I 

108TH CONGRESS 

1ST SESSION H. R. 1966

To establish the Millennium Challenge Account and the Millennium Challenge 

Corporation in order to reduce global poverty through increased economic 

growth by supporting a new compact for global development. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 6, 2003

Mr. HYDE (for himself, Mr. GREEN of Wisconsin, and Ms. HARRIS) introduced the following bill; which was referred to the Committee on International Relations 

A BILL

To establish the Millennium Challenge Account and the Millennium Challenge Corporation in order to reduce global 

poverty through increased economic growth by supporting a new compact for global development.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Millennium Challenge 

5 Act of 2003’’. 
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1 TITLE I—THE MILLENNIUM 

2 CHALLENGE ACCOUNT 

3 SEC. 101. STATEMENT OF POLICY. 

4 It is the policy of the United States to reduce global 

5 poverty through increased economic growth by supporting 

6 a new compact for global development in which increased 

7 support is provided by developed countries to those devel8 oping countries that are ruling justly, fostering economic 

9 freedom, and investing in their citizens. 

10 SEC. 102. ELIGIBILITY CRITERIA. 

11 To be eligible for assistance under this Act, a country 

12 (‘‘eligible country’’)—

13 (1) must suffer from significant poverty; 

14 (2) must have a demonstrated commitment 

15 to—

16 (A) just and democratic governance, in17 cluding political pluralism and the rule of law, 

18 and respect for human and civil rights of all 

19 citizens, protect private property rights, encour20 age transparency and accountability of govern21 ance, and limit corruption; 

22 (B) economic freedom, including economic 

23 policies that encourage citizens and firms to 

24 participate in the global product and capital 

25 markets, promote private sector growth, and 
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1 avoid direct government participation in the 

2 economy; and 

3 (C) investing in its own people, including 

4 improving the availability of educational oppor5 tunities and health care for all citizens; and 

6 (3) must have entered into a Millennium Chal7 lenge Contract, as defined in section 103, with the 

8 United States. 

9 SEC. 103. MILLENNIUM CHALLENGE CONTRACT. 

10 (a) IN GENERAL.—A Millennium Challenge Contract, 

11 is an agreement between the United States and an eligible 

12 country that establishes a multi-year plan of partnership 

13 for achieving shared development objectives in furtherance 

14 of the purposes of this Act. 

15 (b) ELEMENTS.—The Millennium Challenge Contract 

16 shall contain—

17 (1) the specific objectives that the eligible coun18 try and the United States expect to achieve; 

19 (2) the responsibilities of the eligible country 

20 and the United States in the achievement of those 

21 objectives; 

22 (3) regular benchmarks to measure progress to23 wards achieving the agreed upon objectives and a 

24 description of how the objectives will be sustained 
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1 once assistance under this Millennium Challenge 

2 Contract ends; 

3 (4) a plan and a timeframe that describes how 

4 and when those objectives will be met; 

5 (5) the role and contribution of the business 

6 community, private and voluntary organizations, and 

7 other members of civil society in designing that plan 

8 and achieving the objectives; 

9 (6) where appropriate, the contribution of other 

10 donors in the achievement of those objectives; and 

11 (7) a plan to ensure financial accountability of 

12 funds used to achieve those objectives. 

13 (c) LOCAL INPUT.—The Millennium Challenge Con14 tract should take into account the perspectives of the rural 

15 and urban poor in an eligible country, and should reflect 

16 consultation with private and voluntary organizations, and 

17 the business community in the country. 

18 (d) OTHER DONORS.—To the maximum extent fea19 sible, activities undertaken to achieve the objectives of the 

20 Millennium Challenge Contract should be undertaken in 

21 coordination with the assistance activities of other donors. 

22 SEC. 104. MILLENNIUM CHALLENGE ASSISTANCE. 

23 The President is authorized to provide assistance for 

24 eligible countries to support policies and programs that 

25 are in furtherance of the purposes of this Act. The goal 
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1 of the Millennium Challenge Account is to reduce poverty 

2 by significantly increasing the economic growth trajectory 

3 of recipient countries. This requires an emphasis on in4 vestments that raise the productive potential of a coun5 try’s citizens and firms and help integrate its economy into 

6 the global product and capital markets. Key areas of focus 

7 for Millennium Challenge Assistance will include—

8 (a) agricultural development; 

9 (b) education;

10 (c) enterprise and private sector development; 

11 (d) governance; 

12 (e) health; and 

13 (f) trade and investment capacity building. 

14 SEC. 105. AUTHORIZATION OF THE MILLENNIUM CHAL15 LENGE ACCOUNT AND AUTHORITIES. 

16 (a) AUTHORIZATION OF MILLENNIUM CHALLENGE

17 ACCOUNT.—

18 (1) AUTHORIZATION.—There are authorized to 

19 be appropriated to the President to carry out this 

20 Act $1,300,000,000 for fiscal year 2004, and such 

21 sums as may be necessary for subsequent fiscal 

22 years. 

23 (2) AVAILABILITY.—Funds appropriated under 

24 paragraph (1)—
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1 (A) may be referred to as the ‘‘Millennium 

2 Challenge Account’’; 

3 (B) are authorized to remain available 

4 until expended; and 

5 (C) are in addition to funds otherwise 

6 available for such purposes. 

7 (b) APPLICABILITY OF PROVISIONS OF LAW.—

8 (1) Funds made available to carry out the pur9 poses of this Act may be made available notwith10 standing any other provision of law, except the pro11 visions of the Anti-Deficiency Act. 

12 (2) Notwithstanding paragraph (1), a country, 

13 including the government of a country, that is ineli14 gible to receive assistance under provisions of law 

15 that would prohibit assistance under part I of the 

16 Foreign Assistance Act of 1961 shall not be eligible 

17 to receive assistance under this Act. If the President 

18 waives the provisions of part I of the Foreign Assist19 ance Act of 1961, such country could receive assist20 ance under this Act. 

21 (c) USE OF OTHER FUNDS.—Any funds allocated 

22 from funds appropriated to carry out any other Act may 

23 be made available, if used in conjunction with funds appro24 priated to carry out this Act, under the authority and sub-
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1 ject to the limitations applicable to funds made available 

2 to carry out this Act. 

3 SEC. 106. EVALUATION AND ACCOUNTABILITY. 

4 All concluded Millennium Challenge Contracts and 

5 performance evaluations of activities under these contracts 

6 shall be made available to the public on the Internet, un7 less the Board makes a specific finding that a performance 

8 evaluation or contract should not be posted. 

9 SEC. 107. GRADUATION. 

10 The Millennium Challenge Contract will provide 

11 funds for limited purposes, projects, and terms. 

12 TITLE II—THE MILLENNIUM 

13 CHALLENGE CORPORATION 

14 SEC. 201. ESTABLISHMENT OF THE MILLENNIUM CHAL15 LENGE CORPORATION. 

16 (a) ESTABLISHMENT OF THE MILLENNIUM CHAL17 LENGE CORPORATION.—There is hereby established in the 

18 executive branch, a corporation to be known as the Millen19 nium Challenge Corporation (hereinafter in this Act re20 ferred to as the ‘‘Corporation’’). 

21 (b) RESPONSIBILITY OF THE CORPORATION.—It 

22 shall be the responsibility of the Corporation to implement 

23 title I of this Act, consistent with the direction of the 

24 President. 
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1 SEC. 202. MANAGEMENT OF THE CORPORATION. 

2 (a) BOARD OF DIRECTORS.—The management of the 

3 Corporation shall be vested in a board of directors (here4 after in this title referred to as the ‘‘Board’’) composed 

5 of the Secretary of State, who shall Chair, the Secretary 

6 of the Treasury, and the Director of the Office of Manage7 ment and Budget, and may include individuals serving in 

8 such positions in an acting capacity. 

9 (b) FUNCTIONS OF THE BOARD.—

10 (1) The Board shall direct the exercise of all 

11 the functions and powers of the Corporation, includ12 ing the authority to review and approve the eligi13 bility of countries for assistance. 

14 (2) The Board may prescribe, amend, and re15 peal bylaws, rules, regulations, and procedures gov16 erning the manner in which the business of the Cor17 poration may be conducted and in which the powers 

18 granted to it by law may be exercised and enjoyed. 

19 (3) Members of the Board shall serve without 

20 additional compensation, but may be reimbursed for 

21 travel expenses, including per diem, in lieu of sub22 sistence, while engaged in their duties on behalf of 

23 the Corporation. 

24 (c) CHIEF EXECUTIVE OFFICER OF THE CORPORA25 TION.—
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1 (1) The chief executive officer of the Corpora2 tion (hereafter referred to in this title as the 

3 ‘‘CEO’’) shall be appointed by the President, by and 

4 with the advice and consent of the Senate, and shall 

5 exercise the functions and powers vested in the CEO 

6 by the President and the Board. 

7 (2) The CEO shall receive compensation at the 

8 rate provided for level II of the Executive Schedule 

9 under section 5313 of title 5, United States Code. 

10 (d) Functions of, and actions by, the Corporation, 

11 Board, CEO, or an officer of the United States under this 

12 act are vested in their discretion. 

13 SEC. 203. FUNCTIONS OF THE CORPORATION. 

14 In order to carry out programs in furtherance of the 

15 purposes and policies of this Act, and in accordance with 

16 the provisions of Title I of this Act, the Corporation may 

17 made grants for any eligible country, including to any pri18 vate or public entity, and including for the purpose of pro19 viding technical assistance to any such country for the de20 velopment of the Millennium Challenge Contract and the 

21 management, including financial management, and eval22 uation of programs for which assistance is provided pursu23 ant to this Act. 

24 SEC. 204. POWERS OF THE CORPORATION. 

25 (a) POWERS.—The Corporation—
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1 (1) shall have perpetual succession unless dis2 solved by an Act of Congress; 

3 (2) may adopt, alter, and use a seal, which shall 

4 be judicially noticed; 

5 (3) may prescribe, amend, and repeal such 

6 rules, regulations, and procedures as may be nec7 essary for carrying out the functions of the Corpora8 tion; 

9 (4) may make and perform such contracts, 

10 grants, and other agreements with any individual, 

11 corporation, or other private or public entity however 

12 designated and wherever situated, as may be nec13 essary for carrying out the functions of the Corpora14 tion and all Millennium Challenge Contracts; 

15 (5) may determine and prescribe the manner in 

16 which its obligations shall be incurred and its ex17 penses allowed and paid, including expenses for rep18 resentation not exceeding $95,000 in any fiscal year; 

19 (6) may lease, purchase, or otherwise acquire, 

20 improve, and use such real property wherever situ21 ated, as may be necessary for carrying out the func22 tions of the Corporation; 

23 (7) may accept cash gifts or donations of serv24 ices or of property (real, personal, or mixed), tan-
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1 gible or intangible, in furtherance of the purposes of 

2 this Act; 

3 (8) may use the United States mails in the 

4 same manner and on the same conditions as the ex5 ecutive departments of Government; 

6 (9) may, with the consent of any agency of the 

7 United States, use the information, services, facili8 ties, and personnel of that agency on a full or par9 tial reimbursement or on a non-reimbursable basis 

10 in carrying out the purposes of this Act; 

11 (10) may contract with individuals for personal 

12 services, who shall not be considered federal employ13 ees for any provision of law administered by the Of14 fice of Personnel Management; 

15 (11) hire or obtain passenger motor vehicles; 

16 and 

17 (12) shall have such other powers as may be 

18 necessary and incident to carrying out this Act. 

19 (b) PRINCIPAL OFFICE.—

20 (1) The Corporation shall maintain its principal 

21 office in the metropolitan Washington, DC area. 

22 (2) The Corporation may establish other offices 

23 in any place including places outside the United 

24 States, in which the Corporation may carry on all or 

25 any of its operations and business. 
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1 (c) POSITIONS WITH FOREIGN GOVERNMENTS.—

2 When approved by the Corporation, in furtherance of its 

3 purposes, employees of the Corporation (including individ4 uals detailed to the Corporation) may accept and hold of5 fices or positions to which no compensation is attached 

6 with governments or governmental agencies of foreign 

7 countries or international organizations.

8 (d) COMMITMENT AUTHORITY.—Subject to the provi9 sions of the Anti-Deficiency Act, a contract, grant, or 

10 other agreement which entails commitments for the ex11 penditure of funds available under this Act may commit 

12 such expenditures for such period of time as is deemed 

13 necessary to carrying out this Act. 

14 (e) CONTRACTING AUTHORITY.—In furtherance of 

15 the purposes of this Act, functions and powers authorized 

16 by this Act may be performed without regard to any provi17 sion of law regulating the making, performance, amend18 ment, or modification of contracts, grants, and other 

19 agreements. 

20 (f) TAXATION OF THE CORPORATION.—The Corpora21 tion, including all its assets and property, shall be exempt 

22 from taxation now or hereafter imposed by the United 

23 States, or any territory or possession thereof, or by any 

24 State, county, municipality, or local taxing authority. 
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1 SEC. 205. PERSONNEL AND ADMINISTRATIVE AUTHORI2 TIES. 

3 (a) PERSONNEL AUTHORITIES.—Notwithstanding 

4 any provision of title 5, United States Code or of the For5 eign Service Act of 1980, as amended, the CEO of the 

6 Millennium Challenge Corporation may, in regulations 

7 prescribed jointly with the Director of the Office of Per8 sonnel Management, establish, and from time to time ad9 just, a human resources management system, including a 

10 retirement benefits program. 

11 (1) Any system established under this sub12 section shall not waive, modify, or otherwise affect, 

13 with respect to Civil Service and Foreign Service 

14 employees—

15 (A) the public employment principles of 

16 merit and fitness set forth in section 2301 of 

17 title 5, including the principles of hiring based 

18 on merit, fair treatment without regard to polit19 ical affiliation or other non-merit consider20 ations, equal pay for equal work, and protection 

21 of employees against reprisal for whistle blow22 ing, 

23 (B) section 2302(b) of title 5, 

24 (C) chapters 72 and 73 of title 5, and 

25 (D) the conflict of interest provisions in 

26 title 18, chapter 11, of the United States Code. 
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1 (2) The CEO of the Corporation may, without 

2 regard to the civil service and foreign service laws 

3 and regulations, appoint and terminate personnel as 

4 may be necessary to enable the Corporation to per5 form its duties. 

6 (3) The CEO may fix the compensation of the 

7 Corporation personnel without regard to the provi8 sions of chapter 51 and subchapter III of chapter 53 

9 of title 5, United States Code, relating to the classi10 fication of positions and General Schedule pay rates, 

11 and without regard to the provisions of chapters 4 

12 and 5 of the Foreign Service Act, relating to the 

13 classification of positions and Foreign Service pay 

14 rates. 

15 (4) The Corporation may utilize such authority 

16 contained in the Foreign Service Act of 1980, as 

17 amended, as the Corporation deems appropriate. 

18 (5) The CEO and other personnel who are em19 ployees of the Corporation shall be employees under 

20 section 2105 of title 5, United States Code, for pur21 poses of chapters 63 (relating to leave), 81 (relating 

22 to compensation for work injuries), 85 (relating to 

23 unemployment benefits), 87 (relating to life insur24 ance benefits), 89 (relating to health insurance bene25 fits), and 90 (relating to long-term care insurance) 
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1 of that title. If the CEO chooses not to waive chap2 ters 83 and 84 (relating to retirement benefits) of 

3 title 5, or chapter 8 of the Foreign Service Act (re4 lating to Foreign Service retirement systems), em5 ployees of the Corporation shall be eligible for bene6 fits under those chapters as otherwise applicable. 

7 (6) No individual, except for the officers of the 

8 Corporation, may be employed by the Corporation 

9 for a period in excess of 5 years: Provided, That the 

10 CEO, under special circumstances, may approve an 

11 extension of the length of employment on an indi12 vidual basis. 

13 (7) Individuals employed by the Corporation, 

14 including individuals detailed to or contracted by the 

15 Corporation, while performing duties in any country 

16 or place outside the United States, and their families 

17 shall, if they are not nationals of or permanently 

18 resident in such country or place, enjoy the privi19 leges and immunities of at least the administrative 

20 and technical staff of the Mission of the United 

21 States to such country and shall be subject to 22 

22 U.S.C. 3927 in the same manner as United States 

23 Government employees. 

24 (8) The CEO may procure temporary and inter25 mittent services under section 3109(b) of title 5, 
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1 United States Code, at rates for individuals which 

2 do not exceed the daily equivalent of the annual rate 

3 of basic pay prescribed for level V of the Executive 

4 Schedule under section 5316 of such title. 

5 (b) DETAIL OF PERSONNEL TO THE CORPORA6 TION.—

7 (1) Any Federal Government employee may be 

8 detailed to the Corporation on a fully or partially re9 imbursable or on a nonreimbursable basis, and such 

10 detail shall be without interruption or loss of civil 

11 service or Foreign Service status or privilege. 

12 (2) Alternatively, an employee serving under a 

13 career or career conditional appointment or the 

14 equivalent in an agency who transfers to or converts 

15 to an appointment in the Corporation with the con16 sent of the head of the agency is entitled to be re17 turned to the employee’s former position or a posi18 tion of like seniority, status, and pay without grade 

19 or pay reduction in the agency if the employee—

20 (A) is being separated from the Corpora21 tion for reasons other than misconduct, neglect 

22 of duty, or malfeasance; and 

23 (B) applies for return not later than 30 

24 days before the date of the termination of the 

25 employment in the Corporation. 
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1 (3) An employee of a private section organiza2 tion assigned to the Corporation under this section 

3 is deemed, during the period of assignment, to be on 

4 detail to such agency. Such employee—

5 (A) may continue to receive pay and bene6 fits from the private sector organization from 

7 which he is assigned; 

8 (B) is deemed to be an employee of the 

9 Corporation as specified in (a)(5) of this sec10 tion, for the purposes of chapters 81 and 85 of 

11 title 5 U.S.C.; 

12 (C) may not have access to any trade se13 crets or to any other non-public information 

14 which is of commercial value to the private sec15 tor organization from which he is assigned; and 

16 (D) is subject to such regulations as the 

17 President may prescribe. 

18 Such assignment may be made with or without reim19 bursement by the Corporation for the pay, or a part 

20 thereof, of the employee during the period of assign21 ment, or of any contribution of the private sector or22 ganization to its employee benefit system. A private 

23 sector organization may not charge the Federal Gov24 ernment, as direct or indirect costs under a Federal 

25 contract, the costs of pay or benefits paid by the or-
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1 ganization to an employee assigned to the Corpora2 tion. 

3 (c) ALLOCATION OF FUNDS.—

4 (1) TRANSFER OR ALLOCATION.—The Corpora5 tion may allocate or transfer to any agency of the 

6 United States Government any part of any funds 

7 available for carrying out the purposes of this Act. 

8 Such funds shall be available for obligation and ex9 penditure for the purposes for which authorized, in 

10 accordance with authority granted in this Act or 

11 under authority governing the activities of agencies 

12 of the United States Government to which such 

13 funds are allocated or transferred. 

14 (2) USE OF SERVICES.—For carrying out the 

15 purposes of this Act, the Corporation may utilize the 

16 services and facilities of, or procure commodities 

17 from, any agency of the United States Government 

18 under such terms and conditions as may be agreed 

19 to by the head of such agency and the Corporation. 

20 (d) OTHER AUTHORITIES.—Except where incon21 sistent with the provisions of this Act, the Corporation is 

22 authorized to use any of the administrative authorities 

23 contained in the State Department Basic Authorities Act 

24 of 1956 and the Foreign Assistance Act of 1961. 
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1 (e) GOVERNMENT CORPORATION CONTROL ACT.—

2 The Corporation shall be subject to the provisions of the 

3 Government Corporation Control Act, title 31, United 

4 States Code.

Æ