[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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