II 
Calendar No. 211
108TH CONGRESS 
1ST SESSION H. R. 1950
IN THE SENATE OF THE UNITED STATES 
JULY 17, 2003
Received; read twice and placed on the calendar 
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,
HR 1950 PCS 
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
HR 1950 PCS 
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
HR 1950 PCS 
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.
HR 1950 PCS 
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.
HR 1950 PCS 
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.
HR 1950 PCS 
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.
HR 1950 PCS 
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.
HR 1950 PCS 
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
HR 1950 PCS 
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
HR 1950 PCS 
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
HR 1950 PCS 
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—
HR 1950 PCS 
(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-
HR 1950 PCS 
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.
HR 1950 PCS 
(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,
HR 1950 PCS 
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
HR 1950 PCS 
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.
HR 1950 PCS 
(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.
HR 1950 PCS 
(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
HR 1950 PCS 
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
HR 1950 PCS 
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
HR 1950 PCS 
institutions and conditions needed to promote free 
market systems, trade, and investment, including—
(A) the reform and restructuring of bank-
ing and financial systems, including by allowing 
foreign competition in the banking and financial 
sectors, where appropriate; 
(B) the development of transparent and ef-
ficient commercial codes and reduction in the 
regulatory burden on business; 
(C) the protection of property rights, in-
cluding—
(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,
HR 1950 PCS 
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
HR 1950 PCS 
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
HR 1950 PCS 
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
HR 1950 PCS 
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)
HR 1950 PCS 
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
HR 1950 PCS 
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
HR 1950 PCS 
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:
HR 1950 PCS 
(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.
HR 1950 PCS 
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;
HR 1950 PCS 
(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
HR 1950 PCS 
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.
HR 1950 PCS 
(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;
HR 1950 PCS 
(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
HR 1950 PCS 
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-
HR 1950 PCS 
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.
HR 1950 PCS 
(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.
HR 1950 PCS 
(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
HR 1950 PCS 
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.