22 U.S. Code § 1475h - Overseas public diplomacy grants
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(a) Competitive grant procedures
Except as provided in subsection (b) of this section, the Department of State shall work to achieve full and open competition in the award of grants for carrying out its overseas public diplomacy functions.
The Department of State may award an overseas public diplomacy grant under procedures other than competitive procedures when—
(1) such a grant is made under the Mutual Educational and Cultural Exchange Act of 1961 (commonly known as the Fulbright-Hays Act) [22 U.S.C. 2451 et seq.] or any statute which expressly authorizes or requires that a grant be made with a specified entity;
(2) the terms of an international agreement or treaty between the United States Government and a foreign government or international organization have the effect of requiring the use of procedures other than competitive procedures;
(3) a recipient organization has developed particular expertise in the planning and administration of longstanding exchange programs important to United States foreign policy; or
(c) Compliance with grant guidelines
(1) After October 1, 1991, overseas public diplomacy grants awarded by the Department of State shall substantially comply with Department of State grant guidelines and applicable circulars of the Office of Management and Budget.
(2) If the Agency  determines that a grantee has not satisfied the requirement of paragraph (1), the Department of State shall notify the grantee of the suspension of payments under a grant unless compliance is achieved within 90 days of such notice.
(3) The Agency  shall suspend payments under any such grant which remains in noncompliance 90 days after notification under paragraph (2).
 So in original. Probably should be “Department”.
Source(Pub. L. 102–138, title II, § 212,Oct. 28, 1991, 105 Stat. 695; Pub. L. 105–277, div. G, subdiv. A, title XIII, § 1335(b),Oct. 21, 1998, 112 Stat. 2681–787.)
References in Text
The Mutual Educational and Cultural Exchange Act of 1961, referred to in subsec. (b)(1), is Pub. L. 87–256, Sept. 21, 1961, 75 Stat. 527, as amended, which is classified principally to chapter 33 (§ 2451 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2451 of this title and Tables.
Section was enacted as part of the Foreign Relations Authorization Act, Fiscal Years 1992 and 1993, and not as part of the United States Information and Educational Exchange Act of 1948 which comprises this chapter.
1998—Subsec. (a). Pub. L. 105–277, § 1335(b)(1), (2), substituted “Department of State” for “United States Information Agency” and inserted “for carrying out its overseas public diplomacy functions” after “grants”.
Subsec. (b). Pub. L. 105–277, § 1335(b)(1), (3)(A), in introductory provisions, substituted “Department of State” for “United States Information Agency” and “an overseas public diplomacy grant” for “a grant”.
Subsec. (b)(1). Pub. L. 105–277, § 1335(b)(3)(B), inserted “such” after “(1)”.
Subsec. (c)(1). Pub. L. 105–277, § 1335(b)(1), (4), inserted “overseas public diplomacy” before “grants” and substituted “Department of State” for “United States Information Agency” in two places.
Subsec. (c)(2). Pub. L. 105–277, § 1335(b)(1), substituted “Department of State” for “United States Information Agency”.
Subsec. (c)(3). Pub. L. 105–277, § 1335(b)(5), inserted “such” before “grant”.
Subsec. (d). Pub. L. 105–277, § 1335(b)(6), struck out heading and text of subsec. (d). Text read as follows: “Not later than 90 days after October 28, 1991, the Director of the United States Information Agency shall submit a detailed report to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives on United States Information Agency action to comply with subsection (a) of this section.”
Effective Date of 1998 Amendment