Kosova Peace and Democracy Act of 1994

Kosova Peace and Democracy Act of 1994 - Expresses the sense of the Congress with respect to ethnic relations and human rights in Kosova.

Continues specified sanctions imposed against Serbia and Montenegro until the President certifies to the Congress that: (1) there is progress toward restoration of the independent identity and autonomy of Kosova; (2) there is improvement in the human rights situation in Kosova; (3) international human rights observers are allowed to return to Kosova; and (4) the elected government of Kosova is permitted to meet. Prohibits any funding on behalf of Serbia and Montenegro until such conditions have been met. Directs the Secretary of the Treasury to instruct the U.S. executive directors of the international financial institutions to oppose assistance to Serbia or Montenegro, except for basic human needs, until such conditions have been met.

Authorizes the President to waive or modify such sanctions, prohibitions, or conditions if necessary to meet emergency humanitarian needs or achieve a settlement of the conflict in Kosova acceptable to the parties.

Directs the Chairman of the Board for International Broadcasting to submit a plan and a budget for the establishment of a surrogate home service under the auspices of Radio Free Europe/Radio Liberty for Albanian populations living in Kosova and other areas of the former Yugoslavia.