Rule2026-01519

Protecting Life in Foreign Assistance

Primary source

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Published
January 27, 2026
Effective
February 26, 2026

Issuing agencies

State Department

Abstract

To implement the Presidential Memorandum of January 24, 2025, reinstating the Mexico City Policy in support of the foreign policy objective of the United States not to support abortion as a method of family planning overseas directly or indirectly, the U.S. Department of State (Department) is adding a new award term for grants, cooperative agreements, and voluntary contributions entitled "Protecting Life in Foreign Assistance." The award term imposes certain abortion-related requirements on foreign nongovernmental organizations (NGOs), United States NGOs, public international organizations, foreign governments, and parastatals. The award term is issued consistent with authorities under the Foreign Assistance Act of 1961 (FAA) and other foreign assistance authorities, such as the FREEDOM Support Act, the Migration and Refugee Assistance Act of 1962, and the SEED Act of 1989, which authorize the Department to provide foreign assistance on such terms and conditions as the President, and by delegation, the Secretary of State, may determine. Consistent with past Mexico City Policy protocol, the provision will be incorporated as applicable into grants and cooperative agreements when new funds are added as well as into new awards.

Full Text

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<title>Federal Register, Volume 91 Issue 17 (Tuesday, January 27, 2026)</title>
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[Federal Register Volume 91, Number 17 (Tuesday, January 27, 2026)]
[Rules and Regulations]
[Pages 3319-3331]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01519]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
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under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 91, No. 17 / Tuesday, January 27, 2026 / 
Rules and Regulations

[[Page 3319]]



DEPARTMENT OF STATE

2 CFR Part 602

[Public Notice: 12930]
RIN 1400-AG24


Protecting Life in Foreign Assistance

AGENCY: Department of State.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: To implement the Presidential Memorandum of January 24, 2025, 
reinstating the Mexico City Policy in support of the foreign policy 
objective of the United States not to support abortion as a method of 
family planning overseas directly or indirectly, the U.S. Department of 
State (Department) is adding a new award term for grants, cooperative 
agreements, and voluntary contributions entitled ``Protecting Life in 
Foreign Assistance.'' The award term imposes certain abortion-related 
requirements on foreign nongovernmental organizations (NGOs), United 
States NGOs, public international organizations, foreign governments, 
and parastatals. The award term is issued consistent with authorities 
under the Foreign Assistance Act of 1961 (FAA) and other foreign 
assistance authorities, such as the FREEDOM Support Act, the Migration 
and Refugee Assistance Act of 1962, and the SEED Act of 1989, which 
authorize the Department to provide foreign assistance on such terms 
and conditions as the President, and by delegation, the Secretary of 
State, may determine. Consistent with past Mexico City Policy protocol, 
the provision will be incorporated as applicable into grants and 
cooperative agreements when new funds are added as well as into new 
awards.

DATES: The rule is effective February 26, 2026.

FOR FURTHER INFORMATION CONTACT: Bureau of Global Acquisition, Federal 
Assistance Division, <a href="/cdn-cgi/l/email-protection#84e2e1e0e5f7f7edf7f0e5eae7e1f4ebe8ede7fdc4f7f0e5f0e1aae3ebf2"><span class="__cf_email__" data-cfemail="1c7a79787d6f6f756f687d727f796c7370757f655c6f687d6879327b736a">[email&#160;protected]</span></a>, (202) 890-9795.

SUPPLEMENTARY INFORMATION: 

I. Executive Summary

    To ensure that foreign aid is aligned with administration policy 
and promotes human flourishing, the President has directed the 
Secretary of State to reinstate the Mexico City Policy. In addition, 
the Secretary of State has directed that foreign assistance align with 
State Department policies opposing gender ideology, discriminatory 
equity ideology, and unlawful diversity, equity, and inclusion (DEI) 
programs. Consistent with these directives, as a condition of receiving 
foreign assistance, recipients must generally agree to the award terms 
pursuant to the following policies: Protecting Life in Foreign 
Assistance (PLFA), Combating Gender Ideology in Foreign Assistance 
(CGIFA), and the Combating Discriminatory Equity Ideology in Foreign 
Assistance (CDEIFA). These policies are referred to collectively as the 
Promoting Human Flourishing in Foreign Assistance (PHFFA) Policy.
    Implementation of the PHFFA Policy is consistent with 
administration policy as embodied in numerous Presidential actions, 
including:
    <bullet> Presidential Memorandum of January 24, 2025, The Mexico 
City Policy;
    <bullet> Executive Order 14182 of January 24, 2025, Enforcing the 
Hyde Amendment;
    <bullet> Executive Order 14150 of January 20, 2025, America First 
Policy Directive to the Secretary of State;
    <bullet> Presidential Memorandum of February 6, 2025, Advancing 
United States Interests When Funding Nongovernmental Organizations;
    <bullet> Presidential Memorandum of February 4, 2025, Withdrawing 
the United States from and Ending Funding to Certain United Nations 
Organizations and Reviewing United States Support to all International 
Organizations;
    <bullet> Executive Order 14190 of January 29, 2025, Ending Radical 
Indoctrination in K-12 Schooling;
    <bullet> Executive Order 14151 of January 20, 2025, Ending Radical 
and Wasteful DEI Programs and Preferencing;
    <bullet> Executive Order 14168 of January 20, 2025, Defending Women 
from Gender Ideology Extremism and Restoring Biological Truth to the 
Federal Government;
    <bullet> Executive Order 14173 of January 21, 2025, Ending Illegal 
Discrimination and Restoring Merit-Based Opportunity;

II. Protecting Life in Foreign Assistance

    For over forty years, since it was first established by President 
Reagan in 1984, the Mexico City Policy has stood as a pillar of 
American foreign policy, ensuring foreign assistance dollars do not 
support abortion providers overseas or any foreign non-governmental 
organizations that provide or promote abortion as a method of family 
planning overseas, and instead support organizations that care for both 
mother and child.
    During his first term, in 2017 President Trump expanded the Mexico 
City Policy to apply to all global health assistance, including 
applying the policy to additional departments and agencies resulting in 
the Protecting Life in Global Health Assistance (PLGHA) policy (82 FR 
8495). On January 24, 2025, the President reinstated the 2017 
Presidential Memorandum (90 FR 8753).
    This final rule implements the 2025 Presidential Memorandum, while 
further expanding the Mexico City Policy by closing loopholes in 
previous iterations of the policy that allowed taxpayer funding to 
continue subsidizing the provision or promotion of abortion. First, 
this rule expands the scope of entities that are required to agree to 
relevant terms and conditions, beyond foreign NGOs, to include U.S. 
NGOs, international organizations, and foreign governments and 
parastatals. The requirements are more narrowly tailored for foreign 
governments and parastatals as well as for U.S. NGOs. U.S. NGOs, for 
example, are required to agree that they will not provide abortions as 
a method of family planning overseas and to ensure physical and 
financial separation of U.S. foreign assistance-funded programs from 
abortion-related activities. Second, the final rule expands the scope 
of funds subject to the policy beyond global health assistance to 
include all non-military foreign assistance as defined herein. Third, 
the final rule makes changes to terms and conditions used in previous 
iterations of the Mexico City Policy, to provide greater clarity in the 
definitions and the scope of prohibited activities. Fourth, the final 
rule provides for a waiver of the policy

[[Page 3320]]

or its elements in specific cases if, in the Secretary of State's 
judgment, such a waiver is necessary for national security or foreign 
policy purposes. The Department of State will issue guidance on the 
waiver process. Consistent with past Mexico City Policy protocol, the 
provision will generally be incorporated as applicable into grants and 
cooperative agreements when new funds are added as well as into new 
awards.
    Members of Congress have urged the Department of State to undertake 
the expansion of the Mexico City Policy implemented in this rule. See 
the letter from 59 members of Congress of January 23, 2020 to then-
Secretary of State Mike Pompeo, led by Senator Mike Lee and Chris Smith 
(R-NJ) on applying the Mexico City Policy to U.S. NGOs.\1\ See also, 
the letter from 60 members of Congress of August 13, 2020 to then-
acting administrator of the United States Agency for International 
Development John Barsa, led by Senator James Lankford and 
Representative Cathy McMorris Rogers, on applying the Mexico City 
Policy to international organizations.\2\ See also, S. 250/H.R. 1465 of 
the 119th Congress, Protecting Life in Foreign Assistance Act, 
sponsored by Senator Mike Lee (R-UT) and Representative Virginia Foxx 
(R-NC-5).\3\
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    \1\ <a href="https://www.lee.senate.gov/2020/1/pro-life-legislators-call-for-extension-of-mexico-city-policy">https://www.lee.senate.gov/2020/1/pro-life-legislators-call-for-extension-of-mexico-city-policy</a>.
    \2\ <a href="https://www.lankford.senate.gov/wp-content/uploads/media/doc/Lankford%">https://www.lankford.senate.gov/wp-content/uploads/media/doc/Lankford%</a> 20McMorris%20Rogers%20Letter%20to%20Barsa 
%208.13.20.pdf.
    \3\ As explained in this rule, the Department has the authority 
to implement this rule under existing law without enactment of this 
legislation.
---------------------------------------------------------------------------

    This rule is necessary to secure the foreign policy goals of the 
United States enshrined in the Geneva Consensus Declaration on 
Promoting Women's Health and Strengthening the Family (the 
Declaration). The United States spearheaded the initial adoption of the 
Declaration in 2020, and rejoined as a signatory to the Declaration in 
2025. The Declaration ``[r]eaffirm[s] that there is no international 
right to abortion, nor any international obligation on the part of 
States to finance or facilitate abortion, consistent with the long-
standing international consensus that each nation has the sovereign 
right to implement programs and activities consistent with their laws 
and policies.'' It also ``[e]mphasize[s] that `in no case should 
abortion be promoted as a method of family planning' and that `any 
measures or changes related to abortion within the health system can 
only be determined at the national or local level according to the 
national legislative process.''' The United States is concerned that, 
absent this rule, U.S. taxpayer funds may support abortion as a method 
of family planning overseas, and in addition, may do so in a manner 
that undermines the national laws and values of sovereign nations.

A. Foreign NGOs and International Organizations

    Under this rule, any foreign NGO or international organization (IO) 
that receives or implements a foreign assistance grant or cooperative 
agreement will be required to agree that, during the period of the 
award, it will not, outside the United States, provide or promote 
abortion as a method of family planning, or provide financial support 
to any other foreign NGO or IO that engages in such activities. 
Applying this policy to international organizations, such as UN 
entities, is also consistent with section 301(a) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2221(a)), which authorizes the 
President to provide voluntary contributions to international 
organizations on ``such terms and conditions as he may determine.''

B. U.S. NGOs

    Under this rule, a U.S. NGO that receives or implements a grant or 
cooperative agreement for foreign assistance will not be subject to the 
policy requirements for a foreign NGO. However, it will be required to 
agree that, during the period of the award, it will not, outside the 
United States, provide abortion as a method of family planning; it will 
not, within the scope of any program, project, or activity funded by 
foreign assistance, provide or promote abortion as a method of family 
planning; and it will ensure the physical and financial separation of 
its foreign assistance-funded programs, projects, and activities from 
the provision or promotion of abortion as a method of family planning.
    Members of Congress expressed concern that under the previous 
iteration of the Mexico City Policy, ``U.S. NGOs, especially those that 
actively promote abortions overseas were integrating abortion-related 
activities into their taxpayer-funded global health programs and are 
restructuring in order to negate the impact of PLGHA [Protecting Life 
in Global Health Assistance] for their foreign NGO affiliates.'' 
(Letter of Senator Mike Lee et al.). In response, the letter urges the 
Department ``to create a wall of separation between abortion and health 
care in U.S. global health programs by ensuring that U.S. NGOs that 
work abroad meet abortion-related program integrity standards at least 
as strong as those in effect for the Title X family planning program at 
home.'' The Department shares these concerns and accordingly, under 
this rule, U.S. NGOs that provide abortion as a method of family 
planning, or fail to maintain physical and financial separation from 
abortion-related activities within funded foreign assistance programs, 
may no longer receive U.S. foreign assistance.
    Under this rule, U.S. NGOs that agree to the award terms agree not 
to provide abortions outside the United States. The U.S. Constitution 
does not confer a right to abortion, let alone a right to provide 
abortion outside the United States. See Dobbs v. Jackson Women's Health 
Organization (2022). Accordingly, there is no constitutional barrier to 
restricting funding to organizations that provide abortions as provided 
for in this rule.
    With respect to the promotion of abortion, this rule makes clear 
that with respect to United States non-governmental organizations, the 
award terms shall be construed consistent with the First Amendment to 
the United States Constitution, and shall not be construed to restrict 
the freedoms of speech or association of such organizations when using 
non-Federal funds outside the scope of a program, project, or activity 
for which foreign assistance is made available. This is consistent with 
the Supreme Court's holding in Agency for International Development v. 
Alliance for Open Society International, Inc., 570 U.S. 205 (2013).
    Consistent with the Supreme Court's guidance in AID v. Alliance and 
its ruling in Rust v. Sullivan, 500 U.S. 173 (1991), this rule imposes 
restrictions on the promotion of abortion as a method of family 
planning within the scope of programs, projects, and activities that 
receive Federal funds. In Rust, the Supreme Court upheld similar 
regulations in the Title X family planning program which prohibit Title 
X projects from engaging in counseling concerning, referrals for, and 
activities advocating abortion as a method of family planning, and 
require such projects to maintain an objective integrity and 
independence from the prohibited abortion activities by the use of 
separate facilities, personnel, and accounting records. Relevant here, 
in Rust, the Court held:

    The regulations do not violate the First Amendment free speech 
rights of private Title X fund recipients, their staffs, or their 
patients by impermissibly imposing viewpoint-discriminatory 
conditions on Government subsidies. There is no question but that 
Sec.  1008's prohibition is constitutional, since the Government may 
make a value

[[Page 3321]]

judgment favoring childbirth over abortion, and implement that 
judgment by the allocation of public funds. Maher v. Roe, 432 U.S. 
464, 432 U.S. 474. In so doing, the Government has not discriminated 
on the basis of viewpoint; it has merely chosen to fund one activity 
to the exclusion of another. Similarly, implementing the statutory 
prohibition by forbidding counseling, referral, and the provision of 
information regarding abortion as a method of family planning, the 
regulations simply ensure that appropriated funds are not used for 
activities, including speech, that are outside the federal program's 
scope. Arkansas Writers' Project, Inc. v. Ragland, 481 U.S. 221, 
distinguished.

    The imposition of physical and financial separation requirements 
from the provision and promotion of abortion in foreign assistance 
programs is constitutionally permissible, just as similar requirements 
were held to be constitutional under the Title X family planning 
program. In addition to the above, while U.S. NGOs must flow down the 
award terms under this rule to subrecipients, they are not subject to 
an additional requirement not to provide financial support using non-
Federal funds to other organizations that provide or promote abortions 
outside the United States.

C. Foreign Governments and Parastatals

    A foreign government or parastatal that receives or implements a 
grant or cooperative agreement for foreign assistance will not be 
subject to the same award terms as a foreign or U.S. NGO. The 
Department has elected this approach based on considerations relating 
to foreign policy. However, a foreign government or parastatal may be 
required to agree that, during the period of the award, it will not use 
foreign assistance funds under the award to provide or promote abortion 
as a method of family planning. Pursuant to a Department assessment 
that this award term should apply, in whole or in part, to an award to 
a foreign government or parastatal, that foreign government or 
parastatal will be required to place any foreign assistance funds under 
the award in a segregated account to ensure that such funds may not be 
used to support such activity to the extent the foreign government 
conducts or supports such activity.

D. Flow Down of Policy Requirements to Subrecipients

    Foreign and U.S. NGOs, IOs, foreign governments, and parastatals 
will be required to flow down the award terms under this rule, as 
applicable, to subrecipients of foreign assistance. Unlike in previous 
iterations of the Mexico City Policy, the flow down requirement applies 
to all recipients of foreign assistance who issue sub-awards of foreign 
assistance to other organizations.

E. Scope of Foreign Assistance

    The Department has determined that applying this rule to non-
military foreign assistance broadly, rather than only to global health 
programs, is necessary to ensure that its foreign assistance programs 
do not support abortion as a method of family planning overseas, and to 
ensure the integrity of foreign assistance programs. This includes 
global health assistance, humanitarian assistance, civil society and 
democracy programs, and more. This rule will also allow for more 
foreign assistance funds to support organizations that promote the 
health and wellbeing of both pregnant mothers and their unborn children 
in their foreign assistance programs and help the Department to 
establish new partnerships.
    Under this rule, ``foreign assistance'' subject to this policy is 
defined as federal funding administered by the Department under title 
III of, or under the ``International Narcotics Control and Law 
Enforcement,'' ``Nonproliferation, Anti-Terrorism, Demining and Related 
Programs,'' ``Peacekeeping Operations,'' and ``International 
Organizations and Programs'' headings of, the annual Department of 
State, Foreign Operations, and Related Programs Appropriations Act.
    Accordingly, this rule covers non-military foreign assistance 
including, but not limited to: Global Health Programs, humanitarian 
assistance, economic and development assistance, stabilization 
assistance, civil society and democracy programming, Migration and 
Refugee Assistance, voluntary contributions to International 
Organizations funded from foreign assistance.
    This rule does not cover military assistance and other assistance 
that falls outside the definition above.
    For foreign assistance awards, the PLFA award term will be included 
in (i) all new grants and cooperative agreements that provide foreign 
assistance; and (ii) all existing grants and cooperative agreements 
that provide foreign assistance when such agreements are amended to add 
new funding.
    State Department is working with other agencies that administer 
foreign assistance to implement the PHFFA standard provision in their 
foreign assistance grants and agreements, to the maximum extent 
allowable by federal law, consistent with the statutes and regulations 
on which they are based and that such agencies administer, as well as 
applicable grant-specific regulations.
    For contracts, the Administration is developing a corresponding 
clause for all U.S. government departments and agencies to include in 
certain types of contracts for foreign assistance. Until that rule-
making process is complete, no clause will be included in foreign 
assistance contracts. However, this rule covers grants made under 
contracts at this time.

F. Definitions

    The definitions in this rule close loopholes in prior iterations of 
the Mexico City Policy, such as the allowance of so-called ``passive 
referrals,'' while bringing clarity to terms used.\4\ The definition of 
``abortion'' is consistent with definitions used in U.S. State laws 
currently in effect as well as proposed Federal legislation, and makes 
clear that treatment of an ectopic pregnancy or spontaneous loss of 
pregnancy (a miscarriage) is not an abortion, nor is treatment of 
injuries or illnesses caused by legal or illegal abortions restricted. 
The definition of ``abortion as a method of family planning'' continues 
to provide for limited exceptions as provided for in the Hyde 
Amendment, with appropriate deference to the sovereign nations to 
determine their own laws on abortion, consistent with the Siljander's 
Amendment prohibition on the use of certain funds to lobby for or 
against abortion.
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    \4\ In the event of a conflict between a term of this award term 
and local law, an exemption may be sought from such term from the 
Department of State to avoid a violation of this award term.
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    For purposes of this rule, the following definitions apply:
    Abortion means the use or prescription of any instrument, medicine, 
drug, or any other substance or device (A) to kill intentionally the 
unborn child of a woman known to be pregnant; or, (B) to terminate 
intentionally the pregnancy of a woman known to be pregnant, with an 
intention other than--(I) after viability to produce a live birth and 
preserve the life and health of the child born alive; or, (II) to 
remove an ectopic pregnancy or a dead unborn child. Excluded from this 
definition is the treatment of injuries or illnesses caused by legal or 
illegal abortions.
    Abortion as a method of family planning is any abortion, except, 
provided that the abortion is lawful under local law-- (I) if the 
pregnancy is the result of an act of rape or incest, or (II) in the 
case where a woman suffers from a physical disorder, physical

[[Page 3322]]

injury, or physical illness, including a life-endangering physical 
condition caused by or arising from the pregnancy itself, that would, 
as certified by a physician, place the woman in danger of death unless 
an abortion is performed. The exceptions in this definition only apply 
for purposes of this rule.
    To provide abortions as a method of family planning means any of 
the following activities:
    (A) any act of performing or inducing an abortion as a method of 
family planning;
    (B) any act of prescribing, dispensing, utilizing, selling, 
manufacturing, or distributing drugs, devices, or equipment for the 
purpose of performing or inducing abortion as a method of family 
planning; or
    (C) any act of paying for, assisting in carrying out, or operating 
a facility that carries out, any of the activities described above.
    To promote abortion as a method of family planning includes any of 
the following activities:
    (A) Committing resources, financial or otherwise, to increase the 
availability, or use, of abortion as a method of family planning;
    (B) Operating a service-delivery site that provides counseling, 
including advice and information, regarding the benefits and/or 
availability of abortion as a method of family planning (unless, in the 
case of a United States nongovernmental organization, the physical and 
financial separation requirements under this paragraph with respect to 
foreign assistance are satisfied);
    (C) Providing advice that abortion as a method of family planning 
is an available option, or referring for, or encouraging women to 
consider, abortion as a method of family planning
    (D) Lobbying, pressuring, or encouraging a foreign government to 
legalize or make available abortion as a method of family planning, or 
lobbying, pressuring, or encouraging such a government to continue the 
legality of abortion as a method of family planning;
    (E) Conducting a public-information campaign in a foreign country 
regarding the benefits and/or availability of abortion as a method of 
family planning; and,
    (F) Using or teaching sex education materials (including books, 
curricula, media, etc.) that promote abortion as a method of family 
planning.
    Action by an individual who is acting in his or her personal 
capacity shall not be attributed to an organization with which the 
individual is associated, provided that the individual is neither on 
duty nor acting on the organization's premises, and provided that the 
organization neither endorses, nor provides financial support for, the 
action and takes reasonable steps to ensure the individual does not 
improperly represent that he or she is acting on behalf of the 
organization.
    Foreign assistance is federal funding appropriated under title III 
of, or under the ``International Narcotics Control and Law 
Enforcement,'' ``Nonproliferation, Anti-Terrorism, Demining and Related 
Programs,'' ``Peacekeeping Operations,'' and ``International 
Organizations and Programs'' headings of, the annual Department of 
State, Foreign Operations, and Related Programs Appropriations Act.
    To furnish foreign assistance means transferring foreign assistance 
funds provided under this award or goods financed with such funds to 
another entity. This does not include providing technical assistance or 
training (including costs directly related to such assistance or 
training for individuals), unless the entity receives a sub-award of 
foreign assistance funds under this award. Additionally, furnishing 
foreign assistance does not include purchasing goods or services from 
the entity.
    To control an organization means to possess the power to direct, or 
cause the direction of, its management, personnel, and policies.
    A foreign non-governmental organization is any non-governmental 
organization or entity, whether non-profit or profit-making (including 
any commercial firm and educational institution), not organized or 
existing under the laws of the United States, any State of the United 
States, the District of Columbia, the Commonwealth of Puerto Rico, or 
any other territory or possession of the United States.
    A United States non-governmental organization is any non-
governmental organization or entity, whether non-profit or profit-
making (including any commercial firm and educational institution), 
organized or existing under the laws of the United States, any State of 
the United States, the District of Columbia, the Commonwealth of Puerto 
Rico, or any other territory or possession of the United States.
    An international organization is--
    (A) Any organization designated as being entitled to enjoy the 
privileges, exemptions, and immunities under the International 
Organizations Immunities Act;
    (B) Any organization treated as a public international organization 
pursuant to the regulations or policies of the Department of State;
    (C) Any organization established by international agreement and 
whose governing body is composed principally of representatives of 
national governments; or
    (D) Any other multilateral entity in which sovereign nations 
participate.
    To provide financial support means to provide funds from any source 
and for any purpose to a foreign NGO or IO through an award, sub-award, 
contract, sub-contract, grant under contract, or other written 
agreement or donation of funds.
    A foreign government is any department, agency, independent 
establishment, or other entity of the government of a foreign country.
    A parastatal is a foreign-government-owned organization operated as 
a commercial company or other organization, including non-profits, or 
enterprises in which foreign governments or foreign government agencies 
have a controlling interest.

G. Legal Authority

    This rule amends 2 CFR chapter VI to add an award term at part 602, 
entitled ``Protecting Life in Foreign Assistance.'' The term, 
applicable to all solicitations, Federal assistance awards, and 
subawards, including grants under contracts, awarded with Department of 
State foreign assistance funds, including funds transferred to the 
United States Department of State from the U.S. Agency for 
International Development, provides certain abortion-related 
requirements intended to prohibit any support of abortion as a method 
of family planning.
    Under the statutory regime governing foreign assistance, and 
consistent with his responsibilities regarding the conduct of U.S. 
foreign affairs, the President has broad discretion to set the terms 
and conditions on which the United States provides such assistance. 
Many of the authorities provided under the Foreign Assistance Act of 
1961, and similar statutes, explicitly allow for the provision of 
assistance ``on such terms and conditions as [the President] may 
determine.'' See, e.g., section 104(c)(1) of the FAA (22 U.S.C. 
2151b(c)(1)) (health assistance); section 301(a) of the FAA (22 U.S.C. 
2221(a)) (voluntary contributions to international organizations); 
section 481(a)(4) of the FAA (22 U.S.C. 2291(a)(4)) (counternarcotics 
and anti-crime assistance); section 531 of the FAA (22 U.S.C. 2346) 
(assistance to promote economic or political stability); section 541(a) 
of the FAA (22 U.S.C. 2347) (International Military Education and 
Training assistance); section 551 of the FAA (22 U.S.C. 2348) 
(Peacekeeping Operations); section 571 of the FAA (22 U.S.C. 2349aa) 
(anti-terrorism

[[Page 3323]]

assistance); see also section 2(c)(1) of the MRAA; section 201 of the 
SEED Act of 1989 (amending the FAA by inserting, inter alia, section 
498b(i))).
    Section 621(a) of the FAA provides that ``[t]he President may 
exercise any functions conferred upon him by this Act through such 
agency or officer of the United States Government as he shall direct. 
The head of any such agency or such officer may from time to time 
promulgate such rules and regulations as may be necessary to carry out 
such functions. . . .'' 22 U.S.C. 2381(a). The Secretary of State 
exercises authorities under the FAA as delegated by the President in 
Executive Order 12163, dated September 29, 1979, as amended. That 
includes the President's authority to ``issue and enforce regulations 
determining the eligibility of any person to receive funds made 
available under'' the FAA. 22 U.S.C. 2381(b).
    This rule falls within the Department's authority, delegated to the 
Secretary of State by the President, to set conditions on the provision 
of foreign assistance, including on the implementers of such 
assistance. Courts have repeatedly recognized that the President has 
broad discretion in the conduct of foreign affairs to allocate foreign 
assistance funding for particular programs and to set the conditions on 
U.S. funding to implementers of those programs. See, e.g., DKT Memorial 
Fund v. USAID, 887 F.2d 275, 282 (D.C. Cir. 1989); Planned Parenthood 
Federation of America v. USAID, 915 F.2d 59 (2d Cir. 1990); Center for 
Reproductive Law and Policy v. Bush, 304 F.3d 183 (2d Cir. 2002). These 
courts recognized the President's broad discretion to allocate 
assistance funding for particular programs and to set the conditions on 
U.S. funding to non-governmental implementers of those programs. See, 
e.g., Planned Parenthood v. USAID, 838 F.2d 649, 654 (2d Cir. 1988) (in 
carrying out the policies under the Foreign Assistance Act, ``AID has 
`broad discretionary power' to decide which, among numerous competing 
projects, will be given family planning funds''); DKT, 887 F.2d at 282 
(``President acted under a congressional grant of discretion as broadly 
worded as any we are likely to see . . . .'').
    Moreover, the Secretary has the authority to promulgate such rules 
and regulations as may be necessary to carry out his functions and the 
functions of the Department of State. See 22 U.S.C. 2651a(a)(4). This 
rule provides an award requirement for federal assistance award 
recipients to refrain from abortion-related activities to varying 
degrees. Under its grantmaking authority, the Department awards grants 
in the execution of foreign assistance programs. Prudent and 
responsible exercise of the Department's foreign assistance and 
grantmaking authority requires that award terms ensure that foreign 
assistance does not support the provision or promotion of abortion as a 
method of family planning. In addition to the Department's authority to 
promulgate regulations under the FAA, described above, 2 CFR 
200.211(c), (d), and (e) also expressly authorize the agency to 
incorporate in an award general terms and conditions; Federal awarding 
agency, program, or Federal award specific terms and conditions; and 
Federal awarding agency requirements.
    This rule implements President Trump's memorandum of January 24, 
2025, reinstating the Mexico City Policy (90 FR 8753). Further 
expansions of the Mexico City Policy contained in this rule are issued 
pursuant to the Secretary's authorities described above.
    The Department has additionally considered the potential reliance 
interests of funding recipients and others on this final rule. The 
Department understands that, as a result of this rule, some 
organizations may choose to no longer receive or seek foreign 
assistance funds rather than comply with the award term. We understand 
that compliance may require organizations to cease activities that they 
may have long carried out but are prohibited under the award term 
established under this rule. In the case of U.S. NGOs, we anticipate 
that some organizations will incur transition costs where certain other 
programs that shared facilities with foreign assistance programs must 
now establish separate physical facilities.
    The Department believes that many organizations that are current 
recipients of foreign assistance will come into compliance as they 
obtain future grants or when funds are added to existing grants. 
However, the Department understands that certain organizations may 
decide to no longer accept foreign assistance in the future because of 
these award terms, which could in turn result in temporary disruptions 
in service delivery or impacts on program beneficiaries. In such cases, 
the Department will work to find new partners willing to agree to the 
award term, while minimizing any disruption of services. Moreover, the 
Department expects the quality and impact of foreign assistance 
programs to improve as programs are focused and prioritized, without 
being diverted for activities in violation of this rule.
    The interests of organizations in maintaining continued taxpayer 
funding, while continuing activities that are inconsistent with this 
rule, do not outweigh the Department's foreign policy concerns and 
objectives outlined in this rule to ensure that foreign assistance 
funds do not support abortion as a method of family planning. 
Compliance with this rule is additionally necessary to remove confusion 
caused when U.S.-funded organizations act in a manner inconsistent with 
this rule, which can create confusion regarding the foreign policy 
priorities and objectives of the United States.
    Finally, in the event that any portion of this final rule is 
declared invalid, the Department intends that the various aspects be 
severable; the Department intends the remaining features of the policy 
to stand. For example, if any terms adopted by the Secretary in the 
exercise of his discretionary authority are declared invalid, those 
terms adopted pursuant to the President's authority should remain in 
effect because they can function independently and would have been 
adopted even if any other aspect of this rule were not.

III Regulatory Analyses

A. Administrative Procedure Act

    Pursuant to the Administrative Procedure Act (APA), this is final 
rule is published without prior notice and comment or a delayed 
effective date. Because this rule involves a matter relating to grants, 
it is not subject to 5 U.S.C. 553. See 5 U.S.C. 553(a)(2). In addition, 
this rule is exempt because it involves the foreign affairs functions 
of the United States. See 5 U.S.C. 553(a)(1).

B. Executive Orders 12866 (Regulatory Planning and Review), and 13563 
(Improving Regulation and Regulatory Review)

    The Office of Information and Regulatory Affairs has determined 
that this rulemaking is an economically significant regulatory action 
under section 3(f)(1) of Executive Order 12866 (Sep. 30, 1993). 
Accordingly, this rule has been submitted to the Office of Management 
and Budget (``OMB'') for review.
    This regulation has been drafted and reviewed in accordance with 
Executive Order 12866 section 1(b), id. at 51735, and in accordance 
with Executive Order 13563 section 1(b) (Jan. 18, 2011), which 
supplements and reaffirms the principles of Executive Order 12866. 
These Executive Orders direct agencies to assess all costs and benefits 
of

[[Page 3324]]

available regulatory alternatives and, if regulation is necessary, to 
select regulatory approaches that maximize net benefits. 58 FR at 
51735; 76 FR at 3821. Executive Order 13563 also recognizes that some 
benefits and costs are difficult to quantify and provides that, where 
appropriate and permitted by law, agencies may consider and discuss 
qualitative values that are difficult or impossible to quantify. Id.
    As explained in the preamble, the award terms under this rule are 
necessary to advance the United States' foreign policy objective not to 
support abortion as a method of family planning overseas.
    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
the costs and benefits of the intended regulation. E.O. 13563 allows 
that in making this assessment, an agency ``may consider (and discuss 
qualitatively) values that are difficult or impossible to quantify, 
including equity, human dignity, fairness, and distributive impacts.''
    Including this award provision in grants and cooperative agreements 
funded by Department of State foreign assistance provides an explicit 
requirement that the Department's recipients and grantees not violate 
applicable undertakings relating to the provision or promotion of 
abortion as a method of family planning overseas. The benefits of the 
rule include protecting American taxpayers from supporting abortion as 
a method of family planning; advancing the foreign policy interests of 
the United States to protect human life at all stages of development; 
ensuring organizations funded by the United States foreign assistance 
do not provide abortion as a method of family planning overseas; and 
ensuring foreign assistance programs and foreign partners do not 
undermine the laws and values of foreign nations or pressure such 
nations to support abortion.
    The Department recognizes there are costs associated with this 
rule. Potential one-time and recurring costs the Department identifies 
for recipients and grantees are for familiarization with the rule, 
development and delivery of organizational training and implementation 
guidance, routine compliance monitoring, and recordkeeping and 
reporting requirements.
    The Department estimates that 2,500 recipients and grantees 
(including foreign NGOs, U.S. NGOs, international organizations, and 
foreign governments and parastatals) will be impacted by this rule. 
This estimate is derived from an analysis of the Department's current 
portfolio of funding recipients implementing activities with foreign 
assistance funds.
    Based in part on the Department's previous experience, the agency 
estimates that recipients and grantees will first require 50 hours, on 
average, to familiarize themselves with the compliance requirements 
within this final rule, and revise internal policies and financial 
accounting systems to comply with said recordkeeping requirements. To 
quantify the total one-time familiarization costs, the Department used 
June 2025 data from the Bureau of Labor Statistics (BLS) National 
Compensation Survey,\5\ reporting a mean fringe benefit factor of 1.46 
for civilian workers in general. The Department assumes that impacted 
entities will employ an attorney to analyze the rule. Multiplying the 
BLS mean hourly wage for Lawyers, Standard Occupation Classification 
23-1011 of $87.86 by the mean fringe benefit factor of 1.46 yields an 
estimated total compensation (wages and benefits) for Lawyers of 
$128.28 per hour ([$87.86 per hour] x 1.46).
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    \5\ <a href="https://www.bls.gov/news.release/pdf/ecec.pdf">https://www.bls.gov/news.release/pdf/ecec.pdf</a>.
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    Thus, the agency calculates a one-time cost for familiarization of 
$16,035,000 [(2,500 entities) times (50 hours per entity) times 
($128.28/hour)].
    For the development and delivery of organization-specific training, 
the Department estimates a cost of $37,984,700. The Department 
estimates that recipients subject to the rule will spend twenty one 
(21) hours annually to train their workforces: eight (8) hours 
developing training materials and twelve (12) hours each month to train 
newly hired staff, and one hour to train existing staff. The Department 
estimates that a lawyer will develop and conduct this training at a 
cost of $128.28 per hour, and that all recipient staff will attend a 
one-hour training. The Department estimates an average workforce size 
of 250 staff with an average hourly salary of $50.
    For routine compliance monitoring costs, the Department estimates 
$76,968,000 annually. The Department estimates a minimum of 240 annual 
hours (20 hours monthly) to monitor prime and sub-recipient activities. 
Such monitoring activities may include development of monitoring tools 
such as checklists, discussion guides, and reference materials, 
conducting desk review of documents, reports, work plans, and budgets, 
and conducting site visits to inspect implementation of activities for 
compliance with policy requirements. The Department estimates that 
these activities will be conducted by lawyers and senior program 
managers with an average hourly salary of $128.28.
    Finally, the Department recognizes that this final rule is likely 
to impose costs on some U.S. NGOs whose programs currently share 
facilities with foreign assistance programs, and now must establish 
separate physical facilities. The Department also understands that 
certain organizations may decide to no longer accept foreign assistance 
in the future because of these award terms, which could in turn result 
in temporary disruptions in service delivery, imposing costs on program 
beneficiaries. However, the Department is not able to quantitatively 
assess these costs.
    In summary, the Department estimates this rule will impose one-time 
familiarization costs of $16,035,000, and annual costs related to 
training and compliance monitoring of $114,052,700.

C. Regulatory Flexibility Act

    Congress enacted the Regulatory Flexibility Act of 1980, as 
amended, 5 U.S.C. 601-612, to ensure that Government regulations do not 
unnecessarily or disproportionately burden small entities. It requires 
a regulatory flexibility analysis if a rule is subject to the notice-
and-comment provisions of the APA and would have a significant economic 
impact, either detrimental or beneficial, on a substantial number of 
small entities. This rule is exempt from the notice and comment 
requirements of the APA, as a matter related to grants and foreign 
affairs functions, and thus the Department does not provide a 
regulatory flexibility analysis. See 5 U.S.C. 553(a)(2).

D. Unfunded Mandates Act of 1995

    The Unfunded Mandates Act of 1995 requires agencies to prepare 
several analytical statements before proposing any rule that may result 
in annual expenditures of $100 million or more in State, local, or 
Indian Tribal governments. Since this final rule will not result in 
expenditures of this magnitude, the Department certifies that such 
statements are not necessary.

E. Executive Order 14192 (Unleashing Prosperity Through Deregulation)

    Executive Order 14192 requires an agency, unless prohibited by law, 
to identify at least 10 existing regulations to be repealed when the 
agency publicly proposes for notice and comment or otherwise 
promulgates a new regulation. 90 FR 9065, 9065 (Jan. 31, 2025). In 
furtherance of this requirement, section 3(c) of the Order requires 
that ``any new incremental costs associated with new

[[Page 3325]]

regulations shall, to the extent permitted by law, be offset by the 
elimination of existing costs associated with at least 10 prior 
regulations.'' Id. Executive Order 14192 exempts from these 
requirements ``regulations issued with respect to a .. foreign affairs-
related function of the United States.'' This rule is issued with 
respect to foreign affairs-related functions and is thus exempt from 
Executive Order 14192 requirements.

F. Executive Order 14294 (Fighting Overcriminalization in Federal 
Regulations)

    Executive Order 14294 requires agencies promulgating regulations 
with criminal regulatory offenses potentially subject to criminal 
enforcement to ``explicitly describe the conduct subject to criminal 
enforcement, the authorizing statutes, and the mens rea standard 
applicable to'' each element of those offenses. 90 FR 20363, 20363 (May 
9, 2025). This rule does not impose a criminal regulatory penalty and 
is thus exempt from Executive Order 14294 requirements.

G. Executive Orders 12372 and 13132--Federalism

    This regulation will not have substantial direct effects on the 
states, on the relationship between the national government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with section 6 
of Executive Order 13132, it is determined that this rule does not have 
sufficient federalism implications to require consultations or warrant 
the preparation of a federalism summary impact statement. The 
regulations implementing E.O. 12372 regarding intergovernmental 
consultation on Federal programs and activities do not apply to this 
regulation.

H. Executive Order 13175--Consultation With Tribal Governments

    The Department has determined that this rulemaking will not have 
Tribal implications, will not impose substantial direct compliance 
costs on Indian Tribal governments, and will not preempt Tribal law. 
Accordingly, the requirements of E.O. 13175 do not apply to this rule.

I. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) defines ``collection of 
information'' to mean ``the obtaining, causing to be obtained, 
soliciting, or requiring the disclosure to third parties or the public, 
of facts or opinions by or for an agency, regardless of form or 
format.'' 44 U.S.C. 3502(3)(A). Under the PRA, a Federal agency cannot 
conduct or sponsor a collection of information unless OMB approves it 
and the agency displays a currently valid OMB control number. 44 U.S.C. 
3507. Also, notwithstanding any other provision of law, no individual 
or organization shall be subject to penalty for failing to comply with 
a collection of information if the collection of information does not 
display a currently valid OMB control number. 44 U.S.C. 3512. The 
Department will not enforce any information collection requirements 
described in this rule until OMB's approval and will publish separate 
60- and 30-day notices in the Federal Register soliciting public 
comment on the burden estimates provided below.
    Title of Information Collection: Foreign Assistance Requirements.
    OMB Control Number: 1405-XXXX.
    Type of Request: New collection.
    Originating Office: Department of State, Bureau of Global 
Acquisitions.
    Form Number: No form.
    Respondents: Offerors and awardees of Department of State foreign 
assistance.
    Estimated Number of Respondents: 2,500.
    Estimated Number of Responses: 2,500.
    Average Time per Response: 261 hours.
    Total Estimated Burden Hours: 652,500 hours.
    Estimated burden hour costs): $114,052,700.
    Frequency: On occasion.
    Obligation to Respond: Mandatory.

J. Congressional Review Act

    The Office of Information and Regulatory Affairs has determined 
that this final rule meets the criteria in the Congressional Review Act 
(CRA) at 5 U.S.C. 804(2) and will comply with the applicable 
requirements at 5 U.S.C. 801. However, the Department has also 
determined that there is good cause to exempt this rule from the 60-day 
delay of effect at 5 U.S.C. 801(a)(3)(A). Specifically, the requirement 
for a delayed effective date does not apply because notice and public 
procedure are not required for this rule by the APA and thus are 
unnecessary for the purposes of the CRA under 5 U.S.C. 808(2). As noted 
above, this rule involves a matter relating to grants. See 5 U.S.C. 
553(a)(2). In addition, this rule involves the foreign affairs 
functions of the United States. See 5 U.S.C. 553(a)(1).

List of Subjects in 2 CFR Part 602

    Administrative practice and procedure, Grant programs.

    For the reasons set forth above, the Department of State adds part 
602 to title 2 of the Code of Federal Regulations to read as follows:

PART 602--PROTECTING LIFE IN FOREIGN ASSISTANCE

Sec.
602.10 Applicability.
602.20 Award term.
Appendix A to Part 602--Requirements and Eligibility Criteria for 
Recipients of Foreign Assistance

    Authority:  5 U.S.C. 301; 22 U.S.C. 2651a, 22 U.S.C. 2151, 22 
U.S.C. 2451, 22 U.S.C. 1461; 2 CFR part 200.

PART 602--PROTECTING LIFE IN FOREIGN ASSISTANCE


Sec.  602.10   Applicability.

    This part establishes an award term for recipients and 
subrecipients of Federal awards subsidized in whole or in part by 
foreign assistance funds administered by the Department of State. The 
award term under this part must generally be included in all foreign 
assistance solicitations and all resulting awards, including all 
grants, cooperative agreements, and voluntary contributions, whenever 
implementation of the activity involves foreign assistance to, or 
implemented by, foreign nongovernmental organizations, international 
organizations, and United States nongovernmental organizations. The 
award term under this part may but need not be included in whole or in 
part, as applicable, in agreements with foreign governments and 
parastatals (e.g., government-to-government agreements, or other 
agreements with host governments), and agreements with bilateral 
governmental donors if the Department of State assesses such term is 
appropriate for that agreement.


Sec.  602.20   Award term.

    The award term in appendix A to this part will be incorporated, as 
applicable, into awards for foreign assistance administered by the 
Department of State.
    (a) The following definitions apply for purposes of the award term 
in appendix A to this part:
    (1) Abortion means the use or prescription of any instrument, 
medicine, drug, or any other substance or device:
    (i) To kill intentionally the unborn child of a woman known to be 
pregnant; or,
    (ii) To terminate intentionally the pregnancy of a woman known to 
be pregnant, with an intention other than--
    (A) After viability to produce a live birth and preserve the life 
and health of the child born alive; or,

[[Page 3326]]

    (B) To remove an ectopic pregnancy or a dead unborn child. Excluded 
from this paragraph (a)(1) is the treatment of injuries or illnesses 
caused by legal or illegal abortions.
    (2) Abortion as a method of family planning is any abortion, 
except, provided that the abortion is lawful under local law--
    (i) If the pregnancy is the result of an act of rape or incest; or
    (ii) In the case where a woman suffers from a physical disorder, 
physical injury, or physical illness, including a life-endangering 
physical condition caused by or arising from the pregnancy itself, that 
would, as certified by a physician, place the woman in danger of death 
unless an abortion is performed.
    (iii) The exceptions in this paragraph (a)(2) only apply for 
purposes of this paragraph (a).
    (3) To provide abortions as a method of family planning means any 
of the following activities:
    (i) Any act of performing or inducing an abortion as a method of 
family planning;
    (ii) Any act of prescribing, dispensing, utilizing, selling, 
manufacturing, or distributing drugs, devices, or equipment for the 
purpose of performing or inducing abortion as a method of family 
planning; or
    (iii) Any act of paying for, assisting in carrying out, or 
operating a facility that carries out, any of the activities described 
in paragraphs (a)(3)(i) and (ii) of this section.
    (4)(i) To promote abortion as a method of family planning includes 
any of the following activities:
    (A) Committing resources, financial or otherwise, to increase the 
availability, or use, of abortion as a method of family planning;
    (B) Operating a service-delivery site that provides counseling, 
including advice and information, regarding the benefits and/or 
availability of abortion as a method of family planning (unless, in the 
case of a United States nongovernmental organization, the physical and 
financial separation requirements under this paragraph (a) with respect 
to foreign assistance are satisfied);
    (C) Providing advice that abortion as a method of family planning 
is an available option, or referring for, or encouraging women to 
consider, abortion as a method of family planning;
    (D) Lobbying, pressuring, or encouraging a foreign government to 
legalize or make available abortion as a method of family planning, or 
lobbying, pressuring, or encouraging such a government to continue the 
legality of abortion as a method of family planning;
    (E) Conducting a public-information campaign in a foreign country 
regarding the benefits and/or availability of abortion as a method of 
family planning; and,
    (F) Using or teaching sex education materials (including books, 
curricula, media, etc.) that promote abortion as a method of family 
planning.
    (ii) Action by an individual who is acting in his or her personal 
capacity shall not be attributed to an organization with which the 
individual is associated, provided that the individual is neither on 
duty nor acting on the organization's premises, and provided that the 
organization neither endorses, nor provides financial support for, the 
action and takes reasonable steps to ensure the individual does not 
improperly represent that he or she is acting on behalf of the 
organization.
    (5) Foreign assistance is Federal funding administered by the 
Department of State appropriated under title III of, or under the 
``International Narcotics Control and Law Enforcement,'' 
``Nonproliferation, Anti-Terrorism, Demining and Related Programs,'' 
``Peacekeeping Operations,'' and ``International Organizations and 
Programs'' headings of, the annual Department of State, Foreign 
Operations, and Related Programs Appropriations Act.
    (6) To furnish foreign assistance means transferring foreign 
assistance funds provided under the award or goods financed with such 
funds to another entity. This does not include providing technical 
assistance or training (including costs directly related to such 
assistance or training for individuals), unless the entity receives a 
sub-award of foreign assistance funds under the award. Additionally, 
furnishing foreign assistance does not include purchasing goods or 
services from the entity.
    (7) To control an organization means to possess the power to 
direct, or cause the direction of, its management, personnel, and 
policies.
    (8) A foreign non-governmental organization (NGO) is any non-
governmental organization or entity, whether non-profit or profit-
making (including any commercial firm and educational institution), not 
organized or existing under the laws of the United States, any State of 
the United States, the District of Columbia, the Commonwealth of Puerto 
Rico, or any other territory or possession of the United States.
    (9) A United States non-governmental organization (NGO) is any non-
governmental organization or entity, whether non-profit or profit-
making (including any commercial firm and educational institution), 
organized or existing under the laws of the United States, any State of 
the United States, the District of Columbia, the Commonwealth of Puerto 
Rico, or any other territory or possession of the United States.
    (10) An international organization (IO) is--
    (i) Any organization designated as being entitled to enjoy the 
privileges, exemptions, and immunities under the International 
Organizations Immunities Act;
    (ii) Any organization treated as a public international 
organization pursuant to the regulations or policies of the Department 
of State;
    (iii) Any organization established by international agreement and 
whose governing body is composed principally of representatives of 
national governments; or
    (iv) Any other multilateral entity in which sovereign nations 
participate.
    (11) To provide financial support means to provide funds from any 
source and for any purpose to a foreign NGO or IO through an award, 
sub-award, contract, sub-contract, grant under contract, or other 
written agreement or donation of funds.
    (12) A foreign government is any department, agency, independent 
establishment, or other entity of the government of a foreign country.
    (13) A parastatal is a foreign-government-owned organization 
operated as a commercial company or other organization, including non-
profits, or enterprises in which foreign governments or foreign 
government agencies have a controlling interest.
    (b) See appendix A to this part for the requirements and 
eligibility criteria for recipients of foreign assistance.
    (c) With respect to United States non-governmental organizations, 
the award term shall be construed consistent with the First Amendment 
to the United States Constitution and shall not be construed to 
restrict the freedoms of speech or association of such organizations 
when using non-Federal funds outside the scope of a program, project or 
activity for which foreign assistance is made available.
    (d) The Secretary of State or Under Secretary of State for Foreign 
Assistance, Humanitarian Affairs, and Religious Freedom may waive the 
application of this part or any of its elements if a waiver is deemed 
necessary for national security or foreign policy purposes.
    (e) In the event of a conflict between a term of the award term and 
local law, an exemption may be sought from such

[[Page 3327]]

term from the Department of State to avoid a violation of the award 
term.
    (f) In determining whether an entity is eligible to be a recipient 
or sub-recipient of foreign assistance under the award, the action of 
separate entities shall not be imputed to the recipient or sub-
recipient, unless, in the judgment of the Department of State, a 
separate entity is being used purposefully to avoid the provisions of 
this part. Separate entities are those that have distinct legal 
existence in accordance with the laws of the countries in which they 
are organized. Entities that are separately organized shall not be 
considered separate, however, if one is controlled by the other. The 
recipient may request the approval of its Agreement Officer to treat as 
separate the activities of two or more entities, which would not be 
considered separate under the preceding sentence. The recipient must 
provide a written justification to the Department of State that the 
activities of the organizations are sufficiently distinct to warrant 
not imputing the activity of one to the other.
    (g) If anything in the award term, or the application of this part 
to any person or circumstance, is held to be unconstitutional, the 
remainder of this part and the application of such to any person or 
circumstance shall not be affected thereby.
    (h) The award term in appendix A to this part shall be inserted 
verbatim in sub-awards in accordance with the terms of paragraphs (a) 
and (b) of this section and subject to Sec.  602.10.

Appendix A to Part 602--Requirements and Eligibility Criteria for 
Recipients of Foreign Assistance

I. Grants and Cooperative Agreements to Foreign Non-Governmental 
Organizations

    (1) The recipient agrees that it will not, during the term of 
this award, provide or promote abortion as a method of family 
planning outside the United States (including its territories and 
possessions) or provide financial support to any other foreign NGO 
or IO that conducts such activities.
    (2) The recipient agrees that authorized representatives of the 
U.S. Government may, at any reasonable time, announced or 
unannounced, consistent with Part 200 of Title 2 of the Code of 
Federal Regulations (CFR): (i) inspect the documents, trainings, and 
materials maintained or prepared by the recipient in the usual or 
required course of its operations that describe the priorities and 
activities of the recipient, including reports, brochures and 
service statistics; (ii) observe the activities conducted by the 
recipient, (iii) consult with personnel of the recipient and those 
who receive the services of the recipient; and, (iv) obtain a copy 
of audited financial statements or reports of the recipient, as 
applicable. Interaction with service recipients will comply with all 
applicable rules and regulations regarding privacy.
    (3) In the event authorized representatives of the U.S. 
Government have reasonable cause to believe that the recipient may 
have violated any undertaking required by these Requirements and 
Eligibility Criteria, the recipient must make available to the 
Department of State such books and records and other information as 
the Department of State may reasonably request to determine whether 
a violation of that undertaking has occurred, consistent with Part 
200 of Title 2 of the CFR.
    (4) The U.S. Government shall terminate foreign assistance 
furnished to the recipient under this award if the recipient 
violates any undertaking required by this award term, unless the 
Department of State determines, consistent with Sec.  200.339 of 
Title 2 of the CFR, that other corrective action is warranted.
    (5) In addition to other remedies available to the U.S. 
Government, the recipient's failure to comply with the requirements 
of this award provision may result in--
    (i) Suspension of payments until the sub-recipient has taken 
appropriate remedial action; and/or
    (ii) Suspension or debarment.
    (6) In the event of termination, the recipient must refund to 
the Department of State any unexpended amounts furnished to the 
recipient under this award, plus an amount equivalent to that used 
by the recipient to engage in any activity that violates this award 
term while receiving funding under this award. The amount to be 
refunded to the Department of State under this subparagraph (6) may 
not exceed the total amount of foreign assistance furnished under 
this award.
    (7) The recipient may not furnish foreign assistance under this 
award to any other foreign NGO, IO, or any United States NGO (the 
sub-recipient), unless the recipient's agreement with the sub-
recipient contains the same terms and conditions as described in 
sub-paragraph (8) below.
    (8) Prior to entering into an agreement to furnish foreign 
assistance to any other foreign NGO or IO, any United States NGO, 
the recipient, must ensure that such agreement with the sub-
recipient includes the following terms:
    (i) While receiving foreign assistance under this award:
    (A) If the sub-recipient is a foreign NGO or IO, the sub-
recipient will not provide or promote abortion as a method of family 
planning outside the United States (including its territories and 
possessions) or provide financial support to any other foreign NGO 
or IO that conducts such activities.
    (B) If the sub-recipient is a United States NGO:
    (1) The sub-recipient will not, outside the United States 
(including its territories and possessions), provide abortion as a 
method of family planning;
    (2) The sub-recipient will not, within the scope of any program, 
project, or activity for which foreign assistance funds are made 
available under this award, provide or promote abortion as a method 
of family planning.
    Subject to sub-paragraph (8)(i)(B)(1) above, the sub-recipient 
is not prohibited from lawfully promoting abortion as a method of 
family planning, outside the scope of a program, project, or 
activity for which funds are made available under this award, so 
long as the sub-recipient uses funds from sources other than the 
U.S. Government to do so.
    (III) The sub-recipient agrees that any program, project, or 
activity for which funds are made available under this award must be 
organized so that the program, project, or activity is physically 
and financially separate from the activities described in sub-
paragraph (8)(i)(B)(2) above (``prohibited activities''), such that 
there is an objective integrity and independence from such 
activities. Mere bookkeeping separation of funds under the award 
from other monies is not sufficient. Whether such objective 
integrity and independence exist will be determined based on a 
review of facts and circumstances, including:
    (i) The existence of separate, accurate accounting records;
    (ii) The degree of separation from facilities (e.g., treatment, 
consultation, examination and waiting rooms, office entrances and 
exits, and educational services) in which the prohibited activities 
occurs and the extent of such prohibited activities;
    (iii) The existence of separate personnel, electronic or paper-
based health care records (if applicable), and workstations; and
    (iv) The extent to which signs and other forms of identification 
are present, and signs and material that refer to, promote, or 
constitute, prohibited activities, are absent.
    (ii) The recipient and authorized representatives of the U.S. 
Government may, at any reasonable time, announced or unannounced, 
consistent with Part 200 of Title 2 of the CFR: (I) inspect the 
documents, trainings, and materials maintained or prepared by the 
sub-recipient in the usual or required course of its operations that 
describe the activities of the sub-recipient, including reports, 
brochures and service statistics; (II) observe activities conducted 
by the sub-recipient; (III) consult with personnel of the sub-
recipient and those who receive the services of the sub-recipient; 
and, (IV) obtain a copy of audited financial statements or reports 
of the sub-recipient, as applicable.
    (iii) In the event that the recipient or an authorized 
representative of the U.S. Government has reasonable cause to 
believe that a sub-recipient may have violated any of its 
undertakings under this award term, the recipient will review the 
foreign assistance program of the sub-recipient to determine whether 
a violation of such undertaking has occurred. The sub-recipient must 
make available to the recipient such books and records and other 
information as may be reasonably requested to conduct the review. 
Authorized representatives of the U.S. Government may review the 
foreign assistance program of the sub-recipient under these 
circumstances, and the sub-recipient must provide access on a timely 
basis to such authorized representatives to such books and records 
and other information upon request, consistent with Part 200 of 
Title 2 of the CFR.
    (iv) The U.S. Government shall terminate foreign assistance 
provided to the sub-

[[Page 3328]]

recipient under this award if the sub-recipient violates any award 
terms under sub-paragraphs (8)(i)-(iii) above, unless the Department 
determines, consistent with Sec.  200.339 of Title 2 of the CFR, 
that other corrective action is warranted.
    (v) In addition to other remedies available to the U.S. 
Government, the sub-recipient's failure to comply with the 
requirements of this award provision may result in--
    (A) Suspension of payments until the sub-recipient has taken 
appropriate remedial action; and/or
    (B) Suspension or debarment.
    (vi) In the event of termination, the sub-recipient must refund 
to the recipient any unexpended amounts furnished to the sub-
recipient under this award, plus an amount equivalent to that used 
by the sub-recipient for activities prohibited under the terms of 
this award, up to the total amount of foreign assistance furnished 
to the sub-recipient under this award. Where the Department of State 
is not otherwise engaged in the determination to terminate a sub-
recipient's award, the recipient must notify the Department of State 
of any action taken for a violation of any undertaking required 
under sub-paragraphs (8)(i)-(iii) above.
    (vii) The sub-recipient may furnish foreign assistance under 
this award to any foreign NGO, IO, or any U.S. NGO (the sub-sub-
recipient), only if the sub-recipient's agreement with the sub-sub-
recipient contains the same terms and conditions as those provided 
by the recipient to the sub-recipient as described in sub-paragraphs 
(8)(i)-(iv) above.
    (9) Where the terms and conditions of the award require the 
approval of sub-awards by the Department of State, the recipient 
must, consistent with Part 200 of Title 2 of the CFR, include a 
description of the due diligence performed by the recipient on the 
sub-recipient before furnishing foreign assistance under this award.
    (10) The recipient is liable to the U.S. Government for a refund 
for a violation by the sub-recipient of any requirement of this 
award term only if: (i) the recipient furnishes foreign assistance 
under this award to a subrecipient knowing that the subrecipient is 
in likely violation of the applicable award terms of this award 
term; (ii) the sub-recipient did not abide by the award terms 
required by sub-paragraphs (8)(i)-(iii) above, and the recipient 
failed to make reasonable due diligence efforts prior to furnishing 
foreign assistance to the sub-recipient; or, (iii) the recipient 
knows or has reason to know, by virtue of the monitoring that the 
recipient is required to perform under the terms of this award, that 
a sub-recipient has violated any of the award terms required by sub-
paragraphs (8)(i)-(iii) above, and the recipient fails to terminate 
foreign assistance to the sub-recipient, or fails to require the 
sub-recipient to terminate foreign assistance furnished under a sub-
award that violates any award terms required by sub-paragraphs 
(8)(i)-(iii), above, or fails to take other appropriate corrective 
action consistent with sub-paragraph (8)(iv) above.
    (11) Recipient acknowledges that authorized representatives of 
the U.S. Government may make independent inquiries in the community 
served by the recipient or a sub-recipient under this award 
regarding whether it is in compliance with the award terms required 
by sub-paragraphs (8)(i)-(iii) above. Interaction with service 
recipients will comply with all applicable rules and regulations 
regarding privacy.

II. Grants and Cooperative Agreements With U.S. Nongovernmental 
Organizations

    (1) The recipient agrees that it will not, during the term of 
this award, outside the United States (including its territories and 
possessions), provide abortion as a method of family planning.
    (2) The recipient agrees that, within the scope of any program, 
project, or activity for which foreign assistance funds are made 
available under this award it will not provide or promote abortion 
as a method of family planning.
    Subject to sub-paragraph (1), the recipient is not prohibited 
from promoting abortion as a method of family planning outside the 
scope of a program, project, or activity for which funds are made 
available under this award, so long as the recipient uses funds from 
sources other than the U.S. Government to do so.
    (3) The recipient agrees that any program, project, or activity 
for which funds are made available under this award must be 
organized so that the program, project, or activity is physically 
and financially separate from activities prohibited by sub-paragraph 
(2) above (``prohibited activities''), such that there is an 
objective integrity and independence from such activities. Mere 
bookkeeping separation of funds under the award from other monies is 
not sufficient. Whether such objective integrity and independence 
exist will be determined based on a review of facts and 
circumstances, including:
    (i) The existence of separate, accurate accounting records;
    (ii) The degree of separation from facilities (e.g., treatment, 
consultation, examination and waiting rooms, office entrances and 
exits, and educational services) in which the prohibited activities 
occur and the extent of such prohibited activities;
    (iii) The existence of separate personnel, electronic or paper-
based health care records (if applicable), and workstations; and
    (iv) The extent to which signs and other forms of identification 
are present, and signs and material that refer to, promote, or 
constitute, prohibited activities, are absent.
    (4) The recipient agrees that authorized representatives of the 
U.S. Government may, at any reasonable time, announced or 
unannounced, consistent with Part 200 of Title 2 of the Code of 
Federal Regulations (CFR): (i) inspect the documents, trainings, and 
materials maintained or prepared by the recipient in the usual or 
required course of its operations that describe the priorities and 
activities of the recipient, including reports, brochures and 
service statistics; (ii) observe the activities conducted by the 
recipient, (iii) consult with personnel of the recipient and those 
who receive the services of the recipient; and, (iv) obtain a copy 
of audited financial statements or reports of the recipient, as 
applicable.
    (5) In the event an authorized representative of the U.S. 
Government has reasonable cause to believe that the recipient may 
have violated any of its undertakings under this award term, the 
recipient must make available to such authorized representative such 
books and records and other information as the authorized 
representative may reasonably request to determine whether a 
violation of that undertaking has occurred, consistent with Part 200 
of Title 2 of the CFR.
    (6) U.S. foreign assistance furnished to the recipient under 
this award must be terminated if the recipient violates any 
undertaking required by this award term, unless the Department of 
State determines, consistent with Sec.  200.339 of Title 2 of the 
CFR, that other corrective action is warranted.
    (7) In addition to other remedies available to the U.S. 
Government, the recipient's failure to comply with the requirements 
of this award provision may result in--
    (i) Suspension of payments until the recipient has taken 
appropriate remedial action; and/or
    (ii) Suspension or debarment.
    (8) In the event of termination, the recipient must refund to 
the Department of State any unexpended amounts furnished to the 
recipient under this award, plus an amount equivalent to that used 
by the recipient to engage in activities prohibited under the terms 
of this award while receiving funding under this award. The amount 
to be refunded to the Department of State under this sub-paragraph 
(8) may not exceed the total amount of foreign assistance furnished 
under this award.
    (9) The recipient agrees that it will not furnish foreign 
assistance under this award to any foreign NGO, IO, or United States 
NGO (the sub-recipient), unless the recipient's agreement with the 
sub-recipient contains the same terms and conditions as described in 
sub-paragraph (10), below.
    (10) Prior to entering into an agreement to furnish foreign 
assistance to a foreign NGO, IO, or any United States NGO (the sub-
recipient) under this award, the recipient must ensure that such 
agreement with the sub-recipient includes the following terms:
    (i) While receiving foreign assistance under this award:
    (A) If the sub-recipient is a foreign NGO or IO, the sub-
recipient will not provide or promote abortion as a method of family 
planning outside the United States (including its territories and 
possessions) or provide financial support to any other foreign NGO 
or IO that conducts such activities.
    (B) If the sub-recipient is a United States NGO:
    (1) the sub-recipient will not, outside the United States 
(including its territories and possessions) provide abortion as a 
method of family planning, and
    (2) the sub-recipient will not, within the scope of any program, 
project, or activity for which foreign assistance funds are made 
available under this award, provide or promote abortion as a method 
of family planning.
    Subject to sub-paragraph (10)(i)(B)(1) above, the sub-recipient 
is not prohibited

[[Page 3329]]

from lawfully promoting abortion as a method of family planning 
outside the scope of a program, project, or activity for which funds 
are made available under this award, so long as the sub-recipient 
uses funds from sources other than the U.S. Government to do so.
    (3) The sub-recipient agrees that any program, project, or 
activity for which funds are made available under this award must be 
organized so that the program, project, or activity is physically 
and financially separate from activities described in sub-paragraph 
(10)(i)(B)(2) above (``prohibited activities''), such that there is 
an objective integrity and independence from such activities. Mere 
bookkeeping separation of funds under the award from other monies is 
not sufficient. Whether such objective integrity and independence 
exist will be determined based on a review of facts and 
circumstances, including:
    (i) The existence of separate, accurate accounting records;
    (ii) The degree of separation from facilities (e.g., treatment, 
consultation, examination and waiting rooms, office entrances and 
exits, and educational services) in which the prohibited activities 
occur and the extent of such prohibited activities;
    (iii) The existence of separate personnel, electronic or paper-
based health care records (if applicable), and workstations; and
    (iv) The extent to which signs and other forms of identification 
are present, and signs and material that refer to, promote, or 
constitute, prohibited activities, are absent.
    (ii) The recipient and authorized representatives of the U.S. 
Government may, at any reasonable time, announced or unannounced, 
consistent with Part 200 of Title 2 of the CFR: (I) inspect the 
documents, trainings, and materials maintained or prepared by the 
sub-recipient in the usual or required course of its operations that 
describe the priorities and activities of the sub-recipient, 
including reports, brochures and service statistics; (II) observe 
the activities conducted by the sub-recipient; (III) consult with 
personnel of the sub-recipient and those who receive the services of 
the sub-recipient; and, (IV) obtain a copy of audited financial 
statements or reports of the sub-recipient, as applicable.
    (iii) In the event that the recipient or an authorized 
representative of the U.S. Government has reasonable cause to 
believe that a sub-recipient may have violated any of its 
undertakings under this award term, the recipient will review the 
foreign assistance program of the sub-recipient to determine whether 
a violation of such undertaking has occurred. The sub-recipient must 
make available to the recipient such books and records and other 
information as may be reasonably requested to conduct the review. 
Authorized representatives of the U.S. Government may review the 
foreign assistance program of the sub-recipient under these 
circumstances, and the sub-recipient must provide access to such 
authorized representatives on a timely basis to such books and 
records and other information upon request, consistent with Part 200 
of Title 2 of the CFR.
    (iv) The U.S. Government shall terminate foreign assistance 
provided to the sub-recipient under this award if the sub-recipient 
violates any award terms required by subparagraphs (10)(i)-(iii) 
above, unless the Department of State determines, consistent with 
Sec.  200.339 of Title 2 of the CFR, that other corrective action is 
warranted.
    (v) In addition to other remedies available to the U.S. 
Government, the sub-recipient's failure to comply with the 
requirements of this award provision may result in--
    (A) Suspension of payments until the sub-recipient has taken 
appropriate remedial action; and/or
    (B) Suspension or debarment.
    (vi) In the event of termination, the sub-recipient must refund 
to the recipient any unexpended amounts furnished to the sub-
recipient under this award, plus an amount equivalent to that used 
by the sub-recipient for activities prohibited under the terms of 
this award, up to the total amount of foreign assistance furnished 
to the sub-recipient under this award. Where the Department of State 
is not otherwise engaged in the determination to terminate a 
recipient's sub-award, the recipient must notify the Department of 
State of any action taken for a violation of any undertaking 
required under subparagraphs (10)(i)-(iii) above; and
    (vii) The sub-recipient may furnish foreign assistance under 
this award to a foreign NGO, IO, or a United States NGO (the sub-
sub-recipient), only if the sub-recipient's sub-agreement with the 
sub-sub-recipient contains the same terms and conditions as those 
provided by the recipient to the sub-recipient as described in sub-
paragraphs (10)(i)-(iv) above.
    (11) Where the terms and conditions of the award require the 
approval of subawards by the Department of State, the recipient 
must, consistent with Part 200 of Title 2 of the CFR, include a 
description of the due diligence performed by the recipient on the 
sub-recipient before furnishing foreign assistance under this award.
    (12) The recipient is liable to the Department of State for a 
refund for a violation by the sub-recipient of any requirement of 
this award term only if: (i) the recipient knowingly furnishes 
foreign assistance under this award to a sub-recipient, knowing that 
the subrecipient is in violation of the applicable award terms of 
this award term; or, (ii) the sub-recipient did not abide by its 
award terms required by subparagraphs (10)(i)-(iii) above, and the 
recipient failed to make reasonable due diligence efforts prior to 
furnishing foreign assistance to the sub-recipient; or, (iii) the 
recipient knows, or has reason to know, by virtue of the monitoring 
that the recipient is required to perform under the terms of this 
award, that a sub-recipient has violated any of the award terms 
required by subparagraphs (10)(i)-(iii) above, and the recipient 
fails to terminate foreign assistance to the sub-recipient, or fails 
to require the sub-recipient to terminate assistance furnished under 
a sub-award that violates any award terms required by subparagraphs 
(10)(i)-(iii) above, or fails to take other appropriate corrective 
action consistent with subparagraph (10)(iv) above.
    (13) Recipient acknowledges that authorized representatives of 
the U.S. Government may make independent inquiries in the community 
served by a sub-recipient under this award regarding whether such 
sub-recipient is in compliance with its award terms required by 
subparagraphs (10)(i)-(iii) above. Interaction with service 
recipients will comply with all applicable rules and regulations 
regarding privacy.

III. Grants and Cooperative Agreements With Foreign Governments and 
Parastatals

    (1) The recipient agrees that foreign assistance funds it 
receives under this award will not be used to provide or promote 
abortion as a method of family planning.
    (2) The recipient agrees that if it engages in any activity 
described in sub-paragraph (1) using funds from sources other than 
the U.S. Government, any foreign assistance funds under this award 
must be placed in a segregated account to ensure that such funds may 
not be used to support such activity of the government or 
parastatal.
    (3) U.S. foreign assistance furnished to the recipient under 
this award must be terminated if the recipient violates any 
undertaking required by this award term, unless the Department of 
State determines, consistent with Sec.  200.339 of Title 2 of the 
CFR, that other corrective action is warranted.
    (4) In addition to other remedies available to the U.S. 
Government, the recipient's failure to comply with the requirements 
of this award provision may result in--
    (i) Suspension of payments until the recipient has taken 
appropriate remedial action; and/or (ii) Suspension or debarment.
    (5) In the event of termination, the recipient must refund to 
the Department of State any unexpended amounts furnished to the 
recipient under this award, plus an amount equivalent to that used 
by the recipient to engage in activities prohibited under the terms 
of this award while receiving funding under this award. The amount 
to be refunded to the Department of State under this sub-paragraph 
(5) may not exceed the total amount of foreign assistance furnished 
under this award. The recipient agrees that it will not furnish 
foreign assistance under this award to any foreign non-governmental 
organization (NGO), international organization (IO), or United 
States NGO (the sub-recipient), unless the recipient's agreement 
with the sub-recipient contains the same terms and conditions as 
described in sub-paragraph (6), below.
    (6) Prior to entering into an agreement to furnish foreign 
assistance to a foreign NGO, IO, or a United States NGO (the sub-
recipient) under this award, the recipient must ensure that such 
agreement with the sub-recipient includes the following terms:
    (i) While receiving foreign assistance under this award:
    (A) If the sub-recipient is a foreign NGO or IO, the sub-
recipient will not provide or promote abortion as a method of family 
planning outside the United States (including its territories and 
possessions) or provide financial support to any other foreign NGO 
or IO that conducts such activities.
    (B) If the sub-recipient is a United States NGO:
    (1) The sub-recipient will not, outside the United States 
(including its territories and

[[Page 3330]]

possessions), provide abortion as a method of family planning.
    (2) The sub-recipient will not, within the scope of any program, 
project, or activity for which foreign assistance funds are made 
available under this award, provide or promote abortion as a method 
of family planning.
    Subject to sub-paragraph (6)(i)(B)(1) above, the sub-recipient 
is not prohibited from lawfully promoting abortion as a method of 
family planning outside the scope of a program, project, or activity 
for which funds are made available under this award, so long as the 
sub-recipient uses funds from sources other than the U.S. Government 
to do so.
    (3) The sub-recipient agrees that any program, project, or 
activity for which funds are made available under this award must be 
organized so that the program, project, or activity is physically 
and financially separate from activities described in sub-paragraph 
(6)(i)(B)(2) above (``prohibited activities''), such that there is 
an objective integrity and independence from such activities. Mere 
bookkeeping separation of funds under the award from other monies is 
not sufficient. Whether such objective integrity and independence 
exist will be determined based on a review of facts and 
circumstances, including:
    (i) The existence of separate, accurate accounting records;
    (ii) The degree of separation from facilities (e.g., treatment, 
consultation, examination and waiting rooms, office entrances and 
exits, and educational services,) in which the prohibited activity 
occurs and the extent of such prohibited activities;
    (iii) The existence of separate personnel, electronic or paper-
based health care records (if applicable), and workstations; and
    (iv) The extent to which signs and other forms of identification 
are present, and signs and material that refer to, promote, or 
constitute, prohibited activities, are absent.
    (ii) The recipient and authorized representatives of the U.S. 
Government may, at any reasonable time, announced or unannounced, 
consistent with Part 200 of Title 2 of the CFR: (I) inspect the 
documents, trainings, and materials maintained or prepared by the 
sub-recipient in the usual or required course of its operations that 
describe the priorities and activities of the sub-recipient, 
including reports, brochures and service statistics; (II) observe 
the activities conducted by the sub-recipient; (III) consult with 
personnel of the sub-recipient and those who receive the services of 
the sub-recipient; and, (IV) obtain a copy of audited financial 
statements or reports of the sub-recipient, as applicable.
    (iii) In the event that the recipient or an authorized 
representative of the U.S. Government has reasonable cause to 
believe that a sub-recipient may have violated any of its 
undertakings under this award term, the recipient will review the 
foreign assistance program of the sub-recipient to determine whether 
a violation of such undertaking has occurred. The sub-recipient must 
make available to the recipient such books and records and other 
information as may be reasonably requested to conduct the review. 
Authorized representatives of the U.S. Government may review the 
foreign assistance program of the sub-recipient under these 
circumstances, and the sub-recipient must provide access to such 
authorized representatives on a timely basis to such books and 
records and other information upon request, consistent with Part 200 
of Title 2 of the CFR.
    (iv) The U.S. Government shall terminate foreign assistance 
provided to the sub-recipient under this award if the sub-recipient 
violates any award terms required by subparagraphs (6)(i)-(iii) 
above, unless the Department of State determines, consistent with 
Sec.  200.339 of Title 2 of the CFR, that other corrective action is 
warranted.
    (v) In addition to other remedies available to the U.S. 
Government, the sub-recipient's failure to comply with the 
requirements of this award provision may result in--
    (A) Suspension of payments until the sub-recipient has taken 
appropriate remedial action; and/or
    (B) Suspension or debarment.
    (vi) In the event of termination, the sub-recipient must refund 
to the recipient any unexpended amounts furnished to the sub-
recipient under this award, plus an amount equivalent to that used 
by the sub-recipient for activities prohibited under the terms of 
this award, up to the total amount of foreign assistance furnished 
to the sub-recipient under this award. Where the Department of State 
is not otherwise engaged in the determination to terminate a 
recipient's sub-award, the recipient must notify the Department of 
State of any action taken for a violation of any undertaking 
required under subparagraphs (6)(i)-(iii) above.
    (vii) The sub-recipient may furnish foreign assistance under 
this award to a foreign NGO, IO, or United States NGO (the sub-sub-
recipient), only if the sub-recipient's sub-agreement with the sub-
sub-recipient contains the same terms and conditions as those 
provided by the recipient to the sub-recipient as described in sub-
paragraphs (6)(i)-(iv) above.
    (7) Where the terms and conditions of the award require the 
approval of subawards by the Department of State, the recipient 
must, consistent with Part 200 of Title 2 of the CFR, include a 
description of the due diligence performed by the recipient on the 
sub-recipient before furnishing foreign assistance under this award.
    (8) The recipient is liable to the Department of State for a 
refund for a violation by the sub-recipient of any requirement of 
this award term only if: (i) the recipient knowingly furnishes 
foreign assistance under this award to a sub-recipient that is a 
foreign NGO or IO, or to a United States NGO, knowing that the sub-
recipient is in violation of the applicable award terms of this 
award term; or, (ii) the sub-recipient did not abide by its award 
terms required by subparagraphs (6)(i)-(iii) above, and the 
recipient failed to make reasonable due diligence efforts prior to 
furnishing foreign assistance to the sub-recipient; or, (iii) the 
recipient knows, or has reason to know, by virtue of the monitoring 
that the recipient is required to perform under the terms of this 
award, that a sub-recipient has violated any of the award terms 
required by subparagraphs (6)(i)-(iii) above, and the recipient 
fails to terminate foreign assistance to the sub-recipient, or fails 
to require the sub-recipient to terminate assistance furnished under 
a sub-award that violates any award terms required by subparagraphs 
(6)(i)-(iii) above, or fails to take other appropriate corrective 
action consistent with subparagraph (6)(iv) above.
    (9) Recipient acknowledges that authorized representatives of 
the U.S. Government may make independent inquiries in the community 
served by a sub-recipient under this award regarding whether such 
sub-recipient is in compliance with its award terms required by 
subparagraphs (6)(i)-(iii) above. Interaction with service 
recipients will comply with all applicable rules and regulations 
regarding privacy.

IV. Grants, Cooperative Agreements, and Voluntary Contributions to 
International Organizations

    (1) The recipient agrees that it will not, during the term of 
this award, provide or promote abortion as a method of family 
planning outside the United States (including its territories and 
possessions) or provide financial support to any foreign NGO or IO 
that conducts such activities.
    (2) The recipient agrees that authorized representatives of the 
U.S. Government may, at any reasonable time, announced or 
unannounced, consistent with Part 200 of Title 2 of the Code of 
Federal Regulations (CFR): (i) inspect the documents, trainings, and 
materials maintained or prepared by the recipient in the usual or 
required course of its operations that describe the priorities and 
activities of the recipient, including reports, brochures and 
service statistics; (ii) observe the activities conducted by the 
recipient, (iii) consult with personnel of the recipient and those 
who receive the services of the recipient; and, (iv) obtain a copy 
of audited financial statements or reports of the recipient, as 
applicable. Interaction with service recipients will comply with all 
applicable rules and regulations regarding privacy.
    (3) In the event authorized representatives of the U.S. 
Government have reasonable cause to believe that the recipient may 
have violated any undertaking required by this award term, the 
recipient must make available to the Department of State such books 
and records and other information as the Department of State may 
reasonably request to determine whether a violation of that 
undertaking has occurred, consistent with Part 200 of Title 2 of the 
CFR. In such an event, during the process of investigating any 
suspected violation, the Department of State may additionally 
suspend or withhold some or all payments of foreign assistance to 
the recipient.
    (4) The U.S. Government shall terminate foreign assistance 
furnished to the recipient under this award if the recipient 
violates any undertaking required by this award term, unless the 
Department of State determines, consistent with Sec.  200.339 of 
Title 2 of the CFR, that other corrective action is warranted.
    (5) In the event of termination, the recipient must refund to 
the Department of

[[Page 3331]]

State any unexpended amounts furnished to the recipient under this 
award, plus an amount equivalent to that used by the recipient to 
engage in any activity that violates this award term while receiving 
funding under this award. The amount to be refunded to the 
Department of State under this subparagraph (5) may not exceed the 
total amount of foreign assistance furnished under this award.
    (6) The recipient may not furnish foreign assistance under this 
award to any foreign NGO, IO, or United States NGO (the sub-
recipient), unless the recipient's agreement with the sub-recipient 
contains the same terms and conditions as described in sub-paragraph 
(7) below.
    (7) Prior to entering into an agreement to furnish foreign 
assistance to any foreign NGO, IO, or United States NGO, the 
recipient, consistent with Part 200 of Title 2 of the CFR, must 
ensure that such agreement with the sub-recipient includes the 
following terms:
    (i) While receiving foreign assistance under this award:
    (A) If the sub-recipient is a foreign NGO or IO, the sub-
recipient will not provide or promote abortion as a method of family 
planning outside the United States (including its territories and 
possessions) or provide financial support to any other foreign NGO 
or IO that conducts such activities.
    (B) If the sub-recipient is a United States NGO:
    (1) The sub-recipient will not, outside the United States 
(including its territories and possessions) provide abortion as a 
method of family planning.
    (2) The sub-recipient will not, within the scope of any program, 
project, or activity for which foreign assistance funds are made 
available under this award, provide or promote abortion as a method 
of family planning.
    Subject to sub-paragraph (7)(i)(B)(1) above, the sub-recipient 
is not prohibited from lawfully promoting abortion as a method of 
family planning outside the scope of a program, project, or activity 
for which funds are made available under this award, so long as the 
sub-recipient uses funds from sources other than the U.S. Government 
to do so.
    (3) The sub-recipient agrees that any program, project, or 
activity for which funds are made available under this award must be 
organized so that the program, project, or activity is physically 
and financially separate from the activities described in sub-
paragraph (7)(i)(B)(2) above (``prohibited activities''), such that 
there is an objective integrity and independence from such 
activities. Mere bookkeeping separation of funds under the award 
from other monies is not sufficient. Whether such objective 
integrity and independence exist will be determined based on a 
review of facts and circumstances, including:
    (i) The existence of separate, accurate accounting records;
    (ii) The degree of separation from facilities (e.g., treatment, 
consultation, examination and waiting rooms, office entrances and 
exits, and educational services) in which the prohibited activities 
occurs and the extent of such prohibited activities;
    (iii) The existence of separate personnel, electronic or paper-
based health care records (if applicable), and workstations; and
    (iv) The extent to which signs and other forms of identification 
are present, and signs and material that refer to, promote, or 
constitute, prohibited activities, are absent.
    (ii) The recipient and authorized representatives of the U.S. 
Government may, at any reasonable time, announced or unannounced, 
consistent with Part 200 of Title 2 of the CFR: (I) inspect the 
documents, trainings, and materials maintained or prepared by the 
sub-recipient in the usual or required course of its operations that 
describe the activities of the sub-recipient, including reports, 
brochures and service statistics; (II) observe activities conducted 
by the sub-recipient; (III) consult with personnel of the sub-
recipient and those who receive the services of the sub-recipient; 
and, (IV) obtain a copy of audited financial statements or reports 
of the sub-recipient, as applicable.
    (iii) In the event that the recipient or an authorized 
representative of the U.S. Government has reasonable cause to 
believe that a sub-recipient may have violated any of its 
undertakings under this award term, the recipient will review the 
foreign assistance program of the sub-recipient to determine whether 
a violation of such undertaking has occurred. The sub-recipient must 
make available to the recipient such books and records and other 
information as may be reasonably requested to conduct the review. 
Authorized representatives of the U.S. Government may review the 
foreign assistance program of the sub-recipient under these 
circumstances, and the sub-recipient must provide access on a timely 
basis to such authorized representatives to such books and records 
and other information upon request, consistent with Part 200 of 
Title 2 of the CFR. In such an event, during the process of 
investigating any suspected violation, the Department of State may 
additionally order the recipient to suspend or withhold some or all 
payments of foreign assistance to the sub-recipient.
    (iv) The U.S. Government shall terminate foreign assistance 
provided to the sub-recipient under this award if the sub-recipient 
violates any award terms under sub-paragraphs (7)(i)-(iii) above, 
unless the Department of State determines, consistent with Sec.  
200.339 of Title 2 of the CFR, that other corrective action is 
warranted.
    (v) In addition to other remedies available to the U.S. 
Government, the sub-recipient's failure to comply with the 
requirements of this award provision may result in--
    (A) Suspension of payments until the sub-recipient has taken 
appropriate remedial action; and/or
    (B) Suspension or debarment.
    (vi) In the event of termination, the sub-recipient must refund 
to the recipient any unexpended amounts furnished to the sub-
recipient under this award, plus an amount equivalent to that used 
by the sub-recipient for activities prohibited under the terms of 
this award, up to the total amount of foreign assistance furnished 
to the sub-recipient under this award. Where the Department of State 
is not otherwise engaged in the determination to terminate a sub-
recipient's award, the recipient must notify the Department of State 
of any action taken for a violation of any undertaking required 
under sub-paragraphs (7)(i)-(iii) above.
    (vii) The sub-recipient may furnish foreign assistance under 
this award to any foreign NGO, IO, or U.S. NGO (the sub-sub-
recipient), only if the sub-recipient's agreement with the sub-sub-
recipient contains the same terms and conditions as those provided 
by the recipient to the sub-recipient as described in sub-paragraphs 
(7)(i)-(iv) above.
    (8) Where the terms and conditions of the award require the 
approval of sub-awards by the Department of State, the recipient 
must, consistent with Part 200 of Title 2 of the CFR, include a 
description of the due diligence performed by the recipient on the 
sub-recipient before furnishing foreign assistance under this award.
    (9) The recipient is liable to the U.S. Government for a refund 
for a violation by the sub-recipient of any requirement of this 
award term only if: (i) the recipient furnishes foreign assistance 
under this award to a subrecipient knowing that the subrecipient is 
in likely violation of the applicable award terms of this award 
term; (ii) the sub-recipient did not abide by the award terms 
required by sub-paragraphs (7)(i)-(iii) above, and the recipient 
failed to make reasonable due diligence efforts prior to furnishing 
foreign assistance to the sub-recipient; or, (iii) the recipient 
knows or has reason to know, by virtue of the monitoring that the 
recipient is required to perform under the terms of this award, that 
a sub-recipient has violated any of the award terms required by sub-
paragraphs (7)(i)-(iii) above, and the recipient fails to terminate 
foreign assistance to the sub-recipient, or fails to require the 
sub-recipient to terminate foreign assistance furnished under a sub-
award that violates any award terms required by sub-paragraphs 
(7)(i)-(iii), above, or fails to take other appropriate corrective 
action consistent with sub-paragraph (7)(iv) above.
    (10) Recipient acknowledges that authorized representatives of 
the U.S. Government may make independent inquiries in the community 
served by the recipient or a sub-recipient under this award 
regarding whether it is in compliance with the award terms required 
by sub-paragraphs (7)(i)-(iii) above. Interaction with service 
recipients will comply with all applicable rules and regulations 
regarding privacy.

Christopher T. Landau,
Deputy Secretary of State, U.S. Department of State.
[FR Doc. 2026-01519 Filed 1-23-26; 4:15 pm]
BILLING CODE 4710-10-P


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Indexed from Federal Register on January 27, 2026.

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