What assistance administrative funds may pay for

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1. A list of permitted expenses

Section 636 of the Foreign Assistance Act of 1961, codified at 22 U.S.C. 2396, says what assistance funds may be spent on beyond the programs themselves (22 U.S.C. 2396). Its first list covers appropriations under the Act other than for subchapter II, related allocations from other appropriations, and other funds of the agency that administers subchapter I (22 U.S.C. 2396(a)). The list has seventeen items.

2. Buildings, vehicles and aircraft

The funds may pay rent for buildings and space in the United States, with repairs and improvements to leased property (22 U.S.C. 2396(a)(1)). Outside the United States, they may pay rent or leases of up to ten years for offices, buildings, grounds and quarters, including living quarters, with payment in advance (22 U.S.C. 2396(a)(10)). They may also pay maintenance, furnishing, repairs, improvements, fuel, water and utilities for properties owned, rented or made available to the government abroad.

Aircraft may be bought, maintained, operated and hired, but aircraft for administrative purposes may be bought only as an appropriation or other act specifically provides (22 U.S.C. 2396(a)(4)). Passenger vehicles may be bought and hired, with limits (22 U.S.C. 2396(a)(5)). Unless another act provides otherwise, vehicles for administrative use abroad may be bought only as replacements. Vehicles may be exchanged or sold and replaced by an equal number. For the chief of a special mission or staff abroad, a replacement automobile may cost no more than the current American price of a mid-sized American-made sedan or station wagon. The model must meet General Services Administration Class III requirements. A right-hand drive replacement may cost up to 120 percent of that price. Vehicles for use in the United States may be bought only as an act specifically provides, apart from one for the official use of the agency head. Insurance on official vehicles and aircraft acquired for use abroad is also allowed (22 U.S.C. 2396(a)(9)).

3. People and services

The funds may pay for attending meetings concerned with the Act’s purposes (22 U.S.C. 2396(a)(2)). They may pay for personal services contracts abroad, with the contractors not treated as federal employees for any law administered by the Civil Service Commission (22 U.S.C. 2396(a)(3)). Contracts with individuals or organizations for services abroad for the Act and title II of the Food for Peace Act are also allowed (22 U.S.C. 2396(a)(17)). Such contracts may be negotiated, and the work done, without regard to statutes governing contracts and work performed in the United States where necessary.

Per diem for foreign participants in subchapter I programs while away from home in countries other than the United States is allowed, up to government travel rates (22 U.S.C. 2396(a)(13)). The funds may also cover preparing and transporting the remains of people, or family members, who die while away from home taking part in funded activities (22 U.S.C. 2396(a)(11)). Uniforms, and ice and drinking water outside the United States, are also listed (22 U.S.C. 2396(a)(12) and 22 U.S.C. 2396(a)(15)).

4. Capped and unusual items

Entertainment is capped at $25,000 a year, unless another act provides otherwise (22 U.S.C. 2396(a)(6)). Confidential expenditures other than entertainment are capped at $50,000 a year, unless another act provides otherwise (22 U.S.C. 2396(a)(8)). Each such confidential expenditure is supported by a certificate of its amount from the agency head or a designee, which serves as a sufficient voucher. Exchange of funds, and loss by exchange, are allowed (22 U.S.C. 2396(a)(7)). The funds may also be used under Foreign Service Act of 1980 authorities not otherwise provided for (22 U.S.C. 2396(a)(14)).

5. Staff, printing and spending abroad

Funds for the Act may pay compensation, allowances and travel of personnel, including Foreign Service personnel used mainly for the Act’s purposes (22 U.S.C. 2396(b)). They may pay for printing and binding regardless of other law. They may also pay for supplies, services and other administrative and operating purposes abroad, other than staff pay, without regard to spending laws and regulations as needed to achieve the Act’s purposes. Funds may pay to train American citizen personnel employed or assigned under section 2385(d)(2) at state or local governments, nonprofit institutions, associations or commercial firms (22 U.S.C. 2396(e)).

6. Military assistance administration

A separate list covers funds for subchapter II and the Arms Export Control Act (22 U.S.C. 2396(g)). They may pay administrative, extraordinary and operating expenses of furnishing defense articles, military education and training and defense services, on a grant or sales basis, by the agency administering subchapter II (22 U.S.C. 2396(g)(1)). Extraordinary expenses are capped at $300,000 a year.

They may reimburse the actual expenses of military officers serving as tour directors for orientation visits by foreign military and related civilian personnel, on the same basis as civilian employees (22 U.S.C. 2396(g)(2)). They may also pay to maintain, repair, alter and furnish American-owned facilities, in the District of Columbia or elsewhere, used to train foreign military and related civilian personnel (22 U.S.C. 2396(g)(3)). That work does not need a specific authorization or appropriation under the general rule for public contracts. How administrative budgets are built is covered in how the administrative budget is built.

7. Local currencies and American vehicles

The President must take all appropriate steps to ensure, as far as possible, that recipient countries contribute local currencies toward contractual and other services in their programs (22 U.S.C. 2396(h)). Foreign currencies owned by the United States are, to the maximum extent possible, to be used for those costs as well.

No funds under the Act may finance the purchase, sale, long-term lease, exchange or guaranty of a sale of motor vehicles unless they are made in the United States (22 U.S.C. 2396(i)). The President may waive the rule where special circumstances exist, to carry out the Act’s purposes. Rules on where assistance money may be spent are covered in where assistance funds may buy.

Key terms

Administrative expenses	Costs of running assistance programs, as distinct from the assistance itself.
Extraordinary expenses	Expenses under that heading in military assistance administration, capped at $300,000 a year.
Confidential expenditure	An expense whose nature is not specified, supported by an agency head certificate.
Class III vehicle	The General Services Administration standard used to cap replacement cars for mission chiefs.
Per diem	A daily allowance for foreign participants away from home.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

Running programs abroad depends on vehicles, quarters and support that work. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.