SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Agency for International Development 
Efficiency and Effectiveness Act of 1994''.

SEC. 2. REDUCTIONS IN SPENDING FOR DEVELOPMENT ASSISTANCE BY THE AGENCY 
              FOR INTERNATIONAL DEVELOPMENT.

    For fiscal years 1995 through 1999, budget authority and outlays 
for development assistance shall be less than the CBO baseline by at 
least the following amounts:
            (1) Fiscal year 1995.--For fiscal year 1995, budget 
        authority shall be at least $580,000,000 less and outlays shall 
        be at least $40,000,000 less.
            (2) Fiscal year 1996.--For fiscal year 1996, budget 
        authority shall be at least $600,000,000 less and outlays shall 
        be at least $290,000,000 less.
            (3) Fiscal year 1997.--For fiscal year 1997, budget 
        authority shall be at least $610,000,000 less and outlays shall 
        be at least $430,000,000 less.
            (4) Fiscal year 1998.--For fiscal year 1998, budget 
        authority shall be at least $630,000,000 less and outlays shall 
        be at least $500,000,000 less.
            (5) Fiscal year 1999.--For fiscal year 1999, budget 
        authority shall be at least $640,000,000 less and outlays shall 
        be at least $560,000,000 less.

SEC. 3. STEPS TO IMPLEMENT REDUCTIONS.

    (a) In General.--To achieve the budget savings provided for in 
section 2, the Agency for International Development shall narrow its 
focus and fund fewer development assistance projects and activities. 
This shall be accomplished--
            (1) by funding only projects and activities that have 
        objectives that are more attainable than the numerous 
        objectives that are specified in the provisions of law in 
        effect on the date of enactment of this Act; and
            (2) by funding only projects and activities that are in the 
        countries that are most likely to benefit from such development 
        assistance.
    (b) Reduction in Number of Recipient Countries.--
            (1) In general.--The Agency for International Development 
        shall target development assistance to lower income countries 
        that have economic policies designed to encourage growth 
        through free markets and trade, thereby reducing the number of 
        countries that receive development assistance from that agency 
        to approximately 60.
            (2) Ineligible countries.--The Agency for International 
        Development may not provide development assistance for--
                    (A) middle income countries, or
                    (B) lower income countries where development 
                assistance has not shown results.
    (c) Reduction in Number of Objectives.--
            (1) In general.--The Agency for International Development 
        may provide development assistance only for projects and 
        activities that focus on alleviating poverty and promoting 
        economic development.
            (2) Termination of housing investment guaranty program.--
        Guaranties may not be issued under sections 221 and 222 of the 
        Foreign Assistance Act of 1961 after September 30, 1994.
            (3) Transfer of responsibility for other programs to other 
        agencies.--(A) The President shall transfer responsibility for 
        administering all development assistance programs that have an 
        objective other than alleviating poverty and promoting economic 
        development from the Agency for International Development to an 
        agency of the United States Government whose mission is closer 
        to that objective.
            (B) In carrying out subparagraph (B), the President--
                    (i) shall transfer private sector activities from 
                the Agency for International Development to the 
                Overseas Private Investment Corporation; and
                    (ii) shall transfer responsibility for 
                environmental protection activities in developing 
                countries to the Environmental Protection Agency.
            (4) Transferred programs.--(A) The head of each agency to 
        which responsibility for a program is transferred pursuant to 
        paragraph (3) shall determine, nothwithstanding any other 
        provision of law--
                    (i) which such programs shall be continued, and
                    (ii) what policies and authorities shall be 
                applicable to any such program that is continued.
            (B) Programs which are transferred from the Agency for 
        International Development to another agency pursuant to 
        paragraph (3) and continued pursuant to subparagraph (A)(i) of 
        this paragraph shall be carried out by that agency with funds 
        appropriated for that agency rather than with development 
        assistance funds or other funds in budget function 150 
        (international affairs).
    (d) Existing Provisions Superseded.--To the extent necessary to 
achieve the budget savings provided for in section 2, this section 
supersedes provisions of law enacted prior to the date of enactment of 
this Act that would otherwise be applicable to development assistance 
provided by the Agency for International Development.
    (e) Effective Date.--This section shall be effective as of October 
1, 1994.

SEC. 4. DEFINITIONS.

    As used in this Act--
            (1) the term ``CBO baseline'' means the baseline budget 
        projections used by the Congressional Budget Office in 
        preparing its February 1993 reported entitled ``Reducing the 
        Deficit: Spending and Revenue Options'', which was submitted to 
        the Committee on the Budget of the House of Representatives and 
        the Committee on the Budget of the Senate pursuant to section 
        202(f) of the Congressional Budget and Impoundment Control Act 
        of 1974; and
            (2) the term ``development assistance'' means assistance 
        under chapter 1 of part I of the Foreign Assistance Act of 1961 
        (relating to the functional development assistance accounts) 
        and assistance under chapter 10 of that part (relating to the 
        Development Fund for Africa).

                                 

HR 3775 IH
Agency for International Development Efficiency and Effectiveness Act of 1994 - Reduces budget authority and outlays for development assistance by specified amounts below the Congressional Budget Office baseline in FY 1995 through 1999. 
Requires the Agency for International Development (AID) to narrow its focus and fund fewer development assistance projects to achieve such budget savings. 
Directs AID to target assistance to lower income countries that have economic policies designed to encourage growth through free markets and trade, thereby reducing the number of countries that receive development assistance to approximately 60. 
Bars development assistance for middle income countries or lower income countries where such assistance has not shown results. 
Permits AID to provide assistance only for projects that focus on alleviating poverty and promoting economic development. 
Terminates the housing investment guaranty program under the Foreign Assistance Act of 1961 after September 30, 1994. 
Requires the President to transfer responsibility for administering all development assistance programs that have an objective other than alleviating poverty and promoting economic development from AID to a Government agency whose mission is closer to the objective.  Transfers:  (1) private sector activities to the Overseas Private Investment Corporation; and (2) environmental protection activities in developing countries to the Environmental Protection Agency.  Requires transferred programs to be carried out with funds appropriated for that agency rather than with development assistance or international affairs program funds. 
Provides that this Act supersedes existing law applicable to AID development assistance.
Agency for International Development Efficiency and Effectiveness Act of 1994