Title 22 — Foreign Relations and IntercourseRelease 119-73not60
§2361 Completion of Plans and Cost Estimates
Title 22 › Chapter 32— FOREIGN ASSISTANCE › Subchapter III— GENERAL AND ADMINISTRATIVE PROVISIONS › Part I— General Provisions › § 2361
Summary
Federal agencies must not enter into any grant or agreement that would commit the U.S. government to more than $500,000 under the named assistance programs unless certain steps are done first. If the deal needs technical or financial planning, agencies must finish the engineering, financial, and other plans and prepare a reasonably firm cost estimate. If the deal needs the recipient country to pass laws, those laws must be expected to happen in time for the project to work. For water or related land construction projects, the plans must include a benefits-and-costs calculation following the Water Resources Planning Act. Construction contracts abroad should be awarded competitively whenever practical. The $500,000 rule does not apply when the assistance is only to prepare plans. For capital projects estimated to cost more than $1,000,000, the agency head must get and consider a written statement from the agency’s top officer in that country about the country’s financial and human ability to maintain and use the project, taking into account past projects the United States helped finance.
Full Legal Text
Title 22, §2361
Foreign Relations and Intercourse — Source: USLM XML via OLRC
(a)No agreement or grant which constitutes an obligation of the United States Government in excess of $500,000 under section 1501 of title 31 shall be made for any assistance authorized under part I of subchapter I of this chapter, subpart II of part II of subchapter I of this chapter, or part IV of subchapter II of this chapter—
(1)if such agreement or grant requires substantive technical or financial planning, until engineering, financial, and other plans necessary to carry out such assistance, and a reasonably firm estimate of the cost to the United States Government of providing such assistance, have been completed; and
(2)if such agreement or grant requires legislative action within the recipient country, unless such legislative action may reasonably be anticipated to be completed in time to permit the orderly accomplishment of the purposes of such agreement or grant.
(b)Plans required under subsection (a) of this section for any water or related land resource construction project or program shall include a computation of benefits and costs made insofar as practicable in accordance with the principles, standards, and procedures established pursuant to the Water Resources Planning Act (42 U.S.C. 1962, et seq.) or acts amendatory or supplementary thereto.
(c)To the maximum extent practicable, all contracts for construction outside the United States made in connection with any agreement or grant subject to subsection (a) of this section shall be made on a competitive basis.
(d)Subsection (a) of this section shall not apply to any assistance furnished for the sole purpose of preparation of engineering, financial, and other plans.
(e)In addition to any other requirements of this section, no assistance authorized under part I of subchapter I of this chapter, subpart II of part II of subchapter I of this chapter, or part IV of subchapter II of this chapter shall be furnished with respect to any capital assistance project estimated to cost in excess of $1,000,000 until the head of the agency primarily responsible for administering subchapter I of this chapter has received and taken into consideration a certification from the principal officer of such agency in the country in which the project is located as to the capability of the country (both financial and human resources) to effectively maintain and utilize the project taking into account among other things the maintenance and utilization of projects in such country previously financed or assisted by the United States.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
The Water Resources Planning Act, referred to in subsec. (b), is Pub. L. 89–80, July 22, 1965, 79 Stat. 244, which is classified generally to chapter 19B (§ 1962 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see
Short Title
note set out under section 1962 of Title 42 and Tables.
Amendments
1985—Subsec. (a). Pub. L. 99–83, § 1208(1), substituted “$500,000” for “$100,000”. Pub. L. 99–83, § 1211(b)(2), substituted reference to section 1501 of title 31, for reference to section 1311 of the Supplemental Appropriation Act, 1955. Subsec. (b). Pub. L. 99–83, § 1208(2), substituted “the principles, standards, and procedures established pursuant to the Water Resources Planning Act (42 U.S.C. 1962, et seq.) or acts amendatory or supplementary thereto” for “the procedures set forth in the Principles and Standards for Planning Water and Related Land Resources, dated
October 25, 1973, with respect to such computations”. 1979—Subsec. (b). Pub. L. 96–53 substituted “Principles and Standards for Planning Water and Related Land Resources, dated
October 25, 1973” for “Memorandum of the President dated
May 15, 1962”. 1978—Subsec. (a). Pub. L. 95–424, § 102(g)(2)(D), substituted “part I of subchapter I of this chapter, subpart II of part II of subchapter I of this chapter, or part IV of subchapter II of this chapter” for “subparts I, II, and VI of part II and part IV of subchapter I of this chapter”. Subsec. (e). Pub. L. 95–424, § 102(g)(2)(E), substituted “part I of subchapter I of this chapter, subpart II of part II of subchapter I of this chapter, or part IV of subchapter II of this chapter” for “subparts I, II, or VI of part II or part IV of subchapter I of this chapter”. 1967—Subsec. (e). Pub. L. 90–137 added subsec. (e). 1963—Subsec. (b). Pub. L. 88–205 substituted “the Memorandum of the President dated
May 15, 1962,” for “circular A–47 of the Bureau of the Budget.” 1962—Subsec. (a). Pub. L. 87–565 included subpart VI of part II of subchapter I of this chapter within the restriction.
Statutory Notes and Related Subsidiaries
References to Subchapter I Deemed To Include Certain Parts of Subchapter IIReferences to subchapter I of this chapter are deemed to include parts IV (§ 2346 et seq.), VI (§ 2348 et seq.), and VIII (§ 2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of Pub. L. 92–226, set out as a note under section 2346 of this title, and section 2348c and 2349aa–5 of this title. References to Part I Deemed To Include section 2293References to part I of subchapter I of this chapter are deemed to include a reference to section 2293 of this title. See section 2293(d)(1) of this title.
Effective Date
of 1985 AmendmentAmendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section 2151–1 of this title.
Effective Date
of 1979 AmendmentAmendment by Pub. L. 96–53 effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as a note under section 2151 of this title.
Effective Date
of 1978 AmendmentAmendment by Pub. L. 95–424 effective Oct. 1, 1978, see section 605 of Pub. L. 95–424, set out as a note under section 2151 of this title.
Reference
Citations & Metadata
Citation
22 U.S.C. § 2361
Title 22 — Foreign Relations and Intercourse
Last Updated
Apr 5, 2026
Release point: 119-73not60