Millennium Challenge Corporation Eligibility Expansion Act

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 8463) to modify the requirements under the Millennium Challenge Act of 2003 for candidate countries, and for other purposes.

Madam Speaker, I ask unanimous consent that all Members have 5 legislative days within which to revise and extend their remarks and include extraneous material on H.R. 8463.

Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, I am glad to bring this bipartisan legislation, which I authored together with my colleague, Representative Young Kim of California to the House floor.

It will allow the Millennium Challenge Corporation, or MCC, to continue to work where it can do the most to foster development and reduce poverty.

When Congress established the MCC almost 20 years ago, it was envisioned as a selective agency that would work collaboratively with the best-governed developing countries.

Perhaps the most visible part of MCC's rigorous selection process is its scorecard, which evaluates more than 20 different policy indicators of good governance. But Congress also set an income-based threshold for nations where MCC could work. It was intended to make sure MCC focused on developing countries and on helping the people who need it most. I strongly support that focus and nothing in this bill is intended to alter that core part of MCC's mission and mandate.

But the way we define that threshold, based on who falls within two categories in the World Bank's estimates of per capita gross national income, has led to several issues this legislation seeks to address.

In the decades since the original standard was defined, the number of potential countries eligible for MCC's compacts has shrunk by almost a third. These compacts, which need to be ratified by both the United States and the partner country, can take years to negotiate, ratify, and implement.

Under the income threshold's current structure, countries can suddenly become ineligible for assistance in the middle of a multi-year negotiation. Global disruptions like a pandemic or major conflict can also lead to changes in a country's eligibility.

Under my legislation, the MCC would continue to use World Bank measures of GNI per capita as the basis to calculate eligibility, while expanding consideration for potential compacts to the world's 125 poorest countries. This change will ensure that MCC has a stable number of potential candidates, even as we continue to make progress in the fight against global poverty.

The new pool of potentially eligible countries would cover 98 percent of the world's poor and 90 percent of the countries MCC has identified as facing substantial vulnerability, including to pandemics, natural disasters, migration, and food insecurity.

It is important to note that this is potential eligibility.

This bill does not change any of MCC's scorecard criteria. To qualify for a potential compact, countries must also be generally eligible to receive American foreign assistance under the Foreign Assistance Act and other provisions of United States law.

The MCC Eligibility Expansion Act also includes protections to ensure that newly eligible countries do not crowd out support for low and lower-middle-income countries that qualify under the existing income threshold.

For example, it includes language that would strengthen statutory direction to the MCC's board to prioritize development need and impact. The legislation would also require all potential candidate countries to identify appropriate national contributions during compact negotiations, meaning wealthier countries would pitch in more.

In implementing this legislation, I also expect the MCC to compare this small pool of newly eligible upper-middle-income countries against their peers in determining eligibility through the scorecard.

This bill would provide the MCC with more certainty and stability when it chooses to pursue a compact.

Madam Speaker, with the support of my colleagues today, we can ensure that the MCC will continue its important work and maximize its impact fighting poverty and promoting development.

Madam Speaker, I reserve the balance of my time.

Madam Speaker, I am prepared to close, and I reserve the balance of my time.

Madam Speaker, I yield myself such time as I may consume for the purpose of closing.

Madam Speaker, the Millennium Challenge Corporation Eligibility Expansion Act will improve the MCC's ability to form stable, long-term compacts in the well-governed countries that will benefit most from United States' development assistance.

I thank my colleagues, particularly my co-lead on this bill, Representative Young Kim, for the bipartisan work that has brought this legislation forward today.

Madam Speaker, I urge the House to pass this legislation. I hope the Senate will take it up swiftly so that it can become law this year, and I yield back the balance of my time.

Madam Speaker, I rise in support of this bill, and I yield myself such time as I may consume.

Madam Speaker, I was proud to introduce the Millennium Challenge Corporation Eligibility Expansion Act along with my Democratic colleague from Texas, Mr. Castro.

In the nearly 20 years since its founding under President Bush, the Millennium Challenge Corporation has demonstrated a strong track record of success in its mission of combating poverty through economic growth.

The agency has enjoyed broad bipartisan support, earned through strict project selection criteria and the ability to hold partner countries to a high standard of accountability. But the agency and its partners are facing new challenges. The Chinese Communist Party is increasing its malign influence in the developing world, often disguised as development assistance. The world is facing a food security crisis and other effects of Russia's unprovoked war in Ukraine.

Many countries risk losing progress on development and poverty reduction made over previous decades. This bill will ensure that the world's 125 poorest countries are eligible for potential consideration as candidate countries in the MCC's rigorous selection process. It adds stability to MCC's partnerships, and it ensures its ability to focus on the world's poorest populations, who are often the most vulnerable to debt traps and other forms of outside manipulation.

This bill is an important step towards equipping MCC to operate in today's environment so, that it can continue to use its proven, evidence-based model to build sustainable economic growth, transparency, and stability in partner countries around the world.

Madam Speaker, I reserve the balance of my time.

Madam Speaker, the Millennium Challenge Corporation has done important work on behalf of the American people to promote economic growth and transparency around the world. But we must make sure that the agency is equipped to address the challenges and threats of today, including those posed by our strategic rivals who are attempting to increase their global influence.

Madam Speaker, I, again, thank the gentleman from Texas (Mr. Castro), my colleague, our bipartisan cosponsors, and Chairman Meeks and Ranking Member McCaul of the Committee on Foreign Affairs for moving this bill forward.

Madam Speaker, I urge support for the bill, and I yield back the balance of my time.

Madam Speaker, I was unable to cast votes on the following legislative measures. If I were present for roll call votes, I would have voted Aye for the following votes:

Roll 461, September 29, 2022: On Motion to Suspend the Rules and Pass S. 4900--SBIR and STTR Extension Act of 2022.

Roll 462, September 29, 2022: On Motion to Suspend the Rules and Pass, As Amended, H.R. 8466--Chai Suthammanont Healthy Federal Workplaces Act of 2022, as amended.

Roll 463, September 29, 2022: On Motion to Suspend the Rules and Pass S. 3470--End Human Trafficking in Government Contracts Act of 2022.

Roll 464, September 29, 2022: On Motion to Suspend the Rules and Pass S. 2551--AI Training Act.

Roll 465, September 29, 2022: On Motion to Suspend the Rules and Pass S. 958--Maximizing Outcomes through Better Investments in Lifesaving Equipment for (MOBILE) Health Care Act.

Roll 466, September 29, 2022: On Motion to Suspend the Rules and Pass, As Amended, H.R. 6965--Visit America Act, as amended.

Roll 467, September 29, 2022: On Motion to Suspend the Rules and Pass, As Amended, H.R. 7321--Global Aircraft Maintenance Safety Improvement Act, as amended.

Roll 468, September 29, 2022: On Motion to Suspend the Rules and Pass, As Amended, House Amendment to S. 3662--Preventing PFAS Runoff at Airports Act.

Roll 469, September 29, 2022: On Motion to Suspend the Rules and Pass, As Amended, H.R. 8888--Food Security for All Veterans Act.

Roll 470, September 29, 2022: On Motion to Suspend the Rules and Pass S. 2794--Supporting Families of the Fallen Act.

Roll 471, September 29, 2022: On Motion to Suspend the Rules and Pass, As Amended, H.R. 8446--Global Food Security Reauthorization Act of 2022, as amended.

Roll 472, September 29, 2022: On Motion to Suspend the Rules and Pass H.R. 8463--Millennium Challenge Corporation Eligibility Expansion Act.

Roll 473, September 29, 2022: On Motion to Suspend the Rules and Pass Certain Bills and Concur in the Senate Amendments on H.R. 8956, H.R. 6967, H.R. 8163, H.R. 4081, H.R. 6889, H.R. 1638, Senate Amendment to

Madam Speaker, on that I demand the yeas and nays.