Millennium Challenge Act of 2003
A bill to establish the Millennium Challenge Corporation, and for other purposes.
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Read twice and referred to the Committee on Foreign Relations.
June 11, 2003
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Introduced in Senate
June 11, 2003
Sponsor introductory remarks on measure. (CR S7729-7730)
June 11, 2003
Read twice and referred to the Committee on Foreign Relations.
June 11, 2003
Floor Debate
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Floor Debate
8 membersWhat members said about S. 1240 on the floor
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Bill Text
Latest available legislative text
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1240 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 1240
To establish the Millennium Challenge Corporation, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 11, 2003
Mr. Lugar introduced the following bill; which was read twice and
referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To establish the Millennium Challenge Corporation, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Millennium
Challenge Act of 2003''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings; purpose.
Sec. 3. Definitions.
TITLE I--MILLENNIUM CHALLENGE ASSISTANCE
Sec. 101. Establishment and management of the Millennium Challenge
Corporation.
Sec. 102. Authorization for Millennium Challenge assistance.
Sec. 103. Candidate country.
Sec. 104. Eligible country.
Sec. 105. Eligible entity.
Sec. 106. Millennium Challenge Contract.
Sec. 107. Suspension of assistance to an eligible country.
Sec. 108. Disclosure.
Sec. 109. Annual report to Congress.
TITLE II--STRUCTURE, FUNCTION, AND POWERS OF THE MILLENNIUM CHALLENGE
CORPORATION
Sec. 201. Chief executive officer.
Sec. 202. Millennium Challenge Board.
Sec. 203. Coordination with USAID.
Sec. 204. Powers of the Corporation.
Sec. 205. Principal office.
Sec. 206. Personnel authorities.
Sec. 207. Personnel outside the United States.
Sec. 208. Use of services of other agencies.
Sec. 209. Administrative authorities.
Sec. 210. Applicability of chapter 91 of title 31, United States code.
TITLE III--THE MILLENNIUM CHALLENGE ACCOUNT AND AUTHORIZATION OF
APPROPRIATIONS
Sec. 301. Establishment of the Millennium Challenge Account.
Sec. 302. Authorization of appropriations.
SEC. 2. FINDINGS; PURPOSE.
(a) Findings.--Congress makes the following findings:
(1) On March 14, 2002, President George W. Bush stated that
``America supports the international development goals in the
U.N. Millennium Declaration, and believes that the goals are a
shared responsibility of developed and developing countries.''
The President also called for a ``new compact for global
development, defined by new accountability for both rich and
poor nations'' and pledged support for increased assistance
from the United States through the establishment of a
Millennium Challenge Account for countries that govern justly,
invest in their own people, and encourage economic freedom.
(2) The elimination of extreme poverty and the achievement
of the other international development goals of the United
Nations Millennium Declaration adopted by the United Nations
General Assembly on September 8, 2000, are important objectives
and it is appropriate for the United States to make development
assistance available in a manner that will assist in achieving
such goals.
(3) The availability of financial assistance through a
Millennium Challenge Account, linked to performance by
developing countries, can contribute significantly to the
achievement of the international development goals of the
United Nations Millennium Declaration.
(b) Purposes.--The purposes of this Act are--
(1) to provide United States assistance for global
development through the Millennium Challenge Corporation, as
described in section 102; and
(2) to provide such assistance in a manner that promotes
economic growth and the elimination of extreme poverty and
strengthens good governance, economic freedom, and investments
in people.
SEC. 3. DEFINITIONS.
In this Act:
(1) Board.--The term ``Board'' means the Millennium
Challenge Board established by section 202.
(2) Candidate country.--The term ``candidate country''
means a country that meets the criteria set out in section 103.
(3) CEO.--The term ``CEO'' means the chief executive
officer of the Corporation.
(4) Corporation.--The term ``Corporation'' means the
Millennium Challenge Corporation established by section 101.
(5) Eligible country.--The term ``eligible country'' means
a candidate country that is determined, under section 104, as
being eligible to receive assistance under this Act.
(6) Millennium challenge account.--The term ``Millennium
Challenge Account'' means the account established under section
301.
TITLE I--MILLENNIUM CHALLENGE ASSISTANCE
SEC. 101. ESTABLISHMENT AND MANAGEMENT OF THE MILLENNIUM CHALLENGE
CORPORATION.
(a) Establishment.--There is established in the executive branch a
corporation within the meaning of section 103 of title 5, United States
Code, to be known as the Millennium Challenge Corporation with the
structure, function, and powers described in title II.
(b) Management of the Corporation.--
(1) In general.--The responsibility for the management of
the Corporation shall be vested in a chief executive officer,
who shall report to the Secretary of State.
(2) Consultation.--The CEO shall consult with the Board in
carrying out the responsibility described in paragraph (1).
SEC. 102. AUTHORIZATION FOR MILLENNIUM CHALLENGE ASSISTANCE.
(a) Authority.--The Corporation is authorized to provide assistance
to an eligible entity consistent with the purposes of this Act set out
in section 2(b) to conduct programs or projects consistent with the
objectives of a Millennium Challenge Contract. Assistance provided
under this Act may be provided notwithstanding any other provision of
law.
(b) Exception.--Assistance under this Act may not be used for
military assistance or training.
(c) Form of Assistance.--Assistance under this Act may be provided
in the form of grants to eligible entities.
(d) Coordination.--The provision of assistance under this Act shall
be coordinated with other United States foreign assistance programs.
(e) Applications.--An eligible entity seeking assistance under this
Act to conduct programs or projects consistent with the objectives of a
Millennium Challenge Contract shall submit a proposal for the use of
such assistance to the Board in such manner and accompanied by such
information as the Board may reasonably require.
SEC. 103. CANDIDATE COUNTRY.
(a) In General.--A country is a candidate country for the purposes
of this Act--
(1) during fiscal year 2004, if such country is eligible to
receive loans from the International Development Association;
(2) during fiscal year 2005, if the per capita income of
such country is less than the historical per capita income
cutoff of the International Development Association for that
year; and
(3) during any fiscal year after 2005--
(A) for which more than $5,000,000,000 has been
appropriated to the Millennium Challenge Account, if
the country is classified as a lower middle income
country by the World Bank on the first day of such
fiscal year; or
(B) for which not more than $5,000,000,000 has been
appropriated to such Millennium Challenge Account, the
per capita income of such country is less than the
historical per capita income cutoff of the
International Development Association for that year.
(b) Limitation on Assistance to Certain Candidate Countries.--In a
fiscal year in which subparagraph (A) of subsection (a)(3) applies with
respect to determining candidate countries, not more than 20 percent of
the amounts appropriated to the Millennium Challenge Account shall be
available for assistance to countries that would not be candidate
countries if subparagraph (B) of subsection (a)(3) applied during such
year.
SEC. 104. ELIGIBLE COUNTRY.
(a) Determination by the Board.--The Board shall determine whether
a candidate country is an eligible country by evaluating the
demonstrated commitment of the government of the candidate country to--
(1) just and democratic governance, including a
demonstrated commitment to--
(A) promote political pluralism and the rule of
law;
(B) respect human and civil rights;
(C) protect private property rights;
(D) encourage transparency and accountability of
government; and
(E) limit corruption;
(2) economic freedom, including a demonstrated commitment
to economic policies that--
(A) encourage citizens and firms to participate in
global trade and international capital markets;
(B) promote private sector growth; and
(C) strengthen market forces in the economy; and
(3) investments in the people of such country, including
improving the availability of educational opportunities and
health care for all citizens of such country.
(b) Assessing Eligibility.--
(1) In general.--To evaluate the demonstrated commitment of
a candidate country for the purposes of subsection (a), the
Board shall use objective and quantifiable indicators of a
candidate country's performance with respect to the criteria
described in paragraphs (1), (2), and (3) of such subsection.
(2) Annual publication of indicators.--
(A) Initial publication.--Not later than 45 days
prior to the final publication of indicators under
subparagraph (B) in any year, the Board shall publish
in the Federal Register and make available on the
Internet the indicators that the Board proposes to use
for the purposes of paragraph (1) in such year.
(B) Final publication.--Not later than 15 days
prior to the selection of eligible countries in any
year, the Board shall publish in the Federal Register
and make available on the Internet the indicators that
are to be used for the purposes of paragraph (1) in
such year.
(3) Consideration of public comment.--The Board shall
consider any comments on the proposed indicators published
under paragraph (2)(A) that are received within 30 days after
the publication of such indicators when selecting the
indicators to be used for the purposes of paragraph (1).
SEC. 105. ELIGIBLE ENTITY.
(a) Assistance.--Any eligible entity may receive assistance under
this Act to carry out a project in an eligible country for the purpose
of making progress toward achieving an objective of a Millennium
Challenge Contract.
(b) Determinations of Eligibility.--The Board shall determine
whether a person or governmental entity is an eligible entity for the
purposes of this section.
(c) Eligible Entities.--For the purposes of this section, an
eligible entity is--
(1) a government, including a local or regional government;
or
(2) a nongovernmental organization or other private entity.
SEC. 106. MILLENNIUM CHALLENGE CONTRACT.
(a) In General.--The Board shall invite the government of an
eligible country to enter into a Millennium Challenge Contract with the
Corporation. A Millennium Challenge Contract shall establish a
multiyear plan for the eligible country to achieve specific objectives
consistent with the purposes set out in section 2(b).
(b) Content.--A Millennium Challenge Contract shall include--
(1) specific objectives to be achieved by the eligible
country during the term of the Contract;
(2) a description of the actions to be taken by the
government of the eligible country and the United States
Government for achieving such objectives;
(3) the role and contribution of private entities,
nongovernmental organizations, and other organizations in
achieving such objectives;
(4) a description of beneficiaries, to the extent possible
disaggregated by gender;
(5) regular benchmarks for measuring progress toward
achieving such objectives;
(6) a schedule for achieving such objectives;
(7) a schedule of evaluations to be performed to determine
whether the country is meeting its commitments under the
Contract;
(8) a statement that the Corporation intends to consider
the eligible country's performance in achieving such objectives
in making decisions about providing continued assistance under
the Contract;
(9) the strategy of the eligible country to sustain
progress made toward achieving such objectives after the
expiration of the Contract;
(10) a plan to ensure financial accountability for any
assistance provided to a person or government in the eligible
country under this Act; and
(11) a statement that nothing in the Contract may be
construed to create a legally binding or enforceable obligation
on the United States Government or on the Corporation.
(c) Requirement for Consultation.--The Corporation shall seek to
ensure that the government of an eligible country consults with private
entities and nongovernmental organizations in the eligible country for
the purpose of ensuring that the terms of a Millennium Challenge
Contract entered into by the Corporation and the eligible country--
(1) reflect the needs of the rural and urban poor in the
eligible country; and
(2) provide means to assist poor men and women in the
eligible country to escape poverty through their own efforts.
SEC. 107. SUSPENSION OF ASSISTANCE TO AN ELIGIBLE COUNTRY.
The Secretary of State shall direct the CEO to suspend the
provision of assistance to an eligible country under a Millennium
Challenge Contract during any period for which such eligible country is
ineligible to receive assistance under a provision of the Foreign
Assistance Act of 1961 (22 U.S.C. 2151 et seq.).
SEC. 108. DISCLOSURE.
(a) Requirement for Disclosure.--The Corporation shall make
available to the public on a continuous basis and on the earliest
possible date, the following information:
(1) A list of the candidate countries determined to be
eligible countries during any year.
(2) The text of each Millennium Challenge Contract entered
into by the Corporation.
(3) For assistance provided under this Act--
(A) the name of each entity to which assistance is
provided;
(B) the amount of assistance provided to the
entity; and
(C) a description of the program or project for
which assistance was provided.
(4) For each eligible country, an assessment of--
(A) the progress made during each year by an
eligible country toward achieving the objectives set
out in the Millennium Challenge Contract entered into
by the eligible country; and
(B) the extent to which assistance provided under
this Act has been effective in helping the eligible
country to achieve such objectives.
(b) Dissemination.--The information required to be disclosed under
subsection (a) shall be made available to the public by means of
publication in the Federal Register and posting on the Internet, as
well as by any other methods that the Board determines appropriate.
SEC. 109. ANNUAL REPORT TO CONGRESS.
Not later than January 31 of each year, the President shall submit
to Congress a report on the assistance provided under this Act during
the prior fiscal year. The report shall include--
(1) information regarding obligations and expenditures for
assistance provided to each eligible country in the prior
fiscal year;
(2) a discussion, for each eligible country, of the
objectives of such assistance;
(3) a description of the coordination of assistance under
this Act with other United States foreign assistance and
related trade policies;
(4) a description of the coordination of assistance under
this Act with the contributions of other donors; and
(5) any other information the President considers relevant
to assistance provided under this Act.
TITLE II--STRUCTURE, FUNCTION, AND POWERS OF THE MILLENNIUM CHALLENGE
CORPORATION
SEC. 201. CHIEF EXECUTIVE OFFICER.
(a) In General.--The President shall appoint, by and with the
advice and consent of the Senate, a chief executive officer of the
Corporation.
(b) Relationship to the Secretary of State.--The CEO shall report
to and be under the direct authority and foreign policy guidance of the
Secretary of State. The Secretary of State shall coordinate the
provision of United States foreign assistance.
(c) Duties.--The CEO shall, in consultation with the Board, direct
the performance of all functions and the exercise of all powers of the
Corporation, including--
(1) ensuring program and policy coordination among agencies
of the United States Government in carrying out this Act;
(2) ensuring that assistance under this Act is coordinated
with other United States economic assistance programs;
(3) pursuing coordination with other countries and
international organizations with respect to assistance to
countries receiving assistance under this Act;
(4) ensuring proper management, implementation, and
oversight by agencies of the United States Government
responsible for assistance under this Act; and
(5) resolving policy, program, and funding disputes among
agencies of the United States Government involved in carrying
out this Act.
(d) Executive Level II.--Section 5313 of title 5, United States
Code, is amended by adding at the end the following:
``Chief Executive Officer, Millennium Challenge
Corporation.''.
SEC. 202. MILLENNIUM CHALLENGE BOARD.
(a) Establishment of the Board.--There is established a Millennium
Challenge Board.
(b) Composition.--The Board shall be composed of the following
members:
(1) The Secretary of State, who shall serve as the Chair of
the Board.
(2) The Secretary of the Treasury.
(3) The Administrator of the United States Agency for
International Development.
(4) The CEO.
(5) The United States Trade Representative.
(c) Functions of the Board.--The Board shall perform the functions
specified to be carried out by the Board in this Act.
SEC. 203. COORDINATION WITH USAID.
(a) Requirement for Coordination.--An employee of the Corporation
assigned to a United States diplomatic mission or consular post or a
United States Agency for International Development field mission in a
foreign country shall, in a manner that is consistent with the
authority of the Chief of Mission, coordinate the performance of the
functions of the Corporation in such country with the officer in charge
of the United States Agency of International Development programs
located in such country.
(b) USAID Programs.--The Administrator of the United States Agency
for International Development shall seek to ensure that appropriate
programs of the Agency play a primary role in preparing candidate
countries to become eligible countries under section 104.
SEC. 204. POWERS OF THE CORPORATION.
(a) Powers.--The Corporation--
(1) shall have perpetual succession unless dissolved by an
Act of Congress;
(2) may adopt, alter, and use a seal, which shall be
judicially noticed;
(3) may prescribe, amend, and repeal such rules,
regulations, and procedures as may be necessary for carrying
out the functions of the Corporation;
(4) may make and perform such contracts, grants, and other
agreements with any person or government however designated and
wherever situated, as may be necessary for carrying out the
functions of the Corporation;
(5) may determine and prescribe the manner in which its
obligations shall be incurred and its expenses allowed and
paid, including expenses for representation;
(6) may lease, purchase, or otherwise acquire, improve, and
use such real property wherever situated, as may be necessary
for carrying out the functions of the Corporation;
(7) may accept cash gifts or donations of services or of
property (real, personal, or mixed), tangible or intangible,
for the purpose of carrying out the provisions of this Act;
(8) may use the United States mails in the same manner and
on the same conditions as the executive departments of
Government;
(9) may contract with individuals for personal services,
who shall not be considered Federal employees for any provision
of law administered by the Office of Personnel Management;
(10) may hire or obtain passenger motor vehicles; and
(11) shall have such other powers as may be necessary and
incident to carrying out this Act.
(b) Contracting Authority.--The functions and powers authorized by
this Act may be performed without regard to any provision of law
regulating the making, performance, amendment, or modification of
contracts, grants, and other agreements.
SEC. 205. PRINCIPAL OFFICE.
The Corporation shall maintain its principal office in the
metropolitan area of Washington, District of Columbia.
SEC. 206. PERSONNEL AUTHORITIES.
(a) Requirement To Prescribe a Human Resources Management System.--
The CEO shall, jointly with the Director of the Office of Personnel
Management, prescribe regulations that establish a human resources
management system, including a retirement benefits program, for the
Corporation.
(b) Relationship to Other Laws.--
(1) Inapplicability of certain laws.--Except as provided in
paragraph (2), the provisions of title 5, United States Code,
and of the Foreign Service Act of 1980 (22 U.S.C. 3901 et seq.)
shall not apply to the human resource management program
established pursuant to paragraph (1).
(2) Application of certain laws.--The human resources
management system established pursuant to subsection (a) may
not waive, modify, or otherwise affect the application to
employees of the Corporation of the following provisions:
(A) Section 2301 of title 5, United States Code.
(B) Section 2302(b) of such title.
(C) Chapter 63 of such title (relating to leave).
(D) Chapter 72 of such title (relating to
antidiscrimination).
(E) Chapter 73 of such title (relating to
suitability, security, and conduct).
(F) Chapter 81 of such title (relating to
compensation for work injuries).
(G) Chapter 85 of such title (relating to
unemployment compensation).
(H) Chapter 87 of such title (relating to life
insurance).
(I) Chapter 89 of such title (relating to health
insurance).
(J) Chapter 90 of such title (relating to long-term
care insurance).
(3) Relationship to retirement benefits laws.--The
retirement benefits program referred to in subsection (a) shall
permit the employees of the Corporation to be eligible, unless
the CEO determines otherwise, for benefits under--
(A) subchapter III of chapter 83 and chapter 84 of
title 5, United States Code (relating to retirement
benefits); or
(B) chapter 8 of title I of the Foreign Service Act
of 1980 (22 U.S.C. 4041 et seq.) (relating to the
Foreign Service Retirement and Disability System).
(c) Appointment and Termination.--Except as otherwise provided in
this section, the CEO may, without regard to any civil service or
Foreign Service law or regulation, appoint and terminate employees as
may be necessary to enable the Corporation to perform its duties.
(d) Compensation.--
(1) Authority to fix compensation.--Subject to the
provisions of paragraph (2), the CEO may fix the compensation
of employees of the Corporation.
(2) Limitations on compensation.--The compensation for an
employee of the Corporation may not exceed the lesser of--
(A) the rate of compensation established under
title 5, United States Code, or any Foreign Service law
for an employee of the Federal Government who holds a
position that is comparable to the position held by the
employee of the Corporation; or
(B) the rate of pay prescribed for level IV of the
Executive Schedule under section 5315 of title 5,
United States Code.
(e) Term of Employment.--
(1) In general.--Except as provided in paragraphs (2) and
(3), no individual may be employed by the Corporation for a
total period of employment that exceeds 5 years.
(2) Excepted positions.--The CEO, and not more than 3 other
employees of the Corporation who are designated by the CEO, may
be employed by the Corporation for an unlimited period of
employment.
(3) Waiver.--The CEO may waive the maximum term of
employment described in paragraph (1) if the CEO determines
that such waiver is essential to the achievement of the
purposes of this Act.
(f) Authority for Temporary Employees.--The CEO may procure
temporary and intermittent services under section 3109(b) of title 5,
United States Code, at rates for individuals which do not exceed the
daily equivalent of the annual rate of basic pay prescribed for level V
of the Executive Schedule under section 5316 of such title.
(g) Detail of Federal Employees to the Corporation.--Any Federal
Government employee may be detailed to the Corporation on a fully or
partially reimbursable or on a nonreimbursable basis, and such detail
shall be without interruption or loss of civil service or Foreign
Service status or privilege.
(h) Reinstatement.--An employee of the Federal Government serving
under a career or career conditional appointment, or the equivalent, in
a Federal agency who transfers to or converts to an appointment in the
Corporation with the consent of the head of the agency is entitled to
be returned to the employee's former position or a position of like
seniority, status, and pay without grade or pay reduction in the agency
if the employee--
(1) is being separated from the Corporation for reasons
other than misconduct, neglect of duty, or malfeasance; and
(2) applies for return to the agency not later than 30 days
before the date of the termination of the employment in the
Corporation.
SEC. 207. PERSONNEL OUTSIDE THE UNITED STATES.
(a) Assignment to United States Embassies.--An employee of the
Corporation, including an individual detailed to or contracted by the
Corporation, may be assigned to a United States diplomatic mission or
consular post or a United States Agency for International Development
field mission.
(b) Privileges and Immunities.--The Secretary of State shall seek
to ensure that an employee of the Corporation, including an individual
detailed to or contracted by the Corporation, and the members of the
family of such employee, while the employee is performing duties in any
country or place outside the United States, enjoy the privileges and
immunities that are enjoyed by a member of the Foreign Service, or the
family of a member of the Foreign Service, as appropriate, of
comparable rank and salary of such employee, if such employee or a
member of the family of such employee is not a national of or
permanently resident in such country or place.
(c) Responsibility of Chief of Mission.--An employee of the
Corporation, including an individual detailed to or contracted by the
Corporation, and a member of the family of such employee, shall be
subject to section 207 of the Foreign Service Act of 1980 (22 U.S.C.
3927) in the same manner as United States Government employees while
the employee is performing duties in any country or place outside the
United States if such employee or member of the family of such employee
is not a national of or permanently resident in such country or place.
SEC. 208. USE OF SERVICES OF OTHER AGENCIES.
The Corporation may utilize the information services, facilities
and personnel of, or procure commodities from, any agency of the United
States Government on a fully or partially reimbursable or
nonreimbursable basis under such terms and conditions as may be agreed
to by the head of such agency and the Corporation for carrying out this
Act.
SEC. 209. ADMINISTRATIVE AUTHORITIES.
The Corporation is authorized to use any of the administrative
authorities contained in the State Department Basic Authorities Act of
1956 (22 U.S.C. 2651a et seq.) and the Foreign Assistance Act of 1961
(22 U.S.C. 2151 et seq.) unless such authority is inconsistent with a
provision of this Act.
SEC. 210. APPLICABILITY OF CHAPTER 91 OF TITLE 31, UNITED STATES CODE.
The Corporation shall be subject to chapter 91 of title 31, United
States Code.
TITLE III--THE MILLENNIUM CHALLENGE ACCOUNT AND AUTHORIZATION OF
APPROPRIATIONS
SEC. 301. ESTABLISHMENT OF THE MILLENNIUM CHALLENGE ACCOUNT.
There is established on the books of the Treasury an account to be
known as the Millennium Challenge Account that shall be administered by
the CEO under the direction of the Board. All amounts made available to
carry out the provisions of this Act shall be deposited into such
Account and such amounts shall be available to carry out such
provisions.
SEC. 302. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated to carry
out the provisions of this Act $1,000,000,000 for fiscal year 2004,
$2,300,000,000 for fiscal year 2005, and $5,000,000,000 for fiscal year
2006.
(b) Availability.--Funds appropriated under subsection (a)--
(1) are authorized to remain available until expended,
subject to appropriations acts; and
(2) are in addition to funds otherwise available for such
purposes.
(c) Allocation of Funds.--
(1) In general.--The Corporation may allocate or transfer
to any agency of the United States Government any of the funds
available for carrying out this Act. Such funds shall be
available for obligation and expenditure for the purposes for
which authorized, in accordance with authority granted in this
Act or under authority governing the activities of the agencies
of the United States Government to which such funds are
allocated or transferred.
(2) Notification.--The notification requirements of section
634A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2394-
1(a)) shall apply to any allocation or transfer of funds made
pursuant to paragraph (1).
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