To authorize the Secretary of State to provide for the establishment of nonprofit entities for the Department's international educational, cultural and arts programs.

Amends the Mutual Educational and Cultural Exchange Act of 1961 to authorize the Secretary of State to provide for the establishment of private, nonprofit entities to: (1) encourage participation and support by U.S. multinational companies and other elements of the private sector for cultural, arts, and educational exchange programs, including programs that will enhance international appreciation of America's cultural and artistic accomplishments; (2) solicit and receive contributions from the private sector to support such programs; and (3) provide grants and other assistance for them.