SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘African Growth and 
Opportunity Act and Millennium Challenge Act Mod-
ernization Act’’ or the ‘‘AGOA and MCA Modernization 
Act’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—ENHANCEMENT OF THE AFRICAN GROWTH AND 
OPPORTUNITY ACT 
Sec. 101. Statement of policy. 
Sec. 102. Definitions. 
Sec. 103. Activities in support of transparency. 
Sec. 104. Activities in support of trade capacity building. 
TITLE II—MODERNIZATION OF THE MILLENNIUM CHALLENGE 
CORPORATION 
Sec. 201. Candidacy status. 
Sec. 202. Carryover authority for private-sector members of board of directors. 
Sec. 203. Additional reporting to the board on the treatment of civil society in 
an eligible country. 
Sec. 204. Concurrent compacts under the Millennium Challenge Act of 2003. 
Sec. 205. Public notification of entering into a compact. 
Sec. 206. Disclosure. 
Sec. 207. Restriction on the use of assistance under section 616. 
Sec. 208. Study on subnational compacts. 
TITLE I—ENHANCEMENT OF THE 
AFRICAN GROWTH AND OP-
PORTUNITY ACT 
SEC. 101. STATEMENT OF POLICY. 
It is the policy of the United States to support efforts 
to—
(1) improve the rule of law, promote free and 
fair elections, strengthen and expand the private sec-
tor, and fight corruption in sub-Saharan Africa; and 
(2) promote the role of women in social, polit-
ical, and economic development in sub-Saharan Afri-
ca. 
SEC. 102. DEFINITIONS. 
In this title— 
(1) 
AGOA
WEBSITE.—The 
term 
‘‘AGOA 
Website’’ means the website established pursuant to 
section 103(a). 
(2) ELIGIBLE
SUB-SAHARAN
AFRICAN
COUN-
TRY.—The term ‘‘eligible sub-Saharan African coun-
try’’ means a country that the President has deter-
mined meets the eligibility requirements set forth in 
section 104 of the African Growth and Opportunity 
Act (19 U.S.C. 3703). 
SEC. 103. ACTIVITIES IN SUPPORT OF TRANSPARENCY. 
(a) AGOA WEBSITE.— 
(1) IN GENERAL.—The President shall establish 
a publicly available website for the collection and 
dissemination of information regarding the African 
Growth and Opportunity Act (19 U.S.C. 3701 et 
seq.).
(2) CONTENTS.—The President shall publish on 
the AGOA Website the information described in 
paragraph (1), including— 
(A) information and technical assistance 
provided at United States Agency for Inter-
national Development regional trade hubs; and 
(B) a link to the websites of United States 
embassies located in eligible sub-Saharan Afri-
can countries. 
(3) ACTIONS BY UNITED STATES EMBASSIES.— 
The Secretary of State should direct United States 
embassies located in eligible sub-Saharan African 
countries to— 
(A) encourage individuals and businesses 
in such countries to use the benefits available 
under the African Growth and Opportunity Act; 
and 
(B) include a link to the AGOA Website on 
the websites of such diplomatic missions. 
(b) AGOA FORUM.—After each meeting of the 
United States–Sub-Saharan Africa Trade and Economic 
Cooperation Forum, the President should publish on the 
AGOA Website the following:
(1) The outcomes of the meeting of the Forum, 
including any commitments made by member coun-
tries and the private sector. 
(2) An assessment of progress made with re-
spect to any commitments made by member coun-
tries and the private sector from the previous meet-
ing of the Forum. 
(c) OTHER INFORMATION.—The President should 
disseminate the information required under this section in 
a digital format to the public and publish such information 
on the AGOA Website. 
SEC. 104. ACTIVITIES IN SUPPORT OF TRADE CAPACITY 
BUILDING. 
The President should— 
(1) develop and implement policies that— 
(A) encourage and facilitate cross-bound-
ary cooperation among eligible sub-Saharan Af-
rican countries in order to facilitate trade; and 
(B) encourage the provision of technical 
assistance to eligible sub-Saharan African coun-
tries to establish and sustain adequate trade ca-
pacity development; 
(2) provide specific training for businesses in el-
igible sub-Saharan African countries and govern-
ment trade officials of such countries on accessing
the benefits under the African Growth and Oppor-
tunity Act and other trade preference programs; 
(3) provide capacity building for African entre-
preneurs and trade associations on production strat-
egies, quality standards, formation of cooperatives, 
market research, and market development; 
(4) provide capacity building training to pro-
mote diversification of African products and value- 
added processing; and 
(5) provide capacity building and technical as-
sistance funding for African businesses and institu-
tions to help such businesses and institutions comply 
with United States counterterrorism initiatives and 
policies. 
TITLE II—MODERNIZATION OF 
THE 
MILLENNIUM 
CHAL-
LENGE CORPORATION 
SEC. 201. CANDIDACY STATUS. 
(a) LOW INCOME COUNTRIES.—Section 606(a) of the 
Millennium Challenge Act of 2003 (22 U.S.C. 7705(a)) 
is amended— 
(1) in paragraph (1)(B), by striking ‘‘(3)’’ and 
inserting ‘‘(4)’’; 
(2) in paragraph (2)—
(A) by amending the paragraph heading to 
read as follows: ‘‘FISCAL YEARS 2005 THROUGH 
2012’’; and 
(B) by striking ‘‘fiscal year 2005 or a sub-
sequent fiscal year’’ and inserting ‘‘each of fis-
cal years 2005 through 2012’’; 
(3) by redesignating paragraph (3) as para-
graph (4); and 
(4) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) FISCAL YEAR 2013 AND SUBSEQUENT FIS-
CAL YEARS.—A country shall be a candidate country 
for purposes of eligibility for assistance for fiscal 
year 2013 or a subsequent fiscal year if the coun-
try— 
‘‘(A) has a per capita income not greater 
than the lower middle income country threshold 
established by the International Bank for Re-
construction and Development for such fiscal 
year; 
‘‘(B) is among the 75 countries identified 
by the International Bank for Reconstruction 
and Development as having the lowest per cap-
ita income; and
‘‘(C) meets the requirements under para-
graph (1)(B).’’. 
(b) LOWER MIDDLE INCOME COUNTRIES.—Section 
606(b) of the Millennium Challenge Act of 2003 (22 
U.S.C. 7705(b)) is amended— 
(1) in paragraph (1)— 
(A) by amending the paragraph heading to 
read as follows: ‘‘FISCAL YEARS 2006 THROUGH 
2012’’; and 
(B) in the matter preceding subparagraph 
(A), by striking ‘‘fiscal year 2006 or a subse-
quent fiscal year’’ and inserting ‘‘fiscal years 
2006 through 2012’’; 
(2) by redesignating paragraph (2) as para-
graph (3); and 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) FISCAL YEAR 2013 AND SUBSEQUENT FIS-
CAL YEARS.—In addition to the countries described 
in subsection (a), a country shall be a candidate 
country for purposes of eligibility for assistance for 
fiscal year 2013 or a subsequent fiscal year if the 
country— 
‘‘(A) has a per capita income not greater 
than the lower middle income country threshold
established by the International Bank for Re-
construction and Development for the fiscal 
year; 
‘‘(B) is not among the 75 countries identi-
fied by the International Bank for Reconstruc-
tion and Development as having the lowest per 
capita income; and 
‘‘(C) meets the requirements under sub-
section (a)(1)(B).’’. 
(c) RECLASSIFICATION.—Section 606 of the Millen-
nium Challenge Act of 2003 (22 U.S.C. 7705) is amend-
ed— 
(1) by redesignating subsection (c) as sub-
section (d); and 
(2) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) TREATMENT OF COUNTRIES WITH PER CAPITA 
INCOME CHANGES.—A country qualifying for candidate 
status under this section with a per capita income that 
changes during the fiscal year such that the country would 
be reclassified from a low income country to a lower mid-
dle income country or from a lower middle income country 
to a low income country shall retain its candidacy status 
in its former income classification for such fiscal year and 
the 2 subsequent fiscal years.’’.
SEC. 202. CARRYOVER AUTHORITY FOR PRIVATE-SECTOR 
MEMBERS OF BOARD OF DIRECTORS. 
Section 604(c)(4)(B) of the Millennium Challenge 
Act of 2003 (22 U.S.C. 7703(c)(4)(B)) is amended to read 
as follows: 
‘‘(B) OTHER MEMBERS.—Each member of 
the Board described in paragraph (3)(B)— 
‘‘(i) shall be appointed for a term of 
3 years; 
‘‘(ii) may be reappointed for a term of 
an additional 2 years; and 
‘‘(iii) may continue to serve in each 
such appointment until the earlier of— 
‘‘(I) the date on which his or her 
successor is appointed; or 
‘‘(II) the date that is 1 year after 
the expiration of his or her appoint-
ment or reappointment, as the case 
may be.’’. 
SEC. 203. ADDITIONAL REPORTING TO THE BOARD ON THE 
TREATMENT OF CIVIL SOCIETY IN AN ELIGI-
BLE COUNTRY. 
Section 607 of the Millennium Challenge Act of 2003 
(22 U.S.C. 7706) is amended— 
(1) in subsection (a), by adding at the end the 
following: ‘‘A determination whether a country is eli-
gible for a subsequent, non-concurrent Millennium 
Challenge Compact shall also be based, to the extent 
practicable, on significantly improved performance 
across the criteria in subsection (b) that, at a min-
imum, are relevant to the preceding Compact, com-
pared to the country’s performance with respect to 
such criteria when selected for such preceding Com-
pact.’’ 
(2) in subsection (b)(1)— 
(A) in subparagraph (D), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (E), by adding ‘‘and’’ 
at the end; and 
(C) by adding at the end the following: 
‘‘(F) the quality of the civil society ena-
bling environment;’’; 
(3) by redesignating subsections (d) and (e) as 
subsections (e) and (f), respectively; and 
(4) by inserting after subsection (c) the fol-
lowing: 
‘‘(d) REPORTING ON TREATMENT OF CIVIL SOCI-
ETY.—For the 7-year period beginning on the date of the 
enactment of this subsection, before the Board selects an 
eligible country for a Compact under subsection (c), the 
Corporation shall provide information to the Board re-
garding the country’s treatment of civil society, including 
classified information, as appropriate. The information 
shall include an assessment and analysis of factors includ-
ing— 
‘‘(1) any relevant laws governing the formation 
or establishment of a civil society organization, par-
ticularly laws intended to curb the activities of for-
eign civil society organizations; 
‘‘(2) any relevant laws governing the operations 
of a civil society organization, particularly those laws 
seeking to define or otherwise regulate the actions of 
foreign civil society organizations; 
‘‘(3) laws relating to the legal status of civil so-
ciety organizations, including laws which effectively 
discriminate against foreign civil society organiza-
tions as compared to similarly situated domestic or-
ganizations; 
‘‘(4) laws regulating the freedom of expression 
and peaceful assembly; and 
‘‘(5) laws regulating the usage of the Internet, 
particularly by foreign civil society organizations.’’. 
SEC. 204. CONCURRENT COMPACTS UNDER THE MILLEN-
NIUM CHALLENGE ACT OF 2003. 
(a) IN GENERAL.—Section 609 of the Millennium 
Challenge Act of 2003 (22 U.S.C. 7708) is amended—
(1) by striking the first sentence of subsection 
(k); 
(2) by redesignating subsection (k) (as so 
amended) as subsection (l); and 
(3) by inserting after subsection (j) the fol-
lowing: 
‘‘(k) CONCURRENT COMPACTS.—An eligible country 
that has entered into and has in effect a Compact under 
this section may enter into and have in effect at the same 
time not more than one additional Compact in accordance 
with the requirements of this title if— 
‘‘(1) one or both of the Compacts are or will be 
for purposes of regional economic integration, in-
creased regional trade, or cross-border collabora-
tions; and 
‘‘(2) the Board determines that the country is 
making considerable and demonstrable progress in 
implementing the terms of the existing Compact and 
supplementary agreements thereto.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
613(b)(2)(A) of such Act (22 U.S.C. 7712(b)(2)(A)) is 
amended by striking ‘‘the’’ before ‘‘Compact’’ and insert-
ing ‘‘any’’. 
(c) APPLICABILITY.—The amendments made by this 
section apply with respect to Compacts entered into be-
tween the United States and an eligible country under the 
Millennium Challenge Act of 2003 before, on, or after the 
date of the enactment of this Act. 
SEC. 205. PUBLIC NOTIFICATION OF ENTERING INTO A 
COMPACT. 
Section 610 of the Millennium Challenge Act of 2003 
(22 U.S.C. 7709) is amended to read as follows: 
‘‘SEC. 610. CONGRESSIONAL AND PUBLIC NOTIFICATION. 
‘‘(a) CONGRESSIONAL CONSULTATIONS AND NOTIFI-
CATIONS.— 
‘‘(1) IN GENERAL.—The Board, acting through 
the Chief Executive Officer, shall consult with and 
notify the appropriate congressional committees not 
later than 15 days before taking any of the actions 
described in paragraph (2). 
‘‘(2) ACTIONS
DESCRIBED.—The actions de-
scribed in this paragraph are— 
‘‘(A) providing assistance for an eligible 
country under section 609(g); 
‘‘(B) commencing negotiations with an eli-
gible country to provide assistance for— 
‘‘(i) a Compact under section 605; or 
‘‘(ii) an agreement under section 616; 
‘‘(C) signing such a Compact or agree-
ment; and
‘‘(D) terminating assistance under such a 
Compact or agreement. 
‘‘(3) ECONOMIC JUSTIFICATION.—Any notifica-
tion relating to the intent to negotiate or sign a 
Compact shall include a report describing the pro-
jected economic justification for the Compact, in-
cluding, as applicable— 
‘‘(A) the expected economic rate of return 
of the Compact; 
‘‘(B) a cost-benefit analysis of the Com-
pact; 
‘‘(C) a description of the impact on bene-
ficiary populations; 
‘‘(D) the likelihood that the investment will 
catalyze private sector investments; and 
‘‘(E) any other applicable economic factors 
that justify each project to be funded under 
such a Compact to the extent practicable and 
appropriate. 
‘‘(4) RISK MANAGEMENT PLAN.—Not later than 
60 days before signing each concurrent Compact, as 
authorized under section 609, the Board, acting 
through the Chief Executive Officer, shall consult 
with and provide to the appropriate congressional 
committees—
‘‘(A) an assessment and, as appropriate, 
the identification of potential measures to miti-
gate risks, of— 
‘‘(i) the countries’ commitment to re-
gional integration and cross-border co-
operation and capacity to carry out com-
mitments; 
‘‘(ii) political and policy risks, includ-
ing risks that could affect country eligi-
bility; 
‘‘(iii) risks associated with realizing 
economic returns; 
‘‘(iv) time and completion risks; and 
‘‘(v) cost and financial risks; and 
‘‘(B) an assessment of measures to be 
taken to mitigate any identified risks, includ-
ing— 
‘‘(i) securing other potential donors to 
finance projects or parts of projects as 
needed; and 
‘‘(ii) partnering with regional organi-
zations to support and oversee effective 
cross-border cooperation. 
‘‘(b) CONGRESSIONAL
AND PUBLIC NOTIFICATION 
AFTER ENTERING INTO A COMPACT.—Not later than 10
days after entering into a Compact with an eligible coun-
try, the Board, acting through the Chief Executive Officer, 
shall— 
‘‘(1) publish the text of the Compact on the 
website of the Corporation; 
‘‘(2) provide the appropriate congressional com-
mittees with a detailed summary of the Compact 
and, upon request, the text of the Compact; and 
‘‘(3) publish in the Federal Register a detailed 
summary of the Compact and a notice of availability 
of the text of the Compact on the website of the 
Corporation.’’. 
SEC. 206. DISCLOSURE. 
(a) REQUIREMENT FOR TIMELY DISCLOSURE.—Sec-
tion 612(a) of the Millennium Challenge Act of 2003 (22 
U.S.C. 7711(a)) is amended— 
(1) in the subsection heading, by inserting 
‘‘TIMELY’’ before ‘‘DISCLOSURE’’; and 
(2) in the matter preceding paragraph (1)— 
(A) by striking ‘‘The Corporation’’ and in-
serting ‘‘Not later than 90 days after the last 
day of each fiscal quarter, the Corporation’’; 
and 
(B) by striking ‘‘on at least a quarterly 
basis,’’.
(b) DISSEMINATION.—Section 612(b) of the Millen-
nium Challenge Act of 2003 (22 U.S.C. 7711(b)) is 
amended to read as follows: 
‘‘(b) DISSEMINATION.—The Board, acting through 
the Chief Executive Officer, shall make the information 
required to be disclosed under subsection (a) available to 
the public— 
‘‘(1) by publishing it on the website of the Cor-
poration; 
‘‘(2) by providing notice of the availability of 
such information in the Federal Register; and 
‘‘(3) by any other methods that the Board de-
termines to be appropriate.’’. 
SEC. 207. RESTRICTION ON THE USE OF ASSISTANCE 
UNDER SECTION 616. 
Section 616(d) of the Millennium Challenge Act of 
2003 (22 U.S.C. 7715(d)) is amended to read as follows: 
‘‘(d) FUNDING.— 
‘‘(1) LIMITATION.—Not more than 10 percent 
of the amounts made available to carry out this Act 
for a fiscal year may be made available to carry out 
this section. 
‘‘(2) 
RESTRICTION
RELATING
TO
ASSIST-
ANCE.—None of the funds authorized to carry out 
the purposes of this Act shall be available for assist-
ance under this section to a country that does not 
qualify as a candidate country under section 606 for 
the fiscal year during which such assistance is pro-
vided.’’. 
SEC. 208. STUDY ON SUBNATIONAL COMPACTS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Board of the Millen-
nium Challenge Corporation, acting through the Chief Ex-
ecutive Officer, shall submit a study to the appropriate 
congressional committees that assesses the feasibility and 
desirability of developing partnerships at the subnational 
level within candidate countries that would be complemen-
tary to, and, as applicable, concurrent with, any Millen-
nium Challenge Corporation national-level or regional in-
vestments. 
(b) CONTENT.—The study required under subsection 
(a) shall examine— 
(1) the extent to which targeting investments at 
the subnational level might provide new opportuni-
ties for reducing poverty through economic growth; 
(2) the extent to which traditional approaches 
to defining poverty may not adequately capture the 
nature of poverty within a country;
(3) the types of subnational entities that might 
be appropriate partners for subnational Millennium 
Challenge Corporation compacts; 
(4) how candidates for subnational partners 
might best be identified; and 
(5) what role each national government should 
play in creating or implementing a subnational part-
nership. 
(c) APPROPRIATE CONGRESSIONAL COMMITTEES.— 
In this subsection, the term ‘‘appropriate congressional 
committees’’ means— 
(1) the Committee on Foreign Relations of the 
Senate; 
(2) the Committee on Appropriations of the 
Senate; 
(3) the Committee on Foreign Affairs of the 
House of Representatives; and 
(4) the Committee on Appropriations of the 
House of Representatives. 
Passed the House of Representatives January 17, 
2018. 
Attest: 
Clerk.
115TH CONGRESS 
2D SESSION 
H. R. 3445 
AN ACT 
To enhance the transparency and accelerate the im-
pact of programs under the African Growth and 
Opportunity Act and the Millennium Challenge 
Corporation, and for other purposes.