Creation of a Middle East Peace and Stability Fund Using Current- and Prior-Year Economic Support Funds Appropriated for Egypt

President Clinton determined it important to U.S. security interests to transfer up to $50 million in current- and prior-year Economic Support Funds originally appropriated for Egypt to Jordan instead, bypassing normal statutory restrictions under section 614(a)(1) of the Foreign Assistance Act of 1961. The Secretary of State was directed to transmit this determination to Congress and publish it in the Federal Register.

Federal Register Open PDF 62 FR 44065

Impact dates

Aug 7, 1997
Determination signed and authority exercised
Aug 7, 1997
Transmit determination to Congress and arrange Federal Register publication

Key directives

Transfer up to $50 million in current- and prior-year Economic Support Funds from Egypt to Jordan
Exercise section 614(a)(1) waiver authority to bypass normal statutory restrictions
Transmit determination to Congress
Arrange for Federal Register publication

Who is ordered

Secretary of State · Department of State

Timeline

Immediate

Determination signed and authority exercised to reallocate up to $50 million in ESF from Egypt to Jordan
Secretary of State directed to notify Congress and arrange Federal Register publication

Near term (90d)

Funds transfer and disbursement to Jordan under chapter 4 of part II of Foreign Assistance Act

Long term

Potential precedent for future reprogramming of bilateral aid for regional stability purposes

Risks & tensions

Reprogramming aid away from Egypt may strain U.S.-Egypt bilateral relationship
Use of 614(a)(1) waiver authority bypasses normal congressional appropriations process, potentially triggering oversight pushback
Vague on specific conditions or accountability for Jordan's use of funds