Loan Guarantee to Israel Program

President Clinton issued a determination under the Foreign Assistance Act of 1961 regarding $303 million in Fiscal Year 1996 loan guarantee authority for Israel. The determination waived the standard $243 million deduction requirement, allowing that amount to remain available while applying the deduction to only $60 million.

Federal Register Open PDF 60 FR 53087

Impact dates

Sep 29, 1995
Determination signed and effective

Key directives

Authorize $243 million in loan guarantee authority to remain available without Section 226(d) deduction
Apply $60 million deduction pursuant to Section 226(d)
Transmit determination to Congress
Arrange for Federal Register publication

Who is ordered

Secretary of State · Department of State

Timeline

Immediate

Determination takes effect upon signing
Secretary of State directed to transmit to Congress and arrange Federal Register publication

Near term (90d)

FY 1996 loan guarantee authority becomes available under modified terms

Long term

—

Risks & tensions

Waiver of statutory deduction requirements using Section 614(a)(1) authority may raise separation-of-power concerns about circumventing congressional conditions
Substantial reduction in required deduction (from $243M to $60M) represents significant policy discretion