Millennium Challenge Corporation Eligibility Expansion Act
Floor Speech
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Mr. CASTRO of Texas. Madam Speaker, I move to suspend the rules and pass the bill (H.R. 8463) to modify the requirements under the Millennium Challenge Act of 2003 for candidate countries, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows: H.R. 8463
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 Eligibility Expansion 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 for receiving assistance under section 605 if--
``(1) the per capita income of the country is equal to or less than the gross national income per capita of the 125th poorest country as identified by the World Bank 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 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 for receiving assistance under section 605 pursuant to subsection (a)(2), the exercise by the President, the Secretary of State, or any other officer or employee of the United States of any waiver or suspension of any provision of law referred to in such paragraph, and notification to the appropriate congressional committees in accordance with such provision of law, shall be construed as satisfying the requirements of such subsection.
``(c) Identification by the Board.--The Board shall identify whether a country is a candidate country for purposes of this section.''. SEC. 3. CONFORMING AMENDMENTS.
(a) Amendment to Millennium Challenge Compact Authority.-- Section 609(b)(2) of the Millennium Challenge Act of 2003 (22 U.S.C. 7708(b)(2)) is amended--
(1) by striking the heading and inserting ``Country contributions''; and
(2) by striking ``with respect to a lower middle income country described in section 606(b),''.
(b) 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)''.
(c) Amendment to Authorization To Provide Assistance for Candidate Countries.--Section 616(b)(1) of the Millennium Challenge Act of 2003 (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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Mr. CASTRO of Texas. 8463.
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Mr. CASTRO of Texas. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I am glad to bring this bipartisan legislation, which I authored together with my colleague, Representative Young Kim of California to the House floor.
It will allow the Millennium Challenge Corporation, or MCC, to continue to work where it can do the most to foster development and reduce poverty.
When Congress established the MCC almost 20 years ago, it was envisioned as a selective agency that would work collaboratively with the best-governed developing countries.
Perhaps the most visible part of MCC's rigorous selection process is its scorecard, which evaluates more than 20 different policy indicators of good governance. But Congress also set an income-based threshold for nations where MCC could work. It was intended to make sure MCC focused on developing countries and on helping the people who need it most. I strongly support that focus and nothing in this bill is intended to alter that core part of MCC's mission and mandate.
But the way we define that threshold, based on who falls within two categories in the World Bank's estimates of per capita gross national income, has led to several issues this legislation seeks to address.
In the decades since the original standard was defined, the number of potential countries eligible for MCC's compacts has shrunk by almost a third. These compacts, which need to be ratified by both the United States and the partner country, can take years to negotiate, ratify, and implement.
Under the income threshold's current structure, countries can suddenly become ineligible for assistance in the middle of a multi-year negotiation. Global disruptions like a pandemic or major conflict can also lead to changes in a country's eligibility.
Under my legislation, the MCC would continue to use World Bank measures of GNI per capita as the basis to calculate eligibility, while expanding consideration for potential compacts to the world's 125 poorest countries. This change will ensure that MCC has a stable number of potential candidates, even as we continue to make progress in the fight against global poverty.
The new pool of potentially eligible countries would cover 98 percent of the world's poor and 90 percent of the countries MCC has identified as facing substantial vulnerability, including to pandemics, natural disasters, migration, and food insecurity.
It is important to note that this is potential eligibility.
This bill does not change any of MCC's scorecard criteria. To qualify for a potential compact, countries must also be generally eligible to receive American foreign assistance under the Foreign Assistance Act and other provisions of United States law.
The MCC Eligibility Expansion Act also includes protections to ensure that newly eligible countries do not crowd out support for low and lower-middle-income countries that qualify under the existing income threshold.
For example, it includes language that would strengthen statutory direction to the MCC's board to prioritize development need and impact. The legislation would also require all potential candidate countries to identify appropriate national contributions during compact negotiations, meaning wealthier countries would pitch in more.
In implementing this legislation, I also expect the MCC to compare this small pool of newly eligible upper-middle-income countries against their peers in determining eligibility through the scorecard.
This bill would provide the MCC with more certainty and stability when it chooses to pursue a compact.
Madam Speaker, with the support of my colleagues today, we can ensure that the MCC will continue its important work and maximize its impact fighting poverty and promoting development.
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Mr. CASTRO of Texas. Madam Speaker, I am prepared to close, and I reserve the balance of my time.
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Mr. CASTRO of Texas. Madam Speaker, I yield myself such time as I may consume for the purpose of closing.
Madam Speaker, the Millennium Challenge Corporation Eligibility Expansion Act will improve the MCC's ability to form stable, long-term compacts in the well-governed countries that will benefit most from United States' development assistance.
I thank my colleagues, particularly my co-lead on this bill, Representative Young Kim, for the bipartisan work that has brought this legislation forward today.
Madam Speaker, I urge the House to pass this legislation. I hope the Senate will take it up swiftly so that it can become law this year, and I yield back the balance of my time.
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