Agency for International Development Efficiency and Effectiveness Act of 1994

Agency for International Development Efficiency and Effectiveness Act of 1994 - Reduces budget authority and outlays for development assistance by specified amounts below the Congressional Budget Office baseline in FY 1995 through 1999.

Requires the Agency for International Development (AID) to narrow its focus and fund fewer development assistance projects to achieve such budget savings.

Directs AID to target assistance to lower income countries that have economic policies designed to encourage growth through free markets and trade, thereby reducing the number of countries that receive development assistance to approximately 60.

Bars development assistance for middle income countries or lower income countries where such assistance has not shown results.

Permits AID to provide assistance only for projects that focus on alleviating poverty and promoting economic development.

Terminates the housing investment guaranty program under the Foreign Assistance Act of 1961 after September 30, 1994.

Requires the President to transfer responsibility for administering all development assistance programs that have an objective other than alleviating poverty and promoting economic development from AID to a Government agency whose mission is closer to the objective. Transfers: (1) private sector activities to the Overseas Private Investment Corporation; and (2) environmental protection activities in developing countries to the Environmental Protection Agency. Requires transferred programs to be carried out with funds appropriated for that agency rather than with development assistance or international affairs program funds.

Provides that this Act supersedes existing law applicable to AID development assistance.