108TH CONGRESS
1ST SESSION
H. R. 1950
AN ACT
To establish the Millennium Challenge Account to
provide increased support for certain developing
countries; to authorize the expansion of the
Peace Corps; to authorize appropriations for the
Department of State for fiscal years 2004 and
2005; to authorize appropriations under the
Arms Export Control Act and the Foreign As-
sistance Act of 1961 for security assistance for
fiscal years 2004 and 2005; and for other pur-
poses.
108TH CONGRESS
1ST SESSION
H. R. 1950
AN ACT
To establish the Millennium Challenge Account to provide
increased support for certain developing countries; to
authorize the expansion of the Peace Corps; to authorize
appropriations for the Department of State for fiscal
years 2004 and 2005; to authorize appropriations under
the Arms Export Control Act and the Foreign Assistance
Act of 1961 for security assistance for fiscal years 2004
and 2005; 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.
This Act may be cited as the ‘‘Millennium Challenge
Account, Peace Corps Expansion, and Foreign Relations
Authorization Act of 2003’’.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF
CONTENTS.
(a) ORGANIZATION OF ACT INTO DIVISIONS.—This
Act is organized into five divisions as follows:
(1) DIVISION
A.—Millennium Challenge Ac-
count Act of 2003.
(2) DIVISION B.—Peace Corps Expansion Act
of 2003.
(3) DIVISION C.—Department of State Author-
ization Act, Fiscal Years 2004 and 2005.
(4) DIVISION D.—Defense Trade and Security
Assistance Reform Act of 2003.
(5) DIVISION E.—Assistance for Viet Nam.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title.
Sec. 2. Organization of act into divisions; table of contents.
Sec. 3. Definitions.
Sec. 4. Special rules for applying Buy American Act.
DIVISION A—MILLENNIUM CHALLENGE ACCOUNT
TITLE I—GENERAL PROVISIONS
Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. 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. Participation of certain United States businesses.
Sec. 208. 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. Millennium Challenge Seed Grants.
Sec. 310. Clarification of role of USAID.
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. Short title.
Sec. 1002. Definitions.
Sec. 1003. 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. Peace Corps in Sierra Leone.
Sec. 1110. Authorization of appropriations.
DIVISION C—DEPARTMENT OF STATE AUTHORIZATION ACT,
FISCAL YEARS 2004 AND 2005
Sec. 101. Short title.
TITLE I—AUTHORIZATIONS OF APPROPRIATIONS
Subtitle A—Department of State
Sec. 111. Administration of foreign affairs.
Sec. 112. United States educational and cultural programs.
Sec. 113. Contributions to international organizations.
Sec. 114. International commissions.
Sec. 115. Migration and refugee assistance.
Sec. 116. Voluntary contributions to international organizations.
Sec. 117. Voluntary contributions for international peacekeeping activities.
Sec. 118. Grants to the Asia Foundation.
Subtitle B—United States International Broadcasting Activities
Sec. 121. Authorizations of appropriations.
TITLE II—DEPARTMENT OF STATE AUTHORITIES AND
ACTIVITIES
Subtitle A—United States Public Diplomacy
Sec. 201. Findings and purposes.
Sec. 202. Public diplomacy responsibilities of the Department of State.
Sec. 203. Annual plan on public diplomacy strategy.
Sec. 204. Public diplomacy training.
Sec. 205. United States Advisory Commission on Public Diplomacy.
Sec. 206. Library program.
Sec. 207. Sense of Congress concerning public diplomacy efforts in sub-Saharan
Africa.
Subtitle B—Basic Authorities and Activities
Sec. 221. United States policy with respect to Jerusalem as the capital of
Israel.
Sec. 222. Modification of reporting requirements.
Sec. 223. Report concerning efforts to promote Israel’s diplomatic relations
with other countries.
Sec. 224. Reimbursement rate for certain airlift services provided by the De-
partment of Defense to the Department of State.
Sec. 225. Sense of Congress regarding additional United States consular posts.
Sec. 226. Validity of United States passports for travel to countries receiving
United States foreign assistance.
Sec. 227. GAO assessment of security capital cost sharing.
Sec. 228. Authority to issue administrative subpoenas.
Sec. 229. Enhancing refugee resettlement and maintaining the United States
commitment to refugees.
Sec. 230. The Colin Powell Center for American Diplomacy.
Sec. 231. Interference with protective functions.
Sec. 232. Issuance of consular identification cards by foreign missions.
Subtitle C—Educational and Cultural Authorities
Sec. 251. Establishment of initiatives for predominantly Muslim countries.
Sec. 252. Database of American and foreign participants in exchange pro-
grams.
Sec. 253. Report on inclusion of freedom and democracy advocates in edu-
cational and cultural exchange programs.
Sec. 254. Sense of the Congress concerning educational and cultural exchange
program for foreign journalists.
Sec. 255. Sense of Congress regarding Korean Fulbright programs.
Sec. 256. Authorizing East Timorese scholarships for graduate study.
Sec. 257. Public safety awareness in study abroad programs.
Subtitle D—Consular Authorities
Sec. 271. Machine readable visas.
Sec. 272. Processing of visa applications.
Sec. 273. Staffing at diplomatic missions.
Sec. 274. Allocation of resources for embassies and consulates.
Sec. 275. Notice to United States embassies abroad regarding children who are
the subject of international child abduction and guidelines re-
lating to sanctuary for such children.
Sec. 276. Inadmissibility of aliens supporting international child abductors and
relatives of such abductors.
Sec. 277. Architectural integrity of United States embassies, consulates, and
other diplomatic buildings.
TITLE III—ORGANIZATION AND PERSONNEL OF THE
DEPARTMENT OF STATE
Sec. 301. Fellowship of Hope Program.
Sec. 302. Claims for lost pay.
Sec. 303. Ombudsman for the Department of State.
Sec. 304. Repeal of recertification requirement for senior foreign service.
Sec. 305. Report concerning status of employees of State Department.
Sec. 306. Home leave.
Sec. 307. Increased limits applicable to post differentials and danger pay allow-
ances.
Sec. 308. Regulations regarding retirement credit for government service per-
formed abroad.
Sec. 309. Minority recruitment.
Sec. 310. Meritorious step increases.
Sec. 311. Treatment of territories and possessions as part of the geographic
United States for purposes of transfer allowances.
TITLE IV—INTERNATIONAL ORGANIZATIONS
Subtitle A—Basic Authorities and Activities
Sec. 401. Raising the cap on peacekeeping contributions.
Sec. 402. Regarding the reentry of the United States in UNESCO.
Sec. 403. UNESCO national commission.
Sec. 404. Organization of American States (OAS) emergency fund.
Sec. 405. United States efforts regarding the status of Israel in the Western
European and Others Group at the United Nations.
Subtitle B—United States International Leadership
Sec. 431. Short title.
Sec. 432. Findings.
Sec. 433. Establishment of a democracy caucus.
Sec. 434. Annual diplomatic missions on multilateral issues.
Sec. 435. Leadership and membership of international organizations.
Sec. 436. Increased training in multilateral diplomacy.
Sec. 437. Promoting assignments to international organizations.
Sec. 438. Implementation and establishment of office on multilateral negotia-
tions.
Sec. 439. Synchronization of United States contributions to international orga-
nizations.
TITLE V—UNITED STATES INTERNATIONAL BROADCASTING
ACTIVITIES
Subtitle A—Basic Authorities and Activities
Sec. 501. Mideast Radio and Television Network, Inc.
Sec. 502. Improving signal delivery to Cuba.
Sec. 503. Report concerning efforts to counter jamming of broadcasts of Radio
Marti and TV Marti.
Sec. 504. Pilot program for the promotion of travel and tourism in the United
States through United States international broadcasting.
Sec. 505. Radio Free Asia broadcasts into North Korea.
Sec. 506. Prohibition on elimination of international broadcasting in Eastern
Europe.
Sec. 507. Contractor requirements.
Subtitle B—Global Internet Freedom
Sec. 521. Short title.
Sec. 522. Findings.
Sec. 523. Purposes.
Sec. 524. Development and deployment of technologies to defeat Internet jam-
ming and censorship.
Subtitle C—Reorganization of United States International Broadcasting
Sec. 531. Establishment of United States International Broadcasting Agency.
Sec. 532. Authorities and functions of the agency.
Sec. 533. Role of the Secretary of State.
Sec. 534. Administrative provisions.
Sec. 535. Broadcasting Board of Governors and International Broadcasting
Bureau.
Sec. 536. Transition.
Sec. 537. Conforming amendments.
Sec. 538. References.
Sec. 539. Broadcasting standards.
Sec. 540. Effective date.
TITLE VI—INTERNATIONAL FREE MEDIA ACT OF 2003
Sec. 601. Short title.
Sec. 602. Definitions.
Sec. 603. Findings.
Sec. 604. Statements of policy.
Sec. 605. Coordinator for International Free Media.
Sec. 606. United States Advisory Commission on Public Diplomacy and Inter-
national Media.
Sec. 607. International Free Media Fund.
Sec. 608. Free media promotion activity of the Broadcasting Board of Gov-
ernors.
TITLE VII—MISCELLANEOUS PROVISIONS
Subtitle A—Reporting Requirements
Sec. 701. Reports to Committee on International Relations.
Sec. 702. Reports concerning the capture and prosecution of paramilitary and
other terrorist leaders in Colombia.
Sec. 703. Reports relating to Magen David Adom Society.
Sec. 704. Report concerning the return of portraits of Holocaust victims to the
artist Dina Babbitt.
Sec. 705. Report to Congress on use of vested assets.
Sec. 706. Report concerning the conflict in Uganda.
Sec. 707. Requirement for report on United States policy toward Haiti.
Sec. 708. Report on the effects of Plan Colombia on Ecuador.
Sec. 709. Report on actions taken by Pakistan.
Sec. 710. Report on democracy in the Western Hemisphere.
Sec. 711. Report concerning internal and intra-regional conflicts in the Great
Lakes region of Africa.
Sec. 712. Report concerning observer status for Taiwan at the summit of the
World Health Assembly.
Subtitle B—Other Matters
Sec. 721. Sense of Congress relating to East Timor, justice, and rehabilitation.
Sec. 722. Sense of Congress concerning human rights and justice in Indonesia.
Sec. 723. Amendment to the International Religious Freedom Act of 1998.
Sec. 724. Sense of Congress with respect to human rights in Central Asia.
Sec. 725. Technical correction to authorization of appropriations for fiscal year
2003 for Center for Cultural and Technical Interchange Be-
tween East and West.
Sec. 726. Under Secretary of Commerce for Industry and Security.
Sec. 727. Concerning the spread of weapons of mass destruction.
Sec. 728. International agriculture biotechnology information program.
Sec. 729. Refugee resettlement burdensharing.
Sec. 730. Sense of Congress regarding migration issues between the United
States and Mexico.
Sec. 731. Sense of Congress concerning United States assistance to Palestinian
refugees.
Sec. 732. United States policy on World Bank Group loans to Iran.
Sec. 733. Sense of Congress relating to Soviet nuclear tests in Kazakhstan.
Sec. 734. Sense of Congress relating to violence against women.
Sec. 735. Sense of Congress concerning the timely issuance of visas for Russian
weapons scientists involved in arms control and nonprolifera-
tion exchanges with the United States.
Sec. 736. Designation of foreign terrorist organizations.
Sec. 737. Sense of Congress relating to regarding security for Taiwan.
Sec. 738. Sense of Congress in appreciation of the Armed Forces of the United
States and regarding restoring stability and security in Iraq.
Sec. 739. Attacks on United States citizens by Palestinian terrorists.
Sec. 740. Sense of Congress and report concerning Wastewater Treatment and
the International Boundary and Water Commission, United
States and Mexico.
Sec. 741. Sense of Congress regarding allocation of resources for the Depart-
ment of State as the central authority for the United States
under the Hague Convention on intercountry adoption.
Sec. 742. Transfer of Vietnam-era Cessna L–19D Bird Dog aircraft to Army
Aviation Heritage Foundation.
Sec. 743. Statement of policy relating to democracy in Iran.
Sec. 744. Sense of Congress regarding the extradition of violent criminals from
Mexico to the United States.
DIVISION D—DEFENSE TRADE AND SECURITY ASSISTANCE
REFORM ACT OF 2003
TITLE X—GENERAL PROVISIONS
Sec. 1001. Short title.
Sec. 1002. Definitions.
Sec. 1003. References to Arms Export Control Act.
TITLE XI—TERRORIST-RELATED PROHIBITIONS AND
ENFORCEMENT MEASURES
Sec. 1101. Eligibility provisions.
Sec. 1102. Weapons transfers to foreign persons in the United States.
Sec. 1103. Coordination of license exemptions with United States law enforce-
ment agencies.
Sec. 1104. Mechanisms to identify persons in violation of certain provisions of
law.
Sec. 1105. Comprehensive nature of United States arms embargoes.
Sec. 1106. Transactions with countries supporting acts of international ter-
rorism.
Sec. 1107. Amendments to control of arms exports and imports.
Sec. 1108. High risk exports and end use verification.
Sec. 1109. Concurrent jurisdiction of the Federal Bureau of Investigation.
Sec. 1110. Report on foreign-supplied defense articles, defense services, and
dual use goods and technology discovered in Iraq.
TITLE XII—STRENGTHENING MUNITIONS EXPORT CONTROLS
Sec. 1201. Control of items on Missile Technology Control Regime Annex.
Sec. 1202. Certifications relating to export of certain defense articles and serv-
ices.
Sec. 1203. Notification requirements for technical assistance and manufac-
turing licensing agreements with NATO member countries,
Australia, New Zealand, and Japan.
Sec. 1204. Strengthening defense cooperation with Australia and the United
Kingdom.
Sec. 1205. Training and liaison for small businesses.
Sec. 1206. Study and report relating to co-locating munitions control functions
of the Departments of State, Defense, and Homeland Security.
TITLE XIII—SECURITY ASSISTANCE AND RELATED PROVISIONS
Subtitle A—Foreign Military Sales and Financing Authorities
Sec. 1301. Authorization of appropriations.
Sec. 1302. Provision of cataloging data and services.
Sec. 1303. Annual estimate and justification for sales program.
Sec. 1304. Adjustment to advance notification requirement for transfer of cer-
tain excess defense articles.
Subtitle B—International Military Education and Training
Sec. 1311. Authorization of appropriations.
Sec. 1312. Annual foreign military training reporting.
Sec. 1313. Condition on the provision of certain funds to Indonesia.
Subtitle C—Assistance for Select Countries
Sec. 1321. Assistance for Israel.
Sec. 1322. Assistance for Egypt.
Subtitle D—Miscellaneous Provisions
Sec. 1331. United States War Reserve Stockpiles for Allies.
Sec. 1332. Transfer to Israel of certain defense articles in the United States
War Reserve Stockpiles for Allies.
Sec. 1333. Expansion of authorities for loan of material, supplies, and equip-
ment for research and development purposes.
Sec. 1334. Assistance for demining and related activities.
Sec. 1335. Reports relating to Treaty Between the United States and the Rus-
sian Federation on Strategic Offensive Reductions.
Sec. 1336. Statement of House of Representatives regarding the Treaty Be-
tween the United States and the Russian Federation on Stra-
tegic Offensive Reductions.
Sec. 1337. Nonproliferation and Disarmament Fund.
Sec. 1338. Maritime interdiction patrol boats for Mozambique.
Sec. 1339. Report on missile defense cooperation.
Sec. 1340. Iran’s program to develop a nuclear explosive device.
TITLE XIV—MISSILE THREAT REDUCTION ACT OF 2003
Sec. 1401. Short title.
Subtitle A—Strengthening International Missile Nonproliferation Law
Sec. 1411. Findings.
Sec. 1412. Policy of the United States.
Sec. 1413. Sense of Congress.
Subtitle B—Strengthening United States Missile Nonproliferation Law
Sec. 1421. Probationary period for foreign persons.
Sec. 1422. Strengthening United States missile proliferation sanctions on for-
eign persons.
Sec. 1423. Comprehensive United States missile proliferation sanctions on all
responsible persons.
Subtitle C—Incentives for Missile Threat Reduction
Sec. 1431. Foreign assistance.
Sec. 1432. Authorization of appropriations.
Sec. 1433. Authorization of technical assistance in missile disarmament.
TITLE XV—PROMOTION OF DEMOCRACY, HUMAN RIGHTS, AND
RULE OF LAW IN BELARUS
Sec. 1501. Assistance to promote democracy and civil society in Belarus.
Sec. 1502. Radio broadcasting to Belarus.
Sec. 1503. Sense of Congress relating to sanctions against the Government of
Belarus.
Sec. 1504. Multilateral cooperation.
Sec. 1505. Report.
Sec. 1506. Definitions.
TITLE XVI—ISRAELI-PALESTINIAN PEACE ENHANCEMENT ACT
OF 2003
Sec. 1601. Short title.
Sec. 1602. Findings.
Sec. 1603. Purposes.
Sec. 1604. Sense of Congress.
Sec. 1605. Recognition of a Palestinian state.
Sec. 1606. Limitation on assistance to a Palestinian state.
Sec. 1607. Authorization of assistance to a Palestinian state.
TITLE XVII—ACCESS FOR AFGHAN WOMEN
Sec. 1701. Short title.
Sec. 1702. Findings.
Sec. 1703. Establishment of Afghan Women’s Fund.
Sec. 1704. Assistance to Afghanistan.
Sec. 1705. Requirements relating to United States activities in Afghanistan.
Sec. 1706. Reporting requirements.
TITLE XVIII—MISCELLANEOUS FOREIGN ASSISTANCE
PROVISIONS
Sec. 1801. Additional authorities relating to international narcotics control as-
sistance.
Sec. 1802. United States opium eradication program in Colombia.
Sec. 1803. Cooperative Development Program.
Sec. 1804. West Bank and Gaza Program.
Sec. 1805. Annual human rights country reports on incitement to acts of dis-
crimination.
Sec. 1806. Assistance to East Timor.
Sec. 1807. Support for democracy-building efforts for Cuba.
Sec. 1808. Amendment to the Afghanistan Freedom Support Act of 2002.
Sec. 1809. Congo Basin Forest Partnership.
Sec. 1810. Combatting the piracy of United States copyrighted materials.
Sec. 1811. Assistance for law enforcement forces in certain foreign countries.
Sec. 1812. Human Rights and Democracy Fund.
Sec. 1813. Enhanced police training.
Sec. 1814. Promoting a secure and democratic Afghanistan.
Sec. 1815. Grants to the Africa Society.
Sec. 1816. Assistance to Tamil Nadu
Sec. 1817. Transfer of naval vessels to certain foreign countries.
Sec. 1818. Assistance to combat HIV/AIDS in certain countries of the Carib-
bean region.
Sec. 1819. Report on progress made in modifying the Enhanced HIPC Initia-
tive.
DIVISION E—ASSISTANCE FOR VIET NAM
TITLE XX—CONDITIONS ON INCREASED NONHUMANITARIAN
ASSISTANCE TO THE GOVERNMENT OF VIET NAM
Sec. 2001. Bilateral nonhumanitarian assistance.
TITLE XXI—ASSISTANCE TO SUPPORT HUMAN RIGHTS AND
DEMOCRACY IN VIET NAM
Sec. 2101. Assistance.
TITLE XXII—UNITED STATES PUBLIC DIPLOMACY
Sec. 2201. Radio Free Asia transmissions to Viet Nam.
Sec. 2202. United States educational and cultural exchange programs with Viet
Nam.
TITLE XXIII—UNITED STATES REFUGEE POLICY
Sec. 2301. Refugee resettlement for nationals of Viet Nam.
TITLE XIV—ANNUAL REPORT ON PROGRESS TOWARD FREEDOM
AND DEMOCRACY IN VIET NAM
Sec. 2401. Annual report.
SEC. 3. DEFINITIONS.
In this Act:
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on Foreign Relations
of the Senate and the Committee on International
Relations of the House of Representatives.
(2) DEPARTMENT.—The term ‘‘Department’’
means the Department of State.
(3) SECRETARY.—Except as otherwise provided,
the term ‘‘Secretary’’ means the Secretary of State.
SEC. 4. SPECIAL RULES FOR APPLYING BUY AMERICAN
ACT.
(a) ACQUISITIONS OF ARTICLES, MATERIALS, AND
SUPPLIES.—With respect to any acquisition under this
Act or any amendment made by this Act of articles, mate-
rials, or supplies that are subject to section 2 of the Buy
American Act (41 U.S.C. 10a), such section shall be ap-
plied to such acquisition by substituting ‘‘at least 65 per-
cent’’ for ‘‘substantially all’’; or
(b) CONTRACTS FOR CONSTRUCTION, ALTERNATION,
OR REPAIR.—With respect to any contract for the con-
struction, alteration, or repair of any public building or
public work entered into under this Act or any amendment
made by this Act that is subject to section 3 of the Buy
American Act (41 U.S.C. 10b), such section shall be ap-
plied to such contract by substituting ‘‘at least 65 per-
cent’’ for ‘‘substantially all’’.
DIVISION A—MILLENNIUM
CHALLENGE ACCOUNT
TITLE I—GENERAL PROVISIONS
SEC. 101. SHORT TITLE.
This division may be cited as the ‘‘Millennium Chal-
lenge Account Act of 2003’’.
SEC. 102. 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 development objectives described in the United
Nations 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. 103. 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,
including—
(i) private property and intellectual
property rights, including through the
adoption and effective enforcement of intel-
lectual property treaties or international
agreements; and
(ii) the establishment and mainte-
nance of an efficient and integrated legal
property system that, among other things,
facilitates the ability of the poor, particu-
larly women, to convert physical and intel-
lectual assets into capital, such as utilizing
existing practices and customs that allow
assets to be documented in a manner that
makes the assets widely transferable,
leveragable, and fungible, that allows indi-
viduals to hold legal title to their property,
and that holds owners accountable for
transactions involving their property;
(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 published by the
International Bank for Reconstruction and De-
velopment;
(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 208(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.
(h) PROHIBITION ON USE OF FUNDS.—The prohibi-
tions on use of funds contained in paragraphs (1) through
(3) of section 104(f) of the Foreign Assistance Act of
1961 (22 U.S.C. 2151b(f)(1)–(3)) shall apply to funds
made available to carry out this division to the same ex-
tent and in the same manner as such prohibitions apply
to funds made available to carry out part I of such Act.
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.—
(1) IN GENERAL.—The Compact shall take into
account the national development strategy of the eli-
gible country and shall contain—
(A) the specific objectives that the country
and the United States expect to achieve;
(B) the responsibilities of the country and
the United States in the achievement of such
objectives;
(C) regular benchmarks to measure, where
appropriate, progress toward achieving such ob-
jectives;
(D) an identification of the intended bene-
ficiaries, disaggregated by income level, gender,
and age, to the maximum extent practicable;
(E) a multi-year financial plan, including
the estimated amount of contributions by the
Corporation and the country and proposed
mechanisms to implement the plan and provide
oversight, that describes how the requirements
of subparagraphs (A) through (D) will be met,
including identifying the role of civil society in
the achievement of such requirements;
(F) where appropriate, a description of the
responsibility of other donors in the achieve-
ment of such objectives; and
(G) a plan to ensure appropriate fiscal ac-
countability for the use of assistance provided
under section 202.
(2) LOWER MIDDLE INCOME COUNTRIES.—In addi-
tion to the elements described in subparagraphs (A)
through (G) of paragraph (1), with respect to a lower mid-
dle income country described in section 203(b), the Com-
pact shall identify an appropriate contribution from the
country relative to its national budget, taking into account
the prevailing economic conditions, toward meeting the ob-
jectives of the Compact. Such contribution shall be in ad-
dition to government spending allocated for such purposes
in the country’s budget for the year immediately preceding
the establishment of the Compact and shall continue for
the duration of the Compact.
(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.
(4) A description and assessment of property
rights in each country, including—
(A) the total value of legal and extralegal
property and business holdings;
(B) the average time required to acquire
land; and
(C) the average time required to register
and wind up a business enterprise.
SEC. 207. PARTICIPATION OF CERTAIN UNITED STATES
BUSINESSES.
(a) PARTICIPATION.—To the maximum extent prac-
ticable, the President, acting through the Chief Executive
Officer, shall ensure that United States small, minority-
owned, and disadvantaged business enterprises fully par-
ticipate in the provision of goods and services that are fi-
nanced with funds made available under this title.
(b) REPORT.—The Chief Executive Officer shall pre-
pare and submit to the appropriate congressional commit-
tees an annual report that contains a description of the
extent to which the requirement of subsection (a) has been
met for the preceding year.
SEC. 208. 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
employee—
(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 and be under the
general supervision of the Board of Directors.
(3) REIMBURSEMENT AND AUTHORIZATION OF
SERVICES.—
(A) REIMBURSEMENT.—The Corporation
shall reimburse the United States Agency for
International Development for all expenses in-
curred by the Inspector General in connection
with the Inspector General’s responsibilities
under this subsection.
(B) AUTHORIZATION
FOR
SERVICES.—Of
the amount authorized to be appropriated
under section 208(a) for a fiscal year, up to
$1,000,000 is authorized to be made available
to the Inspector General of the United States
Agency for International Development to con-
duct reviews, investigations, and inspections of
operations and activities of the Corporation.
(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 member
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. MILLENNIUM CHALLENGE SEED GRANTS.
(a) FINDINGS.—Congress finds the following:
(1) Many countries in the developing world lack
the academic and public policy advocacy base essen-
tial to attaining the principal objectives of the Mil-
lennium Challenge Account.
(2) Because of widespread government repres-
sion of free speech and poverty, the countries of Af-
rica in particular suffer an acute shortage of non-
governmental organizations which effectively study
and promote the principal objectives of the Millen-
nium Challenge Account.
(3) Many developing countries, particularly low
income countries, lack the institutional capacity to
enhance the quality and accuracy of data upon
which the eligibility criteria in section 203 relies.
Such countries may also lack the ability to monitor
and evaluate development projects effectively.
(4) The Millennium Challenge Account will
struggle to reach its goals unless countries in the de-
veloping world possess a home grown intellectual
commitment and culture of advocacy aimed at pro-
moting its principal objectives.
(b) ASSISTANCE.—The Chief Executive Officer of the
Corporation is authorized to provide assistance in support
of nongovernmental organizations (including universities,
independent foundations, and other organizations) in low
income and lower middle income countries, and, where ap-
propriate, directly to agencies of foreign governments in
low income countries, that are undertaking research, edu-
cation, and advocacy efforts aimed at promoting demo-
cratic societies, human rights, the rule of law, improved
educational opportunities and health conditions, particu-
larly for women and children, and economic freedom, in-
cluding research aimed at improving data related to the
eligibility criteria and methodology established by this divi-
sion with respect to such a country or monitoring and
evaluating the impact of assistance provided under this di-
vision.
(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.
SEC. 310. CLARIFICATION OF ROLE OF USAID.
(a) STATUS OF USAID.—The Administrator of the
United States Agency for International Development shall
report to the President through, and operate under the
foreign policy authority and direction of, the Secretary of
State. The United States Agency for International Devel-
opment shall be administered under the supervision and
operational direction of the Administrator of the Agency.
(b) FUNCTIONS
OF USAID.—The United States
Agency for International Development is authorized—
(1) to receive appropriated funds;
(2) to be the United States Government agency
primarily responsible for administering sections 103
through 108 (other than section 104A), 214, and
491 of the Foreign Assistance Act of 1961, the
‘‘Child Survival and Health Programs Fund’’, and
other United States economic assistance as directed
in writing by the President or the Secretary of
State, or as otherwise provided by law;
(3) to provide assistance to a country currently
ineligible for assistance provided under title II in
order that it may become eligible for such assist-
ance; and
(4) upon the request of the Chief Executive Of-
ficer of the Corporation and with the concurrence of
the Administrator of the Agency, to assist in the
evaluation, execution, and oversight of Millennium
Challenge Compacts described in section 204.
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—
(A) to assist the development and economic
advancement of friendly foreign countries and
peoples, including assistance provided under
title II (relating to the Millennium Challenge
Account);
(B) to promote the freedom, aspirations, or
sustenance of friendly peoples under oppressive
rule by unfriendly governments;
(C) to promote international trade and for-
eign direct investment as a means of aiding eco-
nomic growth;
(D) to save lives and alleviate suffering of
foreign peoples during or following war, natural
disaster, or complex crisis;
(E) to assist in recovery and rehabilitation
of countries or peoples following disaster or
war;
(F) to protect refugees and promote dura-
ble solutions to aid refugees;
(G) to promote sound environmental prac-
tices;
(H) to assist in development of democratic
institutions and good governance by the people
of foreign countries;
(I) to promote peace and reconciliation or
prevention of conflict;
(J) to improve the technical capacities of
governments to reduce production of and de-
mand for illicit narcotics; and
(K) to otherwise promote through bilateral
foreign economic assistance the national objec-
tives 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.
(d) 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. SHORT TITLE.
This division may be cited as the ‘‘Peace Corps Ex-
pansion Act of 2003’’.
SEC. 1002. 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. 1003. 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
backgrounds 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
enhanced—
‘‘(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.
SEC. 
1103. 
SPECIAL 
VOLUNTEER 
RECRUITMENT 
AND
PLACEMENT FOR CERTAIN COUNTRIES.
(a) REPORT.—Not later than 60 days after the date
of enactment of this Act, the Director shall submit to the
appropriate congressional committees a report that—
(1) describes the recruitment strategies to be
employed by the Peace Corps to recruit and train
volunteers with the appropriate language skills and
interest in serving in host countries; and
(2) lists the countries that the Director has de-
termined should be priorities for special recruitment
and placement of Peace Corps volunteers.
(b) USE OF RETURNED PEACE CORPS VOLUNTEERS
AND FORMER STAFF.—The Director is authorized and
strongly urged to utilize the services of returned Peace
Corps volunteers and former Peace Corps staff who have
relevant language and cultural experience and may have
served previously in countries with substantial Muslim
populations, in order to open or reopen Peace Corps pro-
grams in such countries.
SEC. 1104. GLOBAL INFECTIOUS DISEASES INITIATIVE; CO-
ORDINATION OF HIV/AIDS ACTIVITIES.
(a) INITIATIVE.—
(1) IN GENERAL.—The Director, in cooperation
with international public health experts, such as the
Centers for Disease Control and Prevention, the Na-
tional Institutes of Health, the World Health Orga-
nization, the Pan American Health Organization,
and local public health officials, shall expand the
Peace Corps’ program of training for Peace Corps
volunteers in the areas of education, prevention, and
treatment of infectious diseases which are prevalent
in host countries in order to ensure that the Peace
Corps increases its contribution to the global cam-
paign against such diseases.
(2) ADDITIONAL REQUIREMENT.—Activities for
the education, prevention, and treatment of infec-
tious diseases in host countries by the Peace Corps
shall be undertaken in a manner that is consistent
with activities authorized under sections 104(c),
104A, 104B, and 104C of the Foreign Assistance
Act of 1961.
(b) COORDINATION OF HIV/AIDS ACTIVITIES.—
(1) IN
GENERAL.—The Director should des-
ignate an officer or employee of the Peace Corps
who is located in the United States to coordinate all
HIV/AIDS activities within the Peace Corps. Such
individual may be an individual who is an officer or
employee of the Peace Corps on the date of the en-
actment of this Act.
(2) FIELD COORDINATION.—In addition to the
position established under paragraph (1), the Direc-
tor should designate an individual within each coun-
try in sub-Saharan Africa, the Western Hemisphere,
and Asia in which Peace Corps volunteers carry out
HIV/AIDS activities to coordinate all such activities
of the Peace Corps in such countries.
(c) DEFINITIONS.—In this section:
(1) AIDS.—The term ‘‘AIDS’’ means the ac-
quired immune deficiency syndrome.
(2) HIV.—The term ‘‘HIV’’ means the human
immunodeficiency virus, the pathogen that causes
AIDS.
(3) 
HIV/AIDS.—The 
term 
‘‘HIV/AIDS’’
means, with respect to an individual, an individual
who is infected with HIV or living with AIDS.
(4) INFECTIOUS DISEASES.—The term ‘‘infec-
tious diseases’’ means HIV/AIDS, tuberculosis, and
malaria.
SEC. 1105. PEACE CORPS NATIONAL ADVISORY COUNCIL.
Section 12 of the Peace Corps Act (22 U.S.C. 2511;
relating to the Peace Corps National Advisory Council)
is amended—
(1) in subsection (b)(2)—
(A) in subparagraph (C), by striking
‘‘and’’ after the semicolon;
(B) by redesignating subparagraph (D) as
subparagraph (E); and
(C) by inserting after subparagraph (C)
the following:
‘‘(D) make recommendations for utilizing the
expertise of returned Peace Corps volunteers and
former Peace Corps staff in fulfilling the goals of
the Peace Corps; and’’;
(2) in subsection (c)(2)—
(A) in subparagraph (A)—
(i) in the first sentence—
(I) by striking ‘‘fifteen’’ and in-
serting ‘‘eleven’’; and
(II) by striking ‘‘President, by
and with the advice and consent of
the Senate’’ and inserting ‘‘Director
of the Peace Corps’’;
(ii) by striking the second sentence
and inserting the following: ‘‘Six of the
members shall be former Peace Corps vol-
unteers, at least one of whom shall have
been a former staff member abroad or in
the Washington headquarters, and not
more than six shall be members of the
same political party.’’;
(B) by striking subparagraph (B);
(C) by amending subparagraph (D) to read
as follows:
‘‘(D) The members of the Council shall be appointed
to 2-year terms.’’;
(D) in subparagraph (H), by striking
‘‘nine’’ and inserting ‘‘seven’’;
(E) in subparagraph (I), by striking
‘‘President shall nominate’’ and inserting ‘‘Di-
rector shall appoint’’; and
(F) by redesignating subparagraphs (C),
(D), (E), (F), (G), (H), and (I) as subpara-
graphs (B), (C), (D), (E), (F), (G), and (H),
respectively; and
(3) by amending subsection (g) to read as fol-
lows:
‘‘(g) CHAIR.—The Director shall designate one of the
voting members of the Council as Chair, who shall serve
in that capacity for a term of two years. The Director may
renew the term of a voting member appointed as Chair
under the preceding sentence.’’.
SEC. 1106. READJUSTMENT ALLOWANCES.
The Peace Corps Act is amended—
(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
210
(iii) will employ United States citizens in
at least 80 percent of the supervisory positions
on the project site; and
(F) has the existing technical and financial
resources in the United States to perform the
contract.
(2) The term ‘‘qualified United States joint
venture person’’ means a joint venture in which a
United States person or persons own at least 51 per-
cent of the assets of the joint venture.
(3) The term ‘‘responsive bid’’ includes only a
bid where the bidder can establish that the United
States goods and services content, excluding con-
sulting and management fees, of the bidder’s pro-
posal and the resulting contract will not be less than
55 percent of the value of the bidder’s proposal and
the resulting total contract.
(e) EFFECTIVE DATE.—The provisions of this section
shall apply to any project with respect to which the Re-
quest For Proposals (commonly referred to as ‘‘RFP’’) or
the Invitation For Bids (commonly referred to as ‘‘IFB’’)
was issued after the date of the enactment of this Act.