S. 1160Senate108th Congress (2003-2005)In Committee

Millennium Challenge Act of 2003

An original bill to authorize Millennium Challenge assistance, and for other purposes.

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Placed on Senate Legislative Calendar under General Orders. Calendar No. 115.

May 29, 2003

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Committee on Foreign Relations ordered to be reported an original measure.

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May 21, 2003

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Introduced in Senate

May 29, 2003

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Committee on Foreign Relations. Original measure reported to Senate by Senator Lugar under authority of the order of the Senate of May 23 2003. With written report No. 108-55.

Foreign Relations Committee

May 29, 2003

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Placed on Senate Legislative Calendar under General Orders. Calendar No. 115.

May 29, 2003

Floor Debate

2 members

What members said about S. 1160 on the floor

1 Republican1 Democrat

Sen. Trent LottR-MS · Sep 28, 2004

Mr. President, as we look at the situation in America and in the world today, we face serious challenges. Obviously, the war on terrorism is one of the most serious challenges we have had in many…

Mr. President, as we look at the situation in America and in the world today, we face serious challenges. Obviously, the war on terrorism is one of the most serious challenges we have had in many decades, one that is different because there are no specific battles that are won or lost. There may not be a moment when we say it is over. Because we are dealing with a moving, shadowy element that uses the most dastardly types of attacks on individuals, innocent men, women, and children.

We have seen the situation in Florida, where the people there have been hit repeatedly by hurricanes and disasters. I guess you could say in many respects these are times that try men and women's souls.

We are under attack in a lot of ways. But, also, these are the times that require a certain trumpet. We cannot have uncertainty in terms of leadership. We cannot have an uncertain trumpet. We have to have direction, strong leadership, and courage to take a stand and follow it through. That is why I am very much worried about what I see in Senator Kerry and the positions he has taken, first on one side and then the other.

I was greatly distressed last week when we had the Prime Minister of Iraq here. He is a man who is showing strength, leadership, and great courage because his life is on the line every day with repeated assassination attempts directed at him. He came here. He said: Thank you, America. He said: We are going to have elections. We are going to have peace and freedom and democracy. We chose justice and the rule of law rather than chaos and anarchy. He did a magnificent job. I was inspired by what he is doing and by his speech.

Yet Senator Kerry attacked his speech before he even left town. Where are the basic courtesies that we have in the past extended to leaders of other countries?

President Bush, on the other hand, has shown strength, leadership, and courage. He is dealing with the issues of security. People see in him and hear in his voice a determination, a commitment, that will get us through this. But Senator Kerry has been flip-flopping back and forth on Iraq for not just the campaign but actually for years, going back to 2002 where he took one position and where now, in 2003 and 2004, he has taken a different position.

On September 20, 2004, he said that our most important task is to win the war on terrorism. On March 6, 2004, he balked at calling the war on terror an actual ``war.''

On September 20 he said Iraq was a ``diversion from'' the war on terror. Yet back in December of 2003 he said that Iraq is ``critical'' to the success of the war on terror.

In September of 2004 he said the evil of Saddam was enough to justify the war. Yet before that he agreed with the administration's goal of regime change. He also said that Saddam's ``breach of international values'' was a sufficient cause of war.

In 2004 he said Saddam's ``downfall . . . has left America less secure.'' Yet in December of 2003 he questioned the judgment of those claiming Saddam's capture doesn't help American security.

The list goes on and on. I ask unanimous consent this list be printed in the Record.

But it goes beyond just the war on Iraq. What worries me is there is a pattern here, across the board, not only in that area that threatens our very security and our lives, the war on terrorism, but in area after area, issue after issue.

For instance, in 1991 Senator Kerry supported most-favored trade status for China and now he criticizes the Bush administration for trading with China.

Which is it? You cannot be for it and against it when you talk about international trade. Trade is good. America can compete. We do need to enlarge the pie. We need to make sure we have fair trade. But you cannot vote one way on trade and then be critical of it on the other side.

In October 2003, Senator Kerry called the fence that is being built in Israel for security purposes a ``barrier to peace.'' He was critical of it. Yet in February of 2004, he calls the fence a ``legitimate act of self-defense.'' You can't get into a very dangerous and sensitive situation like this and say one thing and then the other. What is it? Which is it? An uncertain trumpet takes lives.

Even in the case of eliminating the marriage penalty for the middle class, Senator Kerry said he will fight to keep the tax relief for married couples. He said Democrats fought to end the marriage penalty tax. Yet in 1998, he voted against eliminating the marriage penalty relief for married taxpayers with a combined income of less than $50,000 a year. Last week when we actually extended the elimination of that marriage penalty tax, of course, he didn't vote.

He even flip-flopped on the PATRIOT Act. The PATRIOT Act is a favorite punching bag now.

I was here when the death debate occurred. I remember the broad unanimous support involved in passing that legislation. We needed to do some things to give our law enforcement people the ability to deal with these terrorists. If you look at what has transpired since then, this great fear of having your library card checked or a ``knock in the night'' is not occurring. So he voted for it, and now he attacks the PATRIOT Act. He said:

We are a nation of laws, and liberties, not of a knock in

the night. So it is time to end the era of John Ashcroft.

I think that is an unfair shot at our former colleague, the Attorney General of the United States. Again, Senator Kerry was for the Patriot Act and now he is against it.

On the gay marriage amendment, in 2002, Senator Kerry signed a letter urging the Massachusetts legislature to reject a constitutional amendment banning gay marriage. Yet now in 2004 he won't rule out supporting a similar amendment. Which is it? Is it one thing in Massachusetts and another here in Washington?

Also, I think when you get into other issues like the death penalty for terrorists, these are relevant issues we can't take the wrong position on. Yet, in 1996, he attacked Governor Weld of Massachusetts for supporting the death penalty for terrorists. But now he said he might support the death penalty for terrorists.

On the No Child Left Behind Act, he voted for it, and now he attacks it as a ``mockery.'' He trashed it as an ``unfunded mandate'' with ``laudable goals.''

Let me tell you that I am a son of a schoolteacher. I was in public education all my life. I didn't go to some elite school. I went to public education. I stay in touch with teachers and administrators. And they tell me it is making a difference. We have goals and challenges. Teachers are doing better, students are doing better, and the money has been going up every year.

On issue after issue, he has flip-flopped.

I ask unanimous consent that the remainder of this lengthy list be printed in the Record.

Sen. Edward M. KennedyD-MA · Sep 28, 2004

Mr. President, do I have 20 minutes? I ask the Chair to remind me when I have 4 minutes left.

Bill Text

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Reported to SenateIssued May 29, 2003

        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1160 Reported in Senate (RS)]

Calendar No. 115
108th CONGRESS
1st Session
S. 1160

[Report No. 108-55]

To authorize Millennium Challenge assistance, and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 29, 2003

Mr. Lugar, from the Committee on Foreign Relations, reported under the
authority of the order of the Senate of May 23, 2003, the following
original bill; which was read twice and placed on the calendar

_______________________________________________________________________

A BILL

To authorize Millennium Challenge assistance, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Millennium
Challenge Act of 2003''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings; purpose.
Sec. 3. Definitions.
TITLE I--MILLENNIUM CHALLENGE ASSISTANCE

Sec. 101. Authority of the Secretary of State.
Sec. 102. Authorization for Millennium Challenge assistance.
Sec. 103. Candidate country.
Sec. 104. Eligible country.
Sec. 105. Eligible entity.
Sec. 106. Millennium Challenge Contract.
Sec. 107. Disclosure.
Sec. 108. Annual report to Congress.
Sec. 109. Millennium Challenge assistance to candidate countries.
TITLE II--THE MILLENNIUM CHALLENGE ACCOUNT AND AUTHORIZATION OF
APPROPRIATIONS

Sec. 201. Establishment of the Millennium Challenge Account.
Sec. 202. Authorization of appropriations.

SEC. 2. FINDINGS; PURPOSE.

(a) Findings.--Congress makes the following findings:
(1) On March 14, 2002, President George W. Bush stated that
``America supports the international development goals in the
U.N. Millennium Declaration, and believes that the goals are a
shared responsibility of developed and developing countries.''
The President also called for a ``new compact for global
development, defined by new accountability for both rich and
poor nations'' and pledged support for increased assistance
from the United States through the establishment of a
Millennium Challenge Account for countries that govern justly,
invest in their own people, and encourage economic freedom.
(2) The elimination of extreme poverty and the achievement
of the other international development goals of the United
Nations Millennium Declaration adopted by the United Nations
General Assembly on September 8, 2000, are important objectives
and it is appropriate for the United States to make development
assistance available in a manner that will assist in achieving
such goals.
(3) The availability of financial assistance through a
Millennium Challenge Account, linked to performance by
developing countries, can contribute significantly to the
achievement of the international development goals of the
United Nations Millennium Declaration.
(b) Purposes.--The purposes of this Act are--
(1) to provide United States assistance for global
development through Millennium Challenge Contracts, as
described in section 102; 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 investments
in people.

SEC. 3. DEFINITIONS.

In this Act:
(1) Candidate country.--The term ``candidate country''
means a country that meets the criteria set out in section 103.
(2) Eligible country.--The term ``eligible country'' means
a candidate country that is determined, under section 104, to
be eligible to receive assistance under this Act.
(3) Millennium challenge account.--The term ``Millennium
Challenge Account'' means the account established under section
201.
(4) Secretary.--The term ``Secretary'' means the Secretary
of State.

TITLE I--MILLENNIUM CHALLENGE ASSISTANCE

SEC. 101. AUTHORITY OF THE SECRETARY OF STATE.

(a) In General.--The Secretary shall, under the direction of the
President, coordinate all assistance provided under this Act.
(b) Other Authorities and Powers.--The authority provided to the
Secretary under this Act is in addition to the authorities and powers
provided to the Secretary under any other provisions of law, including
sections 101(b) and 622(c) of the Foreign Assistance Act of 1961 (22
U.S.C. 2151(b) and 2382(c)) and sections 1522 and 1523 of the Foreign
Affairs Agencies Consolidation Act of 1998 (22 U.S.C. 6592 and 6593).
(c) Coordinator for the Millennium Challenge Account.--
(1) Designation of coordinator.--The Secretary shall
designate an appropriate officer to be Coordinator for the
Millennium Challenge Account. Such official shall be selected
from among those officers serving in the Department of State in
a position requiring the advice and consent of the Senate.
(2) Duties of the coordinator.--The Coordinator designated
under paragraph (1) shall, subject to the direction of the
Secretary, be responsible for--
(A) developing the indicators described in section
104(b);
(B) ensuring program and policy coordination among
agencies of the United States Government in carrying
out this Act;
(C) ensuring that assistance under this Act is
coordinated with other United States economic
assistance programs;
(D) pursuing coordination with other countries and
international organizations with respect to assistance
to countries receiving assistance under this Act;
(E) ensuring proper management, implementation, and
oversight by agencies of the United States Government
responsible for assistance under this Act; and
(F) resolving policy, program, and funding disputes
among agencies of the United States Government involved
in carrying out this Act.
(d) Consultation With the Secretary of the Treasury.--The Secretary
shall consult with the Secretary of the Treasury with regard to--
(1) development of the indicators described in section
104(b);
(2) determinations of eligible countries under section 104;
(3) standards for measuring performance under the
Millennium Challenge Contract; and
(4) other appropriate matters as determined by the
Secretary.

SEC. 102. AUTHORIZATION FOR MILLENNIUM CHALLENGE ASSISTANCE.

(a) Authority.--The Secretary is authorized to provide assistance
to an eligible entity consistent with the purposes of this Act set out
in section 2(b) to conduct programs or projects consistent with the
objectives of a Millennium Challenge Contract. Assistance provided
under this Act may be provided notwithstanding any other provision of
law.
(b) Exception.--Assistance under this Act may not be used for
military assistance or training.
(c) Form of Assistance.--Assistance under this Act shall be
provided in the form of grants to eligible entities.
(d) Coordination.--The provision of assistance under this Act shall
be coordinated with other United States foreign assistance programs.
(e) Applications.--An eligible entity seeking assistance under this
Act to conduct programs or projects consistent with the objectives of a
Millennium Challenge Contract shall submit a proposal for the use of
such assistance to the Secretary in such manner and accompanied by such
information as the Secretary may reasonably require.

SEC. 103. CANDIDATE COUNTRY.

(a) In General.--A country is a candidate country for the purposes
of this Act--
(1) during fiscal year 2004, if such country is eligible to
receive loans from the International Development Association;
(2) during fiscal year 2005, if the per capita income of
such country is less than the historical per capita income
cutoff of the International Development Association for that
year; and
(3) during any fiscal year after 2005--
(A) for which more than $5,000,000,000 has been
appropriated to the Millennium Challenge Account, if
the country is classified as a lower middle income
country by the World Bank on the first day of such
fiscal year; or
(B) for which not more than $5,000,000,000 has been
appropriated to such Millennium Challenge Account, the
per capita income of such country is less than the
historical per capita income cutoff of the
International Development Association for that year.
(b) Limitation on Assistance to Certain Candidate Countries.--In a
fiscal year in which subparagraph (A) of subsection (a)(3) applies with
respect to determining candidate countries, not more than 20 percent of
the amounts appropriated to the Millennium Challenge Account shall be
available for assistance to countries that would not be candidate
countries if subparagraph (B) of subsection (a)(3) applied during such
year.

SEC. 104. ELIGIBLE COUNTRY.

(a) Determination by the Secretary.--The Secretary shall determine
whether a candidate country is an eligible country by evaluating the
demonstrated commitment of the government of the candidate country to--
(1) just and democratic governance, including a
demonstrated commitment to--
(A) promote political pluralism and the rule of
law;
(B) respect human and civil rights;
(C) protect private property rights;
(D) encourage transparency and accountability of
government; and
(E) limit corruption;
(2) economic freedom, including a demonstrated commitment
to economic policies that--
(A) encourage citizens and firms to participate in
global trade and international capital markets;
(B) promote private sector growth; and
(C) strengthen market forces in the economy; and
(3) investments in the people of such country, including
improving the availability of educational opportunities and
health care for all citizens of such country.
(b) Assessing Eligibility.--
(1) In general.--To evaluate the demonstrated commitment of
a candidate country for the purposes of subsection (a), the
Secretary shall use objective and quantifiable indicators of a
candidate country's performance with respect to the criteria
described in paragraphs (1), (2), and (3) of such subsection.
(2) Annual publication of indicators.--
(A) Initial publication.--Not later than 45 days
prior to the final publication of indicators under
subparagraph (B) in any year, the Secretary shall
publish in the Federal Register and make available on
the Internet the indicators that the Secretary proposes
to use for the purposes of paragraph (1) in such year.
(B) Final publication.--Not later than 15 days
prior to the determination of eligible countries in any
year, the Secretary shall publish in the Federal
Register and make available on the Internet the
indicators the Secretary will use for the purposes of
paragraph (1) in such year.
(3) Consideration of public comment.--The Secretary shall
consider any comments on the proposed indicators published
under paragraph (2)(A) that are received within 30 days after
the publication of such indicators when selecting the
indicators to be used for the purposes of paragraph (1).

SEC. 105. ELIGIBLE ENTITY.

(a) Assistance.--Any eligible entity may receive assistance under
this Act to carry out a project in an eligible country for the purpose
of making progress toward achieving an objective of a Millennium
Challenge Contract.
(b) Determinations of Eligibility.--The Secretary shall determine
whether a person or governmental entity is an eligible entity for the
purposes of this section.
(c) Eligible Entities.--For the purposes of this section, an
eligible entity is--
(1) a government of an eligible country, including a local
or regional government; or
(2) a nongovernmental organization or other private entity.

SEC. 106. MILLENNIUM CHALLENGE CONTRACT.

(a) In General.--The Secretary shall invite the government of an
eligible country to enter into a Millennium Challenge Contract with the
United States Government. A Millennium Challenge Contract shall
establish a multiyear plan for the eligible country to achieve specific
objectives consistent with the purposes set out in section 2(b).
(b) Content.--A Millennium Challenge Contract shall include--
(1) specific objectives to be achieved by the eligible
country during the term of the Contract;
(2) a description of the actions to be taken by the
government of the eligible country and the United States
Government for achieving such objectives;
(3) the role and contribution of private entities,
nongovernmental organizations, and other organizations in
achieving such objectives;
(4) regular benchmarks for measuring progress toward
achieving such objectives;
(5) a schedule for achieving such objectives;
(6) a schedule of evaluations to be performed to determine
whether the country is meeting its commitments under the
Contract;
(7) a statement that the Secretary intends to consider the
eligible country's performance in achieving such objectives in
making decisions about providing continued assistance under the
Contract;
(8) the strategy of the eligible country to sustain
progress made toward achieving such objectives after the
expiration of the Contract;
(9) a plan to ensure financial accountability for any
assistance provided to a person or government in the eligible
country under this Act; and
(10) a statement that nothing in the Contract may be
construed to create a legally binding or enforceable obligation
on the United States Government.
(c) Requirement for Consultation.--The Secretary shall seek to
ensure that the government of an eligible country consults with private
entities and nongovernmental organizations in the eligible country for
the purpose of ensuring that the terms of a Millennium Challenge
Contract entered into by the United States Government and the eligible
country--
(1) reflect the needs of the rural and urban poor in the
eligible country; and
(2) provide means to assist poor citizens of such eligible
country to escape poverty through their own efforts.

SEC. 107. DISCLOSURE.

(a) Requirement for Disclosure.--The Secretary shall make available
to the public on a continuous basis and on the earliest possible date,
but no later than 15 days after the information is available to the
Secretary, the following information:
(1) A list of the candidate countries determined to be
eligible countries during any year.
(2) The text of each Millennium Challenge Contract entered
into by the United States Government.
(3) For assistance provided under this Act--
(A) the name of each entity to which assistance is
provided;
(B) the amount of assistance provided to the
entity; and
(C) a description of the program or project for
which assistance was provided.
(4) For each eligible country, an assessment of--
(A) the progress made during each year by an
eligible country toward achieving the objectives set
out in the Millennium Challenge Contract entered into
by the eligible country; and
(B) the extent to which assistance provided under
this Act has been effective in helping the eligible
country to achieve such objectives.
(b) Dissemination.--The information required to be disclosed under
subsection (a) shall be made available to the public by means of
publication in the Federal Register and posting on the Internet, as
well as by any other methods that the Secretary determines appropriate.

SEC. 108. ANNUAL REPORT TO CONGRESS.

Not later than January 31 of each year, the President shall submit
to Congress a report on the assistance provided under this Act during
the prior fiscal year. The report shall include--
(1) information regarding obligations and expenditures for
assistance provided to each eligible country in the prior
fiscal year;
(2) a discussion, for each eligible country, of the
objectives of such assistance;
(3) a description of the coordination of assistance under
this Act with other United States foreign assistance and
related trade policies;
(4) a description of the coordination of assistance under
this Act with the contributions of other donors; and
(5) any other information the President considers relevant
to assistance provided under this Act.

SEC. 109. MILLENNIUM CHALLENGE ASSISTANCE TO CANDIDATE COUNTRIES.

(a) Authority.--Notwithstanding any other provision of this Act and
subject to the limitation in subsection (c), the Secretary is
authorized to provide assistance to a candidate country that meets the
conditions in subsection (b) for the purpose of assisting such country
in becoming an eligible country.
(b) Conditions.--Assistance under subsection (a) may be provided to
a candidate country that is not an eligible country under section 104
because of--
(1) the unreliability of data used to assess its
eligibility under section 104; or
(2) the failure of the government of the candidate country
to perform adequately with respect to only 1 of the indicators
described in subsection (a) of section 104.
(c) Limitation.--The total amount of assistance provided under
subsection (a) in a fiscal year may not exceed 10 percent of the funds
made available to the Millennium Challenge Account during such fiscal
year.

TITLE II--THE MILLENNIUM CHALLENGE ACCOUNT AND AUTHORIZATION OF
APPROPRIATIONS

SEC. 201. ESTABLISHMENT OF THE MILLENNIUM CHALLENGE ACCOUNT.

There is established on the books of the Treasury an account to be
known as the Millennium Challenge Account. All amounts made available
to carry out the provisions of this Act shall be deposited into such
Account and such amounts shall be available to carry out such
provisions.

SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--There are authorized to be appropriated to carry
out the provisions of this Act $1,000,000,000 for fiscal year 2004,
$2,300,000,000 for fiscal year 2005, and $5,000,000,000 for fiscal year
2006.
(b) Availability.--Funds appropriated under subsection (a)--
(1) are authorized to remain available until expended; and
(2) are in addition to funds otherwise available for such
purposes.
(c) Allocation of Funds.--
(1) In general.--The Secretary may allocate or transfer to
any agency of the United States Government any of the funds
available for carrying out this Act. Such funds shall be
available for obligation and expenditure for the purposes for
which authorized, in accordance with authority granted in this
Act or under authority governing the activities of the agencies
of the United States Government to which such funds are
allocated or transferred.
(2) Notification.--The notification requirements of section
634A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2394-
1(a)) shall apply to any allocation or transfer of funds made
pursuant to paragraph (1).

Calendar No. 115

108th CONGRESS

1st Session

S. 1160

[Report No. 108-55]

_______________________________________________________________________

A BILL

To authorize Millennium Challenge assistance, and for other purposes.

_______________________________________________________________________

May 29, 2003

Read twice and placed on the calendar