I 
108TH CONGRESS 
1ST SESSION H. R. 2441
To establish the Millennium Challenge Account to provide increased support 
for developing countries that have fostered democracy and the rule of 
law, invested in their citizens, and promoted economic freedom; to assess 
the impact and effectiveness of United States economic assistance; to 
authorize the expansion of the Peace Corps, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 12, 2003
Mr. HYDE (for himself, Mr. LANTOS, Mr. GREEN of Wisconsin, Ms. HARRIS, 
Ms. LEE, Mr. CROWLEY, Mr. LAHOOD, and Mr. JANKLOW) introduced 
the following bill; which was referred to the Committee on International 
Relations 
A BILL 
To establish the Millennium Challenge Account to provide 
increased support for developing countries that have fos-
tered democracy and the rule of law, invested in their 
citizens, and promoted economic freedom; to assess the 
impact and effectiveness of United States economic as-
sistance; to authorize the expansion of the Peace Corps, 
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Millennium Challenge Account Authorization and Peace 
Corps Expansion Act of 2003’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; table of contents. 
DIVISION A—MILLENNIUM CHALLENGE ACCOUNT 
TITLE I—GENERAL PROVISIONS 
Sec. 101. Definitions. 
Sec. 102. Sunset. 
TITLE II—MILLENNIUM CHALLENGE ASSISTANCE 
Sec. 201. Findings; statement of policy. 
Sec. 202. Authorization of assistance. 
Sec. 203. Eligibility and related requirements. 
Sec. 204. Millennium Challenge Compact. 
Sec. 205. Suspension and termination of assistance. 
Sec. 206. Annual report. 
Sec. 207. Authorization of appropriations; related authorities. 
TITLE III—MILLENNIUM CHALLENGE CORPORATION 
Sec. 301. Millennium Challenge Corporation. 
Sec. 302. Chief Executive Officer. 
Sec. 303. Board of Directors. 
Sec. 304. Interagency coordination. 
Sec. 305. Powers of the Corporation; related provisions. 
Sec. 306. Transparency and accountability of the Corporation. 
Sec. 307. Detail of personnel to the Corporation; other authorities and limita-
tions. 
Sec. 308. Millennium Challenge Advisory Council. 
Sec. 309. Enhancing data collection and monitoring and evaluation capabili-
ties.
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 ac-
tivities. 
Sec. 1105. Peace Corps National Advisory Council. 
Sec. 1106. Readjustment allowances. 
Sec. 1107. Programs and projects of returned Peace Corps volunteers and 
former staff. 
Sec. 1108. Declaration of policy. 
Sec. 1109. Authorization of appropriations.
DIVISION A—MILLENNIUM 
CHALLENGE ACCOUNT 
TITLE I—GENERAL PROVISIONS 
SEC. 101. DEFINITIONS. 
In this division: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means—
(A) the Committee on International Rela-
tions and the Committee on Appropriations of 
the House of Representatives; and 
(B) the Committee on Foreign Relations 
and the Committee on Appropriations of the 
Senate. 
(2) BOARD.—The term ‘‘Board’’ means the 
Board of Directors of the Corporation established 
pursuant to section 303 of this Act.
(3) COMPACT.—The term ‘‘Compact’’ means 
the Millennium Challenge Compact described in sec-
tion 204 of this Act. 
(4) CORPORATION.—The term ‘‘Corporation’’ 
means the Millennium Challenge Corporation estab-
lished under section 301 of this Act. 
(5) COUNCIL.—The term ‘‘Council’’ means the 
Millennium Challenge Advisory Council established 
under section 308 of this Act. 
(6) MILLENNIUM DEVELOPMENT GOALS.—The 
term ‘‘Millennium Development Goals’’ means the 
key objectives described in the United Nations Mil-
lennium Declaration, as contained in United Nations 
General Assembly Resolution 55/2 (September 
2000), which aim to eradicate extreme poverty and 
hunger, achieve universal primary education, pro-
mote gender equality and empower women, reduce 
child mortality, improve maternal health, combat 
HIV/AIDS, malaria, and other infectious diseases, 
ensure environmental sustainability, and develop a 
global partnership for development. 
SEC. 102. SUNSET. 
All authorities under this division (other than title 
IV) shall terminate on October 1, 2007.
TITLE II—MILLENNIUM 
CHALLENGE ASSISTANCE 
SEC. 201. FINDINGS; STATEMENT OF POLICY. 
(a) FINDINGS.—Congress finds the following: 
(1) A principal objective of United States for-
eign assistance programs, as stated in section 101 of 
the Foreign Assistance Act of 1961, is the ‘‘encour-
agement and sustained support of the people of de-
veloping countries in their efforts to acquire the 
knowledge and resources essential to development 
and to build the economic, political, and social insti-
tutions which will improve the quality of their lives’’. 
(2) The expanding acceptance of free trade and 
open markets and the spread of democracy and the 
rule of law have brought a better way of life to an 
increasing number of people in the world. 
(3) Inequalities between men and women under-
mine development and poverty-reduction efforts in 
fundamental ways. A woman’s limited access to re-
sources and restrictions on the exercise of her rights, 
including the right to participate in social and polit-
ical processes, disables her from maximizing her con-
tribution to her family’s health, education, and gen-
eral well-being.
(4) On March 14, 2002, the President noted 
the successes of development assistance programs: 
‘‘The advances of free markets and trade and de-
mocracy and rule of law have brought prosperity to 
an ever-widening circle of people in this world. Dur-
ing our lifetime, per capita income in the poorest 
countries has nearly doubled. Illiteracy has been cut 
by one-third, giving more children a chance to learn. 
Infant mortality has been almost halved, giving more 
children a chance to live.’’. 
(5) Development is neither an easy process nor 
a linear one. There are successes and there are fail-
ures. Today, too many people are still living in pov-
erty, disease has eroded many of the economic and 
social gains of previous decades, and many countries 
have not adopted policies, for a variety of reasons, 
that would enable them to compete in an open and 
equitable international economic system. 
(6) More countries and more people will be able 
to participate in and benefit from the opportunities 
afforded by the global economy if the following con-
ditions for sound and sustainable economic develop-
ment are met: 
(A) SECURITY.—Security is necessary for 
economic development. Persistent poverty and
oppression can lead to hopelessness, despair, 
and to failed states that become havens for ter-
rorists. 
(B) POLICIES
THAT
SUPPORT
BROAD-
BASED
ECONOMIC
GROWTH.—Successful long-
term development can only occur through 
broad-based economic growth that enables the 
poor to increase their incomes and have access 
to productive resources and services so that 
they can lead lives of decency, dignity, and 
hope. 
(C) DEMOCRACY
AND
THE
RULE
OF 
LAW.—Democratic development, political plu-
ralism, and respect for internationally recog-
nized human rights are intrinsically linked to 
economic and social progress. The ability of 
people to participate in the economic and polit-
ical processes affecting their lives is essential to 
sustained growth. The rule of law and a com-
mitment to fight corruption is also critical to 
the development of a prosperous society. 
(D) INVESTMENTS IN PEOPLE.—Economic 
growth and democracy can be sustained only if 
both men and women have the basic tools and 
capabilities that foster the opportunity for par-
ticipation in the economic, social, and political 
life of their countries. Successful development 
of countries requires citizens who are literate, 
healthy, and prepared and able to work. 
(7) Economic assistance programs authorized 
under part I of the Foreign Assistance Act of 1961, 
as administered by the United States Agency for 
International Development and other Federal agen-
cies, are of critical importance in assisting countries 
to be in a position to maximize the effectiveness of 
assistance authorized by this title. 
(8) It is in the national interest of the United 
States to help those countries that are implementing 
the economic and political reforms necessary for de-
velopment to occur. 
(9) On March 14, 2002, the President stated 
that the ‘‘growing divide between wealth and pov-
erty, between opportunity and misery, is both a chal-
lenge to our compassion and a source of instability 
. . . [w]e must confront it . . . [w]e must include 
every African, every Asian, every Latin American, 
every Muslim, in an expanding circle of develop-
ment.’’. 
(10) The President has pledged that funds re-
quested for the Millennium Challenge Account shall
be in addition to, and not a substitute for, existing 
development and humanitarian programs. 
(11) Development assistance alone is not suffi-
cient to stimulate economic growth and development. 
Assistance has been shown to have a positive impact 
on growth and development in developing countries 
with sound policies and institutions. If countries 
have poor policies and institutions, however, it is 
highly unlikely that assistance will have a net posi-
tive effect. 
(12) Economic development, and the achieve-
ment of the Millennium Development Goals, must be 
a shared responsibility between donor and recipient 
countries. 
(b) STATEMENT
OF POLICY REGARDING
A NEW 
COMPACT FOR GLOBAL DEVELOPMENT.—It is, therefore, 
the policy of the United States to support a new compact 
for global development that—
(1) increases support by donor countries to 
those developing countries that are fostering democ-
racy and the rule of law, investing in their people, 
and promoting economic freedom for all their people; 
(2) recognizes, however, that it is the devel-
oping countries themselves that are primarily re-
sponsible for the achievement of those goals;
(3) seeks to coordinate the disparate develop-
ment assistance policies of donor countries, and to 
harmonize the trade and finance policies of donor 
countries with their respective development assist-
ance programs; and 
(4) aims to reduce poverty by significantly in-
creasing the economic growth trajectory of bene-
ficiary countries through investing in the productive 
potential of the people of such countries. 
SEC. 202. AUTHORIZATION OF ASSISTANCE. 
(a) ASSISTANCE.—The President, acting through the 
Chief Executive Officer of the Millennium Challenge Cor-
poration, is authorized to provide assistance to eligible 
countries to support policies and programs that advance 
the progress of such countries in achieving lasting eco-
nomic growth and poverty reduction and are in further-
ance of the purposes of this title. 
(b) PRINCIPAL OBJECTIVES.—Assistance provided 
under subsection (a) should advance a country’s progress 
toward promoting the following principal objectives: 
(1) 
FOSTERING
DEMOCRATIC
SOCIETIES, 
HUMAN RIGHTS, AND THE RULE OF LAW.—The as-
sistance should promote—
(A) political, social, and economic plu-
ralism;
(B) respect for the rule of law; 
(C) anti-corruption initiatives and law en-
forcement; 
(D) development of institutions of demo-
cratic governance, including electoral and legis-
lative processes; 
(E) transparent and accountable public ad-
ministration at all levels of government; 
(F) a fair, competent, and independent ju-
diciary; and 
(G) a free and independent media. 
(2) FOSTERING
INVESTMENT
IN
EDUCATION 
AND
HEALTH
INFRASTRUCTURE
AND
SYSTEMS.—
The assistance should foster improved educational 
opportunities and health conditions, particularly for 
women and children, including through—
(A) support for programs and personnel 
that promote broad-based primary education, 
including through the development of academic 
curricula, by making available textbooks and 
other educational materials, and through appro-
priate use of technology; 
(B) support for programs to strengthen 
and build institutions, including primary health
care systems, infrastructure, facilities, and per-
sonnel that provide quality health care; 
(C) support for improved systems for the 
delivery of healthy water and sanitation serv-
ices; and 
(D) support for programs that reduce child 
mortality (including those programs that com-
bat HIV/AIDS, malaria, tuberculosis, and other 
infectious diseases, consistent with sections 
104(c), 104A, 104B, and 104C of the Foreign 
Assistance Act of 1961). 
(3) PROMOTING ECONOMIC FREEDOM, BROAD-
BASED ECONOMIC GROWTH, AND FOSTERING FREE 
MARKET SYSTEMS.—The assistance should foster the 
institutions and conditions needed to promote free 
market systems, trade, and investment, including—
(A) the reform and restructuring of bank-
ing and financial systems, including by allowing 
foreign competition in the banking and financial 
sectors, where appropriate; 
(B) the development of transparent and ef-
ficient commercial codes and reduction in the 
regulatory burden on business; 
(C) the protection of property rights, in-
cluding private property and intellectual prop-
erty rights, including through the adoption and 
effective enforcement of intellectual property 
treaties or international agreements; 
(D) support for market-based policies that 
support increased agricultural production; 
(E) a strong commitment to sound mone-
tary and budgetary policies; 
(F) the development of small businesses, 
private cooperatives, credit unions, and trade 
and labor unions; 
(G) the protection of internationally recog-
nized workers’ rights; and 
(H) the capacity of eligible countries to 
ameliorate damage to the environment and re-
spect other environmental standards. 
SEC. 203. ELIGIBILITY AND RELATED REQUIREMENTS. 
(a) ASSISTANCE FOR LOW INCOME COUNTRIES.—
(1) FISCAL YEAR 2004.—A country shall be eli-
gible to receive assistance under section 202 for fis-
cal year 2004 if—
(A) the country is eligible for assistance 
from the International Development Associa-
tion, and the per capita income of the country 
is equal to or less than the historical ceiling of 
the International Development Association for
that year, as defined by the International Bank 
for Reconstruction and Development; 
(B) subject to paragraph (3), the country 
is not ineligible to receive United States eco-
nomic assistance by reason of the application of 
section 116, 490, or 620A of the Foreign As-
sistance Act of 1961, or by reason of the appli-
cation of any other provision of law; and 
(C) the Chief Executive Officer of the Cor-
poration determines that the country has dem-
onstrated a commitment to—
(i) bolster democracy, human rights, 
good governance and the rule of law; 
(ii) invest in the health and education 
of its citizens; and 
(iii) promote sound economic policies 
that promote economic freedom and oppor-
tunity. 
(2) FISCAL YEARS 2005 AND 2006.—A country 
shall be eligible to receive assistance under section 
202 for fiscal years 2005 and 2006 if—
(A) the per capita income of the country is 
equal to or less than the historical ceiling of the 
International Development Association for the 
fiscal year involved, as defined by the Inter-
national Bank for Reconstruction and Develop-
ment; 
(B) the country meets the requirements of 
paragraph (1)(B); and 
(C) the country meets the requirements of 
clauses (i) through (iii) of paragraph (1)(C), as 
determined by the Chief Executive Officer. 
(3) RULE
OF
CONSTRUCTION.—For the pur-
poses of determining whether a country is eligible 
for receiving assistance under section 202 pursuant 
to paragraph (1)(B), the exercise by the President, 
the Secretary of State, or any other officer or em-
ployee of the United States of any waiver or suspen-
sion of any provision of law referred to in such para-
graph shall not be construed as satisfying the re-
quirement of such paragraph. 
(b) ASSISTANCE
FOR
LOWER
MIDDLE
INCOME 
COUNTRIES.—
(1) IN GENERAL.—In addition to countries de-
scribed in subsection (a), a country shall be eligible 
to receive assistance under section 202 for fiscal 
year 2006 if the country—
(A) is classified as a lower middle income 
country in the then most recent edition of the 
World Development Report for Reconstruction
and Development published by the International 
Bank for Reconstruction and Development; 
(B) meets the requirements of subsection 
(a)(1)(B); and 
(C) meets the requirements of clauses (i) 
through (iii) of subsection (a)(1)(C), as deter-
mined by the Chief Executive Officer. 
(2) LIMITATION.—The total amount of assist-
ance provided to countries under this subsection for 
fiscal year 2006 may not exceed 20 percent of the 
total amount of assistance provided to all countries 
under section 202 for fiscal year 2006. 
(c) ASSISTANCE FOR SELECTED LOW INCOME COUN-
TRIES.—
(1) IN GENERAL.—A country shall be eligible to 
receive assistance for any of fiscal years 2004 
through 2006 solely for the purpose of becoming eli-
gible to receive assistance under subsection (a) if the 
country—
(A) meets the requirements of paragraphs 
(1)(B) and (2)(A) of subsection (a); 
(B) demonstrates a commitment to meet-
ing the requirements of clauses (i) through (iii) 
of subsection (a)(1)(C), as determined by the 
Chief Executive Officer; but
(C) fails to meet the eligibility criteria nec-
essary to receive assistance under section 202, 
as established under subsection (e). 
(2) ADMINISTRATION.—Assistance for countries 
eligible by reason of the application of this sub-
section shall be provided through the United States 
Agency for International Development. 
(3) ALLOCATION OF FUNDS.—Of the amount 
authorized to be appropriated under section 207(a) 
for a fiscal year, not more than 15 percent of such 
amount is authorized to be appropriated to the 
President for the fiscal year to carry out this sub-
section. 
(d) GENERAL AUTHORITY TO DETERMINE ELIGI-
BILITY.—
(1) GENERAL AUTHORITY.—The Chief Execu-
tive Officer shall determine whether or not a country 
is eligible to receive assistance under section 202. 
(2) CONGRESSIONAL NOTIFICATION.—Not later 
than 7 days after making a determination of eligi-
bility for a country under paragraph (1), the Chief 
Executive Officer shall provide notice thereof to the 
appropriate congressional committees. Such notice 
shall include a certification of the determination of 
the Chief Executive Officer that the country meets
the requirements of clauses (i) through (iii) of sub-
section (a)(1)(C) in accordance with such subsection, 
subsection (a)(2)(C), subsection (b)(1)(C), or sub-
section (c)(1)(B), as the case may be. 
(e) ELIGIBILITY CRITERIA.—
(1) INITIAL CRITERIA AND METHODOLOGY.—At 
soon as practicable after the date of the enactment 
of this Act, but not later than 30 days prior to mak-
ing any determination of eligibility for a country 
under this section, the Chief Executive Officer—
(A) shall consult in-person with the appro-
priate congressional committees with respect to 
the establishment of eligibility criteria and 
methodology that the Chief Executive Officer 
proposes to use for purposes of determining eli-
gibility under this section; 
(B) shall establish such eligibility criteria 
and methodology; and 
(C) shall prepare and transmit to such 
committees a written report that contains such 
eligibility criteria and methodology. 
(2) REVISIONS
TO
CRITERIA
AND
METHOD-
OLOGY.—If the Chief Executive Officer proposes to 
use revised or different criteria from the criteria de-
scribed in paragraph (1) in making a determination
of eligibility for a country under this section, then, 
not later than 15 days prior to making such deter-
mination, the Chief Executive Officer shall consult 
in-person with the appropriate congressional com-
mittees with respect to such revised or different cri-
teria and methodology in accordance with paragraph 
(1)(A) and shall prepare and transmit a written re-
port in accordance with paragraph (1)(C). 
(f) FORM OF ASSISTANCE; RECIPIENTS.—
(1) FORM
OF
ASSISTANCE.—Assistance pro-
vided under section 202 for a country shall be pro-
vided to one or more of the entities described in 
paragraph (2) on a nonrepayable basis and in ac-
cordance with a fair, open, and competitive selection 
process that results in the awarding of such assist-
ance on a merit basis using selection criteria that 
are made public by the Corporation in advance and 
are otherwise in accordance with standard and cus-
tomary best practices for the provision of similar 
types of assistance. 
(2) RECIPIENTS.—The entities referred to in 
paragraph (1) are the following: 
(A) The national government of the coun-
try.
(B) Regional or local governmental units 
of the country. 
(C) Nongovernmental organizations, in-
cluding for-profit, not-for-profit, and voluntary 
organizations. 
(D) International organizations and trust 
funds. 
(g) CONGRESSIONAL NOTIFICATION.—The Chief Ex-
ecutive Officer may not make any grant or enter into any 
contract for assistance for a country under section 202 
that exceeds $5,000,000 until 15 days after the date on 
which the Chief Executive Officer provides notification of 
the proposed grant or contract to the appropriate congres-
sional committees in accordance with the procedures appli-
cable to reprogramming notifications under section 634A 
of the Foreign Assistance Act of 1961. 
SEC. 204. MILLENNIUM CHALLENGE COMPACT. 
(a) COMPACT.—The President, acting through the 
Chief Executive Officer of the Corporation, may provide 
assistance to an eligible country under section 202 only 
if the country enters into a contract with the United 
States, to be known as a ‘‘Millennium Challenge Com-
pact’’, that establishes a multi-year plan for achieving 
shared development objectives in furtherance of the pur-
poses of this title, and only if the President, acting
through the Chief Executive Officer, provides to Congress 
notice regarding such Compact pursuant to subsection (h). 
(b) ELEMENTS.—The Compact shall take into ac-
count the national development strategy of the eligible 
country and shall contain—
(1) the specific objectives that the country and 
the United States expect to achieve; 
(2) the responsibilities of the country and the 
United States in the achievement of such objectives; 
(3) regular benchmarks to measure, where ap-
propriate, progress toward achieving such objectives; 
(4) an identification of the intended bene-
ficiaries, disaggregated by income level, gender, and 
age, to the maximum extent practicable; 
(5) a multi-year financial plan, including the es-
timated amount of contributions by the Corporation 
and the country and proposed mechanisms to imple-
ment the plan and provide oversight, that describes 
how the requirements of paragraphs (1) through (4) 
will be met, including identifying the role of civil so-
ciety in the achievement of such requirements; 
(6) where appropriate, a description of the re-
sponsibility of other donors in the achievement of 
such objectives; and
(7) a plan to ensure appropriate fiscal account-
ability for the use of assistance provided under sec-
tion 202. 
(c) DEFINITION.—In subsection (b), the term ‘‘na-
tional development strategy’’ means any strategy to 
achieve market-driven economic growth that has been de-
veloped by the government of the country in consultation 
with a wide variety of civic participation, including non-
governmental organizations, private and voluntary organi-
zations, academia, women and student organizations, local 
trade and labor unions, and the business community. 
(d) ADDITIONAL PROVISION RELATING TO PROHIBI-
TION ON TAXATION.—In addition to the elements de-
scribed in subsection (b), each Compact shall contain a 
provision that states that assistance provided by the 
United States under the Compact shall be exempt from 
taxation by the government of the eligible country. 
(e) LOCAL INPUT.—In entering into a Compact, the 
United States and the eligible country—
(1) shall take into account the local-level per-
spectives of the rural and urban poor in the eligible 
country; and 
(2) should consult with private and voluntary 
organizations, the business community, and other 
donors, in the eligible country.
(f) CONSULTATION.—During any discussions with a 
country for the purpose of entering into a Compact with 
the country, officials of the Corporation participating in 
such discussions shall, at a minimum, consult with appro-
priate officials of the United States Agency for Inter-
national Development, particularly with those officials re-
sponsible for the appropriate region or country on develop-
ment issues related to the Compact. 
(g) COORDINATION WITH OTHER DONORS.—To the 
maximum extent feasible, activities undertaken to achieve 
the objectives of the Compact shall be undertaken in co-
ordination with the assistance activities of other donors. 
(h) CONGRESSIONAL AND PUBLIC NOTIFICATION.—
Not later than 15 days prior to entering into a Compact 
with an eligible country, the President, acting through the 
Chief Executive Officer—
(1) shall consult in-person with the appropriate 
congressional committees with respect to the pro-
posed Compact; 
(2) shall provide notification of the proposed 
Compact to the appropriate congressional commit-
tees in accordance with the procedures applicable to 
reprogramming notifications under section 634A of 
the Foreign Assistance Act of 1961;
(3) shall prepare and transmit to such commit-
tees a written report that contains a detailed sum-
mary of the proposed Compact and a copy of the full 
text of the Compact; and 
(4) shall publish such detailed summary and 
full text of the proposed Compact in the Federal 
Register and on the Internet website of the Corpora-
tion. 
(i) ASSISTANCE FOR DEVELOPMENT OF COMPACT.—
Notwithstanding subsection (a), the Chief Executive Offi-
cer may enter into contracts or make grants for any eligi-
ble country for the purpose of facilitating the development 
of the Compact between the United States and the coun-
try. 
SEC. 205. SUSPENSION AND TERMINATION OF ASSISTANCE. 
(a) SUSPENSION OF ASSISTANCE.—
(1) IN GENERAL.—The President shall suspend 
assistance in whole or in part for a country under 
this title if the President determines that—
(A) the country is engaged in activities 
which are contrary to the national security in-
terests of the United States; 
(B) the elected head of state of the country 
or any member of the country’s highest judicial 
tribunal has been removed from that office or
forcibly detained through extra-constitutional 
processes; or 
(C) the country has failed to adhere to its 
responsibilities under the Compact. 
(2) REINSTATEMENT.—The President may re-
instate assistance for a country under this title only 
if the President determines that the country has 
demonstrated a commitment to correcting each con-
dition for which assistance was suspended under 
paragraph (1). 
(3) CONGRESSIONAL NOTIFICATION.—A suspen-
sion of assistance under paragraph (1), or a rein-
statement of assistance under paragraph (2), shall 
be effective beginning 15 days after the date on 
which the President transmits to the appropriate 
congressional committees a report that contains the 
determination of the President under paragraph (1) 
or paragraph (2), as the case may be. 
(b) TERMINATION OF ASSISTANCE.—
(1) 
IN
GENERAL.—The 
President, 
acting 
through the Chief Executive Officer of the Corpora-
tion, shall terminate all assistance for a country 
under this title if the President determines that the 
country has consistently failed to adhere to its re-
sponsibilities under the Compact or has significantly 
failed to meet the requirements of this title. 
(2) CONGRESSIONAL NOTIFICATION.—A termi-
nation of assistance under paragraph (1) shall be ef-
fective beginning 15 days after the date on which 
the President, acting through the Chief Executive 
Officer, provides notification of the proposed termi-
nation of assistance to the congressional committees 
specified in section 634A(a) of the Foreign Assist-
ance Act of 1961 in accordance with the procedures 
applicable to reprogramming notifications under that 
section. 
SEC. 206. ANNUAL REPORT. 
(a) REPORT.—Not later than April 1, 2005, and not 
later than April 1 of each year thereafter, the Chief Exec-
utive Officer of the Corporation shall prepare and trans-
mit to the appropriate congressional committees a report 
on the implementation of this title for the preceding year. 
(b) CONTENTS.—The report shall include the fol-
lowing: 
(1) A description and assessment of the eligi-
bility criteria and methodology utilized by the Chief 
Executive Officer to determine eligibility for each 
country under section 203.
(2) A description of the agreed upon measures 
of progress contained in each Compact. 
(3)(A) An analysis, on a country-by-country, 
project-by-project basis, of the impact of assistance 
provided under this title on the economic develop-
ment of each country. 
(B) For each country, the analysis shall—
(i) to the maximum extent possible, be 
done on a sector-by-sector basis, gender basis, 
and per capita income basis, and identify trends 
within each of these bases; 
(ii) identify economic policy reforms condu-
cive to economic development that are sup-
ported by assistance provided under this title; 
(iii) describe, in quantified terms to the ex-
tent practicable, the progress made in achieving 
assistance objectives for the country; 
(iv) describe the amount and nature of eco-
nomic assistance provided by other major do-
nors which further the purposes of this title; 
and 
(v) discuss the commitment and contribu-
tion of the country to achieving the assistance 
objectives contained in its Compact.
SEC. 207. AUTHORIZATION OF APPROPRIATIONS; RELATED 
AUTHORITIES. 
(a) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the President, acting 
through the Chief Executive Officer of the Corporation, 
to carry out this division (other than title IV) 
$1,300,000,000 for fiscal year 2004, $3,000,000,000 for 
fiscal year 2005, and $5,000,000,000 for fiscal year 2006. 
(b) ADDITIONAL AUTHORITIES.—Amounts appro-
priated pursuant to the authorization of appropriations 
under subsection (a)—
(1) may be referred to as the ‘‘Millennium 
Challenge Account’’; 
(2) are authorized to remain available until ex-
pended; and 
(3) are in addition to amounts otherwise avail-
able for such purposes. 
TITLE III—MILLENNIUM 
CHALLENGE CORPORATION 
SEC. 301. MILLENNIUM CHALLENGE CORPORATION. 
(a) ESTABLISHMENT.—There is hereby established in 
the executive branch a corporation to be known as the 
‘‘Millennium Challenge Corporation’’ that shall be respon-
sible for carrying out title II.
(b) GOVERNMENT CORPORATION.—The Corporation 
shall be a Government corporation, as defined in section 
103 of title 5, United States Code. 
SEC. 302. CHIEF EXECUTIVE OFFICER. 
(a) APPOINTMENT.—The Corporation shall be head-
ed by an individual who shall serve as Chief Executive Of-
ficer of the Corporation, who shall be appointed by the 
President, by and with the advice and consent of the Sen-
ate. 
(b) COMPENSATION AND RANK.—
(1) IN GENERAL.—The Chief Executive Officer 
shall be compensated at the rate provided for level 
II of the Executive Schedule under section 5313 of 
title 5, United States Code, and shall have the equiv-
alent rank of Deputy Secretary. 
(2) AMENDMENT.—Section 5313 of title 5, 
United States Code, is amended by adding at the 
end the following: 
‘‘Chief Executive Officer, Millennium Challenge 
Corporation.’’. 
(c) AUTHORITIES AND DUTIES.—The Chief Execu-
tive Officer shall exercise the powers and discharge the 
duties of the Corporation and any other duties, as con-
ferred on the Chief Executive Officer by the President.
(d) AUTHORITY TO APPOINT OFFICERS.—The Chief 
Executive Officer shall appoint all officers of the Corpora-
tion. 
SEC. 303. BOARD OF DIRECTORS. 
(a) IN GENERAL.—There shall be in the Corporation 
a Board of Directors. 
(b) DUTIES.—The Board may prescribe, amend, and 
repeal bylaws, rules, regulations, and procedures gov-
erning the manner in which the business of the Corpora-
tion may be conducted and in which the powers granted 
to it by law may be exercised. 
(c) MEMBERSHIP.—
(1) IN GENERAL.—The Board shall consist of—
(A) the Secretary of State, the Secretary 
of Treasury, the Administrator of the United 
States Agency for International Development, 
the Chief Executive Officer of the Corporation, 
and the United States Trade Representative; 
and 
(B) four other individuals who shall be ap-
pointed by the President, by and with the ad-
vice and consent of the Senate, of which—
(i) one individual shall be appointed 
from among a list of individuals submitted
by the majority leader of the House of 
Representatives; 
(ii) one individual shall be appointed 
from among a list of individuals submitted 
by the minority leader of the House of 
Representatives; 
(iii) one individual shall be appointed 
from among a list of individuals submitted 
by the majority leader of the Senate; and 
(iv) one individual shall be appointed 
from among a list of individuals submitted 
by the minority leader of the Senate. 
(2) EX-OFFICIO
MEMBERS.—In addition to 
members of the Board described in paragraph (1), 
the Director of the Office of Management and Budg-
et, the President and Chief Executive Officer of the 
Overseas Private Investment Corporation, the Direc-
tor of the Trade and Development Agency, and the 
Director of the Peace Corps shall be non-voting 
members, ex officio, of the Board. 
(d) TERMS.—
(1) OFFICERS
OF
FEDERAL
GOVERNMENT.—
Each member of the Board described in paragraphs 
(1)(A) and (2) of subsection (c) shall serve for a 
term that is concurrent with the term of service of
the individual’s position as an officer within the 
other Federal department or agency. 
(2) OTHER MEMBERS.—Each member of the 
Board described in subsection (c)(1)(B) shall be ap-
pointed for a term of 3 years and may be re-
appointed for a term of an additional 2 years. 
(3) VACANCIES.—A vacancy in the Board shall 
be filled in the manner in which the original appoint-
ment was made. 
(e) CHAIRPERSON.—The Secretary of State shall 
serve as the Chairperson of the Board. 
(f) QUORUM.—A majority of the members of the 
Board shall constitute a quorum, which shall include at 
least one member of the Board described in subsection 
(c)(1)(B). 
(g) MEETINGS.—The Board shall meet at the call of 
the Chairperson. 
(h) COMPENSATION.—
(1) OFFICERS OF FEDERAL GOVERNMENT.—
(A) IN GENERAL.—A member of the Board 
described in paragraphs (1)(A) and (2) of sub-
section (c) may not receive additional pay, al-
lowances, or benefits by reason of their service 
on the Board.
(B) TRAVEL EXPENSES.—Each such mem-
ber of the Board shall receive travel expenses, 
including per diem in lieu of subsistence, in ac-
cordance with applicable provisions under sub-
chapter I of chapter 57 of title 5, United States 
Code. 
(2) OTHER MEMBERS.—
(A) IN GENERAL.—Except as provided in 
paragraph (2), a member of the Board de-
scribed in subsection (c)(1)(B)—
(i) shall be paid compensation out of 
funds made available for the purposes of 
this title at the daily equivalent of the 
highest rate payable under section 5332 of 
title 5, United States Code, for each day 
(including travel time) during which the 
member is engaged in the actual perform-
ance of duties as a member of the Board; 
and 
(ii) while away from the member’s 
home or regular place of business on nec-
essary travel, as determined by the Chief 
Executive Officer, in the actual perform-
ance of duties as a member of the Board, 
shall be paid per diem, travel, and trans-
portation expenses in the same manner as 
is provided under subchapter I of chapter 
57 of title 5, United States Code. 
(B) LIMITATION.—A member of the Coun-
cil may not be paid compensation under sub-
paragraph (A)(i) for more than thirty days in 
any calendar year. 
SEC. 304. INTERAGENCY COORDINATION. 
In carrying out the functions described in this title, 
and consistent with section 101 of the National Security 
Act of 1947 (50 U.S.C. 402), the President shall ensure 
coordination of assistance authorized under title II with 
foreign economic assistance programs and activities car-
ried out by other Federal departments and agencies. 
SEC. 305. POWERS OF THE CORPORATION; RELATED PROVI-
SIONS. 
(a) POWERS.—The Corporation—
(1) may adopt, alter, and use a corporate seal, 
which shall be judicially noticed; 
(2) may prescribe, amend, and repeal such 
rules, regulations, and procedures as are necessary 
for carrying out the functions of the Corporation 
and all Compacts; 
(3) may make and perform such contracts, 
grants, and other agreements with any individual,
corporation, or other private or public entity, how-
ever designated and wherever situated, as may be 
necessary for carrying out the functions of the Cor-
poration; 
(4) 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; 
(5) may lease, purchase, or otherwise acquire, 
own, hold, improve, use or otherwise deal in and 
with such property (real, personal, or mixed) or any 
interest therein, wherever situated, as may be nec-
essary for carrying out the functions of the Corpora-
tion; 
(6) may accept gifts or donations of services or 
of property (real, personal, or mixed), tangible or in-
tangible, in furtherance of the purposes of this divi-
sion; 
(7) may hire or obtain passenger motor vehi-
cles; 
(8) may use the United States mails in the 
same manner and on the same conditions as the Ex-
ecutive departments (as defined in section 101 of 
title 5, United States Code);
(9) may, with the consent of any Executive 
agency (as defined in section 105 of title 5, United 
States Code), use the information, services, facilities, 
and personnel of that agency on a full or partial re-
imbursement in carrying out the purposes of this di-
vision; and 
(10) may sue and be sued, complain, and de-
fend, in its corporate name in any court of com-
petent jurisdiction. 
(b) OFFICES.—
(1) PRINCIPAL OFFICE.—The Corporation shall 
maintain its principal office in the metropolitan area 
of Washington, District of Columbia. 
(2) OTHER OFFICES.—The Corporation may es-
tablish other offices in any place or places outside 
the United States in which the Corporation may 
carry out any or all of its operations and business. 
(c) COOPERATION WITH OTHER FEDERAL DEPART-
MENTS AND AGENCIES.—In order to avoid unnecessary 
expense and duplication of functions, efforts, and activities 
between the Corporation and other Federal departments 
and agencies the Chief Executive Officer, or the Chief Ex-
ecutive Officer’s designee—
(1)(A) shall consult, to the maximum extent 
practicable, with the Administrator of the United
States Agency for International Development, or the 
Administrator’s designee, in order to coordinate the 
activities of the Corporation and the Agency for 
International Development; and 
(B) shall consult with the heads of other de-
partments and agencies to ensure similar coordina-
tion of activities; 
(2)(A) shall ensure proper coordination of ac-
tivities of the Corporation with the provision of de-
velopment assistance of relevant international finan-
cial institutions, including the International Bank 
for Reconstruction and Development, the Inter-
national Monetary Fund, and the regional multilat-
eral development banks; and 
(B) shall provide to each United States Execu-
tive Director (or other United States representative) 
to the relevant international financial institutions a 
copy of each proposed Compact between the United 
States and an eligible country and a copy of each 
such final Compact. 
(d) 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 with international organizations. 
SEC. 306. TRANSPARENCY AND ACCOUNTABILITY OF THE 
CORPORATION. 
The Corporation and its officers and employees shall 
be subject to the provisions of section 552 of title 5, 
United States Code (relating to freedom of information). 
SEC. 307. DETAIL OF PERSONNEL TO THE CORPORATION; 
OTHER AUTHORITIES AND LIMITATIONS. 
(a) DETAIL OF PERSONNEL.—Upon request of the 
Chief Executive Officer of the Corporation, the head of 
an agency may detail any employee of such agency to the 
Corporation on a fully or partially reimbursable basis. Any 
employee so detailed remains, for the purpose of pre-
serving such employee’s allowances, privileges, rights, se-
niority, and other benefits, an employee of the agency 
from which detailed. 
(b) LIMITATION ON TOTAL SERVICE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), no individual may serve in or under the 
Corporation (whether as an employee of the Cor-
poration, a detailee to the Corporation, or a com-
bination thereof) for a total period exceeding 5 
years. 
(2) EXCEPTIONS.—
(A) EXTENSION
AUTHORITY.—The Chief 
Executive Officer may extend the 5-year period 
under paragraph (1) for up to an additional 3 
years, in the case of any particular individual, 
if the Chief Executive Officer determines that 
such extension is essential to the achievement of 
the purposes of this division. 
(B) OFFICERS.—Nothing in this sub-
section shall limit the period for which an indi-
vidual may serve as an officer of the Corpora-
tion appointed pursuant to section 302(d) nor 
shall any period of service as such an officer be 
taken into account for purposes of applying this 
subsection. 
(c) REEMPLOYMENT RIGHTS.—
(1) IN GENERAL.—An employee of an agency 
who is serving under a career or career conditional 
appointment (or the equivalent), and who, with the 
consent of the head of such agency, transfers to the 
Corporation, is entitled to be reemployed in such em-
ployee’s former position or a position of like senior-
ity, status, and pay in such agency, if such em-
ployee—
(A) is separated from the Corporation—
(i) by reason of the application of sub-
section (b); or 
(ii) for any other reason, other than 
misconduct, neglect of duty, or malfea-
sance; and 
(B) applies for reemployment not later 
than 90 days after the date of separation from 
the Corporation. 
(2) SPECIFIC RIGHTS.—An employee who satis-
fies paragraph (1) is entitled to be reemployed (in 
accordance with such paragraph) within 30 days 
after applying for reemployment and, on reemploy-
ment, is entitled to at least the rate of basic pay to 
which such employee would have been entitled had 
such employee never transferred. 
(d) BASIC PAY.—The Chief Executive Officer may fix 
the rate of basic pay of employees of the Corporation with-
out regard to the provisions of—
(1) chapter 51 of title 5, United States Code 
(relating to the classification of positions), and 
(2) subchapter III of chapter 53 of such title 
(relating to General Schedule pay rates), 
except that no employee of the Corporation may receive 
a rate of basic pay that exceeds the rate for level II of 
the Executive Schedule under section 5313 of such title.
(e) ASSIGNMENT TO UNITED STATES EMBASSIES.—
An employee of the Corporation, including an individual 
detailed to or contracted by the Corporation, may be as-
signed to a United States diplomatic mission or consular 
post, or United States Agency for International Develop-
ment field mission. 
(f) PRIVILEGES AND IMMUNITIES.—The Secretary of 
State shall seek to ensure that an employee of the Cor-
poration, including an individual detailed to or contracted 
by the Corporation, and the members of the family of such 
employee, while the employee is performing duties in any 
country or place outside the United States, enjoy the privi-
leges and immunities that are enjoyed by a member of 
the Foreign Service, or the family of a member of the For-
eign Service, as appropriate, of comparable rank and sal-
ary of such employee, if such employee or a member of 
the family of such employee is not a national of or perma-
nently resident in such country or place. 
(g) RESPONSIBILITY OF CHIEF OF MISSION.—An 
employee of the Corporation, including an individual de-
tailed to or contracted by the Corporation, and a member 
of the family of such employee, shall be subject to section 
207 of the Foreign Service Act of 1980 (22 U.S.C. 3927) 
in the same manner as United States Government employ-
ees while the employee is performing duties in any country
or place outside the United States if such employee or 
member of the family of such employee is not a national 
of or permanently resident in such country or place. 
(h) ALLOCATION OF FUNDS.—
(1) IN GENERAL.—The Corporation may allo-
cate or transfer to the United States Agency for 
International Development or any other agency any 
part of any funds available for carrying out the pur-
poses of this division. Such funds shall be available 
for obligation and expenditure for the purposes for 
which authorized, in accordance with authority 
granted in this title or under authority governing the 
activities of the agencies of the United States Gov-
ernment to which such funds are allocated or trans-
ferred. 
(2) 
CONGRESSIONAL
NOTIFICATION.—The 
Chief Executive Officer shall notify the appropriate 
congressional committees not later than 15 days 
prior to a transfer of funds under paragraph (1) 
that exceeds $5,000,000. 
(3) USE OF SERVICES.—For carrying out the 
purposes of this division, the Corporation may utilize 
the services and facilities of, or procure commodities 
from, any agency under such terms and conditions
as may be agreed to by the head of the agency and 
the Corporation. 
(i) FUNDING LIMITATION.—Of the funds allocated 
under subsection (h) in any fiscal year, not more than 7 
percent of such funds may be used for administrative ex-
penses. 
(j) OTHER AUTHORITIES.—Except to the extent in-
consistent with the provisions of this division, the adminis-
trative authorities under chapters 1 and 2 of part III of 
the Foreign Assistance Act of 1961 shall apply to the pro-
vision of assistance under this division to the same extent 
and in the same manner as such authorities apply to the 
provision of economic assistance under part I of such Act. 
(k) APPLICABILITY OF GOVERNMENT CORPORATION 
CONTROL ACT.—
(1) IN
GENERAL.—The Corporation shall be 
subject to the provisions of chapter 91 of subtitle VI 
of title 31, United States Code, except that the Cor-
poration shall not be authorized to issue obligations 
or offer obligations to the public. 
(2) 
CONFORMING
AMENDMENT.—Section 
9101(3) of title 31, United States Code, is amended 
by adding at the end the following: 
‘‘(Q) the Millennium Challenge Corpora-
tion.’’
(l) INSPECTOR GENERAL.—
(1) IN
GENERAL.—The Inspector General of 
the United States Agency for International Develop-
ment shall serve as Inspector General of the Cor-
poration, and, in acting in such capacity, may con-
duct reviews, investigations, and inspections of all 
aspects of the operations and activities of the Cor-
poration. 
(2) AUTHORITY OF THE BOARD.—In carrying 
out its responsibilities under this subsection, the In-
spector General shall report to the Board of Direc-
tors. 
(3) REIMBURSEMENT.—The Corporation shall 
reimburse the United States Agency for Inter-
national Development for all expenses incurred by 
the Inspector General in connection with the Inspec-
tor General’s responsibilities under this subsection. 
(m) COMPTROLLER GENERAL.—
(1) IN
GENERAL.—The Comptroller General 
shall conduct audits, evaluations, and investigations 
of the Corporation. 
(2) SCOPE.—The activities and financial trans-
actions of the Corporation for any fiscal year during 
which Federal funds are available to finance any 
portion of its operations may be evaluated, inves-
tigated, or audited by the Comptroller General in ac-
cordance with such rules and regulations as may be 
prescribed by the Comptroller General. 
(3) ACCESS AND RECORDS.—Any evaluation, in-
vestigation, or audit shall be conducted at the place 
or places where pertinent information of the Cor-
poration is normally kept. The representatives of the 
General Accounting Office shall have access to all 
books, accounts, financial records, reports, files, and 
other papers or property belonging to or in use by 
the Corporation and necessary to facilitate the eval-
uation, investigation, or audit; and full facilities for 
verifying transactions with the balances and securi-
ties held by depositories, fiscal agents, and 
custodians shall be afforded to such representatives. 
All such books, accounts, financial records, reports, 
files, and other papers or property of the Corpora-
tion shall remain in the possession and custody of 
the Corporation throughout the period beginning on 
the date such possession or custody commences and 
ending three years after such date, but the General 
Accounting Office may require the retention of such 
books, accounts, financial records, reports, files, pa-
pers, or property for a longer period under section 
3523(c) of title 31, United States Code.
(4) REPORT.—A report of such audit, evalua-
tion, or investigation shall be made by the Comp-
troller General to the appropriate congressional com-
mittees and to the President, together with such rec-
ommendations with respect thereto as the Comp-
troller General shall deem advisable. 
(n) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘agency’’ means an Executive 
agency, as defined by section 105 of title 5, United 
States Code; and 
(2) the term ‘‘detail’’ means the assignment or 
loan of an employee, without a change of position, 
from the agency by which such employee is employed 
to the Corporation. 
SEC. 308. MILLENNIUM CHALLENGE ADVISORY COUNCIL. 
(a) ESTABLISHMENT.—There is hereby established in 
the executive branch an advisory council to the Corpora-
tion to be known as the Millennium Challenge Advisory 
Council. 
(b) FUNCTIONS.—
(1) GENERAL FUNCTIONS.—The Council shall 
advise and consult with the Chief Executive Officer 
of the Corporation and the Board of Directors with 
respect to policies and programs designed to further 
the purposes of this division and shall periodically
report to the Congress with respect to the activities 
of the Corporation. In addition, the Council shall re-
view on an annual basis the criteria and method-
ology used to determine eligibility of countries for 
assistance under title II and make recommendations 
to the Chief Executive Officer and the Board to im-
prove the effectiveness of such criteria and method-
ology in order to achieve the purposes of this divi-
sion. 
(2) ADDITIONAL FUNCTIONS.—Members of the 
Council shall (subject to subsection (d)(1)) conduct 
on-site inspections, and make examinations, of the 
activities of the Corporation in the United States 
and in other countries in order to—
(A) evaluate the accomplishments of the 
Corporation; 
(B) assess the potential capabilities and 
the future role of the Corporation; 
(C) make recommendations to the Chief 
Executive Officer, the Board of Directors, and 
Congress, for the purpose of guiding the future 
direction of the Corporation and of helping to 
ensure that the purposes and programs of the 
Corporation are carried out in ways that are ec-
onomical, efficient, responsive to changing
needs in developing countries and to changing 
relationships among people, and in accordance 
with law; 
(D) make such other evaluations, assess-
ments, and recommendations as the Council 
considers appropriate. 
(3) PUBLIC PARTICIPATION.—The Council may 
provide for public participation in its activities, con-
sistent with section 552b of title 5, United States 
Code. 
(c) MEMBERSHIP.—
(1) IN GENERAL.—The Council shall consist of 
seven individuals, who shall be appointed by the 
Chief Executive Officer, and who shall be broadly 
representative of nongovernmental entities with ex-
pertise and interest in international trade and eco-
nomic development, including business and business 
associations, trade and labor unions, private and vol-
untary organizations, foundations, public policy or-
ganizations, academia, and other entities as the 
Chief Executive Officer determines appropriate. 
(2) ADDITIONAL REQUIREMENT.—No member 
appointed under paragraph (1) may be an officer or 
employee of the United States Government. 
(d) COMPENSATION.—
(1) IN GENERAL.—Except as provided in para-
graph (2), a member of the Council—
(A) shall be paid compensation out of 
funds made available for the purposes of this 
title at the daily equivalent of the highest rate 
payable under section 5332 of title 5, United 
States Code, for each day (including travel 
time) during which the member is engaged in 
the actual performance of duties as a member 
of the Council; and 
(B) while away from the member’s home 
or regular place of business on necessary travel, 
as determined by the Chief Executive Officer, in 
the actual performance of duties as a member 
of the Council, shall be paid per diem, travel, 
and transportation expenses in the same man-
ner as is provided under subchapter I of chap-
ter 57 of title 5, United States Code. 
(2) LIMITATION.—A member of the Council 
may not be paid compensation under paragraph 
(1)(A) for more than thirty days in any calendar 
year. 
(e) QUORUM.—A majority of the members of the 
Council shall constitute a quorum for the purposes of 
transacting any business.
(f) FINANCIAL INTERESTS OF MEMBERS.—A mem-
ber of the Council shall disclose to the Chairperson of the 
Council and the Chief Executive Officer of the existence 
of any direct or indirect financial interest of that member 
in any particular matter before the Council and may not 
vote or otherwise participate as a Council member with 
respect to that particular matter. 
(g) CHAIRPERSON.—The Chief Executive Officer 
shall designate one of the members of the Council as 
Chairperson, who shall serve in that capacity for a term 
of two years. The Chief Executive Officer may renew the 
term of the member appointed as Chairperson under the 
preceding sentence. 
(h) MEETINGS, BYLAWS, AND REGULATIONS.—
(1) MEETINGS.—The Council shall hold a reg-
ular meeting during each calendar quarter and shall 
meet at the call of the President, the Chief Execu-
tive Officer, the Chairperson of the Board, the 
Chairperson of the Council, or two members of the 
Council. 
(2) BYLAWS AND REGULATIONS.—The Council 
shall prescribe such bylaws and regulations as it 
considers necessary to carry out its functions. Such 
bylaws and regulations shall include procedures for 
fixing the time and place of meetings, giving or
waiving of notice of meetings, and keeping of min-
utes of meetings. 
(i) REPORT TO THE PRESIDENT, CHIEF EXECUTIVE 
OFFICER, AND BOARD.—
(1) REPORT.—Not later than January 1, 2005, 
and not later than January 1 of each year thereafter 
that the Corporation is in existence, the Council 
shall submit to the President, the Chief Executive 
Officer, and the Board a report on its views on the 
programs and activities of the Corporation. 
(2) CONTENTS.—Each report shall contain a 
summary of the advice and recommendations pro-
vided by the Council to the Chief Executive Officer 
and the Board during the period covered by the re-
port and such recommendations (including rec-
ommendations for administrative or legislative ac-
tion) as the Council considers appropriate to make 
to the Congress. 
(3) ADDITIONAL
REQUIREMENT.—Not later 
than 90 days after receiving each such report, the 
Chief Executive Officer shall transmit to Congress a 
copy of the report, together with any comments con-
cerning the report that the Chief Executive Officer 
considers appropriate.
(j) ADMINISTRATIVE ASSISTANCE.—The Chief Exec-
utive Officer shall make available to the Council such per-
sonnel, administrative support services, and technical as-
sistance as are necessary to carry out its functions effec-
tively. 
(k) TERMINATION.—Section 14(a)(2)(B) of the Fed-
eral Advisory Committee Act (5 U.S.C. App.; relating to 
the termination of advisory committees) shall not apply 
to the Council. Notwithstanding section 102 of this Act, 
the authorities of the Council shall terminate on December 
31, 2007. 
SEC. 309. ENHANCING DATA COLLECTION AND MONI-
TORING AND EVALUATION CAPABILITIES. 
(a) IN GENERAL.—The President, acting through the 
Chief Executive Officer of the Corporation, is authorized 
to provide assistance (through grant, contract, and, where 
applicable, in coordination with appropriate international 
organizations) to appropriate nongovernmental organiza-
tions in order to assist the Corporation to improve the 
quality and accuracy of the criteria that are utilized to 
determine a country’s eligibility for assistance under title 
II. 
(b) USE OF ASSISTANCE.—Assistance provided under 
subsection (a) may be used to facilitate—
(1) data collection and research which are di-
rectly related to the eligibility criteria used under 
section 203, particularly as the criteria relate to 
women and children; 
(2) the monitoring and evaluation capabilities 
of recipients under section 203(f); and 
(3) the strengthening of the trade index to ac-
cess data on actual trade barriers. 
(c) LIMITATION.—Not more than $10,000,000 of the 
amount made available to carry out this division for a fis-
cal year may be made available to carry out this section. 
TITLE IV—PROVISIONS RELAT-
ING TO UNITED STATES ECO-
NOMIC ASSISTANCE 
SEC. 401. DEFINITION. 
In this title, the term ‘‘United States economic assist-
ance’’ means any bilateral economic assistance, from any 
budget functional category, that is provided by any depart-
ment or agency of the United States to a foreign country, 
including such assistance that is intended—
(1) to assist the development and economic ad-
vancement of friendly foreign countries and peoples, 
including assistance provided under title II (relating 
to the Millennium Challenge Account);
(2) to promote the freedom, aspirations, or sus-
tenance of friendly peoples under oppressive rule by 
unfriendly governments; 
(3) to promote international trade and foreign 
direct investment as a means of aiding economic 
growth; 
(4) to save lives and alleviate suffering of for-
eign peoples during or following war, natural dis-
aster, or complex crisis; 
(5) to assist in recovery and rehabilitation of 
countries or peoples following disaster or war; 
(6) to protect refugees and promote durable so-
lutions to aid refugees; 
(7) to promote sound environmental practices; 
(8) to assist in development of democratic insti-
tutions and good governance by the people of foreign 
countries; 
(9) to promote peace and reconciliation or pre-
vention of conflict; 
(10) to improve the technical capacities of gov-
ernments to reduce production of and demand for il-
licit narcotics; and
(11) to otherwise promote through bilateral for-
eign economic assistance the national objectives of 
the United States.
SEC. 402. FRAMEWORK FOR ASSISTANCE. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that a coherent framework for United States eco-
nomic assistance should be established in accordance with 
this section. 
(b) ELEMENTS.—The framework described in sub-
section (a) includes the following elements: 
(1) The United States Agency for International 
Development, under the direction and foreign policy 
guidance of the Secretary of State, should be respon-
sible for—
(A) providing assistance to countries that 
face natural and man-made disasters in order 
to provide humanitarian relief to the peoples of 
such countries, in coordination with refugee 
programs administered by the Department of 
State; 
(B) providing assistance to countries that 
are suffering from conflicts or are in post-con-
flict situations in order to provide humanitarian 
relief, transition assistance, and reconstruction 
assistance; 
(C) providing assistance to help moderate-
to-poorly performing countries achieve develop-
ment progress in the areas described in part I 
of the Foreign Assistance Act of 1961, includ-
ing progress toward becoming eligible for assist-
ance under this title, and to promote inter-
national health worldwide, as well as assisting 
in the development of country and regional de-
velopment strategies; 
(D) addressing transnational problems, 
such as environmental degradation, food insecu-
rity, and health problems; and 
(E) assisting other Federal departments 
and agencies, including the Corporation estab-
lished under title III, to carry out assistance ac-
tivities abroad, including providing technical as-
sistance and advice to such departments and 
agencies, coordinating its assistance programs 
with such departments and agencies, and using 
its field offices to help implement such assist-
ance. 
(2) The Corporation established under title III 
should provide assistance to countries that have 
demonstrated a commitment to bolstering democ-
racy, good governance, and the rule of law, to invest-
ing in the health and educations of their people, and 
to promoting sound economic policies that foster 
economic opportunity for their people.
(3) The Department of State should be respon-
sible for allocating security assistance to support key 
foreign policy objectives of the United States and 
shall administer assistance in such areas as non-pro-
liferation, anti-terrorism, counter-narcotics, and re-
lief for refugees. 
(4) Other Federal departments and agencies 
with expertise in international development-related 
activities, such as the Overseas Private Investment 
Corporation, the Trade and Development Agency, 
the Department of Agriculture, the Department of 
Health and Human Services, and the Centers for 
Disease Control and Prevention, to the extent such 
departments and agencies have the authority to 
carry out development-related programs, and in co-
ordination with the Department of State and the 
United States Agency for International Develop-
ment, should provide expertise in specific technical 
areas and shall provide assistance, including assist-
ance provided with funds made available from the 
Corporation to assist United States Government 
international development activities.
SEC. 403. REPORT RELATING TO IMPACT AND EFFECTIVE-
NESS OF ASSISTANCE. 
(a) REPORT.—Not later than December 31, 2004, 
and December 31 of each third year thereafter, the Presi-
dent shall transmit to Congress a report which analyzes, 
on a country-by-country basis, the impact and effective-
ness of United States economic assistance furnished under 
the framework established in section 402 to each country 
during the preceding three fiscal years. The report shall 
include the following for each recipient country: 
(1) An analysis of the impact of United States 
economic assistance during the preceding three fiscal 
years on economic development in that country, with 
a discussion of the United States interests that were 
served by the assistance. This analysis shall be done 
on a sector-by-sector basis to the extent possible and 
shall identify any economic policy reforms which 
were promoted by the assistance. This analysis 
shall—
(A) include a description, quantified to the 
extent practicable, of the specific objectives the 
United States sought to achieve in providing 
economic assistance for that country, and 
(B) specify the extent to which those objec-
tives were not achieved, with an explanation of 
why they were not achieved.
(2) A description of the amount and nature of 
economic assistance provided by other donors during 
the preceding three fiscal years, set forth by develop-
ment sector to the extent possible. 
(3) A discussion of the commitment of the host 
government to addressing the country’s needs in 
each development sector, including a description of 
the resources devoted by that government to each 
development sector during the preceding three fiscal 
years. 
(4) A description of the trends, both favorable 
and unfavorable, in each development sector. 
(5) Statistical and other information necessary 
to evaluate the impact and effectiveness of United 
States economic assistance on development in the 
country. 
(6) A comparison of the analysis provided in 
the report with relevant analyses by international fi-
nancial institutions, other international organiza-
tions, other donor countries, or nongovernmental or-
ganizations. 
(b) LISTING OF MOST AND LEAST SUCCESSFUL AS-
SISTANCE PROGRAMS.—The report required by this sec-
tion shall identify—
(1) each country in which United States eco-
nomic assistance has been most successful, as indi-
cated by the extent to which the specific objectives 
the United States sought to achieve in providing the 
assistance for the country, as referred to in sub-
section (a)(1)(A), were achieved; and 
(2) each country in which United States eco-
nomic assistance has been least successful, as indi-
cated by the extent to which the specific objectives 
the United States sought to achieve in providing the 
assistance for the country, as referred to in sub-
section (a)(1)(A), were not achieved. 
For each country listed pursuant to paragraph (2), the 
report shall explain why the assistance was not more suc-
cessful and shall specify what the United States has done 
as a result. 
(c) DE MINIMUS EXCEPTION.—Information under 
subsections (a) and (b) for a fiscal year shall not be re-
quired with respect to a country for which United States 
economic assistance for the country for the fiscal year is 
less than $5,000,000.
DIVISION B—REAUTHORIZATION 
AND 
EXPANSION 
OF 
THE 
PEACE CORPS 
TITLE X—GENERAL PROVISIONS 
SEC. 1001. DEFINITIONS. 
In this division: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on International Re-
lations of the House of Representatives and the 
Committee on Foreign Relations of the Senate. 
(2) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Peace Corps. 
(3) HOST COUNTRY.—The term ‘‘host country’’ 
means a country whose government has invited the 
Peace Corps to establish a Peace Corps program 
within the territory of the country. 
(4) PEACE
CORPS
VOLUNTEER.—The term 
‘‘Peace Corps volunteer’’ means a volunteer or a vol-
unteer leader under the Peace Corps Act. 
(5) RETURNED
PEACE
CORPS
VOLUNTEER.—
The term ‘‘returned Peace Corps volunteer’’ means 
a person who has been certified by the Director as 
having served satisfactorily as a Peace Corps volun-
teer.
SEC. 1002. FINDINGS. 
Congress makes the following findings: 
(1) The Peace Corps was established in 1961 to 
promote world peace and friendship through the 
service abroad of volunteers who are United States 
citizens. The spirit of service and commitment to 
helping others is a fundamental component of de-
mocracy. 
(2) Since its establishment, more than 168,000 
volunteers have served in the Peace Corps in 136 
countries throughout the world. 
(3) The three goals codified in the Peace Corps 
Act which have guided the Peace Corps and its vol-
unteers over the years, can work in concert to pro-
mote global acceptance of the principles of inter-
national peace and nonviolent coexistence among 
peoples of diverse cultures and systems of govern-
ment. 
(4) The Peace Corps has sought to fulfill three 
goals—to help people in developing countries meet 
basic needs, promote understanding abroad of the 
values and ideals of the United States, and promote 
an understanding of other peoples by the people of 
the United States. 
(5) After more than 40 years of operation, the 
Peace Corps remains the world’s premier inter-
national service organization dedicated to promoting 
grassroots development by working with families and 
communities to improve health care for children, ex-
pand agricultural production, teach in schools, fight 
infectious diseases, protect the environment, and ini-
tiate small business opportunities. 
(6) The Peace Corps remains committed to 
sending well trained and well supported Peace Corps 
volunteers overseas to promote international peace, 
cross-cultural awareness, and mutual understanding 
between the United States and other countries. 
(7) The Peace Corps is an independent agency, 
and, therefore, no Peace Corps personnel or volun-
teers should be used to accomplish any goal other 
than the goals established by the Peace Corps Act. 
(8) The Crisis Corps has been an effective tool 
in harnessing the skills and talents of returned 
Peace Corps volunteers and should be expanded, to 
the maximum extent practicable, to utilize the talent 
of returned Peace Corps volunteers. 
(9) In fiscal year 2003, the Peace Corps is op-
erating with an annual budget of $295,000,000 in 
70 countries, with more than 7,000 Peace Corps vol-
unteers.
(10) There is deep misunderstanding and mis-
information in many parts of the world, particularly 
in countries with substantial Muslim populations, 
with respect to United States values and ideals. A 
new or expanded Peace Corps presence in such 
places could foster better understanding between the 
people of the United States and such countries. 
(11) Congress has declared, and the Peace 
Corps Act provides, that the Peace Corps shall 
maintain, to the maximum extent practicable and 
appropriate, a volunteer corps of at least 10,000 in-
dividuals. 
(12) President George W. Bush has called for 
the doubling of the number of Peace Corps volun-
teers in service. 
(13) Any expansion of the Peace Corps should 
not jeopardize the quality of the Peace Corps volun-
teer experience and, therefore, necessitates, among 
other things, an appropriate increase in field and 
headquarters support staff. 
(14) In order to ensure that the proposed ex-
pansion of the Peace Corps preserves the integrity of 
the program and the security of volunteers, the inte-
grated Planning and Budget System supported by
the Office of Planning and Policy Analysis should 
continue its focus on strategic planning. 
(15) A streamlined, bipartisan Peace Corps Na-
tional Advisory Council composed of distinguished 
returned Peace Corps volunteers, former Peace 
Corps staff, and other individuals with diverse back-
grounds and expertise can be a source of ideas and 
suggestions that may be useful to the Director of the 
Peace Corps as the Director discharges the duties 
and responsibilities as head of the agency. 
TITLE 
XI—AMENDMENTS 
TO 
PEACE CORPS ACT; RELATED 
PROVISIONS 
SEC. 1101. ADVANCING THE GOALS OF THE PEACE CORPS. 
(a) RECRUITMENT OF VOLUNTEERS.—Section 2A of 
the Peace Corps Act (22 U.S.C. 2501–1) is amended by 
adding at the end the following new sentence: ‘‘As an inde-
pendent agency, the Peace Corps shall be responsible for 
recruiting all of its volunteers.’’. 
(b) DETAILS AND ASSIGNMENTS.—Section 5(g) of 
the Peace Corps Act (22 U.S.C. 2504(g)) is amended by 
striking ‘‘Provided, That’’ and inserting ‘‘Provided, That 
such detail or assignment furthers the fulfillment of Peace 
Corps’ development and public diplomacy goals as de-
scribed in section 2: Provided further, That’’.
SEC. 1102. REPORTS AND CONSULTATIONS. 
(a) ANNUAL REPORTS; CONSULTATIONS
ON NEW 
INITIATIVES.—Section 11 of the Peace Corps Act (22 
U.S.C. 2510) is amended by striking the section heading 
and the text of section 11 and inserting the following: 
‘‘SEC. 11. ANNUAL REPORTS; CONSULTATIONS ON NEW INI-
TIATIVES. 
‘‘(a) ANNUAL REPORTS.—The Director shall trans-
mit to Congress, at least once in each fiscal year, a report 
on operations under this Act. Each report shall contain 
information—
‘‘(1) describing efforts undertaken to improve 
coordination of activities of the Peace Corps with ac-
tivities of international voluntary service organiza-
tions, such as the United Nations volunteer pro-
gram, and of host country voluntary service organi-
zations, including—
‘‘(A) a description of the purpose and 
scope of any development project which the 
Peace Corps undertook during the preceding 
fiscal year as a joint venture with any such 
international or host country voluntary service 
organizations; and 
‘‘(B) recommendations for improving co-
ordination of development projects between the
Peace Corps and any such international or host 
country voluntary service organizations; 
‘‘(2) describing—
‘‘(A) any major new initiatives that the 
Peace Corps has under review for the upcoming 
fiscal year, and any major initiatives that were 
undertaken in the previous fiscal year that were 
not included in prior reports to the Congress; 
‘‘(B) the rationale for undertaking such 
new initiatives; 
‘‘(C) an estimate of the cost of such initia-
tives; and 
‘‘(D) the impact on the safety of volun-
teers; 
‘‘(3) describing in detail the Peace Corps plans, 
including budgetary plans, to have 14,000 volunteers 
in service by 2007 while maintaining the quality of 
the volunteer experience, ensuring the safety and se-
curity of all volunteers, and providing for appro-
priate administrative and other support; and 
‘‘(4) describing standard security procedures for 
any country in which the Peace Corps operates pro-
grams or is considering doing so, as well as any spe-
cial security procedures contemplated because of 
changed circumstances in specific countries, and as-
sessing whether security conditions would be en-
hanced—
‘‘(A) by co-locating volunteers with inter-
national or local nongovernmental organiza-
tions; or 
‘‘(B) with the placement of multiple volun-
teers in one location. 
‘‘(b) CONSULTATIONS ON NEW INITIATIVES.—The 
Director of the Peace Corps shall consult with the appro-
priate congressional committees with respect to any major 
new initiatives not previously discussed in the latest an-
nual report submitted to Congress under subsection (a) 
or in budget presentations. Whenever possible, such con-
sultations should take place prior to the initiation of such 
initiatives, or as soon as practicable thereafter.’’. 
(b) ONE–TIME REPORT ON STUDENT LOAN FOR-
GIVENESS PROGRAMS.—Not later than 30 days after the 
date of enactment of this Act, the Director shall submit 
to the appropriate congressional committees a report—
(1) describing the student loan forgiveness pro-
grams currently available to Peace Corps volunteers 
upon completion of their service; 
(2) comparing such programs with other Gov-
ernment-sponsored student loan forgiveness pro-
grams; and
(3) recommending any additional student loan 
forgiveness programs which could attract more ap-
plications from low- and middle-income individuals 
who are carrying considerable student-loan debt bur-
dens. 
(c) ANNUAL REPORT TO CONGRESS ON THE FED-
ERAL EQUAL OPPORTUNITY RECRUITMENT PROGRAM 
(FEORP).—Not later than 90 days after the date of en-
actment of this Act and annually thereafter, the Director 
shall report on the progress of the Peace Corps in recruit-
ing historically underrepresented groups. The Director 
shall prepare this report in accordance with section 7201 
of title 5, United States Code, and subpart B of part 720 
of title 5, Code of Federal Regulations. 
(d) REPORT ON MAINTAINING THE INTEGRITY OF 
THE MEDICAL SCREENING AND MEDICAL PLACEMENT 
COORDINATION PROCESSES.—Not later than 120 days 
after the date of enactment of this Act, the Director shall 
prepare and submit to the appropriate congressional com-
mittees a report that—
(1) describes the medical screening procedures 
and standards of the Office of Medical Services/
Screening Unit of the Peace Corps to determine 
whether an applicant for Peace Corps service has 
worldwide clearance, limited clearance, a deferral pe-
riod, or is not medically, including psychologically, 
qualified to serve in the Peace Corps as a volunteer; 
(2) describes the procedures and criteria for 
matching applicants for Peace Corps service with a 
host country to ensure that the applicant, reasonable 
accommodations notwithstanding, can complete at 
least two years of volunteer service without interrup-
tion to host country national projects due to foresee-
able medical conditions; and 
(3) with respect to each of fiscal years 2000 
through 2002 and the first six months of fiscal year 
2003, states the number of—
(A) medical screenings conducted; 
(B) applicants who have received world-
wide clearance, limited clearance, deferral peri-
ods, and medical disqualifications to serve; 
(C) Peace Corps volunteers who the agency 
has had to separate from service due to the dis-
covery of undisclosed medical information; and 
(D) Peace Corps volunteers who have ter-
minated their service early due to medical, in-
cluding psychological, reasons.
(1) in section 5(c) (22 U.S.C. 2504(c)), by 
striking ‘‘$125 for each month of satisfactory serv-
ice’’ and inserting ‘‘$275 for each month of satisfac-
tory service during fiscal year 2004 and $300 for 
each month of satisfactory service thereafter’’; and 
(2) in section 6(1) (22 U.S.C. 2505(1)), by 
striking ‘‘$125 for each month of satisfactory serv-
ice’’ and inserting ‘‘$275 for each month of satisfac-
tory service during fiscal year 2004 and $300 for 
each month of satisfactory service thereafter’’. 
SEC. 1107. PROGRAMS AND PROJECTS OF RETURNED 
PEACE CORPS VOLUNTEERS AND FORMER 
STAFF. 
(a) PURPOSE.—The purpose of this section is to pro-
vide support for returned Peace Corps volunteers to de-
velop and carry out programs and projects to promote the 
objectives of the Peace Corps Act, as set forth in section 
2(a) of that Act (22 U.S.C. 2501(a)). 
(b) GRANTS
TO CERTAIN NONPROFIT CORPORA-
TIONS.—
(1) GRANT AUTHORITY.—
(A) IN GENERAL.—To carry out the pur-
pose of this section, and subject to the avail-
ability of appropriations, the Director may 
award grants on a competitive basis to private
nonprofit corporations for the purpose of ena-
bling returned Peace Corps volunteers to use 
their knowledge and expertise to develop and 
carry out the programs and projects described 
in paragraph (2). 
(B) DELEGATION
OF
AUTHORITY
AND 
TRANSFER OF FUNDS.—The Director may dele-
gate the authority to award grants under sub-
paragraph (A) and may transfer funds author-
ized under this section subject to the notifica-
tion procedures of section 634A of the Foreign 
Assistance Act of 1961 to the Chief Executive 
Officer of the Corporation for National and 
Community Service (referred to in this section 
as the ‘‘Corporation’’). 
(2) PROGRAMS
AND
PROJECTS.—Such pro-
grams and projects may include—
(A) educational programs designed to en-
rich the knowledge and interest of elementary 
school and secondary school students in the ge-
ography and cultures of other countries where 
the volunteers have served; 
(B) projects that involve partnerships with 
local libraries to enhance community knowledge 
about other peoples and countries; and