[Congressional Record Volume 168, Number 157 (Wednesday, September 28, 2022)]
[House]
[Pages H8198-H8200]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       MILLENNIUM CHALLENGE CORPORATION ELIGIBILITY EXPANSION ACT

  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.

[[Page H8199]]

       ``(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''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Castro) and the gentlewoman from California (Mrs. Kim) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Texas.


                             General Leave

  Mr. CASTRO of Texas. Madam Speaker, I ask unanimous consent that all 
Members have 5 legislative days within which to revise and extend their 
remarks and include extraneous material on H.R. 8463.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  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.
  Madam Speaker, I reserve the balance of my time.
  Mrs. KIM of California. Madam Speaker, I rise in support of this 
bill, and I yield myself such time as I may consume.
  Madam Speaker, I was proud to introduce the Millennium Challenge 
Corporation Eligibility Expansion Act along with my Democratic 
colleague from Texas, Mr. Castro.

  In the nearly 20 years since its founding under President Bush, the 
Millennium Challenge Corporation has demonstrated a strong track record 
of success in its mission of combating poverty through economic growth.
  The agency has enjoyed broad bipartisan support, earned through 
strict project selection criteria and the ability to hold partner 
countries to a high standard of accountability. But the agency and its 
partners are facing new challenges. The Chinese Communist Party is 
increasing its malign influence in the developing world, often 
disguised as development assistance. The world is facing a food 
security crisis and other effects of Russia's unprovoked war in 
Ukraine.
  Many countries risk losing progress on development and poverty 
reduction made over previous decades. This bill will ensure that the 
world's 125 poorest countries are eligible for potential consideration 
as candidate countries in the MCC's rigorous selection process. It adds 
stability to MCC's partnerships, and it ensures its ability to focus on 
the world's poorest populations, who are often the most vulnerable to 
debt traps and other forms of outside manipulation.
  This bill is an important step towards equipping MCC to operate in 
today's environment so, that it can continue to use its proven, 
evidence-based model to build sustainable economic growth, 
transparency, and stability in partner countries around the world.
  Madam Speaker, I reserve the balance of my time.
  Mr. CASTRO of Texas. Madam Speaker, I am prepared to close, and I 
reserve the balance of my time.
  Mrs. KIM of California. Madam Speaker, the Millennium Challenge 
Corporation has done important work on behalf of the American people to 
promote economic growth and transparency around the world. But we must 
make sure that the agency is equipped to address the challenges and 
threats of today, including those posed by our strategic rivals who are 
attempting to increase their global influence.

[[Page H8200]]

  Madam Speaker, I, again, thank the gentleman from Texas (Mr. Castro), 
my colleague, our bipartisan cosponsors, and Chairman Meeks and Ranking 
Member McCaul of the Committee on Foreign Affairs for moving this bill 
forward.
  Madam Speaker, I urge support for the bill, and I yield back the 
balance of my time.

                              {time}  2150

  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.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas (Mr. Castro) that the House suspend the rules and 
pass the bill, H.R. 8463.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. CLYDE. Madam Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

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