Title 22, Foreign Relations and IntercourseRelease 119-110
§2395 General Authorities
Title 22 › CHAPTER 32 — FOREIGN ASSISTANCE › SUBCHAPTER III — GENERAL AND ADMINISTRATIVE PROVISIONS › Part II — Administrative Provisions › § 2395
Summary
Lets U.S. foreign aid be given as grants or loans, but prefers loans when it helps reach the program goals. The President can make loans, advances, or grants and sign agreements with people, companies, friendly governments, and international groups at home or abroad to carry out these programs. The President may use services of approved nonprofit groups, accept gifts or bequests for these purposes, and pay health and accident insurance for foreign participants and for foreign employees when they are away from home or work for training or program duties. Foreign participants can come to the United States as nonimmigrants if they meet the rules in 8 U.S.C. 1101(a)(15) and follow regulations set by the Secretary of State and the Attorney General. When making loans, the President can issue letters of credit or commitment, collect or settle debts, acquire or sell property (with limits on buying stock directly), set how loan expenses are handled, and must keep full accounting records that the Government Accountability Office will audit under chapter 91 of title 31. Certain contracts under parts of the chapter may run up to five years. Investment-guaranty claims can be settled or arbitrated and those results are final. Section 955 of title 18 does not stop people from taking part in these operations. Contracts with colleges may include fixed-rate payments for indirect costs. The USAID Administrator may use program funds for oversight in countries without an agency office. USAID also has a working capital fund, available without fiscal-year limit, to pay for shared administrative support and credit-card rebates; its capital, reimbursements, year-end excess transfers to the Treasury, and how returned property is charged are set by the law.
Full Legal Text
Title 22, §2395
Foreign Relations and Intercourse, Source: USLM XML via OLRC
(a)Manner of furnishing assistance; emphasis on loans
Except as otherwise specifically provided in this chapter, assistance under this chapter may be furnished on a grant basis or on such terms, including cash, credit, or other terms of repayment (including repayment in foreign currencies or by transfer to the United States Government of commodities) as may be determined to be best suited to the achievement of the purposes of this chapter, and shall emphasize loans rather than grants wherever possible.
(b)Authority of the President
The President may make loans, advances, and grants to, make and perform agreements and contracts with, or enter into other transactions with, any individual, corporation, or other body of persons, friendly government or government agency, whether within or without the United States, and international organizations in furtherance of the purposes and within the limitations of this chapter.
(c)Utilization of services and facilities of voluntary, nonprofit organizations
It is the sense of Congress that the President, in furthering the purposes of this chapter, shall use to the maximum extent practicable the services and facilities of voluntary, nonprofit organizations registered with, and approved by, the Agency for International Development.
(d)Acceptance of gifts, devises, bequests, grants, etc.
The President may accept and use in furtherance of the purposes of this chapter, money, funds, property, and services of any kind made available by gift, devise, bequest, grant, or otherwise for such purpose.
(e)Health and accident insurance for foreign participants and foreign employees
(1)Any agency of the United States Government is authorized to pay the cost of health and accident insurance for foreign participants in any program of furnishing technical information and assistance administered by such agency while such participants are absent from their homes for the purpose of participation in such program.
(2)Any agency of the United States Government is authorized to pay the cost of health and accident insurance for foreign employees of that agency while those employees are absent from their place of employment abroad for purposes of training or other official duties.
(f)Admission of alien participants
Alien participants in any program of furnishing technical information and assistance under this chapter may be admitted to the United States if otherwise qualified as nonimmigrants under section 1101(a)(15) of title 8, for such time and under such conditions as may be prescribed by regulations promulgated by the Secretary of State and the Attorney General.
(g)Powers and authorities of the President with respect to loans
In making loans under this chapter, the President—
(1)may issue letters of credit and letters of commitment;
(2)may collect or compromise any obligations assigned to, or held by, and any legal or equitable rights accruing to him, and, as he may determine, refer any such obligations or rights to the Attorney General for suit or collection;
(3)may acquire and dispose of, upon such terms and conditions as he may determine, any property, including any instrument evidencing indebtedness or ownership (provided that equity securities may not be directly purchased although such securities may be acquired by other means such as by exercise of conversion rights or through enforcement of liens or pledges or otherwise to satisfy a previously incurred indebtedness), and guarantee payment against any such instrument;
(4)may determine the character of, and necessity for, obligations and expenditures of funds used in making such loans and the manner in which they shall be incurred, allowed, and paid, subject to provisions of law specifically applicable to corporations of the United States Government; and
(5)shall cause to be maintained an integral set of accounts which shall be audited by the Government Accountability Office in accordance with principles and procedures applicable to commercial corporate transactions as provided by chapter 91 of title 31.
(h)Term of contracts and agreements
A contract or agreement which entails commitments for the expenditure of funds made available under part I (except development loans) and subpart II of part II of subchapter I and under subchapter II of this chapter, may, subject to any future action of the Congress, extend at any time for not more than five years.
(i)Settlement and arbitration of claims arising under investment guaranty operations
Claims arising as a result of investment guaranty operations may be settled, and disputes arising as a result thereof may be arbitrated with the consent of the parties, on such terms and conditions as the President may direct. Payment made pursuant to any such settlement, or as a result of an arbitration award, shall be final and conclusive notwithstanding any other provision of law.
(j)Financial transactions with foreign governments; exemption
The provisions of section 955 of title 18 shall not apply to prevent any person, including any individual, partnership, corporation, or association, from acting for, or participating in, any operation or transaction arising under this chapter, or from acquiring any obligation issued in connection with any operation or transaction arising under this chapter.
(k)Cost-type contracts with educational institutions; payment of reimbursable indirect costs
Any cost-type contract or agreement (including grants) entered into with a university, college, or other educational institution for the purpose of carrying out programs authorized by subchapter I of this chapter may provide for the payment of the reimbursable indirect costs of said university, college, or other educational institution on the basis of predetermined fixed-percentage rates applied to the total, or an element thereof, of the reimbursable direct costs incurred.
(l)Program oversight
The Administrator of the agency primarily responsible for administering subchapter I of this chapter may use funds made available under that subchapter to provide program and management oversight for activities that are funded under that subchapter and that are conducted in countries in which the agency does not have a field mission or office.
(m)Working capital fund
(1)There is established a working capital fund (in this subsection referred to as the “fund”) for the United States Agency for International Development (in this subsection referred to as the “Agency”) which shall be available without fiscal year limitation for the expenses of personal and nonpersonal services, equipment, and supplies for—
(A)International Cooperative Administrative Support Services; and
(B)rebates from the use of United States Government credit cards.
(2)The capital of the fund shall consist of—
(A)the fair and reasonable value of such supplies, equipment, and other assets pertaining to the functions of the fund as the Administrator determines,
(B)rebates from the use of United States Government credit cards, and
(C)any appropriations made available for the purpose of providing capital,
minus related liabilities.
(3)The fund shall be reimbursed or credited with advance payments for services, equipment, or supplies provided from the fund from applicable appropriations and funds of the Agency, other Federal agencies and other sources authorized by section 2357 of this title at rates that will recover total expenses of operation, including accrual of annual leave and depreciation. Receipts from the disposal of, or payments for the loss or damage to, property held in the fund, rebates, reimbursements, refunds and other credits applicable to the operation of the fund may be deposited in the fund.
(4)At the close of each fiscal year the Administrator of the Agency shall transfer out of the fund to the miscellaneous receipts account of the Treasury of the United States such amounts as the Administrator determines to be in excess of the needs of the fund.
(5)The fund may be charged with the current value of supplies and equipment returned to the working capital of the fund by a post, activity, or agency, and the proceeds shall he credited to current applicable appropriations.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a) to (d), (g), and (j), was in the original “this Act”, meaning Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, known as the Foreign Assistance Act of 1961. For complete classification of this Act to the Code, see
Short Title
note set out under section 2151 of this title and Tables. Codification In subsec. (g)(5), “chapter 91 of title 31” substituted for “the Government Corporation Control Act, as amended (31 U.S.C. 841 et seq.)” on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.
Amendments
2004—Subsec. (g)(5). Pub. L. 108–271 substituted “Government Accountability Office” for “General Accounting Office”. 2000—Subsec. (l). Pub. L. 106–264 added subsec. (l). Subsec. (m). Pub. L. 106–309 added subsec. (m). 1979—Subsec. (c). Pub. L. 96–53 substituted “Agency for International Development” for “Advisory Committee on Voluntary Foreign Aid”. 1978—Subsec. (h). Pub. L. 95–424 substituted “part I (except development loans) and subpart II of part II of subchapter I” for “subparts II, V, and VI of part II of subchapter I (except development loans)”. 1967—Subsec. (e). Pub. L. 90–137, § 302(i)(1), designated existing provisions as par. (1) and added par. (2). Subsec. (g). Pub. L. 90–137, § 302(i)(2), struck out “and sales” after “loans” in introductory clause. 1966—Subsec. (h). Pub. L. 89–583 excluded development loans under the Alliance for Progress from the provision that contracts or agreements which entail commitments for the expenditure of funds may not extend for more than five years. 1965—Subsec. (g). Pub. L. 89–171 inserted “and sales” in introductory clause. 1963—Subsec. (k). Pub. L. 88–205 added subsec. (k). 1962—Subsec. (h). Pub. L. 87–565 included sections 2211 to 2213 of this title within the limitation on the duration of contracts and agreements.
Statutory Notes and Related Subsidiaries
References to Subchapter I Deemed To Include Certain Parts of Subchapter II, and References to Subchapter II Deemed To Exclude Such PartsReferences 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 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.
Effective Date
of 1967 Amendment Pub. L. 90–137, pt. III, § 302(i)(2), Nov. 14, 1967, 81 Stat. 461, provided in part that amendment of subsec. (g) by such section 302(i)(2) shall take effect on
June 30, 1968. Information to Congressional Committees on Negotiations Regarding Debts Owed United States by Foreign Governments; Transmittal to Congress of Debt Modification Proposals Pub. L. 93–333, § 4,
July 8, 1974, 88 Stat. 290, relating to cancellation, renegotiation, etc., of any debt owed by a foreign government, was repealed by Pub. L. 95–424, title VI, § 603(b), Oct. 6, 1978, 92 Stat. 961. Termination of Advisory CommitteesAdvisory committees in existence on Jan. 5, 1973, to terminate not later than the expiration of the 2-year period following Jan. 5, 1973, unless, in the case of a committee established by the President or an officer of the Federal Government, such committee is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a committee established by the Congress, its duration is otherwise provided by law. See section 1013 of Title 5, Government Organization and Employees.
Executive Documents
Delegation of Functions For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title. International AgreementsThe negotiation, conclusion, and termination of international agreements pursuant to this chapter shall be subject to requirements of section 112b of Title 1, General Provisions, and to applicable
Regulations
and procedures, see section 1–604 of Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56677, eff. Oct. 1, 1979, set out as a note under section 2381 of this title.
Reference
Citations & Metadata
Citation
22 U.S.C. § 2395
Title 22, Foreign Relations and Intercourse
Last Updated
Sep 23, 2026
Release point: 119-110