A bill to provide that, unless the Government of El Salvador actively participates in negotiations with all major parties to the conflict which are willing to participate unconditionally in negotiations for the purpose of achieving a cease-fire and an equitable political solution to hostilities, United States military support for El Salvador shall be terminated, with military assistance funds to be transferred for use for development and humanitarian assistance.

Amends the Foreign Assistance Act of 1961 to provide that American military assistance may not be provided to El Salvador unless the President, after consulting with Congress, transmits to Congress a report stating that: (1) El Salvador has engaged in negotiations with all concerned parties to end the conflict there; or (2) El Salvador cannot proceed with such negotiations because specified parties are not willing to participate in the negotiation process.

Provides that any unobligated funds allocated pursuant to this Act shall be: (1) used for development assistance projects in El Salvador; (2) used for aid for persons displaced by the strife; or (3) deposited in the U.S. Treasury.

Permits the introduction of U.S. forces into El Salvador to evacuate U.S. citizens or if there is a clear and present danger of attack upon the United States.