I 
108TH CONGRESS 
1ST SESSION H. R. 1966
To establish the Millennium Challenge Account and the Millennium Challenge 
Corporation in order to reduce global poverty through increased economic 
growth by supporting a new compact for global development. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 6, 2003
Mr. HYDE (for himself, Mr. GREEN of Wisconsin, and Ms. HARRIS) intro-
duced the following bill; which was referred to the Committee on Inter-
national Relations 
A BILL 
To establish the Millennium Challenge Account and the Mil-
lennium Challenge Corporation in order to reduce global 
poverty through increased economic growth by sup-
porting a new compact for global development.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Millennium Challenge 
Act of 2003’’.
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TITLE I—THE MILLENNIUM 
CHALLENGE ACCOUNT 
SEC. 101. STATEMENT OF POLICY. 
It is the policy of the United States to reduce global 
poverty through increased economic growth by supporting 
a new compact for global development in which increased 
support is provided by developed countries to those devel-
oping countries that are ruling justly, fostering economic 
freedom, and investing in their citizens. 
SEC. 102. ELIGIBILITY CRITERIA. 
To be eligible for assistance under this Act, a country 
(‘‘eligible country’’)—
(1) must suffer from significant poverty; 
(2) must have a demonstrated commitment 
to—
(A) just and democratic governance, in-
cluding political pluralism and the rule of law, 
and respect for human and civil rights of all 
citizens, protect private property rights, encour-
age transparency and accountability of govern-
ance, and limit corruption; 
(B) economic freedom, including economic 
policies that encourage citizens and firms to 
participate in the global product and capital 
markets, promote private sector growth, and
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once assistance under this Millennium Challenge 
Contract ends; 
(4) a plan and a timeframe that describes how 
and when those objectives will be met; 
(5) the role and contribution of the business 
community, private and voluntary organizations, and 
other members of civil society in designing that plan 
and achieving the objectives; 
(6) where appropriate, the contribution of other 
donors in the achievement of those objectives; and 
(7) a plan to ensure financial accountability of 
funds used to achieve those objectives. 
(c) LOCAL INPUT.—The Millennium Challenge Con-
tract should take into account the perspectives of the rural 
and urban poor in an eligible country, and should reflect 
consultation with private and voluntary organizations, and 
the business community in the country. 
(d) OTHER DONORS.—To the maximum extent fea-
sible, activities undertaken to achieve the objectives of the 
Millennium Challenge Contract should be undertaken in 
coordination with the assistance activities of other donors. 
SEC. 104. MILLENNIUM CHALLENGE ASSISTANCE. 
The President is authorized to provide assistance for 
eligible countries to support policies and programs that 
are in furtherance of the purposes of this Act. The goal
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of the Millennium Challenge Account is to reduce poverty 
by significantly increasing the economic growth trajectory 
of recipient countries. This requires an emphasis on in-
vestments that raise the productive potential of a coun-
try’s citizens and firms and help integrate its economy into 
the global product and capital markets. Key areas of focus 
for Millennium Challenge Assistance will include—
(a) agricultural development; 
(b) education;
(c) enterprise and private sector development; 
(d) governance; 
(e) health; and 
(f) trade and investment capacity building. 
SEC. 105. AUTHORIZATION OF THE MILLENNIUM CHAL-
LENGE ACCOUNT AND AUTHORITIES. 
(a) AUTHORIZATION OF MILLENNIUM CHALLENGE 
ACCOUNT.—
(1) AUTHORIZATION.—There are authorized to 
be appropriated to the President to carry out this 
Act $1,300,000,000 for fiscal year 2004, and such 
sums as may be necessary for subsequent fiscal 
years. 
(2) AVAILABILITY.—Funds appropriated under 
paragraph (1)—
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(A) may be referred to as the ‘‘Millennium 
Challenge Account’’; 
(B) are authorized to remain available 
until expended; and 
(C) are in addition to funds otherwise 
available for such purposes. 
(b) APPLICABILITY OF PROVISIONS OF LAW.—
(1) Funds made available to carry out the pur-
poses of this Act may be made available notwith-
standing any other provision of law, except the pro-
visions of the Anti-Deficiency Act. 
(2) Notwithstanding paragraph (1), a country, 
including the government of a country, that is ineli-
gible to receive assistance under provisions of law 
that would prohibit assistance under part I of the 
Foreign Assistance Act of 1961 shall not be eligible 
to receive assistance under this Act. If the President 
waives the provisions of part I of the Foreign Assist-
ance Act of 1961, such country could receive assist-
ance under this Act. 
(c) USE OF OTHER FUNDS.—Any funds allocated 
from funds appropriated to carry out any other Act may 
be made available, if used in conjunction with funds appro-
priated to carry out this Act, under the authority and sub-
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ject to the limitations applicable to funds made available 
to carry out this Act. 
SEC. 106. EVALUATION AND ACCOUNTABILITY. 
All concluded Millennium Challenge Contracts and 
performance evaluations of activities under these contracts 
shall be made available to the public on the Internet, un-
less the Board makes a specific finding that a performance 
evaluation or contract should not be posted. 
SEC. 107. GRADUATION. 
The Millennium Challenge Contract will provide 
funds for limited purposes, projects, and terms. 
TITLE II—THE MILLENNIUM 
CHALLENGE CORPORATION 
SEC. 201. ESTABLISHMENT OF THE MILLENNIUM CHAL-
LENGE CORPORATION. 
(a) ESTABLISHMENT OF THE MILLENNIUM CHAL-
LENGE CORPORATION.—There is hereby established in the 
executive branch, a corporation to be known as the Millen-
nium Challenge Corporation (hereinafter in this Act re-
ferred to as the ‘‘Corporation’’). 
(b) RESPONSIBILITY
OF
THE CORPORATION.—It 
shall be the responsibility of the Corporation to implement 
title I of this Act, consistent with the direction of the 
President.
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SEC. 202. MANAGEMENT OF THE CORPORATION. 
(a) BOARD OF DIRECTORS.—The management of the 
Corporation shall be vested in a board of directors (here-
after in this title referred to as the ‘‘Board’’) composed 
of the Secretary of State, who shall Chair, the Secretary 
of the Treasury, and the Director of the Office of Manage-
ment and Budget, and may include individuals serving in 
such positions in an acting capacity. 
(b) FUNCTIONS OF THE BOARD.—
(1) The Board shall direct the exercise of all 
the functions and powers of the Corporation, includ-
ing the authority to review and approve the eligi-
bility of countries for assistance. 
(2) The Board may prescribe, amend, and re-
peal bylaws, rules, regulations, and procedures gov-
erning the manner in which the business of the Cor-
poration may be conducted and in which the powers 
granted to it by law may be exercised and enjoyed. 
(3) Members of the Board shall serve without 
additional compensation, but may be reimbursed for 
travel expenses, including per diem, in lieu of sub-
sistence, while engaged in their duties on behalf of 
the Corporation. 
(c) CHIEF EXECUTIVE OFFICER OF THE CORPORA-
TION.—
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(1) The chief executive officer of the Corpora-
tion (hereafter referred to in this title as the 
‘‘CEO’’) shall be appointed by the President, by and 
with the advice and consent of the Senate, and shall 
exercise the functions and powers vested in the CEO 
by the President and the Board. 
(2) The CEO shall receive compensation at the 
rate provided for level II of the Executive Schedule 
under section 5313 of title 5, United States Code. 
(d) Functions of, and actions by, the Corporation, 
Board, CEO, or an officer of the United States under this 
act are vested in their discretion. 
SEC. 203. FUNCTIONS OF THE CORPORATION. 
In order to carry out programs in furtherance of the 
purposes and policies of this Act, and in accordance with 
the provisions of Title I of this Act, the Corporation may 
made grants for any eligible country, including to any pri-
vate or public entity, and including for the purpose of pro-
viding technical assistance to any such country for the de-
velopment of the Millennium Challenge Contract and the 
management, including financial management, and eval-
uation of programs for which assistance is provided pursu-
ant to this Act. 
SEC. 204. POWERS OF THE CORPORATION. 
(a) POWERS.—The Corporation—
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(1) shall have perpetual succession unless dis-
solved by an Act of Congress; 
(2) may adopt, alter, and use a seal, which shall 
be judicially noticed; 
(3) may prescribe, amend, and repeal such 
rules, regulations, and procedures as may be nec-
essary for carrying out the functions of the Corpora-
tion; 
(4) may make and perform such contracts, 
grants, and other agreements with any individual, 
corporation, or other private or public entity however 
designated and wherever situated, as may be nec-
essary for carrying out the functions of the Corpora-
tion and all Millennium Challenge Contracts; 
(5) may determine and prescribe the manner in 
which its obligations shall be incurred and its ex-
penses allowed and paid, including expenses for rep-
resentation not exceeding $95,000 in any fiscal year; 
(6) may lease, purchase, or otherwise acquire, 
improve, and use such real property wherever situ-
ated, as may be necessary for carrying out the func-
tions of the Corporation; 
(7) may accept cash gifts or donations of serv-
ices or of property (real, personal, or mixed), tan-
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gible or intangible, in furtherance of the purposes of 
this Act; 
(8) may use the United States mails in the 
same manner and on the same conditions as the ex-
ecutive departments of Government; 
(9) may, with the consent of any agency of the 
United States, use the information, services, facili-
ties, and personnel of that agency on a full or par-
tial reimbursement or on a non-reimbursable basis 
in carrying out the purposes of this Act; 
(10) may contract with individuals for personal 
services, who shall not be considered federal employ-
ees for any provision of law administered by the Of-
fice of Personnel Management; 
(11) hire or obtain passenger motor vehicles; 
and 
(12) shall have such other powers as may be 
necessary and incident to carrying out this Act. 
(b) PRINCIPAL OFFICE.—
(1) The Corporation shall maintain its principal 
office in the metropolitan Washington, DC area. 
(2) The Corporation may establish other offices 
in any place including places outside the United 
States, in which the Corporation may carry on all or 
any of its operations and business.
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(c) POSITIONS WITH FOREIGN GOVERNMENTS.—
When approved by the Corporation, in furtherance of its 
purposes, employees of the Corporation (including individ-
uals detailed to the Corporation) may accept and hold of-
fices or positions to which no compensation is attached 
with governments or governmental agencies of foreign 
countries or international organizations.
(d) COMMITMENT AUTHORITY.—Subject to the provi-
sions of the Anti-Deficiency Act, a contract, grant, or 
other agreement which entails commitments for the ex-
penditure of funds available under this Act may commit 
such expenditures for such period of time as is deemed 
necessary to carrying out this Act. 
(e) CONTRACTING AUTHORITY.—In furtherance of 
the purposes of this Act, functions and powers authorized 
by this Act may be performed without regard to any provi-
sion of law regulating the making, performance, amend-
ment, or modification of contracts, grants, and other 
agreements. 
(f) TAXATION OF THE CORPORATION.—The Corpora-
tion, including all its assets and property, shall be exempt 
from taxation now or hereafter imposed by the United 
States, or any territory or possession thereof, or by any 
State, county, municipality, or local taxing authority.
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SEC. 205. PERSONNEL AND ADMINISTRATIVE AUTHORI-
TIES. 
(a) PERSONNEL
AUTHORITIES.—Notwithstanding 
any provision of title 5, United States Code or of the For-
eign Service Act of 1980, as amended, the CEO of the 
Millennium Challenge Corporation may, in regulations 
prescribed jointly with the Director of the Office of Per-
sonnel Management, establish, and from time to time ad-
just, a human resources management system, including a 
retirement benefits program. 
(1) Any system established under this sub-
section shall not waive, modify, or otherwise affect, 
with respect to Civil Service and Foreign Service 
employees—
(A) the public employment principles of 
merit and fitness set forth in section 2301 of 
title 5, including the principles of hiring based 
on merit, fair treatment without regard to polit-
ical affiliation or other non-merit consider-
ations, equal pay for equal work, and protection 
of employees against reprisal for whistle blow-
ing, 
(B) section 2302(b) of title 5, 
(C) chapters 72 and 73 of title 5, and 
(D) the conflict of interest provisions in 
title 18, chapter 11, of the United States Code.
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(2) The CEO of the Corporation may, without 
regard to the civil service and foreign service laws 
and regulations, appoint and terminate personnel as 
may be necessary to enable the Corporation to per-
form its duties. 
(3) The CEO may fix the compensation of the 
Corporation personnel without regard to the provi-
sions of chapter 51 and subchapter III of chapter 53 
of title 5, United States Code, relating to the classi-
fication of positions and General Schedule pay rates, 
and without regard to the provisions of chapters 4 
and 5 of the Foreign Service Act, relating to the 
classification of positions and Foreign Service pay 
rates. 
(4) The Corporation may utilize such authority 
contained in the Foreign Service Act of 1980, as 
amended, as the Corporation deems appropriate. 
(5) The CEO and other personnel who are em-
ployees of the Corporation shall be employees under 
section 2105 of title 5, United States Code, for pur-
poses of chapters 63 (relating to leave), 81 (relating 
to compensation for work injuries), 85 (relating to 
unemployment benefits), 87 (relating to life insur-
ance benefits), 89 (relating to health insurance bene-
fits), and 90 (relating to long-term care insurance)
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of that title. If the CEO chooses not to waive chap-
ters 83 and 84 (relating to retirement benefits) of 
title 5, or chapter 8 of the Foreign Service Act (re-
lating to Foreign Service retirement systems), em-
ployees of the Corporation shall be eligible for bene-
fits under those chapters as otherwise applicable. 
(6) No individual, except for the officers of the 
Corporation, may be employed by the Corporation 
for a period in excess of 5 years: Provided, That the 
CEO, under special circumstances, may approve an 
extension of the length of employment on an indi-
vidual basis. 
(7) Individuals employed by the Corporation, 
including individuals detailed to or contracted by the 
Corporation, while performing duties in any country 
or place outside the United States, and their families 
shall, if they are not nationals of or permanently 
resident in such country or place, enjoy the privi-
leges and immunities of at least the administrative 
and technical staff of the Mission of the United 
States to such country and shall be subject to 22 
U.S.C. 3927 in the same manner as United States 
Government employees. 
(8) The CEO may procure temporary and inter-
mittent services under section 3109(b) of title 5,
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United States Code, at rates for individuals which 
do not exceed the daily equivalent of the annual rate 
of basic pay prescribed for level V of the Executive 
Schedule under section 5316 of such title. 
(b) DETAIL
OF PERSONNEL
TO
THE CORPORA-
TION.—
(1) Any Federal Government employee may be 
detailed to the Corporation on a fully or partially re-
imbursable or on a nonreimbursable basis, and such 
detail shall be without interruption or loss of civil 
service or Foreign Service status or privilege. 
(2) Alternatively, an employee serving under a 
career or career conditional appointment or the 
equivalent in an agency who transfers to or converts 
to an appointment in the Corporation with the con-
sent of the head of the agency is entitled to be re-
turned to the employee’s former position or a posi-
tion of like seniority, status, and pay without grade 
or pay reduction in the agency if the employee—
(A) is being separated from the Corpora-
tion for reasons other than misconduct, neglect 
of duty, or malfeasance; and 
(B) applies for return not later than 30 
days before the date of the termination of the 
employment in the Corporation.
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ganization to an employee assigned to the Corpora-
tion. 
(c) ALLOCATION OF FUNDS.—
(1) TRANSFER OR ALLOCATION.—The Corpora-
tion may allocate or transfer to any agency of the 
United States Government any part of any funds 
available for carrying out the purposes of this Act. 
Such funds shall be available for obligation and ex-
penditure for the purposes for which authorized, in 
accordance with authority granted in this Act or 
under authority governing the activities of agencies 
of the United States Government to which such 
funds are allocated or transferred. 
(2) USE OF SERVICES.—For carrying out the 
purposes of this Act, the Corporation may utilize the 
services and facilities of, or procure commodities 
from, any agency of the United States Government 
under such terms and conditions as may be agreed 
to by the head of such agency and the Corporation. 
(d) OTHER AUTHORITIES.—Except where incon-
sistent with the provisions of this Act, the Corporation is 
authorized to use any of the administrative authorities 
contained in the State Department Basic Authorities Act 
of 1956 and the Foreign Assistance Act of 1961.
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(e) GOVERNMENT CORPORATION CONTROL ACT.—
The Corporation shall be subject to the provisions of the 
Government Corporation Control Act, title 31, United 
States Code.
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