[Federal Register Volume 89, Number 174 (Monday, September 9, 2024)]
[Notices]
[Pages 73126-73129]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-20132]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 24-04]


Millennium Challenge Corporation Candidate Country Report for 
Fiscal Year 2025

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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SUMMARY: The Millennium Challenge Act of 2003, as amended, requires the 
Millennium Challenge Corporation to publish a report that identifies 
countries that are ``candidate countries'' for Millennium Challenge 
Account assistance during Fiscal Year 2025. The report is set forth in 
full below.

(Authority: 22 U.S.C. 7707(a))

    Dated: September 3, 2024.
Peter E. Jaffe,
Vice President, General Counsel, and Corporate Secretary.

Millennium Challenge Corporation Candidate Country Report for Fiscal 
Year 2025

Summary

    This report to Congress is provided in accordance with section 
608(a) of the Millennium Challenge Act of 2003, as amended, 22 U.S.C. 
7701, 7707(a) (the Act).
    The Act authorizes the provision of assistance for global 
development through the Millennium Challenge Corporation (MCC) for 
countries that enter into a Millennium Challenge Compact with the 
United States to support policies and programs that advance the 
progress of such countries to achieve lasting economic growth and 
poverty reduction. The Act also authorizes the provision of assistance 
to countries for the purpose of assisting such country to become 
compact eligible. The Act requires MCC to take a number of steps in 
selecting countries to which MCC will seek to provide assistance, 
including determining the countries that will be eligible countries for 
fiscal year (FY) 2025 based on (a) a country's demonstrated commitment 
to (i) just and democratic governance, (ii) economic freedom, and (iii) 
investments in its people; (b) the opportunity to reduce poverty and 
generate economic growth in the country; and (c) the availability of 
funds to MCC. These steps include the submission to the congressional 
committees specified in the Act and publication in the Federal Register 
of reports on the following:
     The countries that are ``candidate countries'' for FY 2025 
are based on their per capita income levels and their eligibility to 
receive assistance under U.S. law and countries that would be candidate 
countries but for specified legal prohibitions on assistance (section 
608(a) of the Act);
     The criteria and methodology that the MCC Board of 
Directors (the Board) will use to measure and evaluate the relative 
policy performance of the ``candidate countries'' consistent with the 
requirements of subsections (a) and (b) of section 607 of the Act in 
order to determine ``eligible countries'' from among the ``candidate 
countries'' (section 608(b) of the Act); and
     The list of countries determined by the Board to be 
``eligible countries'' for FY 2025, identification of such countries 
with which the Board will seek to enter into compacts, and a 
justification for such eligibility determination and selection for 
compact negotiation (section 608(d) of the Act).
    This report is the first of three required reports listed above.

Candidate Countries for FY 2025

    The Act requires the identification of all countries that are 
candidate countries for purposes of eligibility for MCC assistance for 
FY 2025 and the identification of all countries that would be candidate 
countries for purposes of eligibility for MCC assistance but for 
specified legal prohibitions on assistance. Qualification as a 
candidate country is defined in sections 606(a) and (b) of the Act, 
under which:
    A country will be a candidate country in the low income category 
for FY 2025 if it:
     has a per capita income that is not greater than the World 
Bank's lower middle income country threshold for

[[Page 73127]]

such fiscal year ($4,515 gross national income per capita for FY 2025);
     is among the 75 countries identified by the World Bank as 
having the lowest per capita income; and
     is not ineligible to receive United States economic 
assistance under part I of the Foreign Assistance Act of 1961, as 
amended (the Foreign Assistance Act), by reason of the application of 
the Foreign Assistance Act or any other provision of law.
    A country will be a candidate country in the lower middle income 
category for FY 2025 if it:
     has a per capita income that is not greater than the World 
Bank's lower middle income country threshold for such fiscal year 
($4,515 gross national income per capita for FY 2025);
     is not among the 75 countries identified by the World Bank 
as having the lowest per capita income; and
     is not ineligible to receive United States economic 
assistance under part I of the Foreign Assistance Act by reason of the 
application of the Foreign Assistance Act or any other provision of 
law.
    Under section 606(c) of the Act as applied for FY 2025, a country 
with per capita income changes from FY 2024 to FY 2025 such that the 
country would be reclassified from the low income category to the lower 
middle income category or vice versa will retain its income status in 
its former category for FY 2025 and two subsequent fiscal years (FY 
2026 and FY 2027). A country that has transitioned to the upper middle 
income category does not qualify as a candidate country.
    Under section 616 of the Act, the Board may select countries from 
this list of candidate countries for the purpose of assisting such 
country to become an eligible country (traditionally referred to as 
threshold programs) if such country demonstrates a significant 
commitment to meeting the requirements of subsections (a) and (b) of 
section 607 of the Act but fails to meet such requirements.
    Pursuant to section 606(d) of the Act, the Board identified the 
following countries as candidate countries under the Act for FY 2025. 
In so doing, the Board referred to the prohibitions on assistance to 
countries for FY 2024 under the Department of State, Foreign 
Operations, and Related Programs Appropriations Act, 2024 (FY 2024 
SFOAA) contained in Division F of the Further Consolidated 
Appropriations Act, 2024 (Pub. L. 118-47).
Candidate Countries: Low Income Category
1. Afghanistan *
2. Angola
3. Bangladesh
4. Benin
5. Bhutan
6. Bolivia
7. Burundi
8. Cabo Verde
9. Cambodia *
10. Cameroon
11. Central African Republic
12. Chad
13. Comoros
14. Congo, Dem. Rep.
15. Congo, Rep.
16. Cote d'Ivoire
17. Djibouti *
18. Egypt, Arab Rep.
19. Eswatini
20. Ethiopia
21. Gambia, The
22. Ghana
23. Guinea-Bissau
24. Honduras
25. India
26. Kenya
27. Kiribati
28. Kyrgyz Republic
29. Lao PDR
30. Lebanon
31. Lesotho
32. Liberia
33. Madagascar
34. Malawi
35. Mauritania
36. Morocco
37. Mozambique
38. Nepal
39. Nigeria
40. Pakistan
41. Papua New Guinea *
42. Philippines
43. Rwanda
44. Sao Tome and Principe
45. Senegal
46. Sierra Leone
47. Solomon Islands
48. Somalia
49. Tajikistan
50. Tanzania
51. Timor-Leste
52. Togo
53. Tunisia
54. Uganda
55. Uzbekistan
56. Vanuatu
57. Vietnam
58. Yemen, Rep.
59. Zambia
    * This country was ranked Tier 3 in the 2024 Trafficking in Persons 
Report issued by the U.S. Department of State. If, consistent with 
section 110 of the Trafficking Victims Protection Act of 2000, the 
President determines that the United States will not provide non-
humanitarian nontrade-related assistance to the country, then it would 
no longer be a candidate country for FY 2025.
Candidate Countries: Lower Middle Income Category
1. Jordan
2. Micronesia, Federated States of
3. Samoa

Countries That Would Be Candidate Countries but for Legal Provisions 
That Prohibit Assistance

    Countries that would be considered candidate countries for purposes 
of eligibility for MCC assistance for FY 2025 but are ineligible to 
receive United States economic assistance under part I of the Foreign 
Assistance Act by reason of the application of any provision of the 
Foreign Assistance Act or any other provision of law are listed below. 
This list is based on legal prohibitions against economic assistance 
that apply as of July 29, 2024.

Prohibited Countries: Low Income Category

     Burkina Faso is ineligible to receive foreign assistance 
pursuant to the military coup restriction in section 7008 of the FY 
2024 SFOAA.
     Burma is ineligible to receive foreign assistance as it is 
subject to numerous restrictions including for concerns relative to its 
record on human rights and pursuant to the military coup restriction in 
section 7008 of the FY 2024 SFOAA.
     Eritrea is ineligible to receive foreign assistance as it 
is subject to numerous restrictions including for concerns related to 
its record on human rights and its status as a Tier 3 country under the 
Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).
     Guinea is ineligible to receive foreign assistance 
pursuant to the military coup restriction in section 7008 of the FY 
2024 SFOAA.
     Haiti is ineligible to receive foreign assistance unless 
the Secretary of State provides a certification pursuant to section 
7045(g)(2) of the FY 2024 SFOAA.
     Korea, North is ineligible to receive foreign assistance 
as it is subject to numerous restrictions including section 7007 of the 
FY 2024 SFOAA and its status as a Tier 3 country under the Trafficking 
Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).
     Mali is ineligible to receive foreign assistance pursuant 
to the military coup restriction in section 7008 of the FY 2024 SFOAA.
     Nicaragua is ineligible to receive foreign assistance as 
it is subject to numerous restrictions including under section 7047(c) 
of the FY 2024 SFOAA related to its recognition posture with respect to 
the Russian Federation

[[Page 73128]]

occupied Georgian territories of Abkhazia and Tskhinvali Region/South 
Ossetia, and its status as a Tier 3 country under the Trafficking 
Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).
     Niger is ineligible to receive foreign assistance pursuant 
to the military coup restriction in section 7008 of the FY 2024 SFOAA.
     South Sudan is ineligible to receive foreign assistance as 
it is subject to numerous restrictions including for concerns relative 
to its record on human rights, and its status as a Tier 3 country under 
the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et 
seq.).
     Sudan is ineligible to receive foreign assistance as it is 
subject to numerous restrictions including the military coup 
restriction in section 7008 of the FY 2024 SFOAA.
     Syria is ineligible to receive foreign assistance as it is 
subject to numerous restrictions including section 7007 of the FY 2024 
SFOAA and its status as a Tier 3 country under the Trafficking Victims 
Protection Act of 2000 (22 U.S.C. 7101 et seq.).
     Zimbabwe is ineligible to receive foreign assistance, 
including pursuant to section 7042(j)(2) of the FY 2024 SFOAA, which 
prohibits (with limited exceptions) assistance for the central 
government of Zimbabwe unless the Secretary of State certifies and 
reports to Congress that the rule of law has been restored, including 
respect for ownership and title to property, and freedoms of 
expression, association, and assembly.

Prohibited Countries: Lower Middle Income Category

     Sri Lanka is ineligible to receive foreign assistance 
pursuant to section 7044(c)(2) of the FY 2024 SFOAA, which restricts 
(with limited exceptions) assistance for the central government unless 
the Secretary makes certain certifications regarding actions taken by 
the Government of Sri Lanka and reports to the Committees on 
Appropriations.
    Countries identified above as candidate countries, as well as 
countries that would be considered candidate countries but for the 
applicability of legal provisions that prohibit U.S. economic 
assistance, may be the subject of future statutory restrictions or 
determinations, or changed country circumstances, that affect their 
legal eligibility for assistance under part I of the Foreign Assistance 
Act by reason of application of the Foreign Assistance Act or any other 
provision of law for FY 2025.

Appendix: Candidate Countries and Prohibited Countries in the Event of 
Enactment of Millennium Challenge Corporation Candidate Country Reform 
Act Legislation or Similar Legislation

    As of the date of this report, legislation known as the Millennium 
Challenge Corporation Candidate Country Reform Act is under active 
consideration by the United States Congress. If passed as currently 
drafted, the legislation would reform the income threshold for 
countries to be candidate countries for purposes of eligibility for MCC 
assistance by changing it to the World Bank threshold for initiating 
the International Bank for Reconstruction and Development graduation 
process for the fiscal year ($7,895 gross national income per capita 
for FY 2025). It would also eliminate the distinction between lower 
income category and lower middle income category countries.
    Should this legislation (or legislation that similarly reforms the 
income threshold for countries to become candidates) become law before 
FY 2026, the Board identified that the following countries would be 
qualified, based on their income status, as candidate countries for 
consideration under the Act for FY 2025:

1. Afghanistan *
2. Albania
3. Algeria
4. Angola
5. Armenia
6. Bangladesh
7. Belize
8. Benin
9. Bhutan
10. Bolivia
11. Botswana
12. Burundi
13. Cabo Verde
14. Cambodia *
15. Cameroon
16. Central African Republic
17. Chad
18. Colombia
19. Comoros
20. Congo, Dem. Rep.
21. Congo, Rep.
22. Cote d'Ivoire
23. Djibouti *
24. Ecuador
25. Egypt, Arab Rep.
26. El Salvador
27. Equatorial Guinea
28. Eswatini
29. Ethiopia
30. Fiji
31. Gambia, The
32. Georgia
33. Ghana
34. Guatemala
35. Guinea-Bissau
36. Honduras
37. India
38. Indonesia
39. Iraq
40. Jamaica
41. Jordan
42. Kenya
43. Kiribati
44. Kosovo
45. Kyrgyz Republic
46. Lao PDR
47. Lebanon
48. Lesotho
49. Liberia
50. Libya
51. Madagascar
52. Malawi
53. Marshall Islands
54. Mauritania
55. Micronesia, Federated States of
56. Moldova
57. Mongolia
58. Morocco
59. Mozambique
60. Namibia
61. Nepal
62. Nigeria
63. North Macedonia
64. Pakistan
65. Papua New Guinea *
66. Paraguay
67. Peru
68. Philippines
69. Rwanda
70. Samoa
71. Sao Tome and Principe
72. Senegal
73. Sierra Leone
74. Solomon Islands
75. Somalia
76. South Africa
77. Suriname
78. Tajikistan
79. Tanzania
80. Thailand
81. Timor-Leste
82. Togo
83. Tonga
84. Tunisia
85. Tuvalu
86. Uganda
87. Ukraine
88. Uzbekistan
89. Vanuatu
90. Vietnam
91. Yemen, Rep.
92. Zambia
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    * This country was ranked Tier 3 in the 2024 Trafficking in 
Persons Report issued by the U.S. Department of State. If, 
consistent with section 110 of the Trafficking Victims Protection 
Act of 2000, the President determines that the United States will 
not provide non-humanitarian nontrade-related assistance to the 
country then it would no longer be a candidate country for FY 2025.
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    If the Millennium Challenge Corporation Candidate Country Reform 
Act legislation or legislation that similarly reforms the income 
threshold for countries to become candidates were

[[Page 73129]]

to become law, the following countries would be considered candidate 
countries for purposes of eligibility for MCC assistance for FY 2025, 
but are ineligible to receive United States economic assistance under 
part I of the Foreign Assistance Act by reason of the application of 
any provision of the Foreign Assistance Act or any other provision of 
law are listed below. This list is based on legal prohibitions against 
economic assistance that apply as of July 29, 2024.

Prohibited Countries

     Azerbaijan is ineligible to receive foreign assistance 
pursuant to section 907 of the FREEDOM Support Act (22 U.S.C. 5801).
     Belarus is ineligible to receive foreign assistance as it 
is subject to numerous restrictions including for concerns relative to 
its record on human rights and its status as a Tier 3 country under the 
Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).
     Burkina Faso is ineligible to receive foreign assistance 
pursuant to the military coup restriction in section 7008 of the FY 
2024 SFOAA.
     Burma is ineligible to receive foreign assistance as it is 
subject to numerous restrictions including for concerns relative to its 
record on human rights and pursuant to the military coup restriction in 
section 7008 of the FY 2024 SFOAA.
     Eritrea is ineligible to receive foreign assistance as it 
is subject to numerous restrictions including for concerns relative to 
its record on human rights and its status as a Tier 3 country under the 
Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).
     Guinea is ineligible to receive foreign assistance 
pursuant to the military coup restriction in section 7008 of the FY 
2024 SFOAA.
     Haiti is ineligible to receive foreign assistance unless 
the Secretary of State provides a certification pursuant to section 
7045(g)(2) of the FY 2024 SFOAA.
     Iran is ineligible to receive foreign assistance as it is 
subject to numerous restrictions including section 7007 of the FY 2024 
SFOAA and its status as a Tier 3 country under the Trafficking Victims 
Protection Act of 2000 (22 U.S.C. 7101 et seq.).
     Korea, North is ineligible to receive foreign assistance 
as it is subject to numerous restrictions including section 7007 of the 
FY 2024 SFOAA and its status as a Tier 3 country under the Trafficking 
Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).
     Mali is ineligible to receive foreign assistance pursuant 
to the military coup restriction in section 7008 of the FY 2024 SFOAA.
     Nicaragua is ineligible to receive foreign assistance as 
it is subject to numerous restrictions including under section 7047(c) 
of the FY 2024 SFOAA related to its recognition posture with respect to 
the Russian Federation occupied Georgian territories of Abkhazia and 
Tskhinvali Region/South Ossetia and its status as a Tier 3 country 
under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et 
seq.).
     Niger is ineligible to receive foreign assistance pursuant 
to the military coup restriction in section 7008 of the FY 2024 SFOAA.
     South Sudan is ineligible to receive foreign assistance as 
it is subject to numerous restrictions including for concerns relative 
to its record on human rights, and its status as a Tier 3 country under 
the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et 
seq.).
     Sri Lanka is ineligible to receive foreign assistance 
pursuant to section 7044(c)(2) of the FY 2024 SFOAA, which restricts 
(with limited exceptions) assistance for the central government unless 
the Secretary makes certain certifications regarding actions taken by 
the Government of Sri Lanka and reports to the Committees on 
Appropriations.
     Sudan is ineligible to receive foreign assistance as it is 
subject to numerous restrictions including the military coup 
restriction in section 7008 of the FY 2024 SFOAA.
     Syria is ineligible to receive foreign assistance as it is 
subject to numerous restrictions including section 7007 of the FY 2024 
SFOAA and its status as a Tier 3 country under the Trafficking Victims 
Protection Act of 2000 (22 U.S.C. 7101 et seq.).
     Zimbabwe is ineligible to receive foreign assistance, 
including pursuant to section 7042(j)(2) of the FY 2024 SFOAA, which 
prohibits (with limited exceptions) assistance for the central 
government of Zimbabwe unless the Secretary of State certifies and 
reports to Congress that the rule of law has been restored, including 
respect for ownership and title to property, and freedoms of 
expression, association, and assembly.
    The countries identified above that would be candidate countries 
should the legislation pass; as well as countries that would be 
considered candidate countries but for the applicability of legal 
provisions that prohibit U.S. economic assistance, may be the subject 
of future statutory restrictions or determinations that affect their 
legal eligibility for assistance under part I of the Foreign Assistance 
Act by reason of application of the Foreign Assistance Act or any other 
provision of law for FY 2025.

[FR Doc. 2024-20132 Filed 9-6-24; 8:45 am]
BILLING CODE 9211-03-P