et seq.) is amended by inserting after section 601 the fol-
lowing new section: 
‘‘SEC. 601A. 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 
this Act, is the ‘encouragement and sustained sup-
port of the people of developing countries in their ef-
forts to acquire the knowledge and resources essen-
tial to development and to build the economic, polit-
ical, and social institutions 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 un-
dermine development and poverty-reduction efforts 
in fundamental ways. A woman’s limited access to 
resources and restrictions on the exercise of her 
rights, including the right to participate in social 
and political processes, disables her from maximizing 
her contribution to her family’s health, education, 
and general well-being.
‘‘(4) On March 14, 2002, the President noted 
the successes of development assistance programs: 
‘The advances of free markets and trade and democ-
racy and rule of law have brought prosperity to an 
ever-widening circle of people in this world. During 
our lifetime, per capita income in the poorest coun-
tries has nearly doubled. Illiteracy has been cut by 
one-third, giving more children a chance to learn. In-
fant 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 
failures. Today, too many people are still living in 
poverty, 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 opportu-
nities afforded by the global economy if the following 
conditions for sound and sustainable economic devel-
opment 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.—Eco-
nomic growth and democracy can be sustained 
only if both men and women have the basic 
tools and capabilities that foster the oppor-
tunity for participation 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 this part, as administered by the United 
States Agency for International Development and 
other Federal agencies, 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 poverty, 
between opportunity and misery, is both a challenge 
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 development.’. 
‘‘(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. 104. DEFINITIONS. 
(a) COUNCIL.—Section 603 of title VI of division D 
of the Consolidated Appropriations Act, 2004 (Public Law 
108–199; 22 U.S.C. 7702) is amended—
(1) by redesignating paragraph (7) as para-
graph (8); and 
(2) by inserting after paragraph (6) the fol-
lowing new paragraph: 
‘‘(7) COUNCIL.—The term ‘Council’ means the 
Millennium Challenge Advisory Council established 
under section 620 of this title.’’. 
(b) MILLENNIUM DEVELOPMENT GOALS.—Section 
603 of title VI of division D of the Consolidated Appro-
priations Act, 2004, as amended by subsection (a), is fur-
ther amended by adding at the end the following new para-
graph:
‘‘(9) MILLENNIUM DEVELOPMENT GOALS.—The 
term ‘Millennium Development Goals’ means the key 
development objectives described in the United Na-
tions Millennium Declaration, as contained in 
United Nations General Assembly Resolution 55/2 
(September 2000), which aim to eradicate extreme 
poverty and hunger, achieve universal primary edu-
cation, promote gender equality and empower 
women, reduce child mortality, improve maternal 
health, combat HIV/AIDS, malaria, and other infec-
tious diseases, ensure environmental sustainability, 
and develop a global partnership for development.’’. 
SEC. 105. PRINCIPAL OBJECTIVES. 
Section 605(a) of title VI of division D of the Consoli-
dated Appropriations Act, 2004 (Public Law 108–199; 22 
U.S.C. 7704(a)) is amended—
(1) by striking ‘‘Notwithstanding’’ and insert-
ing the following: 
‘‘(1) IN GENERAL.—Notwithstanding’’; and 
(2) by adding at the end the following: 
‘‘(2) PRINCIPAL OBJECTIVES.—Assistance pro-
vided under paragraph (1) should advance a coun-
try’s progress toward promoting the following prin-
cipal objectives:
‘‘(A) FOSTERING DEMOCRATIC SOCIETIES, 
HUMAN RIGHTS, AND THE RULE OF LAW.—The 
assistance should promote—
‘‘(i) political, social, and economic plu-
ralism; 
‘‘(ii) respect for the rule of law; 
‘‘(iii) anti-corruption initiatives and 
law enforcement; 
‘‘(iv) development of institutions of 
democratic governance, including electoral 
and legislative processes; 
‘‘(v) transparent and accountable pub-
lic administration at all levels of govern-
ment; 
‘‘(vi) a fair, competent, and inde-
pendent judiciary; and 
‘‘(vii) a free and independent media. 
‘‘(B) FOSTERING
INVESTMENT
IN
EDU-
CATION
AND
HEALTH
INFRASTRUCTURE
AND 
SYSTEMS.—The assistance should foster im-
proved educational opportunities and health 
conditions, particularly for women and children, 
including through—
‘‘(i) support for programs and per-
sonnel that promote broad-based primary
education, including through the develop-
ment of academic curricula, by making 
available textbooks and other educational 
materials, and through appropriate use of 
technology; 
‘‘(ii) 
support 
for 
programs 
to 
strengthen and build institutions, including 
primary health care systems, infrastruc-
ture, facilities, and personnel that provide 
quality health care; 
‘‘(iii) support for improved systems 
for the delivery of healthy water and sani-
tation services; and 
‘‘(iv) support for programs that re-
duce child mortality (including those pro-
grams that combat HIV/AIDS, malaria, 
tuberculosis, and other infectious diseases, 
consistent with sections 104(c), 104A, 
104B, and 104C of this Act). 
‘‘(C) PROMOTING
ECONOMIC
FREEDOM, 
BROAD-BASED
ECONOMIC
GROWTH, AND
FOS-
TERING FREE MARKET SYSTEMS.—The assist-
ance should foster the institutions and condi-
tions needed to promote free market systems, 
trade, and investment, including—
‘‘(i) the reform and restructuring of 
banking and financial systems, including 
by allowing foreign competition in the 
banking and financial sectors, where ap-
propriate; 
‘‘(ii) the development of transparent 
and efficient commercial codes and reduc-
tion in the regulatory burden on business; 
‘‘(iii) the protection of property rights, 
including—
‘‘(I) private property and intellec-
tual 
property 
rights, 
including 
through the adoption and effective en-
forcement 
of 
intellectual 
property 
treaties or international agreements; 
and 
‘‘(II) 
the 
establishment 
and 
maintenance of an efficient and inte-
grated legal property system that, 
among other things, facilitates the 
ability 
of 
the 
poor, 
particularly 
women, to convert physical and intel-
lectual assets into capital, such as uti-
lizing existing practices and customs 
that allow assets to be documented in
a manner that makes the assets wide-
ly transferable, leveragable, and fun-
gible, that allows individuals to hold 
legal title to their property, and that 
holds owners accountable for trans-
actions involving their property; 
‘‘(iv) support for market-based poli-
cies that support increased agricultural 
production; 
‘‘(v) a strong commitment to sound 
monetary and budgetary policies; 
‘‘(vi) the development of small busi-
nesses, private cooperatives, credit unions, 
and trade and labor unions; 
‘‘(vii) the protection of internationally 
recognized workers’ rights; and 
‘‘(viii) the capacity of eligible coun-
tries to ameliorate damage to the environ-
ment and respect other environmental 
standards.’’. 
SEC. 106. TRANSFER TO FOREIGN ASSISTANCE ACT OF 1961. 
(a) TRANSFER.—Title VI of division D of the Con-
solidated Appropriations Act, 2004 (Public Law 108–199) 
(other than the short title of such division) is hereby—
(1) transferred from the Consolidated Appro-
priations Act, 2004, to the Foreign Assistance Act 
of 1961 (22 U.S.C. 2151 et seq.); and 
(2) inserted after title V of chapter 2 of part 
I of the Foreign Assistance Act of 1961. 
(b) REDESIGNATION.—Title VI of chapter 2 of part 
I of the Foreign Assistance Act of 1961 (as added by sub-
section (a)) is amended—
(1) by redesignating sections 601 through 620 
as sections 251 through 270, respectively; and 
(2) by striking each reference in such title to 
any of sections 601 through 620 and inserting a ref-
erence to the corresponding section number (as re-
designated by paragraph (1)). 
(c) CONFORMING AMENDMENT.—The table of con-
tents of the Consolidated Appropriations Act, 2004 (Pub-
lic Law 108–199) is amended by striking the item relating 
to title VI of division D of such Act. 
TITLE II—MISCELLANEOUS 
PROVISIONS 
Subtitle A—HELP Commission Act; 
Foreign Aid Impact Assessment Act 
SEC. 201. HELP COMMISSION ACT. 
(a) TRANSFER TO THE FOREIGN ASSISTANCE ACT 
OF 1961.—Section 637 of title VI of division B of the