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 any 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) with respect to each project for which such funds remain unexpended, the justification for such funds not having been expended.

Directs the Inspector General of the Agency for International Development (AID), as soon as possible after the submission regarding unexpended balances is made, to submit to the appropriate congressional committees: (1) recommendations for reducing the amount of such balances; and (2) comments with regard to justifications for unexpended balances.

Requires the President, at the beginning of each fiscal year, 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. Exempts funds described by the Foreign Assistance Act of 1961 that may be used for winding up programs. Authorizes the President to waive such requirement, on a case-by-case basis, 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. Provides for comments by the AID Inspector General on such report.