H. R. 2673—209
(1) in the heading, by striking ‘‘BIMONTHLY’’ and
inserting ‘‘QUARTERLY’’;
(2) by striking ‘‘60’’ and inserting ‘‘90’’; and
(3) by striking ‘‘Congress’’ and inserting ‘‘the appropriate
congressional committees’’.
(b) The report required by section 3204(e) of the Emergency
Supplemental Act, 2000 (Public Law 106–246) is amended by
striking ‘‘Congress’’ and inserting ‘‘the appropriate congressional
committees’’.
(c) Subsection (a) of section 803 of the Foreign Operations,
Export Financing, and Related Programs Appropriations Act, 2001,
Appendix A of Public Law 106–429 (as enacted by section 101(a)
of such Public Law) is hereby repealed.
CPA DETAILEES
SEC. 599C. The Office of Personnel Management shall provide
the House and Senate Committees on Appropriations a report of
the number of Federal employees detailed from each executive
agency to the Coalition Provisional Authority in Iraq on the date
of enactment of this Act: Provided, That the report shall identify
by agency the number of non-reimbursable and reimbursable
detailees and shall be submitted to the House and Senate Commit-
tees on Appropriations by February 1, 2004: Provided further, That
the report shall be updated and submitted on a quarterly basis
until May, 2005.
TITLE VI—MILLENNIUM CHALLENGE
ACT OF 2003
SEC. 601. SHORT TITLE.
This title may be cited as the ‘‘Millennium Challenge Act of
2003’’.
SEC. 602. PURPOSES.
The purposes of this title are—
(1) to provide United States assistance for global develop-
ment through the Millennium Challenge Corporation, as
described in section 604; and
(2) to provide such assistance in a manner that promotes
economic growth and the elimination of extreme poverty and
strengthens good governance, economic freedom, and invest-
ments in people.
SEC. 603. DEFINITIONS.
In this title:
(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term
‘‘appropriate congressional committees’’ means—
(A) the Committee on International Relations and the
Committee on Appropriations of the House of Representa-
tives; and
(B) the Committee on Foreign Relations and the Com-
mittee on Appropriations of the Senate.
(2) BOARD.—The term ‘‘Board’’ means the Board of Direc-
tors of the Corporation established pursuant to section 604(c).
(3) CANDIDATE COUNTRY.—The term ‘‘candidate country’’
means a country that meets the requirements of section 606.
H. R. 2673—210
(4) CHIEF EXECUTIVE OFFICER.—The term ‘‘Chief Executive
Officer’’ means the chief executive officer of the Corporation
appointed pursuant to section 604(b).
(5) COMPACT.—The term ‘‘Compact’’ means a Millennium
Challenge Compact described in section 609.
(6) CORPORATION.—The term ‘‘Corporation’’ means the
Millennium Challenge Corporation established by section
604(a).
(7) ELIGIBLE COUNTRY.—The term ‘‘eligible country’’ means
a candidate country that is determined, under section 607,
to be an eligible country to receive assistance under section
605.
SEC. 604. ESTABLISHMENT AND MANAGEMENT OF THE MILLENNIUM
CHALLENGE CORPORATION.
(a) ESTABLISHMENT.—There is established in the executive
branch a corporation to be known as the ‘‘Millennium Challenge
Corporation’’ that shall be responsible for carrying out this title.
The Corporation shall be a government corporation, as defined
in section 103 of title 5, United States Code.
(b) CHIEF EXECUTIVE OFFICER.—
(1) IN GENERAL.—There shall be in the Corporation a Chief
Executive Officer who shall be responsible for the management
of the Corporation.
(2) APPOINTMENT.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), the Chief Executive Officer shall be appointed by the
President, by and with the advice and consent of the
Senate.
(B) INTERIM CEO.—The members of the Board of Direc-
tors described in subsection (c)(3)(A) may designate by
unanimous consent in writing an individual who is an
officer within any Federal department or agency (and who
has been appointed to such position by the President, by
and with the advice and consent of the Senate) to carry
out the duties described in this subsection until the Chief
Executive Officer is appointed pursuant to subparagraph
(A).
(3) RELATIONSHIP TO BOARD.—The Chief Executive Officer
shall report to and be under the direct authority of the Board.
(4) COMPENSATION AND RANK.—
(A) 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 equivalent rank of Deputy
Secretary.
(B) AMENDMENT.—Section 5313 of title 5, United States
Code, is amended by adding at the end the following:
‘‘Chief Executive Officer, Millennium Challenge Corpora-
tion.’’.
(5) AUTHORITIES AND DUTIES.—The Chief Executive Officer
shall be responsible for the management of the Corporation
and shall exercise the powers and discharge the duties of the
Corporation.
(6) AUTHORITY TO APPOINT OFFICERS.—In consultation and
with approval of the Board, the Chief Executive Officer shall
appoint all officers of the Corporation.
H. R. 2673—211
(c) BOARD OF DIRECTORS.—
(1) ESTABLISHMENT.—There shall be in the Corporation
a Board of Directors.
(2) DUTIES.—The Board shall perform the functions speci-
fied to be carried out by the Board in this title and may
prescribe, amend, and repeal bylaws, rules, regulations, and
procedures governing the manner in which the business of
the Corporation may be conducted and in which the powers
granted to it by law may be exercised.
(3) MEMBERSHIP.—The Board shall consist of—
(A) the Secretary of State, the Secretary of the
Treasury, the Administrator of the United States Agency
for International Development, the Chief Executive Officer
of the Corporation, and the United States Trade Represent-
ative; and
(B) four other individuals with relevant international
experience who shall be appointed by the President, by
and with the advice and consent of the Senate, of which—
(i) one individual should be appointed from among
a list of individuals submitted by the majority leader
of the House of Representatives;
(ii) one individual should be appointed from among
a list of individuals submitted by the minority leader
of the House of Representatives;
(iii) one individual should be appointed from
among a list of individuals submitted by the majority
leader of the Senate; and
(iv) one individual should be appointed from among
a list of individuals submitted by the minority leader
of the Senate.
(4) TERMS.—
(A) OFFICERS
OF
THE
FEDERAL
GOVERNMENT.—Each
member of the Board described in paragraph (3)(A) 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.
(B) OTHER
MEMBERS.—Each member of the Board
described in paragraph (3)(B) shall be appointed for a term
of 3 years and may be reappointed for a term of an addi-
tional 2 years.
(C) VACANCIES.—A vacancy in the Board shall be filled
in the manner in which the original appointment was made.
(5) CHAIRPERSON.—There shall be a Chairperson of the
Board. The Secretary of State shall serve as the Chairperson.
(6) QUORUM.—A majority of the members of the Board
shall constitute a quorum, which, except with respect to a
meeting of the Board during the 135-day period beginning
on the date of the enactment of this Act, shall include at
least one member of the Board described in paragraph (3)(B).
(7) MEETINGS.—The Board shall meet at the call of the
Chairperson.
(8) COMPENSATION.—
(A) OFFICERS OF THE FEDERAL GOVERNMENT.—
(i) IN GENERAL.—A member of the Board described
in paragraph (3)(A) may not receive additional pay,
allowances, or benefits by reason of the member’s
service on the Board.
H. R. 2673—212
(ii) TRAVEL EXPENSES.—Each such member of the
Board shall receive travel expenses, including per diem
in lieu of subsistence, in accordance with applicable
provisions under subchapter I of chapter 57 of title
5, United States Code.
(B) OTHER MEMBERS.—
(i) IN GENERAL.—Except as provided in clause (ii),
a member of the Board described in paragraph (3)(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 performance
of duties as a member of the Board; and
(II) while away from the member’s home or
regular place of business on necessary travel in
the actual performance of duties as a member
of the Board, shall be paid per diem, travel, and
transportation expenses in the same manner as
is provided under subchapter I of chapter 57 of
title 5, United States Code.
(ii) LIMITATION.—A member of the Board may not
be paid compensation under clause (i)(II) for more than
90 days in any calendar year.
SEC. 605. AUTHORIZATION OF ASSISTANCE.
(a) ASSISTANCE.—Notwithstanding any other provision of law
(other than a provision of this title), the Board, acting through
the Chief Executive Officer, is authorized to provide assistance
under this section for each country that enters into a Millennium
Challenge Compact with the United States pursuant to section
609 to support policies and programs that advance the progress
of the country in achieving lasting economic growth and poverty
reduction and are in furtherance of the purposes of this title.
(b) FORM OF ASSISTANCE.—Assistance under this section may
be provided in the form of grants, cooperative agreements, or con-
tracts to or with eligible entities described in subsection (c). Assist-
ance under this section may not be provided in the form of loans.
(c) ELIGIBLE ENTITIES.—An eligible entity referred to in sub-
section (b) is—
(1) the national government of the eligible country;
(2) regional or local governmental units of the country;
or
(3) a nongovernmental organization or a private entity.
(d) APPLICATION.—The Chief Executive Officer, in consultation
with the Board and working with eligible countries selected by
the Board for negotiation of Compacts, should develop and rec-
ommend procedures for considering solicited and unsolicited pro-
posals in Compacts prior to an approval of the Compacts by the
Board.
(e) LIMITATIONS.—
(1) PROHIBITION ON MILITARY ASSISTANCE AND TRAINING.—
Assistance under this section may not include military assist-
ance or military training for a country.
(2) PROHIBITION ON ASSISTANCE RELATING TO UNITED STATES
JOB
LOSS
OR
PRODUCTION
DISPLACEMENT.—Assistance under
H. R. 2673—213
this section may not be provided for any project that is likely
to cause a substantial loss of United States jobs or a substantial
displacement of United States production.
(3) PROHIBITION
ON
ASSISTANCE
RELATING
TO
ENVIRON-
MENTAL, HEALTH, OR SAFETY HAZARDS.—Assistance under this
section may not be provided for any project that is likely
to cause a significant environmental, health, or safety hazard.
(4) PROHIBITION ON USE OF FUNDS FOR ABORTIONS AND
INVOLUNTARY STERILIZATIONS.—The prohibitions 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 section
to the same extent and in the same manner as such prohibitions
apply to funds made available to carry out part I of such
Act. The prohibition on use of funds contained in any provision
of law comparable to the eleventh and fourteenth provisos
under the heading ‘‘Child Survival and Health Programs Fund’’
of division E of Public Law 108–7 (117 Stat. 162) shall apply
to funds made available to carry out this section for fiscal
year 2004.
(f) COORDINATION.—The provision of assistance under this sec-
tion shall be coordinated with other United States foreign assistance
programs.
SEC. 606. CANDIDATE COUNTRIES.
(a) LOW INCOME COUNTRIES.—
(1) FISCAL
YEAR
2004.—A country shall be a candidate
country for purposes of eligibility for assistance for fiscal year
2004 if—
(A) the country is eligible for assistance from the Inter-
national Development Association, 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; and
(B) subject to paragraph (3), the country is not ineli-
gible to receive United States economic assistance under
part I of the Foreign Assistance Act of 1961 by reason
of the application of any provision of the Foreign Assistance
Act of 1961 or any other provision of law.
(2) FISCAL
YEAR
2005
AND
SUBSEQUENT
FISCAL
YEARS.—
A country shall be a candidate country for purposes of eligibility
for assistance for fiscal year 2005 or a subsequent fiscal year
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 International Bank for Reconstruction and
Development; and
(B) the country meets the requirements of paragraph
(1)(B).
(3) RULE OF CONSTRUCTION.—For the purposes of deter-
mining whether a country is eligible for receiving assistance
under section 605 pursuant to paragraph (1)(B), the exercise
by the President, the Secretary of State, or any other officer
or employee of the United States of any waiver or suspension
of any provision of law referred to in such paragraph, and
H. R. 2673—214
notification to the appropriate congressional committees in
accordance with such provision of law, shall be construed as
satisfying the requirement of such paragraph.
(b) LOWER MIDDLE INCOME COUNTRIES.—
(1) IN GENERAL.—In addition to countries described in sub-
section (a), a country shall be a candidate country for purposes
of eligibility for assistance for fiscal year 2006 or a subsequent
fiscal year if the country—
(A) is classified as a lower middle income country in
the then most recent edition of the World Development
Report for Reconstruction and Development published by
the International Bank for Reconstruction and Develop-
ment and has an income greater than the historical ceiling
for International Development Association eligibility for
the fiscal year involved; and
(B) meets the requirements of subsection (a)(1)(B).
(2) LIMITATION.—The total amount of assistance provided
to countries described in paragraph (1) for fiscal year 2006
or any subsequent fiscal year may not exceed 25 percent of
the total amount of assistance provided to all countries under
section 605 for fiscal year 2006 or the subsequent fiscal year,
as the case may be.
(c) IDENTIFICATION BY THE BOARD.—The Board shall identify
whether a country is a candidate country for purposes of this
section.
SEC. 607. ELIGIBLE COUNTRIES.
(a) DETERMINATION BY THE BOARD.—The Board shall determine
whether a candidate country is an eligible country for purposes
of this section. Such determination shall be based, to the maximum
extent possible, upon objective and quantifiable indicators of a
country’s demonstrated commitment to the criteria in subsection
(b), and shall, where appropriate, take into account and assess
the role of women and girls.
(b) CRITERIA.—A candidate country should be considered to
be an eligible country for purposes of this section if the Board
determines that the country has demonstrated a commitment to—
(1) just and democratic governance, including a dem-
onstrated commitment to—
(A) promote political pluralism, equality, and the rule
of law;
(B) respect human and civil rights, including the rights
of people with disabilities;
(C) protect private property rights;
(D) encourage transparency and accountability of
government; and
(E) combat corruption;
(2) economic freedom, including a demonstrated commit-
ment to economic policies that—
(A) encourage citizens and firms to participate in global
trade and international capital markets;
(B) promote private sector growth and the sustainable
management of natural resources;
(C) strengthen market forces in the economy; and
(D) respect worker rights, including the right to form
labor unions; and
H. R. 2673—215
(3) investments in the people of such country, particularly
women and children, including programs that—
(A) promote broad-based primary education; and
(B) strengthen and build capacity to provide quality
public health and reduce child mortality.
(c) SELECTION BY THE BOARD.—
(1) IN GENERAL.—At the time the Board determines eligible
countries under this section for a fiscal year, the Board shall
select those eligible countries with respect to which the United
States will initially seek to enter into a Millennium Challenge
Compact pursuant to section 609.
(2) FACTORS.—In selecting eligible countries under para-
graph (1), the Board shall consider the following factors:
(A) The extent to which the country clearly meets
or exceeds the eligibility criteria.
(B) The opportunity to reduce poverty and generate
economic growth in the country.
(C) The availability of amounts to carry out this title.
(d) ESTABLISHMENT OF CRITERIA AND METHODOLOGY.—The cri-
teria and methodology submitted by the Board to Congress and
published in the Federal Register under section 608(b)(2) with
respect to a fiscal year shall remain fixed for purposes of eligibility
determinations for such year.
(e) ANNUAL MODIFICATION OF CRITERIA AND METHODOLOGY.—
As appropriate, the Board, acting through the Chief Executive
Officer, shall review the eligibility criteria and methodology and
modify such criteria and methodology in subsequent years con-
sistent with section 608(b).
SEC. 608. CONGRESSIONAL AND PUBLIC NOTIFICATION OF CANDIDATE
COUNTRIES, 
ELIGIBILITY 
CRITERIA, 
AND 
ELIGIBLE
COUNTRIES.
(a) IDENTIFICATION OF CANDIDATE COUNTRIES.—Not later than
90 days prior to the date on which the Board determines eligible
countries under section 607 for a fiscal year, the Chief Executive
Officer—
(1) shall prepare and submit to the appropriate congres-
sional committees a report that contains a list of all candidate
countries identified under section 606, and all countries that
would be candidate countries if the countries met the require-
ment contained in section 606(a)(1)(B), for the fiscal year; and
(2) shall publish in the Federal Register the information
contained in the report described in paragraph (1).
(b) IDENTIFICATION
OF ELIGIBILITY CRITERIA
AND METHOD-
OLOGY.—Not later than 60 days prior to the date on which the
Board determines eligible countries under section 607 for a fiscal
year, the Chief Executive Officer—
(1) shall prepare and submit to the appropriate congres-
sional committees a report that contains a list of the criteria
and methodology described in subsections (a) and (b) of section
607 that will be used to determine eligibility for each candidate
country identified under subsection (a);
(2) shall publish in the Federal Register the information
contained in the report described in paragraph (1); and
(3) may conduct one or more public hearings on the eligi-
bility criteria and methodology.
(c) PUBLIC COMMENT
AND CONGRESSIONAL CONSULTATION.—
H. R. 2673—216
(1) PUBLIC COMMENT.—The Chief Executive Officer shall,
for the 30-day period beginning on the date of publication
in the Federal Register of the information contained in the
report described in subsection (b)(1), accept public comment
and consider such comment for purposes of determining eligible
countries under section 607.
(2) CONGRESSIONAL CONSULTATION.—The Chief Executive
Officer shall consult with the appropriate congressional commit-
tees on the extent to which the candidate countries meet the
criteria described in section 607(b).
(d) IDENTIFICATION OF ELIGIBLE COUNTRIES.—Not later than
5 days after the date on which the Board determines eligible coun-
tries under section 607 for a fiscal year, the Chief Executive
Officer—
(1) shall prepare and submit to the appropriate congres-
sional committees a report that contains a list of all such
eligible countries, an identification of those countries on such
list with respect to which the Board will seek to enter into
a Compact under section 609, and a justification for such eligi-
bility determination and selection for Compact negotiation; and
(2) shall publish in the Federal Register the information
contained in the report described in paragraph (1).
SEC. 609. MILLENNIUM CHALLENGE COMPACT.
(a) COMPACT.—The Board, acting through the Chief Executive
Officer of the Corporation, may provide assistance for an eligible
country only if the country enters into an agreement with the
United States, to be known as a ‘‘Millennium Challenge Compact’’,
that establishes a multi-year plan for achieving shared development
objectives in furtherance of the purposes of this title.
(b) ELEMENTS.—
(1) IN GENERAL.—The Compact should take into account
the national development strategy of the eligible country and
shall contain—
(A) the specific objectives that the country and the
United States expect to achieve during the term of the
Compact;
(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 objectives;
(D) an identification of the intended beneficiaries,
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 pro-
vide oversight, that describes how the requirements of sub-
paragraphs (A) through (D) will be met, including identi-
fying the role of civil society in the achievement of such
requirements;
(F) where appropriate, a description of the current
and potential participation of other donors in the achieve-
ment of such objectives;
(G) a plan to ensure appropriate fiscal accountability
for the use of assistance provided under section 605;
H. R. 2673—217
(H) where appropriate, a process or processes for
consideration of solicited proposals under the Compact as
well as a process for consideration of unsolicited proposals
by the Corporation and national, regional, or local units
of government;
(I) a requirement that open, fair, and competitive proce-
dures are used in a transparent manner in the administra-
tion of grants or cooperative agreements or the procurement
of goods and services for the accomplishment of objectives
under the Compact;
(J) the strategy of the eligible country to sustain
progress made toward achieving such objectives after
expiration of the Compact; and
(K) a description of the role of the United States Agency
for International Development in any design, implementa-
tion, and monitoring of programs and activities funded
under the Compact.
(2) LOWER MIDDLE INCOME COUNTRIES.—In addition to the
elements described in subparagraphs (A) through (K) of para-
graph (1), with respect to a lower middle income country
described in section 606(b), the Compact shall identify a con-
tribution, as appropriate, from the country relative to its
national budget, taking into account the prevailing economic
conditions, toward meeting the objectives of the Compact. Any
such contribution should be in addition to government spending
allocated for such purposes in the country’s budget for the
year immediately preceding the establishment of the Compact
and should continue for the duration of the Compact.
(3) DEFINITION.—In this subsection, the term ‘‘national
development strategy’’ means any strategy to achieve market-
driven economic growth and eliminate extreme poverty that
has been developed by the government of the country in con-
sultation with a wide variety of civic participation, including
nongovernmental 
organizations, 
private 
and 
voluntary
organizations, academia, women’s and student organizations,
local trade and labor unions, and the business community.
(c) ADDITIONAL PROVISION RELATING TO PROHIBITION ON TAX-
ATION.—In addition to the elements described in subsection (c),
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.
(d) LOCAL INPUT.—In entering into a Compact, the United
States shall seek to ensure that the government of an eligible
country—
(1) takes into account the local-level perspectives of the
rural and urban poor, including women, in the eligible country;
and
(2) consults with private and voluntary organizations, the
business community, and other donors in the eligible country.
(e) 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 appropriate officials of the United States
Agency for International Development, particularly with those offi-
cials responsible for the appropriate region or country on develop-
ment issues related to the Compact.