Public Law 119-73 (01/23/2026)

7 U.S.C. § 1723

Generation and use of currencies by private voluntary organizations and cooperatives

(a)

Local sale and barter of commodities

An agreement entered into between the Administrator and a private voluntary organization or cooperative to provide food assistance through such organization or cooperative under this subchapter may provide for the sale or barter in 1 or more recipient countries, or 1 or more countries in the same region, of the commodities to be provided under such agreement to generate proceeds to be used as provided in this section.

(b)

Description of intended uses

A private voluntary organization or cooperative submitting a proposal to enter into a non-emergency food assistance agreement under this subchapter shall include in such proposal a description of the intended uses of any proceeds that may be generated through the sale, in 1 or more recipient countries, or in 1 or more countries in the same region, of any commodities provided under an agreement entered into between the Administrator and the organization or cooperative.

(c)

Use

Proceeds generated from any partial or full sale or barter of commodities by a private voluntary organization or cooperative under a non-emergency food assistance agreement under this subchapter may—
(1)
be used to transport, store, distribute, and otherwise enhance the effectiveness of the use of agricultural commodities provided under this subchapter;
(2)
be used to implement income-generating, community development, health, nutrition, cooperative development, agricultural, and other developmental activities within 1 or more recipient countries or within 1 or more countries in the same region; or
(3)
be invested, and any interest earned on such investment may be used, for the purposes for which the assistance was provided to that organization, without further appropriation by Congress.

July 10, 1954, ch. 46968 Stat. 458May 28, 1956, ch. 32770 Stat. 201Pub. L. 85–128, § 1(3)71 Stat. 345Pub. L. 86–341, title I, § 373 Stat. 606Pub. L. 86–47274 Stat. 140Pub. L. 87–128, title II, § 202(1)75 Stat. 307Pub. L. 88–638, § 1(13)78 Stat. 1037Pub. L. 89–808, § 2(C)80 Stat. 1535Pub. L. 95–88, title II, § 20991 Stat. 548Pub. L. 98–473, title III, § 30598 Stat. 2195Pub. L. 101–624, title XV, § 1512104 Stat. 3638Pub. L. 104–127, title II, § 208110 Stat. 954Pub. L. 107–171, title III, § 3003116 Stat. 281Pub. L. 110–246, title III, § 3009122 Stat. 1824Pub. L. 115–334, title III, § 3103132 Stat. 4604(, title II, § 203, ; , title II, § 208(c), ; , , ; , , ; , ch. VI, § 601(b), , ; , , ; , (14), , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 115–334, § 3103(1)2018—Subsec. (a). , inserted “to generate proceeds to be used as provided in this section” before period at end.

Pub. L. 115–334, § 3103(2)Subsecs. (b) to (d). , (3), redesignated subsecs. (c) and (d) as (b) and (c), respectively, and struck out former subsec. (b). Prior to amendment, text of subsec. (b) read as follows: “In carrying out agreements of the type referred to in subsection (a), the Administrator shall permit private voluntary organizations and cooperatives to sell, in 1 or more recipient countries, or in 1 or more countries in the same region, an amount of commodities equal to not less than 15 percent of the aggregate amounts of all commodities distributed under non-emergency programs under this subchapter for each fiscal year, to generate proceeds to be used as provided in this section.”

Pub. L. 110–2462008—Subsec. (b). inserted “in” before “1 or more recipient countries”.

Pub. L. 107–171, § 3003(1)2002—, struck out “foreign” before “currencies” in section catchline.

Pub. L. 107–171, § 3003(2)Subsec. (a). , substituted “1 or more recipient countries, or 1 or more countries” for “the recipient country, or in a country”.

Pub. L. 107–171, § 3003(3)Subsec. (b). , substituted “1 or more recipient countries, or in 1 or more countries” for “in recipient countries, or in countries” and struck out “foreign currency” before “proceeds”.

Pub. L. 107–171, § 3003(4)Subsec. (c). , struck out “foreign currency” before “proceeds” and substituted “1 or more recipient countries, or in 1 or more countries” for “the recipient country, or in a country”.

Pub. L. 107–171, § 3003(5)(A)Subsec. (d). , substituted “Proceeds” for “Foreign currencies” in introductory provisions.

Pub. L. 107–171, § 3003(5)(B)Subsec. (d)(2). , substituted “income-generating” for “income generating” and “1 or more recipient countries or within 1 or more countries” for “the recipient country or within a country”.

Pub. L. 107–171, § 3003(5)(C)Subsec. (d)(3). , inserted comma after “invested” and after “investment may be used”.

Pub. L. 104–127, § 208(1)1996—Subsec. (a). , inserted “, or in a country in the same region,” after “in the recipient country”.

Pub. L. 104–127, § 208(2)Subsec. (b). , inserted “or in countries in the same region,” after “in recipient countries,” and substituted “15 percent” for “10 percent”.

Pub. L. 104–127, § 208(3)Subsec. (c). , inserted “or in a country in the same region,” after “recipient country,”.

Pub. L. 104–127, § 208(4)Subsec. (d)(2). , inserted “or within a country in the same region” after “recipient country”.

Pub. L. 101–6241990— amended section generally, substituting present provisions for provisions relating to the payment of costs and charges by the Commodity Credit Corporation for packaging, enrichment, preservation, processing, transportation, handling, and other incidental charges relating to commodities.

Pub. L. 98–4731984— inserted following cl. (4): “in the case of commodities for urgent and extraordinary relief requirements, including pre-positioned commodities, transportation costs from designated points of entry or ports of entry abroad to storage and distribution sites and associated storage and distribution costs;”.

Pub. L. 95–881977— substituted “transportation from United States ports to designated points of entry abroad in the case (1) of landlocked countries, (2) where ports cannot be used effectively because of natural or other disturbances, (3) where carriers to a specific country are unavailable, or (4) where a substantial savings in costs or time can be effected by the utilization of points of entry other than ports” for “, or, in the case of landlocked countries, transportation from United States ports to designated points of entry abroad”.

Pub. L. 89–808section 1724 of this titlesection 1722 of this title1966— reenacted, with linguistic changes, existing provisions for payment of costs and charges, included costs of acquisition, packaging, enrichment, preservation, fortification, processing, handling, other incidents, struck out provisions for authorization of appropriations for reimbursement of CCC, limitation on amount, and use of funds for purchase of foreign currencies, now covered by , and deleted other provisions for use of agencies, organizations, and facilities in making transfers, now covered by , and provision for transfer of funds from the CCC to such other Federal agency designated by the President for payment of ocean freight costs or for purchase of foreign currencies under this subchapter.

Pub. L. 88–6381964— substituted “1965”; for “1961”, “1966” for “1964”, and “$400,000,000” for “$300,000,000”, inserted “or donated under said section 1431, or section 1431b or 1697 of this title”, provisions authorizing use of funds available under subchapter III, not exceeding $7,500,000 annually, to purchase foreign currencies accruing under subchapter II in order to meet costs designed to assure that commodities available under subchapters I or III are used to carry out more effectively the purposes for which such commodities are made available or to promote activities to alleviate the causes of the need for such assistance, provided that such funds are used to supplement, not substitute for, funds normally available for such purposes from other non-United States Government sources, and “or for the purchase of foreign currencies” after “ocean freight costs”.

Pub. L. 87–1281961— substituted authorization provision for period beginning , and ending , for authorization provision beginning , and ending , and made the annual limitation applicable to the amount programed rather than to the amount spent.

Pub. L. 86–4721960— authorized payment for transportation from United States ports to designated points of entry abroad in the case of landlocked countries, and permitted the payment of charges for general average contributions arising out of the ocean transport of transferred commodities.

Pub. L. 86–3411959— amended first sentence generally. Prior to amendment, first sentence read as follows: “Not more than $800,000,000 (including the Corporation’s investment in such commodities) shall be expended for all such transfers and for other costs authorized by this subchapter.”

Pub. L. 85–1281957— increased limitation on expenditures from $500,000,000 to $800,000,000.

1956—Act , increased limitation on expenditures from $300,000,000 to $500,000,000, and authorized payment of ocean freight charges.

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Pub. L. 110–246section 4(b) of Pub. L. 110–246section 8701 of this titleAmendment by effective , see , set out as an Effective Date note under .

Effective Date of 1990 Amendment

Pub. L. 101–624section 1513 of Pub. L. 101–624section 1691 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1977 Amendment

Pub. L. 95–88section 215 of Pub. L. 95–88section 1702 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1966 Amendment

Pub. L. 89–808section 5 of Pub. L. 89–808section 1691 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1964 Amendment

Pub. L. 88–638, § 1(13)78 Stat. 1037, , , provided that the substitutions of “1965” for “1961”, “1966” for “1964”, and “$400,000,000” for “$300,000,000” are not effective until .

Effective Date of 1959 Amendment

Pub. L. 86–341, title I, § 373 Stat. 606, , , provided that the amendment made by section 3 is effective .