.
Introduced in Senate
Read twice and referred to the Committee on Foreign Relations.
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