H.R. 3042House118th Congress (2023-2025)In Committee

Millennium Challenge Corporation Candidate Country Reform Act

AI-Generated Summary

Updated January 20, 2026 at 7:00 AM UTC

The bill revises the criteria a country must meet to be considered a candidate for Millennium Challenge Corporation assistance. It ties the income test to the World Bank’s graduation threshold and says that any waiver or suspension of U.S. legal restrictions, once notified to Congress, satisfies the eligibility rule. The changes also clarify that the MCC Board makes the final candidate determination and update related sections for consistency.

Key Provisions

Sets the per‑capita income limit for candidate countries at or below the World Bank graduation threshold for the fiscal year.
Allows a country that would otherwise be barred by U.S. law to qualify if a waiver or suspension is granted by the President, Secretary of State, or another official and Congress is notified, counting as meeting the eligibility requirement.
Specifies that the Millennium Challenge Board decides whether a country is a candidate country.
Updates cross‑references in the Act (sections 608, 609, and 616) to reflect the new language and remove outdated references.
Changes the eligibility factor wording to “prioritize need and impact by considering” rather than simply “consider.”

Legislative Activity

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4 earlier actions

HouseCommittee Latest Action

Ordered to be Reported in the Nature of a Substitute (Amended) by Voice Vote.

Foreign Affairs Committee

July 11, 2024

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HouseIntro Referral

Introduced in House

May 2, 2023

HouseIntro Referral

Referred to the House Committee on Foreign Affairs.

Foreign Affairs Committee

May 2, 2023

HouseCommittee

Committee Consideration and Mark-up Session Held

Foreign Affairs Committee

July 10, 2024

HouseCommittee

Committee Consideration and Mark-up Session Held

Foreign Affairs Committee

July 11, 2024

HouseCommittee

Ordered to be Reported in the Nature of a Substitute (Amended) by Voice Vote.

Foreign Affairs Committee

July 11, 2024

Bill Text

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Introduced in HouseIssued May 2, 2023

118th CONGRESS

1st Session

H. R. 3042

IN THE HOUSE OF REPRESENTATIVES

May 2, 2023

Mr. Castro of Texas (for himself, Mrs. Kim of California, and Mr. Meeks) introduced the following bill; which was referred to the Committee on Foreign Affairs

A BILL

To modify the requirements for candidate countries under the Millennium Challenge Act of 2003, and for other purposes.

Short title

This Act may be cited as the Millennium Challenge Corporation Candidate Country Reform Act.

Modifications of requirements to become a candidate country

Section 606 of the Millennium Challenge Act of 2003 (22 U.S.C. 7705) is amended to read as follows:

606.

Candidate countries

(a)

In general

A country shall be a candidate country for purposes of eligibility to receive assistance under section 605 if—

(1)

the per capita income of the country in a fiscal year is equal to or less than the World Bank threshold for initiating the International Bank for Reconstruction and Development graduation process for the fiscal year; and

(2)

subject to subsection (b), the country is not ineligible to receive United States economic assistance under part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) by reason of the application of any provision of the Foreign Assistance Act of 1961 or any other provision of law.

(b)

Rule of construction

For the purposes of determining whether a country is eligible, pursuant to subsection (a)(2), to receive assistance under section 605, the exercise by the President, the Secretary of State, or any other officer or employee of the United States Government of any waiver or suspension of any provision of law referred to in subsection (a)(2), and notification to the appropriate congressional committees in accordance with such provision of law, shall be construed as satisfying the requirements under subsection (a).

(c)

Determination by the Board

The Board shall determine whether a country is a candidate country for purposes of this section.

Conforming amendments

(a)

Amendment To report identifying candidate countries

Section 608(a)(1) of the Millennium Challenge Act of 2003 (22 U.S.C. 7707(a)(1)) is amended by striking section 606(a)(1)(B) and inserting section 606(a)(2).

(b)

Amendment to Millennium Challenge Compact authority

Section 609(b)(2) of such Act (22 U.S.C. 7708(b)(2)) is amended—

(1)

by amending the paragraph heading to read as follows: Country contributions; and

(2)

by striking with respect to a lower middle income country described in section 606(b),.

(c)

Amendment to authorization To provide assistance for candidate countries

Section 616(b)(1) of such Act (22 U.S.C. 7715(b)(1)) is amended by striking subsection (a) or (b) of section 606 and inserting section 606(a).

Modification to factors in determining eligibility

Section 607(c)(2) of the Millennium Challenge Act of 2003 (22 U.S.C. 7706(c)(2)) is amended in the matter preceding subparagraph (A) by striking consider and inserting prioritize need and impact by considering.