Loan Guarantee to Israel Program

President Clinton determined that of $307 million in FY1997 loan guarantee authority for Israel, $247 million would be exempted from statutory deduction requirements under section 226(d) of the Foreign Assistance Act, leaving only $60 million subject to those deductions. The determination authorized the Secretary of State to transmit this to Congress and publish it in the Federal Register.

Federal Register Open PDF 61 FR 56867

Impact dates

Sep 30, 1996
Determination effective date for FY1997 loan guarantee authority

Key directives

Determine $307 million in loan guarantee authority subject to section 226(d) deduction requirements
Reduce $247 million of that amount without regard to section 226(d) or other provisions within scope of section 614
Authorize $247 million to remain available under sections 226(a) and (b)
Direct $60 million to be deducted under section 226(d)
Transmit determination to Congress
Arrange for Federal Register publication

Who is ordered

Secretary of State · Department of State

Timeline

Immediate

Loan guarantee authority allocation takes effect for FY1997
$247 million exempted from section 226(d) deduction requirements

Near term (90d)

Congressional notification transmitted
Federal Register publication arranged

Long term

—

Risks & tensions

Waiver of statutory deduction requirements using section 614(a)(1) authority represents executive override of congressional conditions on foreign aid
Section 226(d) deductions historically tied to Israeli settlement activity; waiver may reflect diplomatic prioritization over congressional policy preferences
No explicit congressional consultation requirement in text beyond transmission