Millennium Challenge Corporation Candidate Country Reform Act

Millennium Challenge Corporation Candidate Country Reform Act

This bill modifies the per capita income requirements for countries to be considered candidates for assistance from the Millennium Challenge Corporation (MCC). The MCC program provides assistance to eligible developing countries through a competitive selection process based on various factors, including a country's per capita income, level of economic freedom, and effectiveness of government.

Currently, to be a candidate to receive MCC assistance, the country must have a per capita income not greater than the lower-middle-income country threshold established by the International Bank for Reconstruction and Development (IBRD). Under the bill, a candidate country must instead have a per capita income equal to or less than the World Bank's threshold for initiating the IRDB graduation process. (This graduation process begins when IRDB determines that a country is able to sustain long-term development without further IRDB financing. For 2024, the threshold for initiating discussions about a country's graduation begins when a country exceeds $7,805 in per capita income.)

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3042 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 3042

To modify the requirements for candidate countries under the Millennium 
             Challenge Act of 2003, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 2, 2023

   Mr. Castro of Texas (for himself, Mrs. Kim of California, and Mr. 
    Meeks) introduced the following bill; which was referred to the 
                      Committee on Foreign Affairs

_______________________________________________________________________

                                 A BILL


 
To modify the requirements for candidate countries under the Millennium 
             Challenge Act of 2003, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Millennium Challenge Corporation 
Candidate Country Reform Act''.

SEC. 2. MODIFICATIONS OF REQUIREMENTS TO BECOME A CANDIDATE COUNTRY.

    Section 606 of the Millennium Challenge Act of 2003 (22 U.S.C. 
7705) is amended to read as follows:

``SEC. 606. CANDIDATE COUNTRIES.

    ``(a) In General.--A country shall be a candidate country for 
purposes of eligibility to receive assistance under section 605 if--
            ``(1) the per capita income of the country in a fiscal year 
        is equal to or less than the World Bank threshold for 
        initiating the International Bank for Reconstruction and 
        Development graduation process for the fiscal year; and
            ``(2) subject to subsection (b), the country is not 
        ineligible to receive United States economic assistance under 
        part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et 
        seq.) by reason of the application of any provision of the 
        Foreign Assistance Act of 1961 or any other provision of law.
    ``(b) Rule of Construction.--For the purposes of determining 
whether a country is eligible, pursuant to subsection (a)(2), to 
receive assistance under section 605, the exercise by the President, 
the Secretary of State, or any other officer or employee of the United 
States Government of any waiver or suspension of any provision of law 
referred to in subsection (a)(2), and notification to the appropriate 
congressional committees in accordance with such provision of law, 
shall be construed as satisfying the requirements under subsection (a).
    ``(c) Determination by the Board.--The Board shall determine 
whether a country is a candidate country for purposes of this 
section.''.

SEC. 3. CONFORMING AMENDMENTS.

    (a) Amendment To Report Identifying Candidate Countries.--Section 
608(a)(1) of the Millennium Challenge Act of 2003 (22 U.S.C. 
7707(a)(1)) is amended by striking ``section 606(a)(1)(B)'' and 
inserting ``section 606(a)(2)''.
    (b) Amendment to Millennium Challenge Compact Authority.--Section 
609(b)(2) of such Act (22 U.S.C. 7708(b)(2)) is amended--
            (1) by amending the paragraph heading to read as follows: 
        ``Country contributions''; and
            (2) by striking ``with respect to a lower middle income 
        country described in section 606(b),''.
    (c) Amendment to Authorization To Provide Assistance for Candidate 
Countries.--Section 616(b)(1) of such Act (22 U.S.C. 7715(b)(1)) is 
amended by striking ``subsection (a) or (b) of section 606'' and 
inserting ``section 606(a)''.

SEC. 4. MODIFICATION TO FACTORS IN DETERMINING ELIGIBILITY.

    Section 607(c)(2) of the Millennium Challenge Act of 2003 (22 
U.S.C. 7706(c)(2)) is amended in the matter preceding subparagraph (A) 
by striking ``consider'' and inserting ``prioritize need and impact by 
considering''.
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