IB 

Union Calendar No. 112

108TH CONGRESS 

1ST SESSION H. R. 2441

[Report No. 108–205] 

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 

JULY 14, 2003

Additional sponsors: Mr. BEREUTER, Mrs. MCCARTHY of New York, Mrs. 

NAPOLITANO, Mr. SHIMKUS, Ms. MCCOLLUM, Mr. CALVERT, Mr. 

PLATTS, Mr. LARSON of Connecticut, Mr. SCHIFF, Mr. BACHUS, Mr. 

LEACH, Mr. MCCOTTER, Mr. ENGLISH, Mr. OXLEY, Mr. WHITFIELD, 

Mr. SIMMONS, Mr. PICKERING, Mr. TERRY, Mrs. MILLER of Michigan, 

Mr. SMITH of New Jersey, Mr. UPTON, Mr. KING of New York, Mr. 

BALLENGER, Mr. THORNBERRY, Mr. NETHERCUTT, Mrs. WILSON of 

New Mexico, Mr. JOHNSON of Illinois, Mr. ISSA, Mrs. NORTHRUP, Mr. 

ROHRABACHER, Mr. HOUGHTON, Mr. CONYERS, Mr. ACKERMAN, Mr. 

GRIJALVA, Mr. BOUCHER, Mr. PAYNE, Ms. JACKSON-LEE of Texas, Mr. 

WYNN, Mr. TIERNEY, Mr. CASE, Mr. FARR, Mr. MORAN of Virginia, Mr. 

BERMAN, Mr. UDALL of Colorado, Mr. FROST, Ms. WOOLSEY, Mr. 

WELLER, Mr. LATOURETTE, Mr. FALEOMAVAEGA, Mr. BLUMENAUER, 

Mr. BELL, Mr. ENGEL, Mr. SNYDER, Mr. SMITH of Washington, Mr. 

BALLANCE, Ms. ROS-LEHTINEN, Mr. ROGERS of Michigan, Mr. DINGELL, Mr. FRANK of Massachusetts, Mr. PRICE of North Carolina, Mrs. 

BONO, and Mr. ROYCE
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JULY 14, 2003

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on June 12, 2003] 

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,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the ‘‘Mil5 lennium Challenge Account Authorization and Peace Corps 

6 Expansion Act of 2003’’. 

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

8 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. 
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Sec. 203. Eligibility and related requirements. 

Sec. 204. Millennium Challenge Compact. 

Sec. 205. Suspension and termination of assistance. 

Sec. 206. Annual report. 

Sec. 207. Participation of certain United States businesses. 

Sec. 208. 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. Millennium Challenge seed grants. 

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 

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. Peace Corps in Sierra Leone. 

Sec. 1110. Authorization of appropriations.
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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 commit8 tees’’ 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 pur17 suant to section 303 of this Act. 

18 (3) COMPACT.—The term ‘‘Compact’’ means the 

19 Millennium Challenge Compact described in section 

20 204 of this Act. 

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

22 means the Millennium Challenge Corporation estab23 lished under section 301 of this Act. 
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1 (5) COUNCIL.—The term ‘‘Council’’ means the 

2 Millennium Challenge Advisory Council established 

3 under section 308 of this Act. 

4 (6) MILLENNIUM DEVELOPMENT GOALS.—The 

5 term ‘‘Millennium Development Goals’’ means the key 

6 objectives described in the United Nations Millennium 

7 Declaration, as contained in United Nations General 

8 Assembly Resolution 55/2 (September 2000), which 

9 aim to eradicate extreme poverty and hunger, achieve 

10 universal primary education, promote gender equality 

11 and empower women, reduce child mortality, improve 

12 maternal health, combat HIV/AIDS, malaria, and 

13 other infectious diseases, ensure environmental sus14 tainability, and develop a global partnership for de15 velopment. 

16 SEC. 102. SUNSET. 

17 All authorities under this division (other than title IV) 

18 shall terminate on October 1, 2007. 

19 TITLE II—MILLENNIUM 

20 CHALLENGE ASSISTANCE 

21 SEC. 201. FINDINGS; STATEMENT OF POLICY. 

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

23 (1) A principal objective of United States foreign 

24 assistance programs, as stated in section 101 of the 

25 Foreign Assistance Act of 1961, is the ‘‘encouragement 
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1 and sustained support of the people of developing 

2 countries in their efforts to acquire the knowledge and 

3 resources essential to development and to build the 

4 economic, political, and social institutions which will 

5 improve the quality of their lives’’. 

6 (2) The expanding acceptance of free trade and 

7 open markets and the spread of democracy and the 

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

9 increasing number of people in the world. 

10 (3) Inequalities between men and women under11 mine development and poverty-reduction efforts in 

12 fundamental ways. A woman’s limited access to re13 sources and restrictions on the exercise of her rights, 

14 including the right to participate in social and polit15 ical processes, disables her from maximizing her con16 tribution to her family’s health, education, and gen17 eral well-being. 

18 (4) On March 14, 2002, the President noted the 

19 successes of development assistance programs: ‘‘The 

20 advances of free markets and trade and democracy 

21 and rule of law have brought prosperity to an ever22 widening circle of people in this world. During our 

23 lifetime, per capita income in the poorest countries 

24 has nearly doubled. Illiteracy has been cut by one25 third, giving more children a chance to learn. Infant 
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1 mortality has been almost halved, giving more chil2 dren a chance to live.’’. 

3 (5) Development is neither an easy process nor 

4 a linear one. There are successes and there are fail5 ures. Today, too many people are still living in pov6 erty, disease has eroded many of the economic and so7 cial gains of previous decades, and many countries 

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

9 that would enable them to compete in an open and 

10 equitable international economic system. 

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

12 to participate in and benefit from the opportunities 

13 afforded by the global economy if the following condi14 tions for sound and sustainable economic development 

15 are met: 

16 (A) SECURITY.—Security is necessary for 

17 economic development. Persistent poverty and 

18 oppression can lead to hopelessness, despair, and 

19 to failed states that become havens for terrorists. 

20 (B) POLICIES THAT SUPPORT BROAD-BASED

21 ECONOMIC GROWTH.—Successful long-term devel22 opment can only occur through broad-based eco23 nomic growth that enables the poor to increase 

24 their incomes and have access to productive re-
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1 sources and services so that they can lead lives 

2 of decency, dignity, and hope. 

3 (C) DEMOCRACY AND THE RULE OF LAW.—

4 Democratic development, political pluralism, 

5 and respect for internationally recognized 

6 human rights are intrinsically linked to eco7 nomic and social progress. The ability of people 

8 to participate in the economic and political 

9 processes affecting their lives is essential to sus10 tained growth. The rule of law and a commit11 ment to fight corruption is also critical to the de12 velopment of a prosperous society. 

13 (D) INVESTMENTS IN PEOPLE.—Economic 

14 growth and democracy can be sustained only if 

15 both men and women have the basic tools and 

16 capabilities that foster the opportunity for par17 ticipation in the economic, social, and political 

18 life of their countries. Successful development of 

19 countries requires citizens who are literate, 

20 healthy, and prepared and able to work. 

21 (7) Economic assistance programs authorized 

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

23 as administered by the United States Agency for 

24 International Development and other Federal agen25 cies, are of critical importance in assisting countries 
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1 to be in a position to maximize the effectiveness of as2 sistance authorized by this title. 

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

4 States to help those countries that are implementing 

5 the economic and political reforms necessary for de6 velopment to occur. 

7 (9) On March 14, 2002, the President stated that 

8 the ‘‘growing divide between wealth and poverty, be9 tween opportunity and misery, is both a challenge to 

10 our compassion and a source of instability . . . [w]e 

11 must confront it . . . [w]e must include every Afri12 can, every Asian, every Latin American, every Mus13 lim, in an expanding circle of development.’’.

14 (10) The President has pledged that funds re15 quested for the Millennium Challenge Account shall be 

16 in addition to, and not a substitute for, existing de17 velopment and humanitarian programs. 

18 (11) Development assistance alone is not suffi19 cient to stimulate economic growth and development. 

20 Assistance has been shown to have a positive impact 

21 on growth and development in developing countries 

22 with sound policies and institutions. If countries have 

23 poor policies and institutions, however, it is highly 

24 unlikely that assistance will have a net positive effect. 
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1 (12) Economic development, and the achievement 

2 of the Millennium Development Goals, must be a 

3 shared responsibility between donor and recipient 

4 countries. 

5 (b) STATEMENT OF POLICY REGARDING A NEW COM6 PACT FOR GLOBAL DEVELOPMENT.—It is, therefore, the pol7 icy of the United States to support a new compact for global 

8 development that—

9 (1) increases support by donor countries to those 

10 developing countries that are fostering democracy and 

11 the rule of law, investing in their people, and pro12 moting economic freedom for all their people; 

13 (2) recognizes, however, that it is the developing 

14 countries themselves that are primarily responsible 

15 for the achievement of those goals; 

16 (3) seeks to coordinate the disparate development 

17 assistance policies of donor countries, and to har18 monize the trade and finance policies of donor coun19 tries with their respective development assistance pro20 grams; and 

21 (4) aims to reduce poverty by significantly in22 creasing the economic growth trajectory of beneficiary 

23 countries through investing in the productive poten24 tial of the people of such countries. 
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1 SEC. 202. AUTHORIZATION OF ASSISTANCE. 

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

3 Chief Executive Officer of the Millennium Challenge Cor4 poration, is authorized to provide assistance to eligible 

5 countries to support policies and programs that advance 

6 the progress of such countries in achieving lasting economic 

7 growth and poverty reduction and are in furtherance of the 

8 purposes of this title. 

9 (b) PRINCIPAL OBJECTIVES.—Assistance provided 

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

11 toward promoting the following principal objectives: 

12 (1) FOSTERING DEMOCRATIC SOCIETIES, HUMAN

13 RIGHTS, AND THE RULE OF LAW.—The assistance 

14 should promote—

15 (A) political, social, and economic plu16 ralism; 

17 (B) respect for the rule of law; 

18 (C) anti-corruption initiatives and law en19 forcement; 

20 (D) development of institutions of demo21 cratic governance, including electoral and legis22 lative processes; 

23 (E) transparent and accountable public ad24 ministration at all levels of government; 

25 (F) a fair, competent, and independent ju26 diciary; and 
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1 (G) a free and independent media. 

2 (2) FOSTERING INVESTMENT IN EDUCATION AND

3 HEALTH INFRASTRUCTURE AND SYSTEMS.—The as4 sistance should foster improved educational opportu5 nities and health conditions, particularly for women 

6 and children, including through—

7 (A) support for programs and personnel 

8 that promote broad-based primary education, in9 cluding through the development of academic 

10 curricula, by making available textbooks and 

11 other educational materials, and through appro12 priate use of technology; 

13 (B) support for programs to strengthen and 

14 build institutions, including primary health care 

15 systems, infrastructure, facilities, and personnel 

16 that provide quality health care; 

17 (C) support for improved systems for the de18 livery of healthy water and sanitation services; 

19 and 

20 (D) support for programs that reduce child 

21 mortality (including those programs that combat 

22 HIV/AIDS, malaria, tuberculosis, and other in23 fectious diseases, consistent with sections 104(c), 

24 104A, 104B, and 104C of the Foreign Assistance 

25 Act of 1961). 
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1 (3) PROMOTING ECONOMIC FREEDOM, BROAD2 BASED ECONOMIC GROWTH, AND FOSTERING FREE

3 MARKET SYSTEMS.—The assistance should foster the 

4 institutions and conditions needed to promote free 

5 market systems, trade, and investment, including—

6 (A) the reform and restructuring of banking 

7 and financial systems, including by allowing for8 eign competition in the banking and financial 

9 sectors, where appropriate; 

10 (B) the development of transparent and effi11 cient commercial codes and reduction in the reg12 ulatory burden on business; 

13 (C) the protection of property rights, in14 cluding private property and intellectual prop15 erty rights, including through the adoption and 

16 effective enforcement of intellectual property 

17 treaties or international agreements; 

18 (D) support for market-based policies that 

19 support increased agricultural production; 

20 (E) a strong commitment to sound mone21 tary and budgetary policies; 

22 (F) the development of small businesses, pri23 vate cooperatives, credit unions, and trade and 

24 labor unions; 
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1 (G) the protection of internationally recog2 nized workers’ rights; and 

3 (H) the capacity of eligible countries to 

4 ameliorate damage to the environment and re5 spect other environmental standards. 

6 SEC. 203. ELIGIBILITY AND RELATED REQUIREMENTS. 

7 (a) ASSISTANCE FOR LOW INCOME COUNTRIES.—

8 (1) FISCAL YEAR 2004.—A country shall be eligi9 ble to receive assistance under section 202 for fiscal 

10 year 2004 if—

11 (A) the country is eligible for assistance 

12 from the International Development Association, 

13 and the per capita income of the country is 

14 equal to or less than the historical ceiling of the 

15 International Development Association for that 

16 year, as defined by the International Bank for 

17 Reconstruction and Development; 

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

19 not ineligible to receive United States economic 

20 assistance by reason of the application of section 

21 116, 490, or 620A of the Foreign Assistance Act 

22 of 1961, or by reason of the application of any 

23 other provision of law; and 
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1 (C) the Chief Executive Officer of the Cor2 poration determines that the country has dem3 onstrated a commitment to—

4 (i) bolster democracy, human rights, 

5 good governance and the rule of law; 

6 (ii) invest in the health and education 

7 of its citizens; and 

8 (iii) promote sound economic policies 

9 that promote economic freedom and oppor10 tunity. 

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

12 shall be eligible to receive assistance under section 202 

13 for fiscal years 2005 and 2006 if—

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

15 equal to or less than the historical ceiling of the 

16 International Development Association for the 

17 fiscal year involved, as defined by the Inter18 national Bank for Reconstruction and Develop19 ment; 

20 (B) the country meets the requirements of 

21 paragraph (1)(B); and 

22 (C) the country meets the requirements of 

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

24 determined by the Chief Executive Officer. 
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1 (3) RULE OF CONSTRUCTION.—For the purposes 

2 of determining whether a country is eligible for re3 ceiving assistance under section 202 pursuant to 

4 paragraph (1)(B), the exercise by the President, the 

5 Secretary of State, or any other officer or employee of 

6 the United States of any waiver or suspension of any 

7 provision of law referred to in such paragraph shall 

8 not be construed as satisfying the requirement of such 

9 paragraph. 

10 (b) ASSISTANCE FOR LOWER MIDDLE INCOME COUN11 TRIES.—

12 (1) IN GENERAL.—In addition to countries de13 scribed in subsection (a), a country shall be eligible 

14 to receive assistance under section 202 for fiscal year 

15 2006 if the country—

16 (A) is classified as a lower middle income 

17 country in the then most recent edition of the 

18 World Development Report for Reconstruction 

19 and Development published by the International 

20 Bank for Reconstruction and Development; 

21 (B) meets the requirements of subsection 

22 (a)(1)(B); and 

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

24 through (iii) of subsection (a)(1)(C), as deter25 mined by the Chief Executive Officer. 
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1 (2) LIMITATION.—The total amount of assistance 

2 provided to countries under this subsection for fiscal 

3 year 2006 may not exceed 20 percent of the total 

4 amount of assistance provided to all countries under 

5 section 202 for fiscal year 2006. 

6 (c) ASSISTANCE FOR SELECTED LOW INCOME COUN7 TRIES.—

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

9 receive assistance for any of fiscal years 2004 through 

10 2006 solely for the purpose of becoming eligible to re11 ceive assistance under subsection (a) if the country—

12 (A) meets the requirements of paragraphs 

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

14 (B) demonstrates a commitment to meeting 

15 the requirements of clauses (i) through (iii) of 

16 subsection (a)(1)(C), as determined by the Chief 

17 Executive Officer; but 

18 (C) fails to meet the eligibility criteria nec19 essary to receive assistance under section 202, as 

20 established under subsection (e). 

21 (2) ADMINISTRATION.—Assistance for countries 

22 eligible by reason of the application of this subsection 

23 shall be provided through the United States Agency 

24 for International Development. 
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1 (3) ALLOCATION OF FUNDS.—Of the amount au2 thorized to be appropriated under section 208(a) for 

3 a fiscal year, not more than 15 percent of such 

4 amount is authorized to be appropriated to the Presi5 dent for the fiscal year to carry out this subsection. 

6 (d) GENERAL AUTHORITY TO DETERMINE ELIGI7 BILITY.—

8 (1) GENERAL AUTHORITY.—The Chief Executive 

9 Officer shall determine whether or not a country is el10 igible to receive assistance under section 202. 

11 (2) CONGRESSIONAL NOTIFICATION.—Not later 

12 than 7 days after making a determination of eligi13 bility for a country under paragraph (1), the Chief 

14 Executive Officer shall provide notice thereof to the 

15 appropriate congressional committees. Such notice 

16 shall include a certification of the determination of 

17 the Chief Executive Officer that the country meets the 

18 requirements of clauses (i) through (iii) of subsection 

19 (a)(1)(C) in accordance with such subsection, sub20 section (a)(2)(C), subsection (b)(1)(C), or subsection 

21 (c)(1)(B), as the case may be. 

22 (e) ELIGIBILITY CRITERIA.—

23 (1) INITIAL CRITERIA AND METHODOLOGY.—As 

24 soon as practicable after the date of the enactment of 

25 this Act, but not later than 30 days prior to making 
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1 any determination of eligibility for a country under 

2 this section, the Chief Executive Officer—

3 (A) shall consult in-person with the appro4 priate congressional committees with respect to 

5 the establishment of eligibility criteria and meth6 odology that the Chief Executive Officer proposes 

7 to use for purposes of determining eligibility 

8 under this section; 

9 (B) shall establish such eligibility criteria 

10 and methodology; and

11 (C) shall prepare and transmit to such com12 mittees a written report that contains such eligi13 bility criteria and methodology. 

14 (2) REVISIONS TO CRITERIA AND METHOD15 OLOGY.—If the Chief Executive Officer proposes to use 

16 revised or different criteria from the criteria described 

17 in paragraph (1) in making a determination of eligi18 bility for a country under this section, then, not later 

19 than 15 days prior to making such determination, the 

20 Chief Executive Officer shall consult in-person with 

21 the appropriate congressional committees with respect 

22 to such revised or different criteria and methodology 

23 in accordance with paragraph (1)(A) and shall pre24 pare and transmit a written report in accordance 

25 with paragraph (1)(C). 
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1 (f) FORM OF ASSISTANCE; RECIPIENTS.—

2 (1) FORM OF ASSISTANCE.—Assistance provided 

3 under section 202 for a country shall be provided to 

4 one or more of the entities described in paragraph (2) 

5 on a nonrepayable basis and in accordance with a 

6 fair, open, and competitive selection process that re7 sults in the awarding of such assistance on a merit 

8 basis using selection criteria that are made public by 

9 the Corporation in advance and are otherwise in ac10 cordance with standard and customary best practices 

11 for the provision of similar types of assistance. 

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

13 paragraph (1) are the following: 

14 (A) The national government of the country. 

15 (B) Regional or local governmental units of 

16 the country. 

17 (C) Nongovernmental organizations, includ18 ing for-profit, not-for-profit, and voluntary orga19 nizations. 

20 (D) International organizations and trust 

21 funds. 

22 (g) CONGRESSIONAL NOTIFICATION.—The Chief Exec23 utive Officer may not make any grant or enter into any 

24 contract for assistance for a country under section 202 that 

25 exceeds $5,000,000 until 15 days after the date on which 
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1 the Chief Executive Officer provides notification of the pro2 posed grant or contract to the appropriate congressional 

3 committees in accordance with the procedures applicable to 

4 reprogramming notifications under section 634A of the For5 eign Assistance Act of 1961. 

6 SEC. 204. MILLENNIUM CHALLENGE COMPACT. 

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

8 Chief Executive Officer of the Corporation, may provide as9 sistance to an eligible country under section 202 only if 

10 the country enters into a contract with the United States, 

11 to be known as a ‘‘Millennium Challenge Compact’’, that 

12 establishes a multi-year plan for achieving shared develop13 ment objectives in furtherance of the purposes of this title, 

14 and only if the President, acting through the Chief Execu15 tive Officer, provides to Congress notice regarding such 

16 Compact pursuant to subsection (h). 

17 (b) ELEMENTS.—

18 (1) IN GENERAL.—The Compact shall take into 

19 account the national development strategy of the eligi20 ble country and shall contain—

21 (A) the specific objectives that the country 

22 and the United States expect to achieve; 

23 (B) the responsibilities of the country and 

24 the United States in the achievement of such ob25 jectives; 
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1 (C) regular benchmarks to measure, where 

2 appropriate, progress toward achieving such ob3 jectives; 

4 (D) an identification of the intended bene5 ficiaries, disaggregated by income level, gender, 

6 and age, to the maximum extent practicable; 

7 (E) a multi-year financial plan, including 

8 the estimated amount of contributions by the 

9 Corporation and the country and proposed mech10 anisms to implement the plan and provide over11 sight, that describes how the requirements of sub12 paragraphs (A) through (D) will be met, includ13 ing identifying the role of civil society in the 

14 achievement of such requirements; 

15 (F) where appropriate, a description of the 

16 responsibility of other donors in the achievement 

17 of such objectives; and 

18 (G) a plan to ensure appropriate fiscal ac19 countability for the use of assistance provided 

20 under section 202. 

21 (2) LOWER MIDDLE INCOME COUNTRIES.—In ad22 dition to the elements described in subparagraphs (A) 

23 through (G) of paragraph (1), with respect to a lower 

24 middle income country described in section 203(b), 

25 the Compact shall identify an appropriate contribu-
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1 tion from the country relative to its national budget, 

2 taking into account the prevailing economic condi3 tions, toward meeting the objectives of the Compact. 

4 Such contribution shall be in addition to government 

5 spending allocated for such purposes in the country’s 

6 budget for the year immediately preceding the estab7 lishment of the Compact and shall continue for the 

8 duration of the Compact. 

9 (c) DEFINITION.—In subsection (b), the term ‘‘national 

10 development strategy’’ means any strategy to achieve mar11 ket-driven economic growth that has been developed by the 

12 government of the country in consultation with a wide vari13 ety of civic participation, including nongovernmental orga14 nizations, private and voluntary organizations, academia, 

15 women and student organizations, local trade and labor 

16 unions, and the business community. 

17 (d) ADDITIONAL PROVISION RELATING TO PROHIBI18 TION ON TAXATION.—In addition to the elements described 

19 in subsection (b), each Compact shall contain a provision 

20 that states that assistance provided by the United States 

21 under the Compact shall be exempt from taxation by the 

22 government of the eligible country. 

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

24 United States and the eligible country—
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1 (1) shall take into account the local-level perspec2 tives of the rural and urban poor in the eligible coun3 try; and 

4 (2) should consult with private and voluntary 

5 organizations, the business community, and other do6 nors, in the eligible country. 

7 (f) CONSULTATION.—During any discussions with a 

8 country for the purpose of entering into a Compact with 

9 the country, officials of the Corporation participating in 

10 such discussions shall, at a minimum, consult with appro11 priate officials of the United States Agency for Inter12 national Development, particularly with those officials re13 sponsible for the appropriate region or country on develop14 ment issues related to the Compact. 

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

16 maximum extent feasible, activities undertaken to achieve 

17 the objectives of the Compact shall be undertaken in coordi18 nation with the assistance activities of other donors. 

19 (h) CONGRESSIONAL AND PUBLIC NOTIFICATION.—Not 

20 later than 15 days prior to entering into a Compact with 

21 an eligible country, the President, acting through the Chief 

22 Executive Officer—

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

24 congressional committees with respect to the proposed 

25 Compact; 
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1 (2) shall provide notification of the proposed 

2 Compact to the appropriate congressional committees 

3 in accordance with the procedures applicable to re4 programming notifications under section 634A of the 

5 Foreign Assistance Act of 1961; 

6 (3) shall prepare and transmit to such commit7 tees a written report that contains a detailed sum8 mary of the proposed Compact and a copy of the full 

9 text of the Compact; and

10 (4) shall publish such detailed summary and full 

11 text of the proposed Compact in the Federal Register 

12 and on the Internet website of the Corporation. 

13 (i) ASSISTANCE FOR DEVELOPMENT OF COMPACT.—

14 Notwithstanding subsection (a), the Chief Executive Officer 

15 may enter into contracts or make grants for any eligible 

16 country for the purpose of facilitating the development of 

17 the Compact between the United States and the country. 

18 SEC. 205. SUSPENSION AND TERMINATION OF ASSISTANCE. 

19 (a) SUSPENSION OF ASSISTANCE.—

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

21 assistance in whole or in part for a country under 

22 this title if the President determines that—

23 (A) the country is engaged in activities 

24 which are contrary to the national security in25 terests of the United States; 
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1 (B) the elected head of state of the country 

2 or any member of the country’s highest judicial 

3 tribunal has been removed from that office or 

4 forcibly detained through extra-constitutional 

5 processes; or 

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

7 responsibilities under the Compact. 

8 (2) REINSTATEMENT.—The President may rein9 state assistance for a country under this title only if 

10 the President determines that the country has dem11 onstrated a commitment to correcting each condition 

12 for which assistance was suspended under paragraph 

13 (1). 

14 (3) CONGRESSIONAL NOTIFICATION.—A suspen15 sion of assistance under paragraph (1), or a rein16 statement of assistance under paragraph (2), shall be 

17 effective beginning 15 days after the date on which the 

18 President transmits to the appropriate congressional 

19 committees a report that contains the determination 

20 of the President under paragraph (1) or paragraph 

21 (2), as the case may be. 

22 (b) TERMINATION OF ASSISTANCE.—

23 (1) IN GENERAL.—The President, acting through 

24 the Chief Executive Officer of the Corporation, shall 

25 terminate all assistance for a country under this title 
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1 if the President determines that the country has con2 sistently failed to adhere to its responsibilities under 

3 the Compact or has significantly failed to meet the re4 quirements of this title. 

5 (2) CONGRESSIONAL NOTIFICATION.—A termi6 nation of assistance under paragraph (1) shall be ef7 fective beginning 15 days after the date on which the 

8 President, acting through the Chief Executive Officer, 

9 provides notification of the proposed termination of 

10 assistance to the congressional committees specified in 

11 section 634A(a) of the Foreign Assistance Act of 1961 

12 in accordance with the procedures applicable to re13 programming notifications under that section. 

14 SEC. 206. ANNUAL REPORT. 

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

16 later than April 1 of each year thereafter, the Chief Execu17 tive Officer of the Corporation shall prepare and transmit 

18 to the appropriate congressional committees a report on the 

19 implementation of this title for the preceding year. 

20 (b) CONTENTS.—The report shall include the following: 

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 of 

2 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 development 

6 of each country. 

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

8 (i) to the maximum extent possible, be done 

9 on a sector-by-sector basis, gender basis, and per 

10 capita income basis, and identify trends within 

11 each of these bases; 

12 (ii) identify economic policy reforms condu13 cive to economic development that are supported 

14 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 donors 

20 which further the purposes of this title; and 

21 (v) discuss the commitment and contribu22 tion of the country to achieving the assistance 

23 objectives contained in its Compact. 
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1 SEC. 207. PARTICIPATION OF CERTAIN UNITED STATES 

2 BUSINESSES. 

3 (a) PARTICIPATION.—To the maximum extent prac4 ticable, the President, acting through the Chief Executive 

5 Officer, shall ensure that United States small, minority6 owned, and disadvantaged business enterprises fully par7 ticipate in the provision of goods and services that are fi8 nanced with funds made available under this title. 

9 (b) REPORT.—The Chief Executive Officer shall pre10 pare and submit to the appropriate congressional commit11 tees an annual report that contains a description of the ex12 tent to which the requirement of subsection (a) has been met 

13 for the preceding year. 

14 SEC. 208. AUTHORIZATION OF APPROPRIATIONS; RELATED 

15 AUTHORITIES. 

16 (a) AUTHORIZATION OF APPROPRIATIONS.—There are 

17 authorized to be appropriated to the President, acting 

18 through the Chief Executive Officer of the Corporation, to 

19 carry out this division (other than title IV) $1,300,000,000 

20 for fiscal year 2004, $3,000,000,000 for fiscal year 2005, 

21 and $5,000,000,000 for fiscal year 2006. 

22 (b) ADDITIONAL AUTHORITIES.—Amounts appro23 priated pursuant to the authorization of appropriations 

24 under subsection (a)—

25 (1) may be referred to as the ‘‘Millennium Chal26 lenge Account’’; 
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1 (2) are authorized to remain available until ex2 pended; and 

3 (3) are in addition to amounts otherwise avail4 able for such purposes. 

5 TITLE III—MILLENNIUM 

6 CHALLENGE CORPORATION 

7 SEC. 301. MILLENNIUM CHALLENGE CORPORATION. 

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

9 the executive branch a corporation to be known as the ‘‘Mil10 lennium Challenge Corporation’’ that shall be responsible 

11 for carrying out title II. 

12 (b) GOVERNMENT CORPORATION.—The Corporation 

13 shall be a Government corporation, as defined in section 

14 103 of title 5, United States Code. 

15 SEC. 302. CHIEF EXECUTIVE OFFICER. 

16 (a) APPOINTMENT.—The Corporation shall be headed 

17 by an individual who shall serve as Chief Executive Officer 

18 of the Corporation, who shall be appointed by the President, 

19 by and with the advice and consent of the Senate. 

20 (b) COMPENSATION AND RANK.—

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

22 shall be compensated at the rate provided for level II 

23 of the Executive Schedule under section 5313 of title 

24 5, United States Code, and shall have the equivalent 

25 rank of Deputy Secretary. 
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1 (2) AMENDMENT.—Section 5313 of title 5, 

2 United States Code, is amended by adding at the end 

3 the following: 

4 ‘‘Chief Executive Officer, Millennium Challenge 

5 Corporation.’’. 

6 (c) AUTHORITIES AND DUTIES.—The Chief Executive 

7 Officer shall exercise the powers and discharge the duties 

8 of the Corporation and any other duties, as conferred on 

9 the Chief Executive Officer by the President.

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

11 Executive Officer shall appoint all officers of the Corpora12 tion. 

13 SEC. 303. BOARD OF DIRECTORS. 

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

15 a Board of Directors. 

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

17 repeal bylaws, rules, regulations, and procedures governing 

18 the manner in which the business of the Corporation may 

19 be conducted and in which the powers granted to it by law 

20 may be exercised. 

21 (c) MEMBERSHIP.—

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

23 (A) the Secretary of State, the Secretary of 

24 Treasury, the Administrator of the United States 

25 Agency for International Development, the Chief 
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1 Executive Officer of the Corporation, and the 

2 United States Trade Representative; and 

3 (B) four other individuals who shall be ap4 pointed by the President, by and with the advice 

5 and consent of the Senate, of which—

6 (i) one individual shall be appointed 

7 from among a list of individuals submitted 

8 by the majority leader of the House of Rep9 resentatives; 

10 (ii) one individual shall be appointed 

11 from among a list of individuals submitted 

12 by the minority leader of the House of Rep13 resentatives; 

14 (iii) one individual shall be appointed 

15 from among a list of individuals submitted 

16 by the majority leader of the Senate; and 

17 (iv) one individual shall be appointed 

18 from among a list of individuals submitted 

19 by the minority leader of the Senate. 

20 (2) EX-OFFICIO MEMBERS.—In addition to mem21 bers of the Board described in paragraph (1), the Di22 rector of the Office of Management and Budget, the 

23 President and Chief Executive Officer of the Overseas 

24 Private Investment Corporation, the Director of the 

25 Trade and Development Agency, and the Director of 
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1 the Peace Corps shall be non-voting members, ex offi2 cio, of the Board. 

3 (d) TERMS.—

4 (1) OFFICERS OF FEDERAL GOVERNMENT.—Each 

5 member of the Board described in paragraphs (1)(A) 

6 and (2) of subsection (c) shall serve for a term that 

7 is concurrent with the term of service of the individ8 ual’s position as an officer within the other Federal 

9 department or agency. 

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

11 Board described in subsection (c)(1)(B) shall be ap12 pointed for a term of 3 years and may be reappointed 

13 for a term of an additional 2 years. 

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

15 be filled in the manner in which the original appoint16 ment was made. 

17 (e) CHAIRPERSON.—The Secretary of State shall serve 

18 as the Chairperson of the Board. 

19 (f) QUORUM.—A majority of the members of the Board 

20 shall constitute a quorum, which shall include at least one 

21 member of the Board described in subsection (c)(1)(B). 

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

23 the Chairperson. 

24 (h) COMPENSATION.—

25 (1) OFFICERS OF FEDERAL GOVERNMENT.—
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1 (A) IN GENERAL.—A member of the Board 

2 described in paragraphs (1)(A) and (2) of sub3 section (c) may not receive additional pay, al4 lowances, or benefits by reason of their service on 

5 the Board. 

6 (B) TRAVEL EXPENSES.—Each such mem7 ber of the Board shall receive travel expenses, in8 cluding per diem in lieu of subsistence, in ac9 cordance with applicable provisions under sub10 chapter I of chapter 57 of title 5, United States 

11 Code. 

12 (2) OTHER MEMBERS.—

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

14 paragraph (2), a member of the Board described 

15 in subsection (c)(1)(B)—

16 (i) shall be paid compensation out of 

17 funds made available for the purposes of 

18 this title at the daily equivalent of the high19 est rate payable under section 5332 of title 

20 5, United States Code, for each day (includ21 ing travel time) during which the member 

22 is engaged in the actual performance of du23 ties as a member of the Board; and 

24 (ii) while away from the member’s 

25 home or regular place of business on nec-
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1 essary travel, as determined by the Chief 

2 Executive Officer, in the actual performance 

3 of duties as a member of the Board, shall be 

4 paid per diem, travel, and transportation 

5 expenses in the same manner as is provided 

6 under subchapter I of chapter 57 of title 5, 

7 United States Code. 

8 (B) LIMITATION.—A member of the Council 

9 may not be paid compensation under subpara10 graph (A)(i) for more than thirty days in any 

11 calendar year. 

12 SEC. 304. INTERAGENCY COORDINATION. 

13 In carrying out the functions described in this title, 

14 and consistent with section 101 of the National Security 

15 Act of 1947 (50 U.S.C. 402), the President shall ensure co16 ordination of assistance authorized under title II with for17 eign economic assistance programs and activities carried 

18 out by other Federal departments and agencies. 

19 SEC. 305. POWERS OF THE CORPORATION; RELATED PROVI20 SIONS. 

21 (a) POWERS.—The Corporation—

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

23 which shall be judicially noticed; 

24 (2) may prescribe, amend, and repeal such rules, 

25 regulations, and procedures as are necessary for car-
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1 rying out the functions of the Corporation and all 

2 Compacts; 

3 (3) may make and perform such contracts, 

4 grants, and other agreements with any individual, 

5 corporation, or other private or public entity, however 

6 designated and wherever situated, as may be nec7 essary for carrying out the functions of the Corpora8 tion;

9 (4) may determine and prescribe the manner in 

10 which its obligations shall be incurred and its ex11 penses allowed and paid, including expenses for rep12 resentation not exceeding $95,000 in any fiscal year; 

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

14 own, hold, improve, use or otherwise deal in and with 

15 such property (real, personal, or mixed) or any inter16 est therein, wherever situated, as may be necessary for 

17 carrying out the functions of the Corporation; 

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

19 of property (real, personal, or mixed), tangible or in20 tangible, in furtherance of the purposes of this divi21 sion; 

22 (7) may hire or obtain passenger motor vehicles; 

23 (8) may use the United States mails in the same 

24 manner and on the same conditions as the Executive 
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1 departments (as defined in section 101 of title 5, 

2 United States Code); 

3 (9) may, with the consent of any Executive agen4 cy (as defined in section 105 of title 5, United States 

5 Code), use the information, services, facilities, and 

6 personnel of that agency on a full or partial reim7 bursement in carrying out the purposes of this divi8 sion; and 

9 (10) may sue and be sued, complain, and defend, 

10 in its corporate name in any court of competent ju11 risdiction. 

12 (b) OFFICES.—

13 (1) PRINCIPAL OFFICE.—The Corporation shall 

14 maintain its principal office in the metropolitan area 

15 of Washington, District of Columbia. 

16 (2) OTHER OFFICES.—The Corporation may es17 tablish other offices in any place or places outside the 

18 United States in which the Corporation may carry 

19 out any or all of its operations and business. 

20 (c) COOPERATION WITH OTHER FEDERAL DEPART21 MENTS AND AGENCIES.—In order to avoid unnecessary ex22 pense and duplication of functions, efforts, and activities 

23 between the Corporation and other Federal departments 

24 and agencies the Chief Executive Officer, or the Chief Exec25 utive Officer’s designee—
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1 (1)(A) shall consult, to the maximum extent 

2 practicable, with the Administrator of the United 

3 States Agency for International Development, or the 

4 Administrator’s designee, in order to coordinate the 

5 activities of the Corporation and the Agency for Inter6 national Development; and 

7 (B) shall consult with the heads of other depart8 ments and agencies to ensure similar coordination of 

9 activities; 

10 (2)(A) shall ensure proper coordination of activi11 ties of the Corporation with the provision of develop12 ment assistance of relevant international financial in13 stitutions, including the International Bank for Re14 construction and Development, the International 

15 Monetary Fund, and the regional multilateral devel16 opment banks; and 

17 (B) shall provide to each United States Execu18 tive Director (or other United States representative) 

19 to the relevant international financial institutions a 

20 copy of each proposed Compact between the United 

21 States and an eligible country and a copy of each 

22 such final Compact. 

23 (d) POSITIONS WITH FOREIGN GOVERNMENTS.—When 

24 approved by the Corporation, in furtherance of its purposes, 

25 employees of the Corporation (including individuals de-
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1 tailed to the Corporation) may accept and hold offices or 

2 positions to which no compensation is attached with govern3 ments or governmental agencies of foreign countries or with 

4 international organizations. 

5 SEC. 306. TRANSPARENCY AND ACCOUNTABILITY OF THE 

6 CORPORATION. 

7 The Corporation and its officers and employees shall 

8 be subject to the provisions of section 552 of title 5, United 

9 States Code (relating to freedom of information). 

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

11 OTHER AUTHORITIES AND LIMITATIONS. 

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

13 Chief Executive Officer of the Corporation, the head of an 

14 agency may detail any employee of such agency to the Cor15 poration on a fully or partially reimbursable basis. Any 

16 employee so detailed remains, for the purpose of preserving 

17 such employee’s allowances, privileges, rights, seniority, and 

18 other benefits, an employee of the agency from which de19 tailed. 

20 (b) LIMITATION ON TOTAL SERVICE.—

21 (1) IN GENERAL.—Except as provided in para22 graph (2), no individual may serve in or under the 

23 Corporation (whether as an employee of the Corpora24 tion, a detailee to the Corporation, or a combination 

25 thereof) for a total period exceeding 5 years. 
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1 (2) EXCEPTIONS.—

2 (A) EXTENSION AUTHORITY.—The Chief 

3 Executive Officer may extend the 5-year period 

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

5 years, in the case of any particular individual, 

6 if the Chief Executive Officer determines that 

7 such extension is essential to the achievement of 

8 the purposes of this division. 

9 (B) OFFICERS.—Nothing in this subsection 

10 shall limit the period for which an individual 

11 may serve as an officer of the Corporation ap12 pointed pursuant to section 302(d) nor shall any 

13 period of service as such an officer be taken into 

14 account for purposes of applying this 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 seniority, 

22 status, and pay in such agency, if such employee—

23 (A) is separated from the Corporation—

24 (i) by reason of the application of sub25 section (b); or 
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1 (ii) for any other reason, other than 

2 misconduct, neglect of duty, or malfeasance; 

3 and

4 (B) applies for reemployment not later than 

5 90 days after the date of separation from the 

6 Corporation. 

7 (2) SPECIFIC RIGHTS.—An employee who satis8 fies paragraph (1) is entitled to be reemployed (in ac9 cordance with such paragraph) within 30 days after 

10 applying for reemployment and, on reemployment, is 

11 entitled to at least the rate of basic pay to which such 

12 employee would have been entitled had such employee 

13 never transferred. 

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

15 the rate of basic pay of employees of the Corporation with16 out regard to the provisions of—

17 (1) chapter 51 of title 5, United States Code (re18 lating to the classification of positions), and 

19 (2) subchapter III of chapter 53 of such title (re20 lating to General Schedule pay rates), 

21 except that no employee of the Corporation may receive a 

22 rate of basic pay that exceeds the rate for level II of the 

23 Executive Schedule under section 5313 of such title. 

24 (e) ASSIGNMENT TO UNITED STATES EMBASSIES.—An 

25 employee of the Corporation, including an individual de-
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1 tailed to or contracted by the Corporation, may be assigned 

2 to a United States diplomatic mission or consular post, or 

3 United States Agency for International Development field 

4 mission. 

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

6 State shall seek to ensure that an employee of the Corpora7 tion, including an individual detailed to or contracted by 

8 the Corporation, and the members of the family of such em9 ployee, while the employee is performing duties in any 

10 country or place outside the United States, enjoy the privi11 leges and immunities that are enjoyed by a member of the 

12 Foreign Service, or the family of a member of the Foreign 

13 Service, as appropriate, of comparable rank and salary of 

14 such employee, if such employee or a member of the family 

15 of such employee is not a national of or permanently resi16 dent in such country or place. 

17 (g) RESPONSIBILITY OF CHIEF OF MISSION.—An em18 ployee of the Corporation, including an individual detailed 

19 to or contracted by the Corporation, and a member of the 

20 family of such employee, shall be subject to section 207 of 

21 the Foreign Service Act of 1980 (22 U.S.C. 3927) in the 

22 same manner as United States Government employees while 

23 the employee is performing duties in any country or place 

24 outside the United States if such employee or member of 
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1 the family of such employee is not a national of or perma2 nently resident in such country or place. 

3 (h) ALLOCATION OF FUNDS.—

4 (1) IN GENERAL.—The Corporation may allocate 

5 or transfer to the United States Agency for Inter6 national Development or any other agency any part 

7 of any funds available for carrying out the purposes 

8 of this division. Such funds shall be available for obli9 gation and expenditure for the purposes for which au10 thorized, in accordance with authority granted in this 

11 title or under authority governing the activities of the 

12 agencies of the United States Government to which 

13 such funds are allocated or transferred. 

14 (2) CONGRESSIONAL NOTIFICATION.—The Chief 

15 Executive Officer shall notify the appropriate congres16 sional committees not later than 15 days prior to a 

17 transfer of funds under paragraph (1) that exceeds 

18 $5,000,000. 

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

20 purposes of this division, the Corporation may utilize 

21 the services and facilities of, or procure commodities 

22 from, any agency under such terms and conditions as 

23 may be agreed to by the head of the agency and the 

24 Corporation. 
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1 (i) FUNDING LIMITATION.—Of the funds allocated 

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

3 percent of such funds may be used for administrative ex4 penses. 

5 (j) OTHER AUTHORITIES.—Except to the extent incon6 sistent with the provisions of this division, the administra7 tive authorities under chapters 1 and 2 of part III of the 

8 Foreign Assistance Act of 1961 shall apply to the provision 

9 of assistance under this division to the same extent and in 

10 the same manner as such authorities apply to the provision 

11 of economic assistance under part I of such Act. 

12 (k) APPLICABILITY OF GOVERNMENT CORPORATION

13 CONTROL ACT.—

14 (1) IN GENERAL.—The Corporation shall be sub15 ject to the provisions of chapter 91 of subtitle VI of 

16 title 31, United States Code, except that the Corpora17 tion shall not be authorized to issue obligations or 

18 offer obligations to the public. 

19 (2) CONFORMING AMENDMENT.—Section 9101(3) 

20 of title 31, United States Code, is amended by adding 

21 at the end the following: 

22 ‘‘(Q) the Millennium Challenge Corpora23 tion.’’

24 (l) INSPECTOR GENERAL.—
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1 (1) IN GENERAL.—The Inspector General of the 

2 United States Agency for International Development 

3 shall serve as Inspector General of the Corporation, 

4 and, in acting in such capacity, may conduct re5 views, investigations, and inspections of all aspects of 

6 the operations and activities of the Corporation. 

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

8 out its responsibilities under this subsection, the In9 spector General shall report to the Board of Directors. 

10 (3) REIMBURSEMENT.—The Corporation shall 

11 reimburse the United States Agency for International 

12 Development for all expenses incurred by the Inspec13 tor General in connection with the Inspector Gen14 eral’s responsibilities under this subsection. 

15 (m) COMPTROLLER GENERAL.—

16 (1) IN GENERAL.—The Comptroller General shall 

17 conduct audits, evaluations, and investigations of the 

18 Corporation. 

19 (2) SCOPE.—The activities and financial trans20 actions of the Corporation for any fiscal year during 

21 which Federal funds are available to finance any por22 tion of its operations may be evaluated, investigated, 

23 or audited by the Comptroller General in accordance 

24 with such rules and regulations as may be prescribed 

25 by the Comptroller General. 
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1 (3) ACCESS AND RECORDS.—Any evaluation, in2 vestigation, or audit shall be conducted at the place 

3 or places where pertinent information of the Corpora4 tion is normally kept. The representatives of the Gen5 eral Accounting Office shall have access to all books, 

6 accounts, financial records, reports, files, and other 

7 papers or property belonging to or in use by the Cor8 poration and necessary to facilitate the evaluation, 

9 investigation, or audit; and full facilities for verifying 

10 transactions with the balances and securities held by 

11 depositories, fiscal agents, and custodians shall be af12 forded to such representatives. All such books, ac13 counts, financial records, reports, files, and other pa14 pers or property of the Corporation shall remain in 

15 the possession and custody of the Corporation 

16 throughout the period beginning on the date such pos17 session or custody commences and ending three years 

18 after such date, but the General Accounting Office 

19 may require the retention of such books, accounts, fi20 nancial records, reports, files, papers, or property for 

21 a longer period under section 3523(c) of title 31, 

22 United States Code. 

23 (4) REPORT.—A report of such audit, evalua24 tion, or investigation shall be made by the Comp25 troller General to the appropriate congressional com-
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1 mittees and to the President, together with such rec2 ommendations with respect thereto as the Comptroller 

3 General shall deem advisable. 

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

5 (1) the term ‘‘agency’’ means an Executive agen6 cy, as defined by section 105 of title 5, United States 

7 Code; and 

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

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

10 from the agency by which such employee is employed 

11 to the Corporation. 

12 SEC. 308. MILLENNIUM CHALLENGE ADVISORY COUNCIL. 

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

14 the executive branch an advisory council to the Corporation 

15 to be known as the Millennium Challenge Advisory Council. 

16 (b) FUNCTIONS.—

17 (1) GENERAL FUNCTIONS.—The Council shall 

18 advise and consult with the Chief Executive Officer of 

19 the Corporation and the Board of Directors with re20 spect to policies and programs designed to further the 

21 purposes of this division and shall periodically report 

22 to the Congress with respect to the activities of the 

23 Corporation. In addition, the Council shall review on 

24 an annual basis the criteria and methodology used to 

25 determine eligibility of countries for assistance under 
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1 title II and make recommendations to the Chief Exec2 utive Officer and the Board to improve the effective3 ness of such criteria and methodology in order to 

4 achieve the purposes of this division. 

5 (2) ADDITIONAL FUNCTIONS.—Members of the 

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

7 on-site inspections, and make examinations, of the ac8 tivities of the Corporation in the United States and 

9 in other countries in order to—

10 (A) evaluate the accomplishments of the 

11 Corporation; 

12 (B) assess the potential capabilities and the 

13 future role of the Corporation; 

14 (C) make recommendations to the Chief Ex15 ecutive Officer, the Board of Directors, and Con16 gress, for the purpose of guiding the future direc17 tion of the Corporation and of helping to ensure 

18 that the purposes and programs of the Corpora19 tion are carried out in ways that are economical, 

20 efficient, responsive to changing needs in devel21 oping countries and to changing relationships 

22 among people, and in accordance with law; and 

23 (D) make such other evaluations, assess24 ments, and recommendations as the Council con25 siders appropriate. 
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1 (3) PUBLIC PARTICIPATION.—The Council may 

2 provide for public participation in its activities, con3 sistent with section 552b of title 5, United States 

4 Code. 

5 (c) MEMBERSHIP.—

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

7 seven individuals, who shall be appointed by the Chief 

8 Executive Officer, and who shall be broadly represent9 ative of nongovernmental entities with expertise and 

10 interest in international trade and economic develop11 ment, including business and business associations, 

12 trade and labor unions, private and voluntary orga13 nizations, foundations, public policy organizations, 

14 academia, and other entities as the Chief Executive 

15 Officer determines appropriate. 

16 (2) ADDITIONAL REQUIREMENT.—No member 

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

18 employee of the United States Government. 

19 (d) COMPENSATION.—

20 (1) IN GENERAL.—Except as provided in para21 graph (2), a member of the Council—

22 (A) shall be paid compensation out of funds 

23 made available for the purposes of this title at 

24 the daily equivalent of the highest rate payable 

25 under section 5332 of title 5, United States Code, 
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1 for each day (including travel time) during 

2 which the member is engaged in the actual per3 formance of duties as a member of the Council; 

4 and 

5 (B) while away from the member’s home or 

6 regular place of business on necessary travel, as 

7 determined by the Chief Executive Officer, in the 

8 actual performance of duties as a member of the 

9 Council, shall be paid per diem, travel, and 

10 transportation expenses in the same manner as 

11 is provided under subchapter I of chapter 57 of 

12 title 5, United States Code. 

13 (2) LIMITATION.—A member of the Council may 

14 not be paid compensation under paragraph (1)(A) for 

15 more than thirty days in any calendar year. 

16 (e) QUORUM.—A majority of the members of the Coun17 cil shall constitute a quorum for the purposes of transacting 

18 any business. 

19 (f) FINANCIAL INTERESTS OF MEMBERS.—A member 

20 of the Council shall disclose to the Chairperson of the Coun21 cil and the Chief Executive Officer of the existence of any 

22 direct or indirect financial interest of that member in any 

23 particular matter before the Council and may not vote or 

24 otherwise participate as a Council member with respect to 

25 that particular matter. 
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1 (g) CHAIRPERSON.—The Chief Executive Officer shall 

2 designate one of the members of the Council as Chairperson, 

3 who shall serve in that capacity for a term of two years. 

4 The Chief Executive Officer may renew the term of the

5 member appointed as Chairperson under the preceding sen6 tence. 

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

8 (1) MEETINGS.—The Council shall hold a reg9 ular meeting during each calendar quarter and shall 

10 meet at the call of the President, the Chief Executive 

11 Officer, the Chairperson of the Board, the Chairperson 

12 of the Council, or two members of the Council. 

13 (2) BYLAWS AND REGULATIONS.—The Council 

14 shall prescribe such bylaws and regulations as it con15 siders necessary to carry out its functions. Such by16 laws and regulations shall include procedures for fix17 ing the time and place of meetings, giving or waiving 

18 of notice of meetings, and keeping of minutes of meet19 ings. 

20 (i) REPORT TO THE PRESIDENT, CHIEF EXECUTIVE

21 OFFICER, AND BOARD.—

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

23 and not later than January 1 of each year thereafter 

24 that the Corporation is in existence, the Council shall 

25 submit to the President, the Chief Executive Officer, 
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1 and the Board a report on its views on the programs 

2 and activities of the Corporation. 

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

4 summary of the advice and recommendations pro5 vided by the Council to the Chief Executive Officer 

6 and the Board during the period covered by the report 

7 and such recommendations (including recommenda8 tions for administrative or legislative action) as the 

9 Council considers appropriate to make to the Con10 gress. 

11 (3) ADDITIONAL REQUIREMENT.—Not later than 

12 90 days after receiving each such report, the Chief 

13 Executive Officer shall transmit to Congress a copy of 

14 the report, together with any comments concerning the 

15 report that the Chief Executive Officer considers ap16 propriate. 

17 (j) ADMINISTRATIVE ASSISTANCE.—The Chief Execu18 tive Officer shall make available to the Council such per19 sonnel, administrative support services, and technical as20 sistance as are necessary to carry out its functions effec21 tively. 

22 (k) TERMINATION.—Section 14(a)(2)(B) of the Federal 

23 Advisory Committee Act (5 U.S.C. App.; relating to the ter24 mination of advisory committees) shall not apply to the 

25 Council. Notwithstanding section 102 of this Act, the au-
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1 thorities of the Council shall terminate on December 31, 

2 2007. 

3 SEC. 309. MILLENNIUM CHALLENGE SEED GRANTS. 

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

5 (1) Many countries in the developing world lack 

6 the academic and public policy advocacy base essen7 tial to attaining the principal objectives of the Millen8 nium Challenge Account. 

9 (2) Because of widespread government repression 

10 of free speech and poverty, the countries of Africa in 

11 particular suffer an acute shortage of nongovern12 mental organizations which effectively study and pro13 mote the principal objectives of the Millennium Chal14 lenge Account. 

15 (3) The Millennium Challenge Account will 

16 struggle to reach its goals unless countries in the de17 veloping world possess a home grown intellectual com18 mitment and culture of advocacy aimed at promoting 

19 its principal objectives. 

20 (b) ASSISTANCE.—The Chief Executive Officer of the 

21 Corporation is authorized to provide assistance in support 

22 of nongovernmental organizations, (including universities 

23 and independent foundations and other organizations) in 

24 low income and lower middle income countries, which are 

25 undertaking research, education, and advocacy efforts 
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1 aimed at promoting democratic societies, human rights, the 

2 rule of law, improved educational opportunities and health 

3 conditions, particularly for women and children, and eco4 nomic freedom. 

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

6 amount made available to carry out this division for a fis7 cal year may be made available to carry out this section. 

8 TITLE IV—PROVISIONS RELAT9 ING TO UNITED STATES ECO10 NOMIC ASSISTANCE 

11 SEC. 401. DEFINITION. 

12 In this title, the term ‘‘United States economic assist13 ance’’ means any bilateral economic assistance, from any 

14 budget functional category, that is provided by any depart15 ment or agency of the United States to a foreign country, 

16 including such assistance that is intended—

17 (1) to assist the development and economic ad18 vancement of friendly foreign countries and peoples, 

19 including assistance provided under title II (relating 

20 to the Millennium Challenge Account); 

21 (2) to promote the freedom, aspirations, or suste22 nance of friendly peoples under oppressive rule by un23 friendly governments; 
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1 (3) to promote international trade and foreign 

2 direct investment as a means of aiding economic 

3 growth; 

4 (4) to save lives and alleviate suffering of foreign 

5 peoples during or following war, natural disaster, or 

6 complex crisis; 

7 (5) to assist in recovery and rehabilitation of 

8 countries or peoples following disaster or war; 

9 (6) to protect refugees and promote durable solu10 tions to aid refugees; 

11 (7) to promote sound environmental practices; 

12 (8) to assist in development of democratic insti13 tutions and good governance by the people of foreign 

14 countries; 

15 (9) to promote peace and reconciliation or pre16 vention of conflict; 

17 (10) to improve the technical capacities of gov18 ernments to reduce production of and demand for il19 licit narcotics; and 

20 (11) to otherwise promote through bilateral for21 eign economic assistance the national objectives of the 

22 United States. 

23 SEC. 402. FRAMEWORK FOR ASSISTANCE. 

24 (a) SENSE OF CONGRESS.—It is the sense of Congress 

25 that a coherent framework for United States economic as-
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1 sistance should be established in accordance with this sec2 tion. 

3 (b) ELEMENTS.—The framework described in sub4 section (a) includes the following elements: 

5 (1) The United States Agency for International 

6 Development, under the direction and foreign policy

7 guidance of the Secretary of State, should be respon8 sible for—

9 (A) providing assistance to countries that 

10 face natural and man-made disasters in order to 

11 provide humanitarian relief to the peoples of 

12 such countries, in coordination with refugee pro13 grams administered by the Department of State; 

14 (B) providing assistance to countries that 

15 are suffering from conflicts or are in post-conflict 

16 situations in order to provide humanitarian re17 lief, transition assistance, and reconstruction as18 sistance; 

19 (C) providing assistance to help moderate20 to-poorly performing countries achieve develop21 ment progress in the areas described in part I of 

22 the Foreign Assistance Act of 1961, including 

23 progress toward becoming eligible for assistance 

24 under this title, and to promote international 

25 health worldwide, as well as assisting in the de-
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1 velopment of country and regional development 

2 strategies; 

3 (D) addressing transnational problems, such 

4 as environmental degradation, food insecurity, 

5 and health problems; and 

6 (E) assisting other Federal departments and 

7 agencies, including the Corporation established 

8 under title III, to carry out assistance activities 

9 abroad, including providing technical assistance 

10 and advice to such departments and agencies, co11 ordinating its assistance programs with such de12 partments and agencies, and using its field of13 fices to help implement such assistance. 

14 (2) The Corporation established under title III 

15 should provide assistance to countries that have dem16 onstrated a commitment to bolstering democracy, 

17 good governance, and the rule of law, to investing in 

18 the health and educations of their people, and to pro19 moting sound economic policies that foster economic 

20 opportunity for their people. 

21 (3) The Department of State should be respon22 sible for allocating security assistance to support key 

23 foreign policy objectives of the United States and shall 

24 administer assistance in such areas as non-prolifera-
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1 tion, anti-terrorism, counter-narcotics, and relief for 

2 refugees. 

3 (4) Other Federal departments and agencies with 

4 expertise in international development-related activi5 ties, such as the Overseas Private Investment Cor6 poration, the Trade and Development Agency, the De7 partment of Agriculture, the Department of Health 

8 and Human Services, and the Centers for Disease 

9 Control and Prevention, to the extent such depart10 ments and agencies have the authority to carry out 

11 development-related programs, and in coordination 

12 with the Department of State and the United States 

13 Agency for International Development, should provide 

14 expertise in specific technical areas and shall provide 

15 assistance, including assistance provided with funds 

16 made available from the Corporation to assist United 

17 States Government international development activi18 ties. 

19 SEC. 403. REPORT RELATING TO IMPACT AND EFFECTIVE20 NESS OF ASSISTANCE. 

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

22 December 31 of each third year thereafter, the President 

23 shall transmit to Congress a report which analyzes, on a 

24 country-by-country basis, the impact and effectiveness of 

25 United States economic assistance furnished under the 
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1 framework established in section 402 to each country during 

2 the preceding three fiscal years. The report shall include 

3 the following for each recipient country: 

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

5 economic assistance during the preceding three fiscal 

6 years on economic development in that country, with 

7 a discussion of the United States interests that were 

8 served by the assistance. This analysis shall be done 

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

10 shall identify any economic policy reforms which were 

11 promoted by the assistance. This analysis shall—

12 (A) include a description, quantified to the 

13 extent practicable, of the specific objectives the 

14 United States sought to achieve in providing eco15 nomic assistance for that country, and 

16 (B) specify the extent to which those objec17 tives were not achieved, with an explanation of 

18 why they were not achieved. 

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

20 economic assistance provided by other donors during 

21 the preceding three fiscal years, set forth by develop22 ment sector to the extent possible. 

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

24 government to addressing the country’s needs in each 

25 development sector, including a description of the re-
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1 sources devoted by that government to each develop2 ment sector during the preceding three fiscal years. 

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

4 and unfavorable, in each development sector. 

5 (5) Statistical and other information necessary 

6 to evaluate the impact and effectiveness of United

7 States economic assistance on development in the 

8 country. 

9 (6) A comparison of the analysis provided in the 

10 report with relevant analyses by international finan11 cial institutions, other international organizations, 

12 other donor countries, or nongovernmental organiza13 tions. 

14 (b) LISTING OF MOST AND LEAST SUCCESSFUL AS15 SISTANCE PROGRAMS.—The report required by this section 

16 shall identify—

17 (1) each country in which United States eco18 nomic assistance has been most successful, as indi19 cated by the extent to which the specific objectives the 

20 United States sought to achieve in providing the as21 sistance for the country, as referred to in subsection 

22 (a)(1)(A), were achieved; and 

23 (2) each country in which United States eco24 nomic assistance has been least successful, as indi25 cated by the extent to which the specific objectives the 
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1 United States sought to achieve in providing the as2 sistance for the country, as referred to in subsection 

3 (a)(1)(A), were not achieved. 

4 For each country listed pursuant to paragraph (2), the re5 port shall explain why the assistance was not more success6 ful and shall specify what the United States has done as 

7 a result. 

8 (c) DE MINIMUS EXCEPTION.—Information under 

9 subsections (a) and (b) for a fiscal year shall not be required 

10 with respect to a country for which United States economic 

11 assistance for the country for the fiscal year is less than 

12 $5,000,000. 

13 DIVISION B—REAUTHORIZATION 

14 AND EXPANSION OF THE 

15 PEACE CORPS 

16 TITLE X—GENERAL PROVISIONS 

17 SEC. 1001. DEFINITIONS. 

18 In this division: 

19 (1) APPROPRIATE CONGRESSIONAL COMMIT20 TEES.—The term ‘‘appropriate congressional commit21 tees’’ means the Committee on International Relations 

22 of the House of Representatives and the Committee on 

23 Foreign Relations of the Senate. 

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

25 Director of the Peace Corps. 
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1 (3) HOST COUNTRY.—The term ‘‘host country’’ 

2 means a country whose government has invited the 

3 Peace Corps to establish a Peace Corps program with4 in the territory of the country. 

5 (4) PEACE CORPS VOLUNTEER.—The term 

6 ‘‘Peace Corps volunteer’’ means a volunteer or a vol7 unteer leader under the Peace Corps Act. 

8 (5) RETURNED PEACE CORPS VOLUNTEER.—The 

9 term ‘‘returned Peace Corps volunteer’’ means a per10 son who has been certified by the Director as having 

11 served satisfactorily as a Peace Corps volunteer. 

12 SEC. 1002. FINDINGS. 

13 Congress makes the following findings: 

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

15 promote world peace and friendship through the serv16 ice abroad of volunteers who are United States citi17 zens. The spirit of service and commitment to helping 

18 others is a fundamental component of democracy. 

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

20 volunteers have served in the Peace Corps in 136 

21 countries throughout the world. 

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

23 Act which have guided the Peace Corps and its volun24 teers over the years, can work in concert to promote 

25 global acceptance of the principles of international 
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1 peace and nonviolent coexistence among peoples of di2 verse cultures and systems of government. 

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

4 goals—to help people in developing countries meet 

5 basic needs, promote understanding abroad of the val6 ues and ideals of the United States, and promote an 

7 understanding of other peoples by the people of the 

8 United States. 

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

10 Peace Corps remains the world’s premier inter11 national service organization dedicated to promoting 

12 grassroots development by working with families and 

13 communities to improve health care for children, ex14 pand agricultural production, teach in schools, fight 

15 infectious diseases, protect the environment, and ini16 tiate small business opportunities. 

17 (6) The Peace Corps remains committed to send18 ing well trained and well supported Peace Corps vol19 unteers overseas to promote international peace, cross20 cultural awareness, and mutual understanding be21 tween the United States and other countries. 

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

23 and, therefore, no Peace Corps personnel or volunteers 

24 should be used to accomplish any goal other than the 

25 goals established by the Peace Corps Act. 
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1 (8) The Crisis Corps has been an effective tool in 

2 harnessing the skills and talents of returned Peace 

3 Corps volunteers and should be expanded, to the max4 imum extent practicable, to utilize the talent of re5 turned Peace Corps volunteers. 

6 (9) In fiscal year 2003, the Peace Corps is oper7 ating with an annual budget of $295,000,000 in 70 

8 countries, with more than 7,000 Peace Corps volun9 teers. 

10 (10) There is deep misunderstanding and misin11 formation in many parts of the world, particularly in 

12 countries with substantial Muslim populations, with 

13 respect to United States values and ideals. A new or 

14 expanded Peace Corps presence in such places could 

15 foster better understanding between the people of the 

16 United States and such countries. 

17 (11) Congress has declared, and the Peace Corps 

18 Act provides, that the Peace Corps shall maintain, to 

19 the maximum extent practicable and appropriate, a 

20 volunteer corps of at least 10,000 individuals. 

21 (12) President George W. Bush has called for the 

22 doubling of the number of Peace Corps volunteers in 

23 service. 

24 (13) Any expansion of the Peace Corps should 

25 not jeopardize the quality of the Peace Corps volun-
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1 teer experience and, therefore, necessitates, among 

2 other things, an appropriate increase in field and 

3 headquarters support staff.

4 (14) In order to ensure that the proposed expan5 sion of the Peace Corps preserves the integrity of the 

6 program and the security of volunteers, the integrated 

7 Planning and Budget System supported by the Office 

8 of Planning and Policy Analysis should continue its 

9 focus on strategic planning. 

10 (15) A streamlined, bipartisan Peace Corps Na11 tional Advisory Council composed of distinguished re12 turned Peace Corps volunteers, former Peace Corps 

13 staff, and other individuals with diverse backgrounds 

14 and expertise can be a source of ideas and suggestions 

15 that may be useful to the Director of the Peace Corps 

16 as the Director discharges the duties and responsibil17 ities as head of the agency. 

18 TITLE XI—AMENDMENTS TO 

19 PEACE CORPS ACT; RELATED 

20 PROVISIONS 

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

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

23 the Peace Corps Act (22 U.S.C. 2501–1) is amended by add24 ing at the end the following new sentence: ‘‘As an inde-
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1 pendent agency, the Peace Corps shall be responsible for re2 cruiting all of its volunteers.’’. 

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

4 Peace Corps Act (22 U.S.C. 2504(g)) is amended by striking 

5 ‘‘Provided, That’’ and inserting ‘‘Provided, That such detail 

6 or assignment furthers the fulfillment of Peace Corps’ devel7 opment and public diplomacy goals as described in section 

8 2: Provided further, That’’. 

9 SEC. 1102. REPORTS AND CONSULTATIONS. 

10 (a) ANNUAL REPORTS; CONSULTATIONS ON NEW INI11 TIATIVES.—Section 11 of the Peace Corps Act (22 U.S.C. 

12 2510) is amended to read as follows: 

13 ‘‘SEC. 11. ANNUAL REPORTS; CONSULTATIONS ON NEW INI14 TIATIVES. 

15 ‘‘(a) ANNUAL REPORTS.—The Director shall transmit 

16 to Congress, at least once in each fiscal year, a report on 

17 operations under this Act. Each report shall contain infor18 mation—

19 ‘‘(1) describing efforts undertaken to improve co20 ordination of activities of the Peace Corps with ac21 tivities of international voluntary service organiza22 tions, such as the United Nations volunteer program, 

23 and of host country voluntary service organizations, 

24 including—
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1 ‘‘(A) a description of the purpose and scope 

2 of any development project which the Peace 

3 Corps undertook during the preceding fiscal year 

4 as a joint venture with any such international 

5 or host country voluntary service organizations; 

6 and 

7 ‘‘(B) recommendations for improving co8 ordination of development projects between the 

9 Peace Corps and any such international or host 

10 country voluntary service organizations; 

11 ‘‘(2) describing—

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

13 Peace Corps has under review for the upcoming 

14 fiscal year, and any major initiatives that were 

15 undertaken in the previous fiscal year that were 

16 not included in prior reports to the Congress; 

17 ‘‘(B) the rationale for undertaking such new 

18 initiatives; 

19 ‘‘(C) an estimate of the cost of such initia20 tives; and 

21 ‘‘(D) the impact on the safety of volunteers; 

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

23 including budgetary plans, to have 14,000 volunteers 

24 in service by 2007 while maintaining the quality of 

25 the volunteer experience, ensuring the safety and secu-
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1 rity of all volunteers, and providing for appropriate 

2 administrative and other support; and 

3 ‘‘(4) describing standard security procedures for 

4 any country in which the Peace Corps operates pro5 grams or is considering doing so, as well as any spe6 cial security procedures contemplated because of 

7 changed circumstances in specific countries, and as8 sessing whether security conditions would be en9 hanced—

10 ‘‘(A) by co-locating volunteers with inter11 national or local nongovernmental organizations; 

12 or 

13 ‘‘(B) with the placement of multiple volun14 teers in one location. 

15 ‘‘(b) CONSULTATIONS ON NEW INITIATIVES.—The Di16 rector of the Peace Corps shall consult with the appropriate 

17 congressional committees with respect to any major new 

18 initiatives not previously discussed in the latest annual re19 port submitted to Congress under subsection (a) or in budg20 et presentations. Whenever possible, such consultations 

21 should take place prior to the initiation of such initiatives, 

22 or as soon as practicable thereafter.’’. 

23 (b) ONE–TIME REPORT ON STUDENT LOAN FORGIVE24 NESS PROGRAMS.—Not later than 30 days after the date 
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1 of enactment of this Act, the Director shall submit to the 

2 appropriate congressional committees a report—

3 (1) describing the student loan forgiveness pro4 grams currently available to Peace Corps volunteers 

5 upon completion of their service; 

6 (2) comparing such programs with other Govern7 ment-sponsored student loan forgiveness programs; 

8 and 

9 (3) recommending any additional student loan 

10 forgiveness programs which could attract more appli11 cations from low- and middle-income individuals who 

12 are carrying considerable student-loan debt burdens. 

13 (c) ANNUAL REPORT TO CONGRESS ON THE FEDERAL

14 EQUAL OPPORTUNITY RECRUITMENT PROGRAM

15 (FEORP).—Not later than 90 days after the date of enact16 ment of this Act and annually thereafter, the Director shall 

17 report on the progress of the Peace Corps in recruiting his18 torically underrepresented groups. The Director shall pre19 pare this report in accordance with section 7201 of title 

20 5, United States Code, and subpart B of part 720 of title 

21 5, Code of Federal Regulations. 

22 (d) REPORT ON MAINTAINING THE INTEGRITY OF THE

23 MEDICAL SCREENING AND MEDICAL PLACEMENT COORDI24 NATION PROCESSES.—Not later than 120 days after the 

25 date of enactment of this Act, the Director shall prepare 
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1 and submit to the appropriate congressional committees a 

2 report that—

3 (1) describes the medical screening procedures 

4 and standards of the Office of Medical Services/

5 Screening Unit of the Peace Corps to determine

6 whether an applicant for Peace Corps service has 

7 worldwide clearance, limited clearance, a deferral pe8 riod, or is not medically, including psychologically, 

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

10 (2) describes the procedures and criteria for 

11 matching applicants for Peace Corps service with a 

12 host country to ensure that the applicant, reasonable 

13 accommodations notwithstanding, can complete at 

14 least two years of volunteer service without interrup15 tion to host country national projects due to foresee16 able medical conditions; and 

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

18 through 2002 and the first six months of fiscal year 

19 2003, states the number of—

20 (A) medical screenings conducted; 

21 (B) applicants who have received worldwide 

22 clearance, limited clearance, deferral periods, 

23 and medical disqualifications to serve; 
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1 (C) Peace Corps volunteers who the agency 

2 has had to separate from service due to the dis3 covery of undisclosed medical information; and 

4 (D) Peace Corps volunteers who have termi5 nated their service early due to medical, includ6 ing psychological, reasons. 

7 SEC. 1103. SPECIAL VOLUNTEER RECRUITMENT AND 

8 PLACEMENT FOR CERTAIN COUNTRIES. 

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

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

11 appropriate congressional committees a report that—

12 (1) describes the recruitment strategies to be em13 ployed by the Peace Corps to recruit and train volun14 teers with the appropriate language skills and interest 

15 in serving in host countries; and 

16 (2) lists the countries that the Director has deter17 mined should be priorities for special recruitment and 

18 placement of Peace Corps volunteers. 

19 (b) USE OF RETURNED PEACE CORPS VOLUNTEERS

20 AND FORMER STAFF.—The Director is authorized and 

21 strongly urged to utilize the services of returned Peace Corps 

22 volunteers and former Peace Corps staff who have relevant 

23 language and cultural experience and may have served pre24 viously in countries with substantial Muslim populations, 
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1 in order to open or reopen Peace Corps programs in such 

2 countries. 

3 SEC. 1104. GLOBAL INFECTIOUS DISEASES INITIATIVE; CO4 ORDINATION OF HIV/AIDS ACTIVITIES. 

5 (a) INITIATIVE.—

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

7 with international public health experts, such as the 

8 Centers for Disease Control and Prevention, the Na9 tional Institutes of Health, the World Health Organi10 zation, the Pan American Health Organization, and 

11 local public health officials, shall expand the Peace 

12 Corps’ program of training for Peace Corps volun13 teers in the areas of education, prevention, and treat14 ment of infectious diseases which are prevalent in 

15 host countries in order to ensure that the Peace Corps 

16 increases its contribution to the global campaign 

17 against such diseases. 

18 (2) ADDITIONAL REQUIREMENT.—Activities for 

19 the education, prevention, and treatment of infectious 

20 diseases in host countries by the Peace Corps shall be 

21 undertaken in a manner that is consistent with ac22 tivities authorized under sections 104(c), 104A, 104B, 

23 and 104C of the Foreign Assistance Act of 1961. 

24 (b) COORDINATION OF HIV/AIDS ACTIVITIES.—
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1 (1) IN GENERAL.—The Director should designate 

2 an officer or employee of the Peace Corps who is lo3 cated in the United States to coordinate all HIV/

4 AIDS activities within the Peace Corps. Such indi5 vidual may be an individual who is an officer or em6 ployee of the Peace Corps on the date of the enactment 

7 of this Act. 

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

9 position established under paragraph (1), the Director 

10 should designate an individual within each country 

11 in sub-Saharan Africa, the Western Hemisphere, and 

12 Asia in which Peace Corps volunteers carry out HIV/

13 AIDS activities to coordinate all such activities of the 

14 Peace Corps in such countries. 

15 (c) DEFINITIONS.—In this section: 

16 (1) AIDS.—The term ‘‘AIDS’’ means the ac17 quired immune deficiency syndrome. 

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

19 immunodeficiency virus, the pathogen that causes 

20 AIDS. 

21 (3) HIV/AIDS.—The term ‘‘HIV/AIDS’’ means, 

22 with respect to an individual, an individual who is 

23 infected with HIV or living with AIDS. 
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1 (4) INFECTIOUS DISEASES.—The term ‘‘infec2 tious diseases’’ means HIV/AIDS, tuberculosis, and 

3 malaria. 

4 SEC. 1105. PEACE CORPS NATIONAL ADVISORY COUNCIL. 

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

6 relating to the Peace Corps National Advisory Council) is 

7 amended—

8 (1) in subsection (b)(2)—

9 (A) in subparagraph (C), by striking ‘‘and’’ 

10 after the semicolon; 

11 (B) by redesignating subparagraph (D) as 

12 subparagraph (E); and 

13 (C) by inserting after subparagraph (C) the 

14 following: 

15 ‘‘(D) make recommendations for utilizing the ex16 pertise of returned Peace Corps volunteers and former 

17 Peace Corps staff in fulfilling the goals of the Peace 

18 Corps; and’’; 

19 (2) in subsection (c)(2)—

20 (A) in subparagraph (A)—

21 (i) in the first sentence—

22 (I) by striking ‘‘fifteen’’ and in23 serting ‘‘eleven’’; and 

24 (II) by striking ‘‘President, by 

25 and with the advice and consent of the 
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1 Senate’’ and inserting ‘‘Director of the 

2 Peace Corps’’; and 

3 (ii) by striking the second sentence and 

4 inserting the following: ‘‘Six of the members 

5 shall be former Peace Corps volunteers, at 

6 least one of whom shall have been a former 

7 staff member abroad or in the Washington 

8 headquarters, and not more than six shall 

9 be members of the same political party.’’; 

10 (B) by striking subparagraph (B);

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

12 as follows: 

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

14 to 2-year terms.’’; 

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

16 ‘‘nine’’ and inserting ‘‘seven’’; 

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

18 ‘‘President shall nominate’’ and inserting ‘‘Di19 rector shall appoint’’; and 

20 (F) by redesignating subparagraphs (C), 

21 (D), (E), (F), (G), (H), and (I) as subpara22 graphs (B), (C), (D), (E), (F), (G), and (H), re23 spectively; and 

24 (3) by amending subsection (g) to read as fol25 lows: 
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1 ‘‘(g) CHAIR.—The Director shall designate one of the 

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

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

4 renew the term of a voting member appointed as Chair 

5 under the preceding sentence.’’. 

6 SEC. 1106. READJUSTMENT ALLOWANCES. 

7 The Peace Corps Act is amended—

8 (1) in section 5(c) (22 U.S.C. 2504(c)), by strik9 ing ‘‘$125 for each month of satisfactory service’’ and 

10 inserting ‘‘$275 for each month of satisfactory service 

11 during fiscal year 2004 and $300 for each month of 

12 satisfactory service thereafter’’; and 

13 (2) in section 6(1) (22 U.S.C. 2505(1)), by strik14 ing ‘‘$125 for each month of satisfactory service’’ and 

15 inserting ‘‘$275 for each month of satisfactory service 

16 during fiscal year 2004 and $300 for each month of 

17 satisfactory service thereafter’’. 

18 SEC. 1107. PROGRAMS AND PROJECTS OF RETURNED 

19 PEACE CORPS VOLUNTEERS AND FORMER 

20 STAFF. 

21 (a) PURPOSE.—The purpose of this section is to pro22 vide support for returned Peace Corps volunteers to develop 

23 and carry out programs and projects to promote the objec24 tives of the Peace Corps Act, as set forth in section 2(a) 

25 of that Act (22 U.S.C. 2501(a)). 
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1 (b) GRANTS TO CERTAIN NONPROFIT CORPORA2 TIONS.—

3 (1) GRANT AUTHORITY.—

4 (A) IN GENERAL.—To carry out the purpose 

5 of this section, and subject to the availability of 

6 appropriations, the Director may award grants 

7 on a competitive basis to private nonprofit cor8 porations for the purpose of enabling returned 

9 Peace Corps volunteers to use their knowledge 

10 and expertise to develop and carry out the pro11 grams and projects described in paragraph (2). 

12 (B) DELEGATION OF AUTHORITY AND

13 TRANSFER OF FUNDS.—The Director may dele14 gate the authority to award grants under sub15 paragraph (A) and may transfer funds author16 ized under this section subject to the notification 

17 procedures of section 634A of the Foreign Assist18 ance Act of 1961 to the Chief Executive Officer 

19 of the Corporation for National and Community 

20 Service (referred to in this section as the ‘‘Cor21 poration’’). 

22 (2) PROGRAMS AND PROJECTS.—Such programs 

23 and projects may include—

24 (A) educational programs designed to en25 rich the knowledge and interest of elementary 
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1 school and secondary school students in the geog2 raphy and cultures of other countries where the 

3 volunteers have served; 

4 (B) projects that involve partnerships with 

5 local libraries to enhance community knowledge 

6 about other peoples and countries; and 

7 (C) audio-visual projects that utilize mate8 rials collected by the volunteers during their 

9 service that would be of educational value to 

10 communities. 

11 (3) ELIGIBILITY FOR GRANTS.—To be eligible to 

12 compete for grants under this section, a nonprofit cor13 poration shall have a board of directors composed of 

14 returned Peace Corps volunteers and former Peace 

15 Corps staff with a background in community service, 

16 education, or health. If the grants are made by the 

17 Corporation, the nonprofit corporation shall meet all 

18 appropriate Corporation management requirements, 

19 as determined by the Corporation. 

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

21 made pursuant to a grant agreement between the Peace 

22 Corps or the Corporation and the nonprofit corporation 

23 that requires that—

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

25 programs and projects described in subsection (a) 
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1 pursuant to proposals submitted by returned Peace 

2 Corps volunteers (either individually or cooperatively 

3 with other returned volunteers); 

4 (2) the nonprofit corporation will give consider5 ation to funding individual programs or projects by 

6 returned Peace Corps volunteers, in amounts of not 

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

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

9 made available to the nonprofit corporation will be 

10 used for the salaries, overhead, or other administra11 tive expenses of the nonprofit corporation; 

12 (4) the nonprofit corporation will not receive 

13 grant funds for programs or projects under this sec14 tion for a third or subsequent year unless the non15 profit corporation makes available, to carry out the 

16 programs or projects during that year, non-Federal 

17 contributions—

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

19 $3 of Federal funds provided through the grant; 

20 and 

21 (B) provided directly or through donations 

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

23 evaluated, including plant, equipment, or serv24 ices; and 
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1 (5) the nonprofit corporation shall manage, mon2 itor, and submit reports to the Peace Corps or the 

3 Corporation, as the case may be, on each program or 

4 project for which the nonprofit corporation receives a 

5 grant under this section. 

6 (d) STATUS OF THE FUND.—Nothing in this section 

7 shall be construed to make any nonprofit corporation sup8 ported under this section an agency or establishment of the

9 Federal Government or to make the members of the board 

10 of directors or any officer or employee of such nonprofit 

11 corporation an officer or employee of the United States. 

12 (e) FACTORS IN AWARDING GRANTS.—In determining 

13 the number of nonprofit corporations to receive grants 

14 under this section for any fiscal year, the Peace Corps or 

15 the Corporation—

16 (1) shall take into consideration the need to min17 imize overhead costs that direct resources from the 

18 funding of programs and projects; and 

19 (2) shall seek to ensure a broad geographical dis20 tribution of grants for programs and projects under 

21 this section. 

22 (f) CONGRESSIONAL OVERSIGHT.—Grant recipients 

23 under this section shall be subject to the appropriate over24 sight procedures of Congress. 

25 (g) FUNDING.—
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1 (1) IN GENERAL.—There is authorized to be ap2 propriated to carry out this section up to 

3 $10,000,000. Such sum shall be in addition to funds 

4 made available to the Peace Corps under this divi5 sion. 

6 (2) AVAILABILITY.—Amounts appropriated pur7 suant to paragraph (1) are authorized to remain 

8 available until expended. 

9 (h) CRISIS CORPS.—

10 (1) STATEMENT OF POLICY.—Congress states 

11 that the Crisis Corps has been an effective tool in har12 nessing the skills and talents of returned Peace Corps 

13 volunteers. 

14 (2) INCREASE IN NUMBER OF CRISIS CORPS AS15 SIGNMENTS.—The Director, in consultation with the 

16 governments of host countries and appropriate non17 governmental organizations, shall increase the number 

18 of available Crisis Corps assignments for returned 

19 Peace Corps volunteers to at least 120 assignments in 

20 fiscal year 2004, 140 assignments in fiscal year 2005, 

21 160 assignments in fiscal year 2006, and 165 assign22 ments in fiscal year 2007. 

23 SEC. 1108. DECLARATION OF POLICY. 

24 Congress declares its support for the goal announced 

25 by President Bush of doubling the number of Peace Corps 
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1 volunteers to 14,000 by 2007 and supports the funding lev2 els necessary to accomplish this growth. 

3 SEC. 1109. PEACE CORPS IN SIERRA LEONE. 

4 (a) FINDINGS.—Congress makes the following findings: 

5 (1) Peace Corps service to Sierra Leone was sus6 pended in 1994 due to a brutal civil war between the 

7 government and the Revolutionary United Front 

8 (RUF). 

9 (2) Backed by British military intervention and 

10 a United Nations peacekeeping operation, government 

11 authority has been reestablished throughout the coun12 try and ‘‘free and fair’’ national elections took place 

13 in May 2002. 

14 (3) Sierra Leone is a majority Muslim country. 

15 (4) The Peace Corps has given the safety and se16 curity of its volunteers high priority. 

17 (b) SENSE OF CONGRESS.—It is the sense of Congress 

18 that the Peace Corps should return its program to Sierra 

19 Leone as soon as security conditions are consistent with the 

20 safety and security of its volunteers. 

21 SEC. 1110. AUTHORIZATION OF APPROPRIATIONS. 

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

23 2502(b)(1)) is amended by striking ‘‘and $365,000,000 for 

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

25 year 2003, $366,868,000 for fiscal year 2004, $411,800,000 
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1 for fiscal year 2005, $455,930,000 for fiscal year 2006, and 

2 $499,400,000 for fiscal year 2007’’.
Union Calendar No. 112

108TH CONGRESS 

1ST SESSION H. R. 2441

[Report No. 108–205] 

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. 

JULY 14, 2003

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, 

and ordered to be printed