To end American subsidization of entities contributing to weapons proliferation.

Requires the Director of Central Intelligence (DCI) to submit to the chairmen and ranking minority members of specified congressional committees an annual report identifying each foreign entity which, during the preceding two years, transferred a controlled item (any of certain items listed on nuclear supplies lists or chemical or biological weapons) to another entity for: (1) a missile project of concern; (2) activities to develop, produce, stockpile, or deliver chemical or biological weapons; or (3) nuclear activities in countries that do not maintain full International Atomic Energy Agency safeguards or equivalent full scope safeguards.

Prohibits certain economic and export subsidies with respect to identified countries. Waives such prohibition if the DCI certifies to such members that the entity has ceased to make such transfers and is unlikely to resume doing so.