Intelligence Activities Oversight Improvement Act

Intelligence Activities Oversight Improvement Act - Amends the Foreign Assistance Act of 1961 to repeal the provision that limited spending for intelligence operations in foreign countries to those operations which the President found to be important to the U.S. national security.

Amends the National Security Act of 1947 to require the Director of Central Intelligence and the heads of other agencies involved in intelligence activities to keep the Senate Select Committee on Intelligence and the House Permanent Select Committee on Intelligence fully and currently informed of all U.S. intelligence activities, including any significant anticipated intelligence activity. (Current law imposes the same requirement except that: (1) current law declares that such requirement shall not require approval of the intelligence committees before initiating an anticipated intelligence activity; and (2) if the President determines that extraordinary circumstances require that prior notice must be limited, such notice shall be limited to specified members of Congress.)

Prohibits any special intelligence activity from being initiated unless and until the activity has been approved by the President and the President has made a written finding that: (1) such activity is essential to the national defense or the conduct of foreign policy; (2) such activity is consistent with and in support of the publicly avowed foreign policy; (3) the anticipated benefits of such activity justify the foreseeable risks and likely consequences of its disclosure to a foreign power; (4) overt or less sensitive alternatives would not be likely to achieve the intended objective; and (5) the circumstances require the use of extraordinary means. Prohibits conducting a special activity which is not within a category of special activities authorized by the President unless and until the President submits a report to the intelligence committees containing the required presidential findings and other specified information. Permits limiting the prior notice to specified members of the intelligence committees so long as the remaining members are notified within 48 hours. Requires the President to submit additional information to the committees, upon request.

Permits the President to authorize special activities by category but such a category of activities may not be authorized unless the President: (1) personally finds that activities falling within the category are important to national security; and (2) reports, before any activity within the category is commenced, a description of the category and a justification for conducting activities within the category to the intelligence committees. Requires the National Security Council to supervise each activity falling within such category and to ensure that each activity remains consistent with the nature and scope of the category. Directs the President to provide the intelligence committees, upon request, with additional information on specific activities undertaken within a category of activities.

Prohibits spending funds to support any clandestine paramilitary or military activity unless specifically authorized, or in the case of a country or territory invaded, attacked, or occupied by the armed forces of another country, the President, in addition to other findings, determines that providing such clandestine support is essential in order to meet extraordinary circumstances affecting vital interests of the United States. Defines "special activity" to mean any activity conducted in support of national foreign policy objectives abroad which are planned and executed so that the U.S. role is not apparent or acknowledged publicly but which are not intended to influence U.S. opinion and do not include diplomatic activities or the collection and production of intelligence or related support functions.

Declares that these amendments to the National Security Act shall not apply to activities undertaken pursuant to a declaration of war approved by Congress.