I 

108TH CONGRESS 

1ST SESSION H. R. 2441

To establish the Millennium Challenge Account to provide increased support 

for developing countries that have fostered democracy and the rule of 

law, invested in their citizens, and promoted economic freedom; to assess 

the impact and effectiveness of United States economic assistance; to 

authorize the expansion of the Peace Corps, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 12, 2003

Mr. HYDE (for himself, Mr. LANTOS, Mr. GREEN of Wisconsin, Ms. HARRIS, 

Ms. LEE, Mr. CROWLEY, Mr. LAHOOD, and Mr. JANKLOW) introduced 

the following bill; which was referred to the Committee on International 

Relations 

A BILL

To establish the Millennium Challenge Account to provide 

increased support for developing countries that have fostered democracy and the rule of law, invested in their 

citizens, and promoted economic freedom; to assess the 

impact and effectiveness of United States economic assistance; to authorize the expansion of the Peace Corps, 

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Millennium Challenge Account Authorization and Peace 

4 Corps Expansion Act of 2003’’. 

5 (b) TABLE OF CONTENTS.—The table of contents for 

6 this Act is as follows:

Sec. 1. Short title; table of contents. 

DIVISION A—MILLENNIUM CHALLENGE ACCOUNT 

TITLE I—GENERAL PROVISIONS 

Sec. 101. Definitions. 

Sec. 102. Sunset. 

TITLE II—MILLENNIUM CHALLENGE ASSISTANCE 

Sec. 201. Findings; statement of policy. 

Sec. 202. Authorization of assistance. 

Sec. 203. Eligibility and related requirements. 

Sec. 204. Millennium Challenge Compact. 

Sec. 205. Suspension and termination of assistance. 

Sec. 206. Annual report. 

Sec. 207. Authorization of appropriations; related authorities. 

TITLE III—MILLENNIUM CHALLENGE CORPORATION 

Sec. 301. Millennium Challenge Corporation. 

Sec. 302. Chief Executive Officer. 

Sec. 303. Board of Directors. 

Sec. 304. Interagency coordination. 

Sec. 305. Powers of the Corporation; related provisions. 

Sec. 306. Transparency and accountability of the Corporation. 

Sec. 307. Detail of personnel to the Corporation; other authorities and limitations. 

Sec. 308. Millennium Challenge Advisory Council. 

Sec. 309. Enhancing data collection and monitoring and evaluation capabilities.

TITLE IV—PROVISIONS RELATING TO UNITED STATES ECONOMIC 

ASSISTANCE 

Sec. 401. Definition. 

Sec. 402. Framework for assistance. 

Sec. 403. Report relating to impact and effectiveness of assistance. 

DIVISION B—REAUTHORIZATION AND EXPANSION OF THE PEACE 

CORPS 

TITLE X—GENERAL PROVISIONS
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Sec. 1001. Definitions. 

Sec. 1002. Findings. 

TITLE XI—AMENDMENTS TO PEACE CORPS ACT; RELATED 

PROVISIONS 

Sec. 1101. Advancing the goals of the Peace Corps. 

Sec. 1102. Reports and consultations. 

Sec. 1103. Special volunteer recruitment and placement for certain countries. 

Sec. 1104. Global Infectious Diseases Initiative; coordination of HIV/AIDS activities. 

Sec. 1105. Peace Corps National Advisory Council. 

Sec. 1106. Readjustment allowances. 

Sec. 1107. Programs and projects of returned Peace Corps volunteers and 

former staff. 

Sec. 1108. Declaration of policy. 

Sec. 1109. Authorization of appropriations.

1 DIVISION A—MILLENNIUM 

2 CHALLENGE ACCOUNT 

3 TITLE I—GENERAL PROVISIONS 

4 SEC. 101. DEFINITIONS. 

5 In this division: 

6 (1) APPROPRIATE CONGRESSIONAL COMMIT7 TEES.—The term ‘‘appropriate congressional com8 mittees’’ means—

9 (A) the Committee on International Rela10 tions and the Committee on Appropriations of 

11 the House of Representatives; and 

12 (B) the Committee on Foreign Relations 

13 and the Committee on Appropriations of the 

14 Senate. 

15 (2) BOARD.—The term ‘‘Board’’ means the 

16 Board of Directors of the Corporation established 

17 pursuant to section 303 of this Act. 
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1 (3) COMPACT.—The term ‘‘Compact’’ means 

2 the Millennium Challenge Compact described in sec3 tion 204 of this Act. 

4 (4) CORPORATION.—The term ‘‘Corporation’’ 

5 means the Millennium Challenge Corporation estab6 lished under section 301 of this Act. 

7 (5) COUNCIL.—The term ‘‘Council’’ means the 

8 Millennium Challenge Advisory Council established 

9 under section 308 of this Act. 

10 (6) MILLENNIUM DEVELOPMENT GOALS.—The 

11 term ‘‘Millennium Development Goals’’ means the 

12 key objectives described in the United Nations Mil13 lennium Declaration, as contained in United Nations 

14 General Assembly Resolution 55/2 (September 

15 2000), which aim to eradicate extreme poverty and 

16 hunger, achieve universal primary education, pro17 mote gender equality and empower women, reduce 

18 child mortality, improve maternal health, combat 

19 HIV/AIDS, malaria, and other infectious diseases, 

20 ensure environmental sustainability, and develop a 

21 global partnership for development. 

22 SEC. 102. SUNSET. 

23 All authorities under this division (other than title 

24 IV) shall terminate on October 1, 2007. 
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1 TITLE II—MILLENNIUM 

2 CHALLENGE ASSISTANCE 

3 SEC. 201. FINDINGS; STATEMENT OF POLICY. 

4 (a) FINDINGS.—Congress finds the following: 

5 (1) A principal objective of United States for6 eign assistance programs, as stated in section 101 of 

7 the Foreign Assistance Act of 1961, is the ‘‘encour8 agement and sustained support of the people of de9 veloping countries in their efforts to acquire the 

10 knowledge and resources essential to development 

11 and to build the economic, political, and social insti12 tutions which will improve the quality of their lives’’. 

13 (2) The expanding acceptance of free trade and 

14 open markets and the spread of democracy and the 

15 rule of law have brought a better way of life to an 

16 increasing number of people in the world. 

17 (3) Inequalities between men and women under18 mine development and poverty-reduction efforts in 

19 fundamental ways. A woman’s limited access to re20 sources and restrictions on the exercise of her rights, 

21 including the right to participate in social and polit22 ical processes, disables her from maximizing her con23 tribution to her family’s health, education, and gen24 eral well-being. 
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1 (4) On March 14, 2002, the President noted 

2 the successes of development assistance programs: 

3 ‘‘The advances of free markets and trade and de4 mocracy and rule of law have brought prosperity to 

5 an ever-widening circle of people in this world. Dur6 ing our lifetime, per capita income in the poorest 

7 countries has nearly doubled. Illiteracy has been cut 

8 by one-third, giving more children a chance to learn. 

9 Infant mortality has been almost halved, giving more 

10 children a chance to live.’’. 

11 (5) Development is neither an easy process nor 

12 a linear one. There are successes and there are fail13 ures. Today, too many people are still living in pov14 erty, disease has eroded many of the economic and 

15 social gains of previous decades, and many countries 

16 have not adopted policies, for a variety of reasons, 

17 that would enable them to compete in an open and 

18 equitable international economic system. 

19 (6) More countries and more people will be able 

20 to participate in and benefit from the opportunities 

21 afforded by the global economy if the following con22 ditions for sound and sustainable economic develop23 ment are met: 

24 (A) SECURITY.—Security is necessary for 

25 economic development. Persistent poverty and
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1 oppression can lead to hopelessness, despair, 

2 and to failed states that become havens for ter3 rorists. 

4 (B) POLICIES THAT SUPPORT BROAD5 BASED ECONOMIC GROWTH.—Successful long6 term development can only occur through 

7 broad-based economic growth that enables the 

8 poor to increase their incomes and have access 

9 to productive resources and services so that 

10 they can lead lives of decency, dignity, and 

11 hope. 

12 (C) DEMOCRACY AND THE RULE OF

13 LAW.—Democratic development, political plu14 ralism, and respect for internationally recog15 nized human rights are intrinsically linked to 

16 economic and social progress. The ability of 

17 people to participate in the economic and polit18 ical processes affecting their lives is essential to 

19 sustained growth. The rule of law and a com20 mitment to fight corruption is also critical to 

21 the development of a prosperous society. 

22 (D) INVESTMENTS IN PEOPLE.—Economic 

23 growth and democracy can be sustained only if 

24 both men and women have the basic tools and 

25 capabilities that foster the opportunity for par-
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1 ticipation in the economic, social, and political 

2 life of their countries. Successful development 

3 of countries requires citizens who are literate, 

4 healthy, and prepared and able to work. 

5 (7) Economic assistance programs authorized 

6 under part I of the Foreign Assistance Act of 1961, 

7 as administered by the United States Agency for 

8 International Development and other Federal agen9 cies, are of critical importance in assisting countries 

10 to be in a position to maximize the effectiveness of 

11 assistance authorized by this title. 

12 (8) It is in the national interest of the United 

13 States to help those countries that are implementing 

14 the economic and political reforms necessary for de15 velopment to occur. 

16 (9) On March 14, 2002, the President stated 

17 that the ‘‘growing divide between wealth and pov18 erty, between opportunity and misery, is both a chal19 lenge to our compassion and a source of instability 

20 . . . [w]e must confront it . . . [w]e must include 

21 every African, every Asian, every Latin American, 

22 every Muslim, in an expanding circle of develop23 ment.’’. 

24 (10) The President has pledged that funds re25 quested for the Millennium Challenge Account shall 
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1 be in addition to, and not a substitute for, existing 

2 development and humanitarian programs. 

3 (11) Development assistance alone is not suffi4 cient to stimulate economic growth and development. 

5 Assistance has been shown to have a positive impact 

6 on growth and development in developing countries 

7 with sound policies and institutions. If countries 

8 have poor policies and institutions, however, it is 

9 highly unlikely that assistance will have a net posi10 tive effect. 

11 (12) Economic development, and the achieve12 ment of the Millennium Development Goals, must be 

13 a shared responsibility between donor and recipient 

14 countries. 

15 (b) STATEMENT OF POLICY REGARDING A NEW

16 COMPACT FOR GLOBAL DEVELOPMENT.—It is, therefore, 

17 the policy of the United States to support a new compact 

18 for global development that—

19 (1) increases support by donor countries to 

20 those developing countries that are fostering democ21 racy and the rule of law, investing in their people, 

22 and promoting economic freedom for all their people; 

23 (2) recognizes, however, that it is the devel24 oping countries themselves that are primarily re25 sponsible for the achievement of those goals; 
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1 (3) seeks to coordinate the disparate develop2 ment assistance policies of donor countries, and to 

3 harmonize the trade and finance policies of donor 

4 countries with their respective development assist5 ance programs; and 

6 (4) aims to reduce poverty by significantly in7 creasing the economic growth trajectory of bene8 ficiary countries through investing in the productive 

9 potential of the people of such countries. 

10 SEC. 202. AUTHORIZATION OF ASSISTANCE. 

11 (a) ASSISTANCE.—The President, acting through the 

12 Chief Executive Officer of the Millennium Challenge Cor13 poration, is authorized to provide assistance to eligible 

14 countries to support policies and programs that advance 

15 the progress of such countries in achieving lasting eco16 nomic growth and poverty reduction and are in further17 ance of the purposes of this title. 

18 (b) PRINCIPAL OBJECTIVES.—Assistance provided 

19 under subsection (a) should advance a country’s progress 

20 toward promoting the following principal objectives: 

21 (1) FOSTERING DEMOCRATIC SOCIETIES, 

22 HUMAN RIGHTS, AND THE RULE OF LAW.—The as23 sistance should promote—

24 (A) political, social, and economic plu25 ralism;
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1 (B) respect for the rule of law; 

2 (C) anti-corruption initiatives and law en3 forcement; 

4 (D) development of institutions of demo5 cratic governance, including electoral and legis6 lative processes; 

7 (E) transparent and accountable public ad8 ministration at all levels of government; 

9 (F) a fair, competent, and independent ju10 diciary; and 

11 (G) a free and independent media. 

12 (2) FOSTERING INVESTMENT IN EDUCATION

13 AND HEALTH INFRASTRUCTURE AND SYSTEMS.—

14 The assistance should foster improved educational 

15 opportunities and health conditions, particularly for 

16 women and children, including through—

17 (A) support for programs and personnel 

18 that promote broad-based primary education, 

19 including through the development of academic 

20 curricula, by making available textbooks and 

21 other educational materials, and through appro22 priate use of technology; 

23 (B) support for programs to strengthen 

24 and build institutions, including primary health 
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1 care systems, infrastructure, facilities, and per2 sonnel that provide quality health care; 

3 (C) support for improved systems for the 

4 delivery of healthy water and sanitation serv5 ices; and 

6 (D) support for programs that reduce child 

7 mortality (including those programs that com8 bat HIV/AIDS, malaria, tuberculosis, and other 

9 infectious diseases, consistent with sections 

10 104(c), 104A, 104B, and 104C of the Foreign 

11 Assistance Act of 1961). 

12 (3) PROMOTING ECONOMIC FREEDOM, BROAD13 BASED ECONOMIC GROWTH, AND FOSTERING FREE

14 MARKET SYSTEMS.—The assistance should foster the 

15 institutions and conditions needed to promote free 

16 market systems, trade, and investment, including—

17 (A) the reform and restructuring of bank18 ing and financial systems, including by allowing 

19 foreign competition in the banking and financial 

20 sectors, where appropriate; 

21 (B) the development of transparent and ef22 ficient commercial codes and reduction in the 

23 regulatory burden on business; 

24 (C) the protection of property rights, in25 cluding private property and intellectual prop-
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1 erty rights, including through the adoption and 

2 effective enforcement of intellectual property 

3 treaties or international agreements; 

4 (D) support for market-based policies that 

5 support increased agricultural production; 

6 (E) a strong commitment to sound mone7 tary and budgetary policies; 

8 (F) the development of small businesses, 

9 private cooperatives, credit unions, and trade 

10 and labor unions; 

11 (G) the protection of internationally recog12 nized workers’ rights; and 

13 (H) the capacity of eligible countries to 

14 ameliorate damage to the environment and re15 spect other environmental standards. 

16 SEC. 203. ELIGIBILITY AND RELATED REQUIREMENTS. 

17 (a) ASSISTANCE FOR LOW INCOME COUNTRIES.—

18 (1) FISCAL YEAR 2004.—A country shall be eli19 gible to receive assistance under section 202 for fis20 cal year 2004 if—

21 (A) the country is eligible for assistance 

22 from the International Development Associa23 tion, and the per capita income of the country 

24 is equal to or less than the historical ceiling of 

25 the International Development Association for 
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1 that year, as defined by the International Bank 

2 for Reconstruction and Development; 

3 (B) subject to paragraph (3), the country 

4 is not ineligible to receive United States eco5 nomic assistance by reason of the application of 

6 section 116, 490, or 620A of the Foreign As7 sistance Act of 1961, or by reason of the appli8 cation of any other provision of law; and 

9 (C) the Chief Executive Officer of the Cor10 poration determines that the country has dem11 onstrated a commitment to—

12 (i) bolster democracy, human rights, 

13 good governance and the rule of law; 

14 (ii) invest in the health and education 

15 of its citizens; and 

16 (iii) promote sound economic policies 

17 that promote economic freedom and oppor18 tunity. 

19 (2) FISCAL YEARS 2005 AND 2006.—A country 

20 shall be eligible to receive assistance under section 

21 202 for fiscal years 2005 and 2006 if—

22 (A) the per capita income of the country is 

23 equal to or less than the historical ceiling of the 

24 International Development Association for the 

25 fiscal year involved, as defined by the Inter-
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1 national Bank for Reconstruction and Develop2 ment; 

3 (B) the country meets the requirements of 

4 paragraph (1)(B); and 

5 (C) the country meets the requirements of 

6 clauses (i) through (iii) of paragraph (1)(C), as 

7 determined by the Chief Executive Officer. 

8 (3) RULE OF CONSTRUCTION.—For the pur9 poses of determining whether a country is eligible 

10 for receiving assistance under section 202 pursuant 

11 to paragraph (1)(B), the exercise by the President, 

12 the Secretary of State, or any other officer or em13 ployee of the United States of any waiver or suspen14 sion of any provision of law referred to in such para15 graph shall not be construed as satisfying the re16 quirement of such paragraph. 

17 (b) ASSISTANCE FOR LOWER MIDDLE INCOME

18 COUNTRIES.—

19 (1) IN GENERAL.—In addition to countries de20 scribed in subsection (a), a country shall be eligible 

21 to receive assistance under section 202 for fiscal 

22 year 2006 if the country—

23 (A) is classified as a lower middle income 

24 country in the then most recent edition of the 

25 World Development Report for Reconstruction 
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1 and Development published by the International 

2 Bank for Reconstruction and Development; 

3 (B) meets the requirements of subsection 

4 (a)(1)(B); and 

5 (C) meets the requirements of clauses (i) 

6 through (iii) of subsection (a)(1)(C), as deter7 mined by the Chief Executive Officer. 

8 (2) LIMITATION.—The total amount of assist9 ance provided to countries under this subsection for 

10 fiscal year 2006 may not exceed 20 percent of the 

11 total amount of assistance provided to all countries 

12 under section 202 for fiscal year 2006. 

13 (c) ASSISTANCE FOR SELECTED LOW INCOME COUN14 TRIES.—

15 (1) IN GENERAL.—A country shall be eligible to 

16 receive assistance for any of fiscal years 2004 

17 through 2006 solely for the purpose of becoming eli18 gible to receive assistance under subsection (a) if the 

19 country—

20 (A) meets the requirements of paragraphs 

21 (1)(B) and (2)(A) of subsection (a); 

22 (B) demonstrates a commitment to meet23 ing the requirements of clauses (i) through (iii) 

24 of subsection (a)(1)(C), as determined by the 

25 Chief Executive Officer; but
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1 (C) fails to meet the eligibility criteria nec2 essary to receive assistance under section 202, 

3 as established under subsection (e). 

4 (2) ADMINISTRATION.—Assistance for countries 

5 eligible by reason of the application of this sub6 section shall be provided through the United States 

7 Agency for International Development. 

8 (3) ALLOCATION OF FUNDS.—Of the amount 

9 authorized to be appropriated under section 207(a) 

10 for a fiscal year, not more than 15 percent of such 

11 amount is authorized to be appropriated to the 

12 President for the fiscal year to carry out this sub13 section. 

14 (d) GENERAL AUTHORITY TO DETERMINE ELIGI15 BILITY.—

16 (1) GENERAL AUTHORITY.—The Chief Execu17 tive Officer shall determine whether or not a country 

18 is eligible to receive assistance under section 202. 

19 (2) CONGRESSIONAL NOTIFICATION.—Not later 

20 than 7 days after making a determination of eligi21 bility for a country under paragraph (1), the Chief 

22 Executive Officer shall provide notice thereof to the 

23 appropriate congressional committees. Such notice 

24 shall include a certification of the determination of 

25 the Chief Executive Officer that the country meets 
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1 the requirements of clauses (i) through (iii) of sub2 section (a)(1)(C) in accordance with such subsection, 

3 subsection (a)(2)(C), subsection (b)(1)(C), or sub4 section (c)(1)(B), as the case may be. 

5 (e) ELIGIBILITY CRITERIA.—

6 (1) INITIAL CRITERIA AND METHODOLOGY.—At 

7 soon as practicable after the date of the enactment 

8 of this Act, but not later than 30 days prior to mak9 ing any determination of eligibility for a country 

10 under this section, the Chief Executive Officer—

11 (A) shall consult in-person with the appro12 priate congressional committees with respect to 

13 the establishment of eligibility criteria and 

14 methodology that the Chief Executive Officer 

15 proposes to use for purposes of determining eli16 gibility under this section; 

17 (B) shall establish such eligibility criteria 

18 and methodology; and 

19 (C) shall prepare and transmit to such 

20 committees a written report that contains such 

21 eligibility criteria and methodology. 

22 (2) REVISIONS TO CRITERIA AND METHOD23 OLOGY.—If the Chief Executive Officer proposes to 

24 use revised or different criteria from the criteria de25 scribed in paragraph (1) in making a determination 
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1 of eligibility for a country under this section, then, 

2 not later than 15 days prior to making such deter3 mination, the Chief Executive Officer shall consult 

4 in-person with the appropriate congressional com5 mittees with respect to such revised or different cri6 teria and methodology in accordance with paragraph 

7 (1)(A) and shall prepare and transmit a written re8 port in accordance with paragraph (1)(C). 

9 (f) FORM OF ASSISTANCE; RECIPIENTS.—

10 (1) FORM OF ASSISTANCE.—Assistance pro11 vided under section 202 for a country shall be pro12 vided to one or more of the entities described in 

13 paragraph (2) on a nonrepayable basis and in ac14 cordance with a fair, open, and competitive selection 

15 process that results in the awarding of such assist16 ance on a merit basis using selection criteria that 

17 are made public by the Corporation in advance and 

18 are otherwise in accordance with standard and cus19 tomary best practices for the provision of similar 

20 types of assistance. 

21 (2) RECIPIENTS.—The entities referred to in 

22 paragraph (1) are the following: 

23 (A) The national government of the coun24 try. 
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1 (B) Regional or local governmental units 

2 of the country. 

3 (C) Nongovernmental organizations, in4 cluding for-profit, not-for-profit, and voluntary 

5 organizations. 

6 (D) International organizations and trust 

7 funds. 

8 (g) CONGRESSIONAL NOTIFICATION.—The Chief Ex9 ecutive Officer may not make any grant or enter into any 

10 contract for assistance for a country under section 202 

11 that exceeds $5,000,000 until 15 days after the date on 

12 which the Chief Executive Officer provides notification of 

13 the proposed grant or contract to the appropriate congres14 sional committees in accordance with the procedures appli15 cable to reprogramming notifications under section 634A 

16 of the Foreign Assistance Act of 1961. 

17 SEC. 204. MILLENNIUM CHALLENGE COMPACT. 

18 (a) COMPACT.—The President, acting through the 

19 Chief Executive Officer of the Corporation, may provide 

20 assistance to an eligible country under section 202 only 

21 if the country enters into a contract with the United 

22 States, to be known as a ‘‘Millennium Challenge Com23 pact’’, that establishes a multi-year plan for achieving 

24 shared development objectives in furtherance of the pur25 poses of this title, and only if the President, acting
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1 through the Chief Executive Officer, provides to Congress 

2 notice regarding such Compact pursuant to subsection (h). 

3 (b) ELEMENTS.—The Compact shall take into ac4 count the national development strategy of the eligible 

5 country and shall contain—

6 (1) the specific objectives that the country and 

7 the United States expect to achieve; 

8 (2) the responsibilities of the country and the 

9 United States in the achievement of such objectives; 

10 (3) regular benchmarks to measure, where ap11 propriate, progress toward achieving such objectives; 

12 (4) an identification of the intended bene13 ficiaries, disaggregated by income level, gender, and 

14 age, to the maximum extent practicable; 

15 (5) a multi-year financial plan, including the es16 timated amount of contributions by the Corporation 

17 and the country and proposed mechanisms to imple18 ment the plan and provide oversight, that describes 

19 how the requirements of paragraphs (1) through (4) 

20 will be met, including identifying the role of civil so21 ciety in the achievement of such requirements; 

22 (6) where appropriate, a description of the re23 sponsibility of other donors in the achievement of 

24 such objectives; and 
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1 (7) a plan to ensure appropriate fiscal account2 ability for the use of assistance provided under sec3 tion 202. 

4 (c) DEFINITION.—In subsection (b), the term ‘‘na5 tional development strategy’’ means any strategy to 

6 achieve market-driven economic growth that has been de7 veloped by the government of the country in consultation 

8 with a wide variety of civic participation, including non9 governmental organizations, private and voluntary organi10 zations, academia, women and student organizations, local 

11 trade and labor unions, and the business community. 

12 (d) ADDITIONAL PROVISION RELATING TO PROHIBI13 TION ON TAXATION.—In addition to the elements de14 scribed in subsection (b), each Compact shall contain a 

15 provision that states that assistance provided by the 

16 United States under the Compact shall be exempt from 

17 taxation by the government of the eligible country. 

18 (e) LOCAL INPUT.—In entering into a Compact, the 

19 United States and the eligible country—

20 (1) shall take into account the local-level per21 spectives of the rural and urban poor in the eligible 

22 country; and 

23 (2) should consult with private and voluntary 

24 organizations, the business community, and other 

25 donors, in the eligible country. 
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1 (f) CONSULTATION.—During any discussions with a 

2 country for the purpose of entering into a Compact with 

3 the country, officials of the Corporation participating in 

4 such discussions shall, at a minimum, consult with appro5 priate officials of the United States Agency for Inter6 national Development, particularly with those officials re7 sponsible for the appropriate region or country on develop8 ment issues related to the Compact. 

9 (g) COORDINATION WITH OTHER DONORS.—To the 

10 maximum extent feasible, activities undertaken to achieve 

11 the objectives of the Compact shall be undertaken in co12 ordination with the assistance activities of other donors. 

13 (h) CONGRESSIONAL AND PUBLIC NOTIFICATION.—

14 Not later than 15 days prior to entering into a Compact 

15 with an eligible country, the President, acting through the 

16 Chief Executive Officer—

17 (1) shall consult in-person with the appropriate 

18 congressional committees with respect to the pro19 posed Compact; 

20 (2) shall provide notification of the proposed 

21 Compact to the appropriate congressional commit22 tees in accordance with the procedures applicable to 

23 reprogramming notifications under section 634A of 

24 the Foreign Assistance Act of 1961; 
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1 (3) shall prepare and transmit to such commit2 tees a written report that contains a detailed sum3 mary of the proposed Compact and a copy of the full 

4 text of the Compact; and 

5 (4) shall publish such detailed summary and 

6 full text of the proposed Compact in the Federal 

7 Register and on the Internet website of the Corpora8 tion. 

9 (i) ASSISTANCE FOR DEVELOPMENT OF COMPACT.—

10 Notwithstanding subsection (a), the Chief Executive Offi11 cer may enter into contracts or make grants for any eligi12 ble country for the purpose of facilitating the development 

13 of the Compact between the United States and the coun14 try. 

15 SEC. 205. SUSPENSION AND TERMINATION OF ASSISTANCE. 

16 (a) SUSPENSION OF ASSISTANCE.—

17 (1) IN GENERAL.—The President shall suspend 

18 assistance in whole or in part for a country under 

19 this title if the President determines that—

20 (A) the country is engaged in activities 

21 which are contrary to the national security in22 terests of the United States; 

23 (B) the elected head of state of the country 

24 or any member of the country’s highest judicial 

25 tribunal has been removed from that office or
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1 forcibly detained through extra-constitutional 

2 processes; or 

3 (C) the country has failed to adhere to its 

4 responsibilities under the Compact. 

5 (2) REINSTATEMENT.—The President may re6 instate assistance for a country under this title only 

7 if the President determines that the country has 

8 demonstrated a commitment to correcting each con9 dition for which assistance was suspended under 

10 paragraph (1). 

11 (3) CONGRESSIONAL NOTIFICATION.—A suspen12 sion of assistance under paragraph (1), or a rein13 statement of assistance under paragraph (2), shall 

14 be effective beginning 15 days after the date on 

15 which the President transmits to the appropriate 

16 congressional committees a report that contains the 

17 determination of the President under paragraph (1) 

18 or paragraph (2), as the case may be. 

19 (b) TERMINATION OF ASSISTANCE.—

20 (1) IN GENERAL.—The President, acting 

21 through the Chief Executive Officer of the Corpora22 tion, shall terminate all assistance for a country 

23 under this title if the President determines that the 

24 country has consistently failed to adhere to its re-
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1 sponsibilities under the Compact or has significantly 

2 failed to meet the requirements of this title. 

3 (2) CONGRESSIONAL NOTIFICATION.—A termi4 nation of assistance under paragraph (1) shall be ef5 fective beginning 15 days after the date on which 

6 the President, acting through the Chief Executive 

7 Officer, provides notification of the proposed termi8 nation of assistance to the congressional committees 

9 specified in section 634A(a) of the Foreign Assist10 ance Act of 1961 in accordance with the procedures 

11 applicable to reprogramming notifications under that 

12 section. 

13 SEC. 206. ANNUAL REPORT. 

14 (a) REPORT.—Not later than April 1, 2005, and not 

15 later than April 1 of each year thereafter, the Chief Exec16 utive Officer of the Corporation shall prepare and trans17 mit to the appropriate congressional committees a report 

18 on the implementation of this title for the preceding year. 

19 (b) CONTENTS.—The report shall include the fol20 lowing: 

21 (1) A description and assessment of the eligi22 bility criteria and methodology utilized by the Chief 

23 Executive Officer to determine eligibility for each 

24 country under section 203. 
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1 (2) A description of the agreed upon measures 

2 of progress contained in each Compact. 

3 (3)(A) An analysis, on a country-by-country, 

4 project-by-project basis, of the impact of assistance 

5 provided under this title on the economic develop6 ment of each country. 

7 (B) For each country, the analysis shall—

8 (i) to the maximum extent possible, be 

9 done on a sector-by-sector basis, gender basis, 

10 and per capita income basis, and identify trends 

11 within each of these bases; 

12 (ii) identify economic policy reforms condu13 cive to economic development that are sup14 ported by assistance provided under this title; 

15 (iii) describe, in quantified terms to the ex16 tent practicable, the progress made in achieving 

17 assistance objectives for the country; 

18 (iv) describe the amount and nature of eco19 nomic assistance provided by other major do20 nors which further the purposes of this title; 

21 and 

22 (v) discuss the commitment and contribu23 tion of the country to achieving the assistance 

24 objectives contained in its Compact. 
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1 SEC. 207. AUTHORIZATION OF APPROPRIATIONS; RELATED 

2 AUTHORITIES. 

3 (a) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to the President, acting 

5 through the Chief Executive Officer of the Corporation, 

6 to carry out this division (other than title IV) 

7 $1,300,000,000 for fiscal year 2004, $3,000,000,000 for 

8 fiscal year 2005, and $5,000,000,000 for fiscal year 2006. 

9 (b) ADDITIONAL AUTHORITIES.—Amounts appro10 priated pursuant to the authorization of appropriations 

11 under subsection (a)—

12 (1) may be referred to as the ‘‘Millennium 

13 Challenge Account’’; 

14 (2) are authorized to remain available until ex15 pended; and 

16 (3) are in addition to amounts otherwise avail17 able for such purposes. 

18 TITLE III—MILLENNIUM 

19 CHALLENGE CORPORATION 

20 SEC. 301. MILLENNIUM CHALLENGE CORPORATION. 

21 (a) ESTABLISHMENT.—There is hereby established in 

22 the executive branch a corporation to be known as the 

23 ‘‘Millennium Challenge Corporation’’ that shall be respon24 sible for carrying out title II.
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•HR 2441 IH 

1 (b) GOVERNMENT CORPORATION.—The Corporation 

2 shall be a Government corporation, as defined in section 

3 103 of title 5, United States Code. 

4 SEC. 302. CHIEF EXECUTIVE OFFICER. 

5 (a) APPOINTMENT.—The Corporation shall be head6 ed by an individual who shall serve as Chief Executive Of7 ficer of the Corporation, who shall be appointed by the 

8 President, by and with the advice and consent of the Sen9 ate. 

10 (b) COMPENSATION AND RANK.—

11 (1) IN GENERAL.—The Chief Executive Officer 

12 shall be compensated at the rate provided for level 

13 II of the Executive Schedule under section 5313 of 

14 title 5, United States Code, and shall have the equiv15 alent rank of Deputy Secretary. 

16 (2) AMENDMENT.—Section 5313 of title 5, 

17 United States Code, is amended by adding at the 

18 end the following: 

19 ‘‘Chief Executive Officer, Millennium Challenge 

20 Corporation.’’. 

21 (c) AUTHORITIES AND DUTIES.—The Chief Execu22 tive Officer shall exercise the powers and discharge the 

23 duties of the Corporation and any other duties, as con24 ferred on the Chief Executive Officer by the President. 
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•HR 2441 IH 

1 (d) AUTHORITY TO APPOINT OFFICERS.—The Chief 

2 Executive Officer shall appoint all officers of the Corpora3 tion. 

4 SEC. 303. BOARD OF DIRECTORS. 

5 (a) IN GENERAL.—There shall be in the Corporation 

6 a Board of Directors. 

7 (b) DUTIES.—The Board may prescribe, amend, and 

8 repeal bylaws, rules, regulations, and procedures gov9 erning the manner in which the business of the Corpora10 tion may be conducted and in which the powers granted 

11 to it by law may be exercised. 

12 (c) MEMBERSHIP.—

13 (1) IN GENERAL.—The Board shall consist of—

14 (A) the Secretary of State, the Secretary 

15 of Treasury, the Administrator of the United 

16 States Agency for International Development, 

17 the Chief Executive Officer of the Corporation, 

18 and the United States Trade Representative; 

19 and 

20 (B) four other individuals who shall be ap21 pointed by the President, by and with the ad22 vice and consent of the Senate, of which—

23 (i) one individual shall be appointed 

24 from among a list of individuals submitted 
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•HR 2441 IH 

1 by the majority leader of the House of 

2 Representatives; 

3 (ii) one individual shall be appointed 

4 from among a list of individuals submitted 

5 by the minority leader of the House of 

6 Representatives; 

7 (iii) one individual shall be appointed 

8 from among a list of individuals submitted 

9 by the majority leader of the Senate; and 

10 (iv) one individual shall be appointed 

11 from among a list of individuals submitted 

12 by the minority leader of the Senate. 

13 (2) EX-OFFICIO MEMBERS.—In addition to 

14 members of the Board described in paragraph (1), 

15 the Director of the Office of Management and Budg16 et, the President and Chief Executive Officer of the 

17 Overseas Private Investment Corporation, the Direc18 tor of the Trade and Development Agency, and the 

19 Director of the Peace Corps shall be non-voting 

20 members, ex officio, of the Board. 

21 (d) TERMS.—

22 (1) OFFICERS OF FEDERAL GOVERNMENT.—

23 Each member of the Board described in paragraphs 

24 (1)(A) and (2) of subsection (c) shall serve for a 

25 term that is concurrent with the term of service of 
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•HR 2441 IH 

1 the individual’s position as an officer within the 

2 other Federal department or agency. 

3 (2) OTHER MEMBERS.—Each member of the 

4 Board described in subsection (c)(1)(B) shall be ap5 pointed for a term of 3 years and may be re6 appointed for a term of an additional 2 years. 

7 (3) VACANCIES.—A vacancy in the Board shall 

8 be filled in the manner in which the original appoint9 ment was made. 

10 (e) CHAIRPERSON.—The Secretary of State shall 

11 serve as the Chairperson of the Board. 

12 (f) QUORUM.—A majority of the members of the 

13 Board shall constitute a quorum, which shall include at 

14 least one member of the Board described in subsection 

15 (c)(1)(B). 

16 (g) MEETINGS.—The Board shall meet at the call of 

17 the Chairperson. 

18 (h) COMPENSATION.—

19 (1) OFFICERS OF FEDERAL GOVERNMENT.—

20 (A) IN GENERAL.—A member of the Board 

21 described in paragraphs (1)(A) and (2) of sub22 section (c) may not receive additional pay, al23 lowances, or benefits by reason of their service 

24 on the Board.
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•HR 2441 IH 

1 (B) TRAVEL EXPENSES.—Each such mem2 ber of the Board shall receive travel expenses, 

3 including per diem in lieu of subsistence, in ac4 cordance with applicable provisions under sub5 chapter I of chapter 57 of title 5, United States 

6 Code. 

7 (2) OTHER MEMBERS.—

8 (A) IN GENERAL.—Except as provided in 

9 paragraph (2), a member of the Board de10 scribed in subsection (c)(1)(B)—

11 (i) shall be paid compensation out of 

12 funds made available for the purposes of 

13 this title at the daily equivalent of the 

14 highest rate payable under section 5332 of 

15 title 5, United States Code, for each day 

16 (including travel time) during which the 

17 member is engaged in the actual perform18 ance of duties as a member of the Board; 

19 and 

20 (ii) while away from the member’s 

21 home or regular place of business on nec22 essary travel, as determined by the Chief 

23 Executive Officer, in the actual perform24 ance of duties as a member of the Board, 

25 shall be paid per diem, travel, and trans-
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•HR 2441 IH 

1 portation expenses in the same manner as 

2 is provided under subchapter I of chapter 

3 57 of title 5, United States Code. 

4 (B) LIMITATION.—A member of the Coun5 cil may not be paid compensation under sub6 paragraph (A)(i) for more than thirty days in 

7 any calendar year. 

8 SEC. 304. INTERAGENCY COORDINATION. 

9 In carrying out the functions described in this title, 

10 and consistent with section 101 of the National Security 

11 Act of 1947 (50 U.S.C. 402), the President shall ensure 

12 coordination of assistance authorized under title II with 

13 foreign economic assistance programs and activities car14 ried out by other Federal departments and agencies. 

15 SEC. 305. POWERS OF THE CORPORATION; RELATED PROVI16 SIONS. 

17 (a) POWERS.—The Corporation—

18 (1) may adopt, alter, and use a corporate seal, 

19 which shall be judicially noticed; 

20 (2) may prescribe, amend, and repeal such 

21 rules, regulations, and procedures as are necessary 

22 for carrying out the functions of the Corporation 

23 and all Compacts; 

24 (3) may make and perform such contracts, 

25 grants, and other agreements with any individual, 
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•HR 2441 IH 

1 corporation, or other private or public entity, how2 ever designated and wherever situated, as may be 

3 necessary for carrying out the functions of the Cor4 poration; 

5 (4) may determine and prescribe the manner in 

6 which its obligations shall be incurred and its ex7 penses allowed and paid, including expenses for rep8 resentation not exceeding $95,000 in any fiscal year; 

9 (5) may lease, purchase, or otherwise acquire, 

10 own, hold, improve, use or otherwise deal in and 

11 with such property (real, personal, or mixed) or any 

12 interest therein, wherever situated, as may be nec13 essary for carrying out the functions of the Corpora14 tion; 

15 (6) may accept gifts or donations of services or 

16 of property (real, personal, or mixed), tangible or in17 tangible, in furtherance of the purposes of this divi18 sion; 

19 (7) may hire or obtain passenger motor vehi20 cles; 

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

22 same manner and on the same conditions as the Ex23 ecutive departments (as defined in section 101 of 

24 title 5, United States Code); 
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•HR 2441 IH 

1 (9) may, with the consent of any Executive 

2 agency (as defined in section 105 of title 5, United 

3 States Code), use the information, services, facilities, 

4 and personnel of that agency on a full or partial re5 imbursement in carrying out the purposes of this di6 vision; and 

7 (10) may sue and be sued, complain, and de8 fend, in its corporate name in any court of com9 petent jurisdiction. 

10 (b) OFFICES.—

11 (1) PRINCIPAL OFFICE.—The Corporation shall 

12 maintain its principal office in the metropolitan area 

13 of Washington, District of Columbia. 

14 (2) OTHER OFFICES.—The Corporation may es15 tablish other offices in any place or places outside 

16 the United States in which the Corporation may 

17 carry out any or all of its operations and business. 

18 (c) COOPERATION WITH OTHER FEDERAL DEPART19 MENTS AND AGENCIES.—In order to avoid unnecessary 

20 expense and duplication of functions, efforts, and activities 

21 between the Corporation and other Federal departments 

22 and agencies the Chief Executive Officer, or the Chief Ex23 ecutive Officer’s designee—

24 (1)(A) shall consult, to the maximum extent 

25 practicable, with the Administrator of the United
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•HR 2441 IH 

1 States Agency for International Development, or the 

2 Administrator’s designee, in order to coordinate the 

3 activities of the Corporation and the Agency for 

4 International Development; and 

5 (B) shall consult with the heads of other de6 partments and agencies to ensure similar coordina7 tion of activities; 

8 (2)(A) shall ensure proper coordination of ac9 tivities of the Corporation with the provision of de10 velopment assistance of relevant international finan11 cial institutions, including the International Bank 

12 for Reconstruction and Development, the Inter13 national Monetary Fund, and the regional multilat14 eral development banks; and 

15 (B) shall provide to each United States Execu16 tive Director (or other United States representative) 

17 to the relevant international financial institutions a 

18 copy of each proposed Compact between the United 

19 States and an eligible country and a copy of each 

20 such final Compact. 

21 (d) POSITIONS WITH FOREIGN GOVERNMENTS.—

22 When approved by the Corporation, in furtherance of its 

23 purposes, employees of the Corporation (including individ24 uals detailed to the Corporation) may accept and hold of25 fices or positions to which no compensation is attached 
38

•HR 2441 IH 

1 with governments or governmental agencies of foreign 

2 countries or with international organizations. 

3 SEC. 306. TRANSPARENCY AND ACCOUNTABILITY OF THE 

4 CORPORATION. 

5 The Corporation and its officers and employees shall 

6 be subject to the provisions of section 552 of title 5, 

7 United States Code (relating to freedom of information). 

8 SEC. 307. DETAIL OF PERSONNEL TO THE CORPORATION; 

9 OTHER AUTHORITIES AND LIMITATIONS. 

10 (a) DETAIL OF PERSONNEL.—Upon request of the 

11 Chief Executive Officer of the Corporation, the head of 

12 an agency may detail any employee of such agency to the 

13 Corporation on a fully or partially reimbursable basis. Any 

14 employee so detailed remains, for the purpose of pre15 serving such employee’s allowances, privileges, rights, se16 niority, and other benefits, an employee of the agency 

17 from which detailed. 

18 (b) LIMITATION ON TOTAL SERVICE.—

19 (1) IN GENERAL.—Except as provided in para20 graph (2), no individual may serve in or under the 

21 Corporation (whether as an employee of the Cor22 poration, a detailee to the Corporation, or a com23 bination thereof) for a total period exceeding 5 

24 years. 

25 (2) EXCEPTIONS.—
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•HR 2441 IH 

1 (A) EXTENSION AUTHORITY.—The Chief 

2 Executive Officer may extend the 5-year period 

3 under paragraph (1) for up to an additional 3 

4 years, in the case of any particular individual, 

5 if the Chief Executive Officer determines that 

6 such extension is essential to the achievement of 

7 the purposes of this division. 

8 (B) OFFICERS.—Nothing in this sub9 section shall limit the period for which an indi10 vidual may serve as an officer of the Corpora11 tion appointed pursuant to section 302(d) nor 

12 shall any period of service as such an officer be 

13 taken into account for purposes of applying this 

14 subsection. 

15 (c) REEMPLOYMENT RIGHTS.—

16 (1) IN GENERAL.—An employee of an agency 

17 who is serving under a career or career conditional 

18 appointment (or the equivalent), and who, with the 

19 consent of the head of such agency, transfers to the 

20 Corporation, is entitled to be reemployed in such em21 ployee’s former position or a position of like senior22 ity, status, and pay in such agency, if such em23 ployee—

24 (A) is separated from the Corporation—
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•HR 2441 IH 

1 (i) by reason of the application of sub2 section (b); or 

3 (ii) for any other reason, other than 

4 misconduct, neglect of duty, or malfea5 sance; and 

6 (B) applies for reemployment not later 

7 than 90 days after the date of separation from 

8 the Corporation. 

9 (2) SPECIFIC RIGHTS.—An employee who satis10 fies paragraph (1) is entitled to be reemployed (in 

11 accordance with such paragraph) within 30 days 

12 after applying for reemployment and, on reemploy13 ment, is entitled to at least the rate of basic pay to 

14 which such employee would have been entitled had 

15 such employee never transferred. 

16 (d) BASIC PAY.—The Chief Executive Officer may fix 

17 the rate of basic pay of employees of the Corporation with18 out regard to the provisions of—

19 (1) chapter 51 of title 5, United States Code 

20 (relating to the classification of positions), and 

21 (2) subchapter III of chapter 53 of such title 

22 (relating to General Schedule pay rates), 

23 except that no employee of the Corporation may receive 

24 a rate of basic pay that exceeds the rate for level II of 

25 the Executive Schedule under section 5313 of such title.
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•HR 2441 IH 

1 (e) ASSIGNMENT TO UNITED STATES EMBASSIES.—

2 An employee of the Corporation, including an individual 

3 detailed to or contracted by the Corporation, may be as4 signed to a United States diplomatic mission or consular 

5 post, or United States Agency for International Develop6 ment field mission. 

7 (f) PRIVILEGES AND IMMUNITIES.—The Secretary of 

8 State shall seek to ensure that an employee of the Cor9 poration, including an individual detailed to or contracted 

10 by the Corporation, and the members of the family of such 

11 employee, while the employee is performing duties in any 

12 country or place outside the United States, enjoy the privi13 leges and immunities that are enjoyed by a member of 

14 the Foreign Service, or the family of a member of the For15 eign Service, as appropriate, of comparable rank and sal16 ary of such employee, if such employee or a member of 

17 the family of such employee is not a national of or perma18 nently resident in such country or place. 

19 (g) RESPONSIBILITY OF CHIEF OF MISSION.—An 

20 employee of the Corporation, including an individual de21 tailed to or contracted by the Corporation, and a member 

22 of the family of such employee, shall be subject to section 

23 207 of the Foreign Service Act of 1980 (22 U.S.C. 3927) 

24 in the same manner as United States Government employ25 ees while the employee is performing duties in any country 
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•HR 2441 IH 

1 or place outside the United States if such employee or 

2 member of the family of such employee is not a national 

3 of or permanently resident in such country or place. 

4 (h) ALLOCATION OF FUNDS.—

5 (1) IN GENERAL.—The Corporation may allo6 cate or transfer to the United States Agency for 

7 International Development or any other agency any 

8 part of any funds available for carrying out the pur9 poses of this division. Such funds shall be available 

10 for obligation and expenditure for the purposes for 

11 which authorized, in accordance with authority 

12 granted in this title or under authority governing the 

13 activities of the agencies of the United States Gov14 ernment to which such funds are allocated or trans15 ferred. 

16 (2) CONGRESSIONAL NOTIFICATION.—The 

17 Chief Executive Officer shall notify the appropriate 

18 congressional committees not later than 15 days 

19 prior to a transfer of funds under paragraph (1) 

20 that exceeds $5,000,000. 

21 (3) USE OF SERVICES.—For carrying out the 

22 purposes of this division, the Corporation may utilize 

23 the services and facilities of, or procure commodities 

24 from, any agency under such terms and conditions 
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•HR 2441 IH 

1 as may be agreed to by the head of the agency and 

2 the Corporation. 

3 (i) FUNDING LIMITATION.—Of the funds allocated 

4 under subsection (h) in any fiscal year, not more than 7 

5 percent of such funds may be used for administrative ex6 penses. 

7 (j) OTHER AUTHORITIES.—Except to the extent in8 consistent with the provisions of this division, the adminis9 trative authorities under chapters 1 and 2 of part III of 

10 the Foreign Assistance Act of 1961 shall apply to the pro11 vision of assistance under this division to the same extent 

12 and in the same manner as such authorities apply to the 

13 provision of economic assistance under part I of such Act. 

14 (k) APPLICABILITY OF GOVERNMENT CORPORATION

15 CONTROL ACT.—

16 (1) IN GENERAL.—The Corporation shall be 

17 subject to the provisions of chapter 91 of subtitle VI 

18 of title 31, United States Code, except that the Cor19 poration shall not be authorized to issue obligations 

20 or offer obligations to the public. 

21 (2) CONFORMING AMENDMENT.—Section 

22 9101(3) of title 31, United States Code, is amended 

23 by adding at the end the following: 

24 ‘‘(Q) the Millennium Challenge Corpora25 tion.’’
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•HR 2441 IH 

1 (l) INSPECTOR GENERAL.—

2 (1) IN GENERAL.—The Inspector General of 

3 the United States Agency for International Develop4 ment shall serve as Inspector General of the Cor5 poration, and, in acting in such capacity, may con6 duct reviews, investigations, and inspections of all 

7 aspects of the operations and activities of the Cor8 poration. 

9 (2) AUTHORITY OF THE BOARD.—In carrying 

10 out its responsibilities under this subsection, the In11 spector General shall report to the Board of Direc12 tors. 

13 (3) REIMBURSEMENT.—The Corporation shall 

14 reimburse the United States Agency for Inter15 national Development for all expenses incurred by 

16 the Inspector General in connection with the Inspec17 tor General’s responsibilities under this subsection. 

18 (m) COMPTROLLER GENERAL.—

19 (1) IN GENERAL.—The Comptroller General 

20 shall conduct audits, evaluations, and investigations 

21 of the Corporation. 

22 (2) SCOPE.—The activities and financial trans23 actions of the Corporation for any fiscal year during 

24 which Federal funds are available to finance any 

25 portion of its operations may be evaluated, inves-
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•HR 2441 IH 

1 tigated, or audited by the Comptroller General in ac2 cordance with such rules and regulations as may be 

3 prescribed by the Comptroller General. 

4 (3) ACCESS AND RECORDS.—Any evaluation, in5 vestigation, or audit shall be conducted at the place 

6 or places where pertinent information of the Cor7 poration is normally kept. The representatives of the 

8 General Accounting Office shall have access to all 

9 books, accounts, financial records, reports, files, and 

10 other papers or property belonging to or in use by 

11 the Corporation and necessary to facilitate the eval12 uation, investigation, or audit; and full facilities for 

13 verifying transactions with the balances and securi14 ties held by depositories, fiscal agents, and 

15 custodians shall be afforded to such representatives. 

16 All such books, accounts, financial records, reports, 

17 files, and other papers or property of the Corpora18 tion shall remain in the possession and custody of 

19 the Corporation throughout the period beginning on 

20 the date such possession or custody commences and 

21 ending three years after such date, but the General 

22 Accounting Office may require the retention of such 

23 books, accounts, financial records, reports, files, pa24 pers, or property for a longer period under section 

25 3523(c) of title 31, United States Code. 
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1 (4) REPORT.—A report of such audit, evalua2 tion, or investigation shall be made by the Comp3 troller General to the appropriate congressional com4 mittees and to the President, together with such rec5 ommendations with respect thereto as the Comp6 troller General shall deem advisable. 

7 (n) DEFINITIONS.—For purposes of this section—

8 (1) the term ‘‘agency’’ means an Executive 

9 agency, as defined by section 105 of title 5, United 

10 States Code; and 

11 (2) the term ‘‘detail’’ means the assignment or 

12 loan of an employee, without a change of position, 

13 from the agency by which such employee is employed 

14 to the Corporation. 

15 SEC. 308. MILLENNIUM CHALLENGE ADVISORY COUNCIL. 

16 (a) ESTABLISHMENT.—There is hereby established in 

17 the executive branch an advisory council to the Corpora18 tion to be known as the Millennium Challenge Advisory 

19 Council. 

20 (b) FUNCTIONS.—

21 (1) GENERAL FUNCTIONS.—The Council shall 

22 advise and consult with the Chief Executive Officer 

23 of the Corporation and the Board of Directors with 

24 respect to policies and programs designed to further 

25 the purposes of this division and shall periodically
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•HR 2441 IH 

1 report to the Congress with respect to the activities 

2 of the Corporation. In addition, the Council shall re3 view on an annual basis the criteria and method4 ology used to determine eligibility of countries for 

5 assistance under title II and make recommendations 

6 to the Chief Executive Officer and the Board to im7 prove the effectiveness of such criteria and method8 ology in order to achieve the purposes of this divi9 sion. 

10 (2) ADDITIONAL FUNCTIONS.—Members of the 

11 Council shall (subject to subsection (d)(1)) conduct 

12 on-site inspections, and make examinations, of the 

13 activities of the Corporation in the United States 

14 and in other countries in order to—

15 (A) evaluate the accomplishments of the 

16 Corporation; 

17 (B) assess the potential capabilities and 

18 the future role of the Corporation; 

19 (C) make recommendations to the Chief 

20 Executive Officer, the Board of Directors, and 

21 Congress, for the purpose of guiding the future 

22 direction of the Corporation and of helping to 

23 ensure that the purposes and programs of the 

24 Corporation are carried out in ways that are ec25 onomical, efficient, responsive to changing 
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•HR 2441 IH 

1 needs in developing countries and to changing 

2 relationships among people, and in accordance 

3 with law; 

4 (D) make such other evaluations, assess5 ments, and recommendations as the Council 

6 considers appropriate. 

7 (3) PUBLIC PARTICIPATION.—The Council may 

8 provide for public participation in its activities, con9 sistent with section 552b of title 5, United States 

10 Code. 

11 (c) MEMBERSHIP.—

12 (1) IN GENERAL.—The Council shall consist of 

13 seven individuals, who shall be appointed by the 

14 Chief Executive Officer, and who shall be broadly 

15 representative of nongovernmental entities with ex16 pertise and interest in international trade and eco17 nomic development, including business and business 

18 associations, trade and labor unions, private and vol19 untary organizations, foundations, public policy or20 ganizations, academia, and other entities as the 

21 Chief Executive Officer determines appropriate. 

22 (2) ADDITIONAL REQUIREMENT.—No member 

23 appointed under paragraph (1) may be an officer or 

24 employee of the United States Government. 

25 (d) COMPENSATION.—
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•HR 2441 IH 

1 (1) IN GENERAL.—Except as provided in para2 graph (2), a member of the Council—

3 (A) shall be paid compensation out of 

4 funds made available for the purposes of this 

5 title at the daily equivalent of the highest rate 

6 payable under section 5332 of title 5, United 

7 States Code, for each day (including travel 

8 time) during which the member is engaged in 

9 the actual performance of duties as a member 

10 of the Council; and 

11 (B) while away from the member’s home 

12 or regular place of business on necessary travel, 

13 as determined by the Chief Executive Officer, in 

14 the actual performance of duties as a member 

15 of the Council, shall be paid per diem, travel, 

16 and transportation expenses in the same man17 ner as is provided under subchapter I of chap18 ter 57 of title 5, United States Code. 

19 (2) LIMITATION.—A member of the Council 

20 may not be paid compensation under paragraph 

21 (1)(A) for more than thirty days in any calendar 

22 year. 

23 (e) QUORUM.—A majority of the members of the 

24 Council shall constitute a quorum for the purposes of 

25 transacting any business. 
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•HR 2441 IH 

1 (f) FINANCIAL INTERESTS OF MEMBERS.—A mem2 ber of the Council shall disclose to the Chairperson of the 

3 Council and the Chief Executive Officer of the existence 

4 of any direct or indirect financial interest of that member 

5 in any particular matter before the Council and may not 

6 vote or otherwise participate as a Council member with 

7 respect to that particular matter. 

8 (g) CHAIRPERSON.—The Chief Executive Officer 

9 shall designate one of the members of the Council as 

10 Chairperson, who shall serve in that capacity for a term 

11 of two years. The Chief Executive Officer may renew the 

12 term of the member appointed as Chairperson under the 

13 preceding sentence. 

14 (h) MEETINGS, BYLAWS, AND REGULATIONS.—

15 (1) MEETINGS.—The Council shall hold a reg16 ular meeting during each calendar quarter and shall 

17 meet at the call of the President, the Chief Execu18 tive Officer, the Chairperson of the Board, the 

19 Chairperson of the Council, or two members of the 

20 Council. 

21 (2) BYLAWS AND REGULATIONS.—The Council 

22 shall prescribe such bylaws and regulations as it 

23 considers necessary to carry out its functions. Such 

24 bylaws and regulations shall include procedures for 

25 fixing the time and place of meetings, giving or
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•HR 2441 IH 

1 waiving of notice of meetings, and keeping of min2 utes of meetings. 

3 (i) REPORT TO THE PRESIDENT, CHIEF EXECUTIVE

4 OFFICER, AND BOARD.—

5 (1) REPORT.—Not later than January 1, 2005, 

6 and not later than January 1 of each year thereafter 

7 that the Corporation is in existence, the Council 

8 shall submit to the President, the Chief Executive 

9 Officer, and the Board a report on its views on the 

10 programs and activities of the Corporation. 

11 (2) CONTENTS.—Each report shall contain a 

12 summary of the advice and recommendations pro13 vided by the Council to the Chief Executive Officer 

14 and the Board during the period covered by the re15 port and such recommendations (including rec16 ommendations for administrative or legislative ac17 tion) as the Council considers appropriate to make 

18 to the Congress. 

19 (3) ADDITIONAL REQUIREMENT.—Not later 

20 than 90 days after receiving each such report, the 

21 Chief Executive Officer shall transmit to Congress a 

22 copy of the report, together with any comments con23 cerning the report that the Chief Executive Officer 

24 considers appropriate. 
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•HR 2441 IH 

1 (j) ADMINISTRATIVE ASSISTANCE.—The Chief Exec2 utive Officer shall make available to the Council such per3 sonnel, administrative support services, and technical as4 sistance as are necessary to carry out its functions effec5 tively. 

6 (k) TERMINATION.—Section 14(a)(2)(B) of the Fed7 eral Advisory Committee Act (5 U.S.C. App.; relating to 

8 the termination of advisory committees) shall not apply 

9 to the Council. Notwithstanding section 102 of this Act, 

10 the authorities of the Council shall terminate on December 

11 31, 2007. 

12 SEC. 309. ENHANCING DATA COLLECTION AND MONI13 TORING AND EVALUATION CAPABILITIES. 

14 (a) IN GENERAL.—The President, acting through the 

15 Chief Executive Officer of the Corporation, is authorized 

16 to provide assistance (through grant, contract, and, where 

17 applicable, in coordination with appropriate international 

18 organizations) to appropriate nongovernmental organiza19 tions in order to assist the Corporation to improve the 

20 quality and accuracy of the criteria that are utilized to 

21 determine a country’s eligibility for assistance under title 

22 II. 

23 (b) USE OF ASSISTANCE.—Assistance provided under 

24 subsection (a) may be used to facilitate—
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•HR 2441 IH 

1 (1) data collection and research which are di2 rectly related to the eligibility criteria used under 

3 section 203, particularly as the criteria relate to 

4 women and children; 

5 (2) the monitoring and evaluation capabilities 

6 of recipients under section 203(f); and 

7 (3) the strengthening of the trade index to ac8 cess data on actual trade barriers. 

9 (c) LIMITATION.—Not more than $10,000,000 of the 

10 amount made available to carry out this division for a fis11 cal year may be made available to carry out this section. 

12 TITLE IV—PROVISIONS RELAT13 ING TO UNITED STATES ECO14 NOMIC ASSISTANCE 

15 SEC. 401. DEFINITION. 

16 In this title, the term ‘‘United States economic assist17 ance’’ means any bilateral economic assistance, from any 

18 budget functional category, that is provided by any depart19 ment or agency of the United States to a foreign country, 

20 including such assistance that is intended—

21 (1) to assist the development and economic ad22 vancement of friendly foreign countries and peoples, 

23 including assistance provided under title II (relating 

24 to the Millennium Challenge Account); 
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•HR 2441 IH 

1 (2) to promote the freedom, aspirations, or sus2 tenance of friendly peoples under oppressive rule by 

3 unfriendly governments; 

4 (3) to promote international trade and foreign 

5 direct investment as a means of aiding economic 

6 growth; 

7 (4) to save lives and alleviate suffering of for8 eign peoples during or following war, natural dis9 aster, or complex crisis; 

10 (5) to assist in recovery and rehabilitation of 

11 countries or peoples following disaster or war; 

12 (6) to protect refugees and promote durable so13 lutions to aid refugees; 

14 (7) to promote sound environmental practices; 

15 (8) to assist in development of democratic insti16 tutions and good governance by the people of foreign 

17 countries; 

18 (9) to promote peace and reconciliation or pre19 vention of conflict; 

20 (10) to improve the technical capacities of gov21 ernments to reduce production of and demand for il22 licit narcotics; and

23 (11) to otherwise promote through bilateral for24 eign economic assistance the national objectives of 

25 the United States. 
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•HR 2441 IH 

1 SEC. 402. FRAMEWORK FOR ASSISTANCE. 

2 (a) SENSE OF CONGRESS.—It is the sense of Con3 gress that a coherent framework for United States eco4 nomic assistance should be established in accordance with 

5 this section. 

6 (b) ELEMENTS.—The framework described in sub7 section (a) includes the following elements: 

8 (1) The United States Agency for International 

9 Development, under the direction and foreign policy 

10 guidance of the Secretary of State, should be respon11 sible for—

12 (A) providing assistance to countries that 

13 face natural and man-made disasters in order 

14 to provide humanitarian relief to the peoples of 

15 such countries, in coordination with refugee 

16 programs administered by the Department of 

17 State; 

18 (B) providing assistance to countries that 

19 are suffering from conflicts or are in post-con20 flict situations in order to provide humanitarian 

21 relief, transition assistance, and reconstruction 

22 assistance; 

23 (C) providing assistance to help moderate24 to-poorly performing countries achieve develop25 ment progress in the areas described in part I 

26 of the Foreign Assistance Act of 1961, includ-
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•HR 2441 IH 

1 ing progress toward becoming eligible for assist2 ance under this title, and to promote inter3 national health worldwide, as well as assisting 

4 in the development of country and regional de5 velopment strategies; 

6 (D) addressing transnational problems, 

7 such as environmental degradation, food insecu8 rity, and health problems; and 

9 (E) assisting other Federal departments 

10 and agencies, including the Corporation estab11 lished under title III, to carry out assistance ac12 tivities abroad, including providing technical as13 sistance and advice to such departments and 

14 agencies, coordinating its assistance programs 

15 with such departments and agencies, and using 

16 its field offices to help implement such assist17 ance. 

18 (2) The Corporation established under title III 

19 should provide assistance to countries that have 

20 demonstrated a commitment to bolstering democ21 racy, good governance, and the rule of law, to invest22 ing in the health and educations of their people, and 

23 to promoting sound economic policies that foster 

24 economic opportunity for their people. 
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•HR 2441 IH 

1 (3) The Department of State should be respon2 sible for allocating security assistance to support key 

3 foreign policy objectives of the United States and 

4 shall administer assistance in such areas as non-pro5 liferation, anti-terrorism, counter-narcotics, and re6 lief for refugees. 

7 (4) Other Federal departments and agencies 

8 with expertise in international development-related 

9 activities, such as the Overseas Private Investment 

10 Corporation, the Trade and Development Agency, 

11 the Department of Agriculture, the Department of 

12 Health and Human Services, and the Centers for 

13 Disease Control and Prevention, to the extent such 

14 departments and agencies have the authority to 

15 carry out development-related programs, and in co16 ordination with the Department of State and the 

17 United States Agency for International Develop18 ment, should provide expertise in specific technical 

19 areas and shall provide assistance, including assist20 ance provided with funds made available from the 

21 Corporation to assist United States Government 

22 international development activities. 
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•HR 2441 IH 

1 SEC. 403. REPORT RELATING TO IMPACT AND EFFECTIVE2 NESS OF ASSISTANCE. 

3 (a) REPORT.—Not later than December 31, 2004, 

4 and December 31 of each third year thereafter, the Presi5 dent shall transmit to Congress a report which analyzes, 

6 on a country-by-country basis, the impact and effective7 ness of United States economic assistance furnished under 

8 the framework established in section 402 to each country 

9 during the preceding three fiscal years. The report shall 

10 include the following for each recipient country: 

11 (1) An analysis of the impact of United States 

12 economic assistance during the preceding three fiscal 

13 years on economic development in that country, with 

14 a discussion of the United States interests that were 

15 served by the assistance. This analysis shall be done 

16 on a sector-by-sector basis to the extent possible and 

17 shall identify any economic policy reforms which 

18 were promoted by the assistance. This analysis 

19 shall—

20 (A) include a description, quantified to the 

21 extent practicable, of the specific objectives the 

22 United States sought to achieve in providing 

23 economic assistance for that country, and 

24 (B) specify the extent to which those objec25 tives were not achieved, with an explanation of 

26 why they were not achieved.
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•HR 2441 IH 

1 (2) A description of the amount and nature of 

2 economic assistance provided by other donors during 

3 the preceding three fiscal years, set forth by develop4 ment sector to the extent possible. 

5 (3) A discussion of the commitment of the host 

6 government to addressing the country’s needs in 

7 each development sector, including a description of 

8 the resources devoted by that government to each 

9 development sector during the preceding three fiscal 

10 years. 

11 (4) A description of the trends, both favorable 

12 and unfavorable, in each development sector. 

13 (5) Statistical and other information necessary 

14 to evaluate the impact and effectiveness of United 

15 States economic assistance on development in the 

16 country. 

17 (6) A comparison of the analysis provided in 

18 the report with relevant analyses by international fi19 nancial institutions, other international organiza20 tions, other donor countries, or nongovernmental or21 ganizations. 

22 (b) LISTING OF MOST AND LEAST SUCCESSFUL AS23 SISTANCE PROGRAMS.—The report required by this sec24 tion shall identify—
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•HR 2441 IH 

1 (1) each country in which United States eco2 nomic assistance has been most successful, as indi3 cated by the extent to which the specific objectives 

4 the United States sought to achieve in providing the 

5 assistance for the country, as referred to in sub6 section (a)(1)(A), were achieved; and 

7 (2) each country in which United States eco8 nomic assistance has been least successful, as indi9 cated by the extent to which the specific objectives 

10 the United States sought to achieve in providing the 

11 assistance for the country, as referred to in sub12 section (a)(1)(A), were not achieved. 

13 For each country listed pursuant to paragraph (2), the 

14 report shall explain why the assistance was not more suc15 cessful and shall specify what the United States has done 

16 as a result. 

17 (c) DE MINIMUS EXCEPTION.—Information under 

18 subsections (a) and (b) for a fiscal year shall not be re19 quired with respect to a country for which United States 

20 economic assistance for the country for the fiscal year is 

21 less than $5,000,000. 
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•HR 2441 IH 

1 DIVISION B—REAUTHORIZATION 

2 AND EXPANSION OF THE 

3 PEACE CORPS 

4 TITLE X—GENERAL PROVISIONS 

5 SEC. 1001. DEFINITIONS. 

6 In this division: 

7 (1) APPROPRIATE CONGRESSIONAL COMMIT8 TEES.—The term ‘‘appropriate congressional com9 mittees’’ means the Committee on International Re10 lations of the House of Representatives and the 

11 Committee on Foreign Relations of the Senate. 

12 (2) DIRECTOR.—The term ‘‘Director’’ means 

13 the Director of the Peace Corps. 

14 (3) HOST COUNTRY.—The term ‘‘host country’’ 

15 means a country whose government has invited the 

16 Peace Corps to establish a Peace Corps program 

17 within the territory of the country. 

18 (4) PEACE CORPS VOLUNTEER.—The term 

19 ‘‘Peace Corps volunteer’’ means a volunteer or a vol20 unteer leader under the Peace Corps Act. 

21 (5) RETURNED PEACE CORPS VOLUNTEER.—

22 The term ‘‘returned Peace Corps volunteer’’ means 

23 a person who has been certified by the Director as 

24 having served satisfactorily as a Peace Corps volun25 teer. 
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•HR 2441 IH 

1 SEC. 1002. FINDINGS. 

2 Congress makes the following findings: 

3 (1) The Peace Corps was established in 1961 to 

4 promote world peace and friendship through the 

5 service abroad of volunteers who are United States 

6 citizens. The spirit of service and commitment to 

7 helping others is a fundamental component of de8 mocracy. 

9 (2) Since its establishment, more than 168,000 

10 volunteers have served in the Peace Corps in 136 

11 countries throughout the world. 

12 (3) The three goals codified in the Peace Corps 

13 Act which have guided the Peace Corps and its vol14 unteers over the years, can work in concert to pro15 mote global acceptance of the principles of inter16 national peace and nonviolent coexistence among 

17 peoples of diverse cultures and systems of govern18 ment. 

19 (4) The Peace Corps has sought to fulfill three 

20 goals—to help people in developing countries meet 

21 basic needs, promote understanding abroad of the 

22 values and ideals of the United States, and promote 

23 an understanding of other peoples by the people of 

24 the United States. 

25 (5) After more than 40 years of operation, the 

26 Peace Corps remains the world’s premier inter-
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•HR 2441 IH 

1 national service organization dedicated to promoting 

2 grassroots development by working with families and 

3 communities to improve health care for children, ex4 pand agricultural production, teach in schools, fight 

5 infectious diseases, protect the environment, and ini6 tiate small business opportunities. 

7 (6) The Peace Corps remains committed to 

8 sending well trained and well supported Peace Corps 

9 volunteers overseas to promote international peace, 

10 cross-cultural awareness, and mutual understanding 

11 between the United States and other countries. 

12 (7) The Peace Corps is an independent agency, 

13 and, therefore, no Peace Corps personnel or volun14 teers should be used to accomplish any goal other 

15 than the goals established by the Peace Corps Act. 

16 (8) The Crisis Corps has been an effective tool 

17 in harnessing the skills and talents of returned 

18 Peace Corps volunteers and should be expanded, to 

19 the maximum extent practicable, to utilize the talent 

20 of returned Peace Corps volunteers. 

21 (9) In fiscal year 2003, the Peace Corps is op22 erating with an annual budget of $295,000,000 in 

23 70 countries, with more than 7,000 Peace Corps vol24 unteers. 
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•HR 2441 IH 

1 (10) There is deep misunderstanding and mis2 information in many parts of the world, particularly 

3 in countries with substantial Muslim populations, 

4 with respect to United States values and ideals. A 

5 new or expanded Peace Corps presence in such 

6 places could foster better understanding between the 

7 people of the United States and such countries. 

8 (11) Congress has declared, and the Peace 

9 Corps Act provides, that the Peace Corps shall 

10 maintain, to the maximum extent practicable and 

11 appropriate, a volunteer corps of at least 10,000 in12 dividuals. 

13 (12) President George W. Bush has called for 

14 the doubling of the number of Peace Corps volun15 teers in service. 

16 (13) Any expansion of the Peace Corps should 

17 not jeopardize the quality of the Peace Corps volun18 teer experience and, therefore, necessitates, among 

19 other things, an appropriate increase in field and 

20 headquarters support staff. 

21 (14) In order to ensure that the proposed ex22 pansion of the Peace Corps preserves the integrity of 

23 the program and the security of volunteers, the inte24 grated Planning and Budget System supported by
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•HR 2441 IH 

1 the Office of Planning and Policy Analysis should 

2 continue its focus on strategic planning. 

3 (15) A streamlined, bipartisan Peace Corps Na4 tional Advisory Council composed of distinguished 

5 returned Peace Corps volunteers, former Peace 

6 Corps staff, and other individuals with diverse back7 grounds and expertise can be a source of ideas and 

8 suggestions that may be useful to the Director of the 

9 Peace Corps as the Director discharges the duties 

10 and responsibilities as head of the agency. 

11 TITLE XI—AMENDMENTS TO 

12 PEACE CORPS ACT; RELATED 

13 PROVISIONS 

14 SEC. 1101. ADVANCING THE GOALS OF THE PEACE CORPS. 

15 (a) RECRUITMENT OF VOLUNTEERS.—Section 2A of 

16 the Peace Corps Act (22 U.S.C. 2501–1) is amended by 

17 adding at the end the following new sentence: ‘‘As an inde18 pendent agency, the Peace Corps shall be responsible for 

19 recruiting all of its volunteers.’’. 

20 (b) DETAILS AND ASSIGNMENTS.—Section 5(g) of 

21 the Peace Corps Act (22 U.S.C. 2504(g)) is amended by 

22 striking ‘‘Provided, That’’ and inserting ‘‘Provided, That 

23 such detail or assignment furthers the fulfillment of Peace 

24 Corps’ development and public diplomacy goals as de25 scribed in section 2: Provided further, That’’. 
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•HR 2441 IH 

1 SEC. 1102. REPORTS AND CONSULTATIONS. 

2 (a) ANNUAL REPORTS; CONSULTATIONS ON NEW

3 INITIATIVES.—Section 11 of the Peace Corps Act (22 

4 U.S.C. 2510) is amended by striking the section heading 

5 and the text of section 11 and inserting the following: 

6 ‘‘SEC. 11. ANNUAL REPORTS; CONSULTATIONS ON NEW INI7 TIATIVES. 

8 ‘‘(a) ANNUAL REPORTS.—The Director shall trans9 mit to Congress, at least once in each fiscal year, a report 

10 on operations under this Act. Each report shall contain 

11 information—

12 ‘‘(1) describing efforts undertaken to improve 

13 coordination of activities of the Peace Corps with ac14 tivities of international voluntary service organiza15 tions, such as the United Nations volunteer pro16 gram, and of host country voluntary service organi17 zations, including—

18 ‘‘(A) a description of the purpose and 

19 scope of any development project which the 

20 Peace Corps undertook during the preceding 

21 fiscal year as a joint venture with any such 

22 international or host country voluntary service 

23 organizations; and 

24 ‘‘(B) recommendations for improving co25 ordination of development projects between the 
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•HR 2441 IH 

1 Peace Corps and any such international or host 

2 country voluntary service organizations; 

3 ‘‘(2) describing—

4 ‘‘(A) any major new initiatives that the 

5 Peace Corps has under review for the upcoming 

6 fiscal year, and any major initiatives that were 

7 undertaken in the previous fiscal year that were 

8 not included in prior reports to the Congress; 

9 ‘‘(B) the rationale for undertaking such 

10 new initiatives; 

11 ‘‘(C) an estimate of the cost of such initia12 tives; and 

13 ‘‘(D) the impact on the safety of volun14 teers; 

15 ‘‘(3) describing in detail the Peace Corps plans, 

16 including budgetary plans, to have 14,000 volunteers 

17 in service by 2007 while maintaining the quality of 

18 the volunteer experience, ensuring the safety and se19 curity of all volunteers, and providing for appro20 priate administrative and other support; and 

21 ‘‘(4) describing standard security procedures for 

22 any country in which the Peace Corps operates pro23 grams or is considering doing so, as well as any spe24 cial security procedures contemplated because of 

25 changed circumstances in specific countries, and as-
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•HR 2441 IH 

1 sessing whether security conditions would be en2 hanced—

3 ‘‘(A) by co-locating volunteers with inter4 national or local nongovernmental organiza5 tions; or 

6 ‘‘(B) with the placement of multiple volun7 teers in one location. 

8 ‘‘(b) CONSULTATIONS ON NEW INITIATIVES.—The 

9 Director of the Peace Corps shall consult with the appro10 priate congressional committees with respect to any major 

11 new initiatives not previously discussed in the latest an12 nual report submitted to Congress under subsection (a) 

13 or in budget presentations. Whenever possible, such con14 sultations should take place prior to the initiation of such 

15 initiatives, or as soon as practicable thereafter.’’. 

16 (b) ONE–TIME REPORT ON STUDENT LOAN FOR17 GIVENESS PROGRAMS.—Not later than 30 days after the 

18 date of enactment of this Act, the Director shall submit 

19 to the appropriate congressional committees a report—

20 (1) describing the student loan forgiveness pro21 grams currently available to Peace Corps volunteers 

22 upon completion of their service; 

23 (2) comparing such programs with other Gov24 ernment-sponsored student loan forgiveness pro25 grams; and
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•HR 2441 IH 

1 (3) recommending any additional student loan 

2 forgiveness programs which could attract more ap3 plications from low- and middle-income individuals 

4 who are carrying considerable student-loan debt bur5 dens. 

6 (c) ANNUAL REPORT TO CONGRESS ON THE FED7 ERAL EQUAL OPPORTUNITY RECRUITMENT PROGRAM

8 (FEORP).—Not later than 90 days after the date of en9 actment of this Act and annually thereafter, the Director 

10 shall report on the progress of the Peace Corps in recruit11 ing historically underrepresented groups. The Director 

12 shall prepare this report in accordance with section 7201 

13 of title 5, United States Code, and subpart B of part 720 

14 of title 5, Code of Federal Regulations. 

15 (d) REPORT ON MAINTAINING THE INTEGRITY OF

16 THE MEDICAL SCREENING AND MEDICAL PLACEMENT

17 COORDINATION PROCESSES.—Not later than 120 days 

18 after the date of enactment of this Act, the Director shall 

19 prepare and submit to the appropriate congressional com20 mittees a report that—

21 (1) describes the medical screening procedures 

22 and standards of the Office of Medical Services/

23 Screening Unit of the Peace Corps to determine 

24 whether an applicant for Peace Corps service has 

25 worldwide clearance, limited clearance, a deferral pe-
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•HR 2441 IH 

1 riod, or is not medically, including psychologically, 

2 qualified to serve in the Peace Corps as a volunteer; 

3 (2) describes the procedures and criteria for 

4 matching applicants for Peace Corps service with a 

5 host country to ensure that the applicant, reasonable 

6 accommodations notwithstanding, can complete at 

7 least two years of volunteer service without interrup8 tion to host country national projects due to foresee9 able medical conditions; and 

10 (3) with respect to each of fiscal years 2000 

11 through 2002 and the first six months of fiscal year 

12 2003, states the number of—

13 (A) medical screenings conducted; 

14 (B) applicants who have received world15 wide clearance, limited clearance, deferral peri16 ods, and medical disqualifications to serve; 

17 (C) Peace Corps volunteers who the agency 

18 has had to separate from service due to the dis19 covery of undisclosed medical information; and 

20 (D) Peace Corps volunteers who have ter21 minated their service early due to medical, in22 cluding psychological, reasons. 
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•HR 2441 IH 

1 SEC. 1103. SPECIAL VOLUNTEER RECRUITMENT AND 

2 PLACEMENT FOR CERTAIN COUNTRIES. 

3 (a) REPORT.—Not later than 60 days after the date 

4 of enactment of this Act, the Director shall submit to the 

5 appropriate congressional committees a report that—

6 (1) describes the recruitment strategies to be 

7 employed by the Peace Corps to recruit and train 

8 volunteers with the appropriate language skills and 

9 interest in serving in host countries; and 

10 (2) lists the countries that the Director has de11 termined should be priorities for special recruitment 

12 and placement of Peace Corps volunteers. 

13 (b) USE OF RETURNED PEACE CORPS VOLUNTEERS

14 AND FORMER STAFF.—The Director is authorized and 

15 strongly urged to utilize the services of returned Peace 

16 Corps volunteers and former Peace Corps staff who have 

17 relevant language and cultural experience and may have 

18 served previously in countries with substantial Muslim 

19 populations, in order to open or reopen Peace Corps pro20 grams in such countries. 

21 SEC. 1104. GLOBAL INFECTIOUS DISEASES INITIATIVE; CO22 ORDINATION OF HIV/AIDS ACTIVITIES. 

23 (a) INITIATIVE.—

24 (1) IN GENERAL.—The Director, in cooperation 

25 with international public health experts, such as the 

26 Centers for Disease Control and Prevention, the Na-
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•HR 2441 IH 

1 tional Institutes of Health, the World Health Orga2 nization, the Pan American Health Organization, 

3 and local public health officials, shall expand the 

4 Peace Corps’ program of training for Peace Corps 

5 volunteers in the areas of education, prevention, and 

6 treatment of infectious diseases which are prevalent 

7 in host countries in order to ensure that the Peace 

8 Corps increases its contribution to the global cam9 paign against such diseases. 

10 (2) ADDITIONAL REQUIREMENT.—Activities for 

11 the education, prevention, and treatment of infec12 tious diseases in host countries by the Peace Corps 

13 shall be undertaken in a manner that is consistent 

14 with activities authorized under sections 104(c), 

15 104A, 104B, and 104C of the Foreign Assistance 

16 Act of 1961. 

17 (b) COORDINATION OF HIV/AIDS ACTIVITIES.—

18 (1) IN GENERAL.—The Director should des19 ignate an officer or employee of the Peace Corps 

20 who is located in the United States to coordinate all 

21 HIV/AIDS activities within the Peace Corps. Such 

22 individual may be an individual who is an officer or 

23 employee of the Peace Corps on the date of the en24 actment of this Act.
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•HR 2441 IH 

1 (2) FIELD COORDINATION.—In addition to the 

2 position established under paragraph (1), the Direc3 tor should designate an individual within each coun4 try in sub-Saharan Africa, the Western Hemisphere, 

5 and Asia in which Peace Corps volunteers carry out 

6 HIV/AIDS activities to coordinate all such activities 

7 of the Peace Corps in such countries. 

8 (c) DEFINITIONS.—In this section: 

9 (1) AIDS.—The term ‘‘AIDS’’ means the ac10 quired immune deficiency syndrome. 

11 (2) HIV.—The term ‘‘HIV’’ means the human 

12 immunodeficiency virus, the pathogen that causes 

13 AIDS. 

14 (3) HIV/AIDS.—The term ‘‘HIV/AIDS’’ 

15 means, with respect to an individual, an individual 

16 who is infected with HIV or living with AIDS. 

17 (4) INFECTIOUS DISEASES.—The term ‘‘infec18 tious diseases’’ means HIV/AIDS, tuberculosis, and 

19 malaria. 

20 SEC. 1105. PEACE CORPS NATIONAL ADVISORY COUNCIL. 

21 Section 12 of the Peace Corps Act (22 U.S.C. 2511; 

22 relating to the Peace Corps National Advisory Council) 

23 is amended—

24 (1) in subsection (b)(2)—
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•HR 2441 IH 

1 (A) in subparagraph (C), by striking 

2 ‘‘and’’ after the semicolon; 

3 (B) by redesignating subparagraph (D) as 

4 subparagraph (E); and 

5 (C) by inserting after subparagraph (C) 

6 the following: 

7 ‘‘(D) make recommendations for utilizing the 

8 expertise of returned Peace Corps volunteers and 

9 former Peace Corps staff in fulfilling the goals of 

10 the Peace Corps; and’’; 

11 (2) in subsection (c)(2)—

12 (A) in subparagraph (A)—

13 (i) in the first sentence—

14 (I) by striking ‘‘fifteen’’ and in15 serting ‘‘eleven’’; and 

16 (II) by striking ‘‘President, by 

17 and with the advice and consent of 

18 the Senate’’ and inserting ‘‘Director 

19 of the Peace Corps’’; 

20 (ii) by striking the second sentence 

21 and inserting the following: ‘‘Six of the 

22 members shall be former Peace Corps vol23 unteers, at least one of whom shall have 

24 been a former staff member abroad or in 

25 the Washington headquarters, and not 
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•HR 2441 IH 

1 more than six shall be members of the 

2 same political party.’’; 

3 (B) by striking subparagraph (B); 

4 (C) by amending subparagraph (D) to read 

5 as follows: 

6 ‘‘(D) The members of the Council shall be appointed 

7 to 2-year terms.’’; 

8 (D) in subparagraph (H), by striking 

9 ‘‘nine’’ and inserting ‘‘seven’’; 

10 (E) in subparagraph (I), by striking 

11 ‘‘President shall nominate’’ and inserting ‘‘Di12 rector shall appoint’’; and 

13 (F) by redesignating subparagraphs (C), 

14 (D), (E), (F), (G), (H), and (I) as subpara15 graphs (B), (C), (D), (E), (F), (G), and (H), 

16 respectively; and 

17 (3) by amending subsection (g) to read as fol18 lows: 

19 ‘‘(g) CHAIR.—The Director shall designate one of the 

20 voting members of the Council as Chair, who shall serve 

21 in that capacity for a term of two years. The Director may 

22 renew the term of a voting member appointed as Chair 

23 under the preceding sentence.’’. 

24 SEC. 1106. READJUSTMENT ALLOWANCES. 

25 The Peace Corps Act is amended—
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•HR 2441 IH 

1 (1) in section 5(c) (22 U.S.C. 2504(c)), by 

2 striking ‘‘$125 for each month of satisfactory serv3 ice’’ and inserting ‘‘$275 for each month of satisfac4 tory service during fiscal year 2004 and $300 for 

5 each month of satisfactory service thereafter’’; and 

6 (2) in section 6(1) (22 U.S.C. 2505(1)), by 

7 striking ‘‘$125 for each month of satisfactory serv8 ice’’ and inserting ‘‘$275 for each month of satisfac9 tory service during fiscal year 2004 and $300 for 

10 each month of satisfactory service thereafter’’. 

11 SEC. 1107. PROGRAMS AND PROJECTS OF RETURNED 

12 PEACE CORPS VOLUNTEERS AND FORMER 

13 STAFF. 

14 (a) PURPOSE.—The purpose of this section is to pro15 vide support for returned Peace Corps volunteers to de16 velop and carry out programs and projects to promote the 

17 objectives of the Peace Corps Act, as set forth in section 

18 2(a) of that Act (22 U.S.C. 2501(a)). 

19 (b) GRANTS TO CERTAIN NONPROFIT CORPORA20 TIONS.—

21 (1) GRANT AUTHORITY.—

22 (A) IN GENERAL.—To carry out the pur23 pose of this section, and subject to the avail24 ability of appropriations, the Director may 

25 award grants on a competitive basis to private
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•HR 2441 IH 

1 nonprofit corporations for the purpose of ena2 bling returned Peace Corps volunteers to use 

3 their knowledge and expertise to develop and 

4 carry out the programs and projects described 

5 in paragraph (2). 

6 (B) DELEGATION OF AUTHORITY AND

7 TRANSFER OF FUNDS.—The Director may dele8 gate the authority to award grants under sub9 paragraph (A) and may transfer funds author10 ized under this section subject to the notifica11 tion procedures of section 634A of the Foreign 

12 Assistance Act of 1961 to the Chief Executive 

13 Officer of the Corporation for National and 

14 Community Service (referred to in this section 

15 as the ‘‘Corporation’’). 

16 (2) PROGRAMS AND PROJECTS.—Such pro17 grams and projects may include—

18 (A) educational programs designed to en19 rich the knowledge and interest of elementary 

20 school and secondary school students in the ge21 ography and cultures of other countries where 

22 the volunteers have served; 

23 (B) projects that involve partnerships with 

24 local libraries to enhance community knowledge 

25 about other peoples and countries; and 
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•HR 2441 IH 

1 (C) audio-visual projects that utilize mate2 rials collected by the volunteers during their 

3 service that would be of educational value to 

4 communities. 

5 (3) ELIGIBILITY FOR GRANTS.—To be eligible 

6 to compete for grants under this section, a nonprofit 

7 corporation shall have a board of directors composed 

8 of returned Peace Corps volunteers and former 

9 Peace Corps staff with a background in community 

10 service, education, or health. If the grants are made 

11 by the Corporation, the nonprofit corporation shall 

12 meet all appropriate Corporation management re13 quirements, as determined by the Corporation. 

14 (c) GRANT REQUIREMENTS.—Such grants shall be 

15 made pursuant to a grant agreement between the Peace 

16 Corps or the Corporation and the nonprofit corporation 

17 that requires that—

18 (1) the grant funds will only be used to support 

19 programs and projects described in subsection (a) 

20 pursuant to proposals submitted by returned Peace 

21 Corps volunteers (either individually or cooperatively 

22 with other returned volunteers); 

23 (2) the nonprofit corporation will give consider24 ation to funding individual programs or projects by 
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1 returned Peace Corps volunteers, in amounts of not 

2 more than $50,000, under this section; 

3 (3) not more than 20 percent of the grant 

4 funds made available to the nonprofit corporation 

5 will be used for the salaries, overhead, or other ad6 ministrative expenses of the nonprofit corporation; 

7 (4) the nonprofit corporation will not receive 

8 grant funds for programs or projects under this sec9 tion for a third or subsequent year unless the non10 profit corporation makes available, to carry out the 

11 programs or projects during that year, non-Federal 

12 contributions—

13 (A) in an amount not less than $2 for 

14 every $3 of Federal funds provided through the 

15 grant; and 

16 (B) provided directly or through donations 

17 from private entities, in cash or in kind, fairly 

18 evaluated, including plant, equipment, or serv19 ices; and 

20 (5) the nonprofit corporation shall manage, 

21 monitor, and submit reports to the Peace Corps or 

22 the Corporation, as the case may be, on each pro23 gram or project for which the nonprofit corporation 

24 receives a grant under this section. 
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1 (d) STATUS OF THE FUND.—Nothing in this section 

2 shall be construed to make any nonprofit corporation sup3 ported under this section an agency or establishment of 

4 the Federal Government or to make the members of the 

5 board of directors or any officer or employee of such non6 profit corporation an officer or employee of the United 

7 States. 

8 (e) FACTORS IN AWARDING GRANTS.—In deter9 mining the number of nonprofit corporations to receive 

10 grants under this section for any fiscal year, the Peace 

11 Corps or the Corporation—

12 (1) shall take into consideration the need to 

13 minimize overhead costs that direct resources from 

14 the funding of programs and projects; and 

15 (2) shall seek to ensure a broad geographical 

16 distribution of grants for programs and projects 

17 under this section. 

18 (f) CONGRESSIONAL OVERSIGHT.—Grant recipients 

19 under this section shall be subject to the appropriate over20 sight procedures of Congress. 

21 (g) FUNDING.—

22 (1) IN GENERAL.—There is authorized to be 

23 appropriated to carry out this section up to 

24 $10,000,000. Such sum shall be in addition to funds 
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1 made available to the Peace Corps under this divi2 sion. 

3 (2) AVAILABILITY.—Amounts appropriated pur4 suant to paragraph (1) are authorized to remain 

5 available until expended. 

6 (h) CRISIS CORPS.—

7 (1) STATEMENT OF POLICY.—Congress states 

8 that the Crisis Corps has been an effective tool in 

9 harnessing the skills and talents of returned Peace 

10 Corps volunteers. 

11 (2) INCREASE IN NUMBER OF CRISIS CORPS AS12 SIGNMENTS.—The Director, in consultation with the 

13 governments of host countries and appropriate non14 governmental organizations, shall increase the num15 ber of available Crisis Corps assignments for re16 turned Peace Corps volunteers to at least 120 as17 signments in fiscal year 2004, 140 assignments in 

18 fiscal year 2005, 160 assignments in fiscal year 

19 2006, and 165 assignments in fiscal year 2007. 

20 SEC. 1108. DECLARATION OF POLICY. 

21 Congress declares its support for the goal announced 

22 by President Bush of doubling the number of Peace Corps 

23 volunteers to 14,000 by 2007 and supports the funding 

24 levels necessary to accomplish this growth. 
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1 SEC. 1109. AUTHORIZATION OF APPROPRIATIONS. 

2 Section 3(b)(1) of the Peace Corps Act (22 U.S.C. 

3 2502(b)(1)) is amended by striking ‘‘and $365,000,000 

4 fiscal year 2003’’ and inserting ‘‘$365,000,000 for fiscal 

5 year 2003, $366,868,000 for fiscal year 2004, 

6 $411,800,000 for fiscal year 2005, $455,930,000 for fis7 cal year 2006, and $499,400,000 for fiscal year 2007’’.

Æ