Look what even you posted:
"State Department spokeswoman Victoria Nuland said Clinton waived the conditions based on U.S. national security interests"
Definition of CONDITION1 a: a premise upon which the fulfillment of an agreement depends : stipulation
b: obsolete: covenant
c: a provision making the effect of a legal instrument contingent upon an uncertain event; also: the event itself
2 : something essential to the appearance or occurrence of something else : prerequisite: as
a: an environmental requirement
b: the subordinate clause of a conditional sentence
3 a: a restricting or modifying factor : qualification
The "make believe world" where the real world SoS really felt the need to use a real world "waiver" in the name of (according to her) real world "U.S. national security interests" in order to get around the real world requirement.
Argue for the sake of arguing much?
1. State could do so on any basis they choose, or lie about it on Congressional basis with impunity. The POTUS could also pre-empt State...essentially speaking for them.
2. POTUS/State could shoose to NOT say anything at all and just spend the money with impunity. Their letter was a courtesy.