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Week Ending November 9, 2007

H.R.2949 To authorize grants to the Eurasia Foundation, and for other purposes.

US interests in Russia and other countries that were once part of the Soviet Union are carried out by the Washington, D.C.-based Eurasia Foundation. The Foundation promotes civil society, private enterprise and sound public administration and policy in the former Soviet States by encouraging and assisting local citizen efforts to develop a more open, just and democratic society, the bill explains. The Foundation is the recipient of grants to carry out its missions.

The Foundation can respond quickly and flexibly to take on projects that are consistent with US interests in Eurasia that would be difficult or impossible for the US to do officially. Such efforts include strengthening indigenous institutions ‘that foster national development, constructive social change, equitable growth and cooperative international relationships’.

Grant funds are appropriated and made pursuant to an agreement between the Secretary of State and the Foundation dictating that the funds will only be used for activities that the Foundation Board of Directors determines are consistent with its purposes and mission. The Foundation may also accept other funding from non-US Government sources.

More so, the grant funds do not come with restrictions that are imposed on the State Department when Congress appropriate funds for that Department. The bill makes clear that even with this appropriation of funds, the Eurasia Foundation is not an agency or establishment of the US government and its Board members, officers or employees are not officers or employees of the US.

Somewhat contradictory, though, when explaining the use of funds for travel expenses to Foundation officers or employees, the bill makes clear that those funds may not pay the travel expenses of a Board member or Foundation employee in service to the Foundation if the person is an officer or employee of the US Government.

Other restrictions on the funds include a prohibition on issuing any shares of stocks or declaration to pay any dividends and other than salaries or reasonable compensation no Foundation employee or Board member can benefit from the Foundation’s assets, nor can they be paid for anything other than travel and necessary expenses. The Foundation books are to be audited yearly by a State certified independent public accountant. The Foundation’s financial transactions will also be audited yearly by the GAO.

The Foundation will send a report to the President and Congress each year by March 31^st providing a comprehensive and detailed report of its operations, activities, financial condition and accomplishments

Sponsor:  Rep. Robert Wexler (R-FL-19^th)

Vote: Passed House by voice vote November 5, 2007

Cost to the taxpayers: $20 million yearly 2008 through 2010. Funds will remain available until spent.

Earmark Certification:   Not applicable to this bill

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