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  • Congressional Budget Justification (CBJ):  Congressional Budget Justification, FY 2025
  • March 2024

Proposed Legislative Changes

MCC seeks two legislative changes that would increase the agency’s impact and better enable it to fulfill its congressionally mandated mission to reduce poverty through economic growth. The proposed changes are as follows:

Candidate Country Reform

The Millennium Challenge Act of 2003, as amended, currently defines MCC’s candidate country pool in a way that prevents MCC from considering numerous middle-income countries that face substantial threats to their economic development paths and ability to reduce poverty. MCC’s candidate country pool should be redefined via legislation to allow MCC to apply its selection model to countries below the IBRD graduation threshold and increase MCC’s capacity to reduce poverty through economic growth in vulnerable countries.

Text of proposed change is as follows:


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


“(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.”


(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)”.


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”.

Annual Report Requirements

MCC is seeking to update its annual report requirements to streamline reporting and allow the agency to directly showcase its accomplishments each fiscal year. The proposed language would amend MCC’s authorizing statute to make the report due to Congress sooner, on the third Friday in December each year, rather than March 31 of the following year, as is currently required, and to assign the function of submitting the report to MCC’s CEO, in line with the practice at similar agencies.

The text of the proposed change is as follows:

In General. – Section 613 of the Millennium Challenge Act of 2003 (22 USC 7712) (the Act) is amended –

  • by striking the current subsection (a);
  • by inserting within subsection (a) the following:

“(a) Report. No later than the third Friday of December of each year, the Chief Executive Officer shall submit to Congress a report on the assistance provided under section 605 of this title during the prior fiscal year.”