Prisoner Transfer Equity Act of 1994

Prisoner Transfer Equity Act of 1994 - Urges the President to begin to negotiate prisoner transfer treaties and renegotiate existing treaties with countries that currently have more prisoners in U.S. prisons than there are U.S. citizens in their prisons in order to relieve overcrowding in Federal and State prisons, focusing on the transfer of illegal aliens who are serving in U.S. prisons. Requires the President to report to the Congress on the progress of such negotiations.

Specifies that, if such a report indicates that no progress has been made in negotiations with a foreign country, that such country is unwilling to proceed with serious negotiations, and that the United States has a greater number of prisoners who are citizens of that country than the number of prisoners in that country who are U.S. citizens, not less than one percent nor more than ten percent of U.S. assistance allocated for such country, as determined by the President, shall be withheld until the President certifies to the Congress that progress has been made in negotiations with that country to carry out the purpose of this Act.

Authorizes the President to waive such provision if withholding assistance would jeopardize the relationship between the United States and that foreign country and that would not be in the national interest. Requires the President, if exercising such waiver authority, to submit a statement in writing to the Congress setting forth the justification for the exercise of such waiver.

Urges the President to use such diplomatic and other efforts as may be necessary to ensure progress in negotiating prisoner transfer treaties to carry out the purpose of this Act.