Millennium Challenge Corporation Candidate Country Reform Act

To modify the requirements for candidate countries under the Millennium Challenge Act of 2003, and for other purposes. 1. Short title This Act may be cited as the Millennium Challenge Corporation Candidate Country Reform Act 2. Modifications of requirements to become a candidate country Section 606 of the Millennium Challenge Act of 2003 ( 22 U.S.C. 7705 606. Candidate countries (a) In general A country shall be a candidate country for purposes of eligibility to receive assistance under section 605 if— (1) the per capita income of the country in a fiscal year is equal to or less than the World Bank threshold for initiating the International Bank for Reconstruction and Development graduation process for the fiscal year; and (2) subject to subsection (b), the country is not ineligible to receive United States economic assistance under part I of the Foreign Assistance Act of 1961 ( 22 U.S.C. 2151 et seq. (b) Rule of construction For the purposes of determining whether a country is eligible, pursuant to subsection (a)(2), to receive assistance under section 605, the exercise by the President, the Secretary of State, or any other officer or employee of the United States Government of any waiver or suspension of any provision of law referred to in subsection (a)(2), and notification to the appropriate congressional committees in accordance with such provision of law, shall be construed as satisfying the requirements under subsection (a). (c) Determination by the Board The Board shall determine whether a country is a candidate country for purposes of this section. . 3. Conforming amendments (a) Amendment To report identifying candidate countries Section 608(a)(1) of the Millennium Challenge Act of 2003 ( 22 U.S.C. 7707(a)(1) section 606(a)(1)(B) section 606(a)(2) (b) Amendment to Millennium Challenge Compact authority Section 609(b)(2) of such Act ( 22 U.S.C. 7708(b)(2) (1) by amending the paragraph heading to read as follows: Country contributions (2) by striking with respect to a lower middle income country described in section 606(b), (c) Amendment to authorization To provide assistance for candidate countries Section 616(b)(1) of such Act ( 22 U.S.C. 7715(b)(1) subsection (a) or (b) of section 606 section 606(a) 4. Modification to factors in determining eligibility Section 607(c)(2) of the Millennium Challenge Act of 2003 ( 22 U.S.C. 7706(c)(2) consider prioritize need and impact by considering

Summary: Millennium Challenge Corporation Candidate Country Reform Act This bill modifies the per capita income requirements for countries to be considered candidates for assistance from the Millennium Challenge Corporation (MCC). The MCC program provides assistance to eligible developing countries through a competitive selection process based on various factors, including a country's per capita income, level of economic freedom, and effectiveness of government. Currently, to be a candidate to receive MCC assistance, the country must have a per capita income not greater than the lower-middle-income country threshold established by the International Bank for Reconstruction and Development (IBRD). Under the bill, a candidate country must instead have a per capita income equal to or less than the World Bank's threshold for initiating the IRDB graduation process. (This graduation process begins when IRDB determines that a country is able to sustain long-term development without further IRDB financing. For 2024, the threshold for initiating discussions about a country's graduation begins when a country exceeds $7,805 in per capita income.)