22 USC 7701 - Purposes

§ 7701. Purposes
§ 7702. Definitions
§ 7703. Establishment and management of the Millennium Challenge Corporation
§ 7704. Authorization of assistance
§ 7705. Candidate countries
§ 7706. Eligible countries
§ 7707. Congressional and public notification of candidate countries, eligibility criteria, and eligible countries
§ 7708. Millennium Challenge Compact
§ 7709. Congressional and public notification
§ 7710. Suspension and termination of assistance
§ 7711. Disclosure
§ 7712. Annual report
§ 7713. Powers of the Corporation; related provisions
§ 7714. Coordination with United States Agency for International Development
§ 7715. Assistance to certain candidate countries
§ 7716. General personnel authorities
§ 7717. Personnel outside the United States
§ 7718. Authorization of appropriations

§ 7701. Purposes

The purposes of this chapter are—

(1) to provide United States assistance for global development through the Millennium Challenge Corporation, as described in section 7703 of this title; and

(2) to provide such assistance in a manner that promotes economic growth and the elimination of extreme poverty and strengthens good governance, economic freedom, and investments in people.

(Pub. L. 108–199, div. D, title VI, § 602, Jan. 23, 2004, 118 Stat. 211.)

§ 7702. Definitions

In this chapter:

(1) Appropriate congressional committees

The term “appropriate congressional committees” means—

(A) the Committee on International Relations and the Committee on Appropriations of the House of Representatives; and

(B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate.

(2) Board

(3) Candidate country

(4) Chief Executive Officer

(5) Compact

(6) Corporation

(7) Eligible country

(8) Investments in the people

(Pub. L. 108–199, div. D, title VI, § 603, Jan. 23, 2004, 118 Stat. 211; Pub. L. 108–447, div. D, title V, § 534(q), Dec. 8, 2004, 118 Stat. 3008.)

§ 7703. Establishment and management of the Millennium Challenge Corporation

(a) Establishment

(b) Chief Executive Officer

(1) In general

(2) Appointment

(A) In general

(B) Interim CEO

(3) Relationship to Board

(4) Compensation and rank

(A) In general

(B) Omitted

(5) Authorities and duties

(6) Authority to appoint officers

(1) Establishment

(2) Duties

(3) MembershipThe Board shall consist of—

(A) the Secretary of State, the Secretary of the Treasury, the Administrator of the United States Agency for International Development, the Chief Executive Officer of the Corporation, and the United States Trade Representative; and

(B) four other individuals with relevant international experience who shall be appointed by the President, by and with the advice and consent of the Senate, of which—

(i) one individual should be appointed from among a list of individuals submitted by the majority leader of the House of Representatives;

(ii) one individual should be appointed from among a list of individuals submitted by the minority leader of the House of Representatives;

(iii) one individual should be appointed from among a list of individuals submitted by the majority leader of the Senate; and

(iv) one individual should be appointed from among a list of individuals submitted by the minority leader of the Senate.

(4) Terms

(A) Officers of the Federal Government

(B) Other membersEach member of the Board described in paragraph (3)(B)—

(i) shall be appointed for a term of 3 years;

(ii) may be reappointed for a term of an additional 2 years; and

(iii) may continue to serve in each such appointment until the earlier of—(I) the date on which his or her successor is appointed; or(II) the date that is 1 year after the expiration of his or her appointment or reappointment, as the case may be.

(5) Chairperson

(6) Quorum

(7) Meetings

(8) Compensation

(A) Officers of the Federal Government

(i) In general

(ii) Travel expenses

(B) Other members

(i) In generalExcept as provided in clause (ii), a member of the Board described in paragraph (3)(B)—(I) shall be paid compensation out of funds made available for the purposes of this chapter at the daily equivalent of the highest rate payable under section 5332 of title 5 for each day (including travel time) during which the member is engaged in the actual performance of duties as a member of the Board; and(II) while away from the member’s home or regular place of business on necessary travel in the actual performance of duties as a member of the Board, shall be paid per diem, travel, and transportation expenses in the same manner as is provided under subchapter I of chapter 57 of title 5.

(ii) Limitation

(Pub. L. 108–199, div. D, title VI, § 604, Jan. 23, 2004, 118 Stat. 212; Pub. L. 115–167, title II, § 202, Apr. 23, 2018, 132 Stat. 1279.)

§ 7704. Authorization of assistance

(a) Assistance

(b) Form of assistance

An eligible entity referred to in subsection (b) is—

(1) the national government of the eligible country;

(2) regional or local governmental units of the country; or

(3) a nongovernmental organization or a private entity.

(d) Application

(e) Limitations

(1) Prohibition on military assistance and training

(2) Prohibition on assistance relating to United States job loss or production displacement

(3) Prohibition on assistance relating to environmental, health, or safety hazards

(4) Prohibition on use of funds for abortions and involuntary sterilizations

(f) Coordination

(Pub. L. 108–199, div. D, title VI, § 605, Jan. 23, 2004, 118 Stat. 214.)

§ 7705. Candidate countries

(a) Low income countries

(1) Fiscal year 2004

A country shall be a candidate country for purposes of eligibility for assistance for fiscal year 2004 if—

(A) the country is eligible for assistance from the International Development Association, and the per capita income of the country is equal to or less than the historical ceiling of the International Development Association for that year, as defined by the International Bank for Reconstruction and Development; and

(B) subject to paragraph (4), 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 [22 U.S.C. 2151 et seq.] or any other provision of law.

(2) Fiscal years 2005 through 2012

A country shall be a candidate country for purposes of eligibility for assistance for each of fiscal years 2005 through 2012 if—

(A) the per capita income of the country is equal to or less than the historical ceiling of the International Development Association for the fiscal year involved, as defined by the International Bank for Reconstruction and Development; and

(B) the country meets the requirements of paragraph (1)(B).

(3) Fiscal year 2013 and subsequent fiscal years

A country shall be a candidate country for purposes of eligibility for assistance for fiscal year 2013 or a subsequent fiscal year if the country—

(A) has a per capita income not greater than the lower middle income country threshold established by the International Bank for Reconstruction and Development for such fiscal year;

(B) is among the 75 countries identified by the International Bank for Reconstruction and Development as having the lowest per capita income; and

(4) Rule of construction

(b) Lower middle income countries

(1) Fiscal years 2006 through 2012

In addition to countries described in subsection (a), a country shall be a candidate country for purposes of eligibility for assistance for fiscal years 2006 through 2012 if the country—

(A) is classified as a lower middle income country in the then most recent edition of the World Development Report for Reconstruction and Development published by the International Bank for Reconstruction and Development and has an income greater than the historical ceiling for International Development Association eligibility for the fiscal year involved; and

(B) meets the requirements of subsection (a)(1)(B).

(2) Fiscal year 2013 and subsequent fiscal years

In addition to the countries described in subsection (a), a country shall be a candidate country for purposes of eligibility for assistance for fiscal year 2013 or a subsequent fiscal year if the country—

(A) has a per capita income not greater than the lower middle income country threshold established by the International Bank for Reconstruction and Development for the fiscal year;

(B) is not among the 75 countries identified by the International Bank for Reconstruction and Development as having the lowest per capita income; and

(3) Limitation

(d) Identification by the Board

(Pub. L. 108–199, div. D, title VI, § 606, Jan. 23, 2004, 118 Stat. 215; Pub. L. 115–167, title II, § 201, Apr. 23, 2018, 132 Stat. 1278.)

§ 7706. Eligible countries

(a) Determination by the Board

(b) CriteriaA candidate country should be considered to be an eligible country for purposes of this section if the Board determines that the country has demonstrated a commitment to—

(1) just and democratic governance, including a demonstrated commitment to—

(A) promote political pluralism, equality, and the rule of law;

(B) respect human and civil rights, including the rights of people with disabilities;

(D) encourage transparency and accountability of government;

(E) combat corruption; and

(F) the quality of the civil society enabling environment;

(2) economic freedom, including a demonstrated commitment to economic policies that—

(A) encourage citizens and firms to participate in global trade and international capital markets;

(B) promote private sector growth;

(D) respect worker rights, including the right to form labor unions; and

(3) investments in the people of such country, particularly women and children, including programs that—

(A) promote broad-based primary education;

(B) strengthen and build capacity to provide quality public health and reduce child mortality; and

(1) In general

(2) FactorsIn selecting eligible countries under paragraph (1), the Board shall consider the following factors:

(A) The extent to which the country clearly meets or exceeds the eligibility criteria.

(B) The opportunity to reduce poverty and generate economic growth in the country.

(d) Reporting on treatment of civil societyFor the 7-year period beginning on April 23, 2018, before the Board selects an eligible country for a Compact under subsection (c), the Corporation shall provide information to the Board regarding the country’s treatment of civil society, including classified information, as appropriate. The information shall include an assessment and analysis of factors including—

(1) any relevant laws governing the formation or establishment of a civil society organization, particularly laws intended to curb the activities of foreign civil society organizations;

(2) any relevant laws governing the operations of a civil society organization, particularly those laws seeking to define or otherwise regulate the actions of foreign civil society organizations;

(3) laws relating to the legal status of civil society organizations, including laws which effectively discriminate against foreign civil society organizations as compared to similarly situated domestic organizations;

(4) laws regulating the freedom of expression and peaceful assembly; and

(5) laws regulating the usage of the Internet, particularly by foreign civil society organizations.

(e) Establishment of criteria and methodology

(f) Annual modification of criteria and methodology

(Pub. L. 108–199, div. D, title VI, § 607, Jan. 23, 2004, 118 Stat. 216; Pub. L. 110–161, div. J, title VI, § 699I(a), Dec. 26, 2007, 121 Stat. 2372; Pub. L. 115–167, title II, § 203, Apr. 23, 2018, 132 Stat. 1279.)

§ 7707. Congressional and public notification of candidate countries, eligibility criteria, and eligible countries

(a) Identification of candidate countries

Not later than 90 days prior to the date on which the Board determines eligible countries under section 7706 of this title for a fiscal year, the Chief Executive Officer—

(1) shall prepare and submit to the appropriate congressional committees a report that contains a list of all candidate countries identified under section 7705 of this title, and all countries that would be candidate countries if the countries met the requirement contained in section 7705(a)(1)(B) of this title, for the fiscal year; and

(2) shall publish in the Federal Register the information contained in the report described in paragraph (1).

(b) Identification of eligibility criteria and methodology

Not later than 60 days prior to the date on which the Board determines eligible countries under section 7706 of this title for a fiscal year, the Chief Executive Officer—

(1) shall prepare and submit to the appropriate congressional committees a report that contains a list of the criteria and methodology described in subsections (a) and (b) of section 7706 of this title that will be used to determine eligibility for each candidate country identified under subsection (a);

(2) shall publish in the Federal Register the information contained in the report described in paragraph (1); and

(3) may conduct one or more public hearings on the eligibility criteria and methodology.

(1) Public comment

(2) Congressional consultation

(d) Identification of eligible countries

Not later than 5 days after the date on which the Board determines eligible countries under section 7706 of this title for a fiscal year, the Chief Executive Officer—

(1) shall prepare and submit to the appropriate congressional committees a report that contains a list of all such eligible countries, an identification of those countries on such list with respect to which the Board will seek to enter into a Compact under section 7708 of this title, and a justification for such eligibility determination and selection for Compact negotiation; and

(2) shall publish in the Federal Register the information contained in the report described in paragraph (1).

(Pub. L. 108–199, div. D, title VI, § 608, Jan. 23, 2004, 118 Stat. 217.)

§ 7708. Millennium Challenge Compact

(a) Compact

(b) Elements

(1) In general

The Compact should take into account the national development strategy of the eligible country and shall contain—

(A) the specific objectives that the country and the United States expect to achieve during the term of the Compact;

(B) the responsibilities of the country and the United States in the achievement of such objectives;

(D) an identification of the intended beneficiaries, disaggregated by income level, gender, and age, to the maximum extent practicable;

(E) a multi-year financial plan, including the estimated amount of contributions by the Corporation and the country and proposed mechanisms to implement the plan and provide oversight, that describes how the requirements of subparagraphs (A) through (D) will be met, including identifying the role of civil society in the achievement of such requirements;

(F) where appropriate, a description of the current and potential participation of other donors in the achievement of such objectives;

(G) a plan to ensure appropriate fiscal accountability for the use of assistance provided under section 7704 of this title;

(H) where appropriate, a process or processes for consideration of solicited proposals under the Compact as well as a process for consideration of unsolicited proposals by the Corporation and national, regional, or local units of government;

(I) a requirement that open, fair, and competitive procedures are used in a transparent manner in the administration of grants or cooperative agreements or the procurement of goods and services for the accomplishment of objectives under the Compact;

(J) the strategy of the eligible country to sustain progress made toward achieving such objectives after expiration of the Compact; and

(K) a description of the role of the United States Agency for International Development in any design, implementation, and monitoring of programs and activities funded under the Compact.

(2) Lower middle income countries

(3) Definition

(d) Local input

In entering into a Compact, the United States shall seek to ensure that the government of an eligible country—

(1) takes into account the local-level perspectives of the rural and urban poor, including women, in the eligible country; and

(2) consults with private and voluntary organizations, the business community, and other donors in the eligible country.

(e) Consultation

(f) Coordination with other donors

(g) Assistance for development of compact

(h) Requirement for approval by the Board

(i) Increase or extension of assistance under a Compact

Not later than 15 days after making a determination to increase or extend assistance under a Compact with an eligible country, the Board, acting through the Chief Executive Officer—

(1) shall prepare and transmit to the appropriate congressional committees a written report and justification that contains a detailed summary of the proposed increase in or extension of assistance under the Compact and a copy of the full text of the amendment to the Compact; and

(2) shall publish a detailed summary, full text, and justification of the proposed increase in or extension of assistance under the Compact in the Federal Register and on the Internet website of the Corporation.

(j) Duration of Compact

(k) Concurrent Compacts

An eligible country that has entered into and has in effect a Compact under this section may enter into and have in effect at the same time not more than one additional Compact in accordance with the requirements of this chapter if—

(1) one or both of the Compacts are or will be for purposes of regional economic integration, increased regional trade, or cross-border collaborations; and

(2) the Board determines that the country is making considerable and demonstrable progress in implementing the terms of the existing Compact and supplementary agreements thereto.

(l) Subsequent Compacts

(Pub. L. 108–199, div. D, title VI, § 609, Jan. 23, 2004, 118 Stat. 218; Pub. L. 115–167, title II, § 204(a), Apr. 23, 2018, 132 Stat. 1280.)

§ 7709. Congressional and public notification

(a) Congressional consultations and notifications

(1) In general

(2) Actions describedThe actions described in this paragraph are—

(A) providing assistance for an eligible country under section 7708(g) of this title;

(B) commencing negotiations with an eligible country to provide assistance for—

(i) a Compact under section 7704 of this title; or

(ii) an agreement under section 7715 of this title;

(D) terminating assistance under such a Compact or agreement.

(3) Economic justificationAny notification relating to the intent to negotiate or sign a Compact shall include a report describing the projected economic justification for the Compact, including, as applicable—

(A) the expected economic rate of return of the Compact;

(B) a cost-benefit analysis of the Compact;

(D) the likelihood that the investment will catalyze private sector investments; and

(E) any other applicable economic factors that justify each project to be funded under such a Compact to the extent practicable and appropriate.

(4) Risk management planNot later than 60 days before signing each concurrent Compact, as authorized under section 7708 of this title, the Board, acting through the Chief Executive Officer, shall consult with and provide to the appropriate congressional committees—

(A) an assessment and, as appropriate, the identification of potential measures to mitigate risks, of—

(i) the countries’ commitment to regional integration and cross-border cooperation and capacity to carry out commitments;

(ii) political and policy risks, including risks that could affect country eligibility;

(iii) risks associated with realizing economic returns;

(iv) time and completion risks; and

(v) cost and financial risks; and

(B) an assessment of measures to be taken to mitigate any identified risks, including—

(i) securing other potential donors to finance projects or parts of projects as needed; and

(ii) partnering with regional organizations to support and oversee effective cross-border cooperation.

(b) Congressional and public notification after entering into a CompactNot later than 10 days after entering into a Compact with an eligible country, the Board, acting through the Chief Executive Officer, shall—

(1) publish the text of the Compact on the website of the Corporation;

(2) provide the appropriate congressional committees with a detailed summary of the Compact and, upon request, the text of the Compact; and

(3) publish in the Federal Register a detailed summary of the Compact and a notice of availability of the text of the Compact on the website of the Corporation.

(Pub. L. 108–199, div. D, title VI, § 610, Jan. 23, 2004, 118 Stat. 220; Pub. L. 115–167, title II, § 205, Apr. 23, 2018, 132 Stat. 1281.)

§ 7710. Suspension and termination of assistance

(a) Suspension and termination of assistance

After consultation with the Board, the Chief Executive Officer may suspend or terminate assistance in whole or in part for a country or entity under section 7704 of this title if the Chief Executive Officer determines that—

(1) the country or entity is engaged in activities which are contrary to the national security interests of the United States;

(2) the country or entity has engaged in a pattern of actions inconsistent with the criteria used to determine the eligibility of the country or entity, as the case may be; or

(3) the country or entity has failed to adhere to its responsibilities under the Compact.

(b) Reinstatement

(d) Rule of construction

(Pub. L. 108–199, div. D, title VI, § 611, Jan. 23, 2004, 118 Stat. 220.)

§ 7711. Disclosure

(a) Requirement for timely disclosureNot later than 90 days after the last day of each fiscal quarter, the Corporation shall make available to the public the following information:

(1) For assistance provided under section 7704 of this title—

(A) the name of each entity to which assistance is provided;

(B) the amount of assistance provided to the entity; and

(i) a description of whether the program or project was solicited or unsolicited; and

(ii) a detailed description of the objectives and measures for results of the program or project.

(2) For funds allocated or transferred under section 7718(b) of this title—

(A) the name of each United States Government agency to which such funds are transferred or allocated;

(B) the amount of funds transferred or allocated to such agency; and

(b) DisseminationThe Board, acting through the Chief Executive Officer, shall make the information required to be disclosed under subsection (a) available to the public—

(1) by publishing it on the website of the Corporation;

(2) by providing notice of the availability of such information in the Federal Register; and

(3) by any other methods that the Board determines to be appropriate.

(Pub. L. 108–199, div. D, title VI, § 612, Jan. 23, 2004, 118 Stat. 221; Pub. L. 115–167, title II, § 206, Apr. 23, 2018, 132 Stat. 1282.)

§ 7712. Annual report

(a) Report

(b) ContentsThe report shall include the following:

(1) The amount of obligations and expenditures for assistance provided to each eligible country during the prior fiscal year.

(2) For each eligible country, an assessment of—

(A) the progress made during each year by the country toward achieving the objectives set out in any Compact entered into by the country; and

(B) the extent to which assistance provided under section 7704 of this title has been effective in helping the country to achieve such objectives.

(3) A description of the coordination of assistance provided under section 7704 of this title with other United States foreign assistance and related trade policies.

(4) A description of the coordination of assistance provided under section 7704 of this title with assistance provided by other donor countries.

(5) Any other information the President considers relevant with respect to assistance provided under section 7704 of this title.

(Pub. L. 108–199, div. D, title VI, § 613, Jan. 23, 2004, 118 Stat. 221; Pub. L. 115–167, title II, § 204(b), Apr. 23, 2018, 132 Stat. 1280.)

§ 7713. Powers of the Corporation; related provisions

(a) Powers

The Corporation—

(1) shall have perpetual succession unless dissolved by a law enacted after January 23, 2004;

(2) may adopt, alter, and use a seal, which shall be judicially noticed;

(3) may make and perform such contracts, grants, and other agreements with any person or government however designated and wherever situated, as may be necessary for carrying out the functions of the Corporation;

(4) may determine and prescribe the manner in which its obligations shall be incurred and its expenses allowed and paid, including expenses for representation;

(5) may lease, purchase, or otherwise acquire, improve, and use such real property wherever situated, as may be necessary for carrying out the functions of the Corporation;

(6) may accept cash gifts or donations of services or of property (real, personal, or mixed), tangible or intangible, for the purpose of carrying out the provisions of this chapter;

(7) may use the United States mails in the same manner and on the same conditions as the executive departments;

(8) may contract with individuals for personal services, who shall not be considered Federal employees for any provision of law administered by the Office of Personnel Management;

(9) may hire or obtain passenger motor vehicles; and

(10) shall have such other powers as may be necessary and incident to carrying out this chapter.

(b) Principal office

(d) Other authorities

(e) Applicability of Government Corporation Control Act

(1) In general

(2) Omitted

(f) Inspector General

(1) In general

(2) Authority of the Board

(3) Reimbursement and authorization of services

(A) Reimbursement

(B) Authorization for services

(g) Special assistance

(1) In general

(2) Funding

(Pub. L. 108–199, div. D, title VI, § 614, Jan. 23, 2004, 118 Stat. 222.)

§ 7714. Coordination with United States Agency for International Development

(a) Requirement for coordination

(b) USAID programs

(Pub. L. 108–199, div. D, title VI, § 615, Jan. 23, 2004, 118 Stat. 224.)

§ 7715. Assistance to certain candidate countries

(a) Authorization

(b) Candidate country described

A candidate country referred to in subsection (a) is a candidate country that—

(1) satisfies the requirements contained in subsection (a) or (b) of section 7705 of this title; and

(2) demonstrates a significant commitment to meet the requirements of section 7706(b) of this title but fails to meet such requirements (including by reason of the absence or unreliability of data).

(d) Funding

(1) Limitation

(2) Restriction relating to assistance

(Pub. L. 108–199, div. D, title VI, § 616, Jan. 23, 2004, 118 Stat. 224; Pub. L. 109–13, div. A, title II, § 2109, May 11, 2005, 119 Stat. 268; Pub. L. 115–167, title II, § 207, Apr. 23, 2018, 132 Stat. 1282.)

§ 7716. General personnel authorities

(a) Detail of personnel

(b) Reemployment rights

(1) In general

An employee of an agency who is serving under a career or career conditional appointment (or the equivalent), and who, with the consent of the head of such agency, transfers to the Corporation, is entitled to be reemployed in such employee’s former position or a position of like seniority, status, and pay in such agency, if such employee—

(A) is separated from the Corporation for any reason, other than misconduct, neglect of duty, or malfeasance; and

(B) applies for reemployment not later than 90 days after the date of separation from the Corporation.

(2) Specific rights

(d) Basic pay

(e) Definitions

In this section—

(1) the term “agency” means an executive agency, as defined by section 105 of title 5; and

(2) the term “detail” means the assignment or loan of an employee, without a change of position, from the agency by which such employee is employed to the Corporation.

(Pub. L. 108–199, div. D, title VI, § 617, Jan. 23, 2004, 118 Stat. 224.)

§ 7717. Personnel outside the United States

(a) Assignment to United States embassies

(b) Privileges and immunities

(Pub. L. 108–199, div. D, title VI, § 618, Jan. 23, 2004, 118 Stat. 225.)

§ 7718. Authorization of appropriations

(a) Authorization of appropriations

(b) Allocation of funds

(1) In general

(2) Notification

(Pub. L. 108–199, div. D, title VI, § 619, Jan. 23, 2004, 118 Stat. 225.)