S. 1240 – Millennium Challenge Corporation Candidate Country Reform Act

AI-Generated Summary

Updated January 20, 2026 at 6:27 AM UTC

The bill revises the criteria that a foreign nation must meet to be considered a candidate for Millennium Challenge Corporation (MCC) assistance. It sets the per‑capita income limit to the World Bank graduation threshold and clarifies that a country is eligible unless it is barred by the Foreign Assistance Act, with any presidential or State Department waiver counting as meeting that requirement. The changes also update related references and shift the eligibility factor language to prioritize need and impact.

Key Provisions

Define candidate country eligibility based on per‑capita income at or below the World Bank graduation threshold and not barred by the Foreign Assistance Act, with waivers or suspensions treated as satisfying the eligibility test.
State that waivers or suspensions issued by the President, Secretary of State, or other officials, once notified to Congress, fulfill the eligibility condition.
Assign the MCC Board the authority to determine candidate status.
Amend cross‑references in sections that report candidate countries, compact authority, and assistance authorizations to reflect the new definition.
Change the eligibility factor language to “prioritize need and impact by considering” instead of merely “consider”.

Legislative Activity

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4 earlier actions

SenateCalendars Latest Action

Placed on Senate Legislative Calendar under General Orders. Calendar No. 50.

May 4, 2023

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SenateIntro Referral

Introduced in Senate

April 20, 2023

SenateIntro Referral

Read twice and referred to the Committee on Foreign Relations.

Foreign Relations Committee

April 20, 2023

SenateCommittee

Committee on Foreign Relations. Ordered to be reported without amendment favorably.

Foreign Relations Committee

May 3, 2023

SenateCommittee

Committee on Foreign Relations. Reported by Senator Menendez without amendment. Without written report.

Foreign Relations Committee

May 4, 2023

SenateCalendars

Placed on Senate Legislative Calendar under General Orders. Calendar No. 50.

May 4, 2023

Bill Text

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Reported to SenateIssued May 4, 2023

II

Calendar No. 50

118th CONGRESS

1st Session

S. 1240

IN THE SENATE OF THE UNITED STATES

April 20, 2023

Mr. Risch (for himself and Mr. Menendez) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations

May 4, 2023

Reported by Mr. Menendez, without amendment

A BILL

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

1.

Short title

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

2.

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.

.

3.

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).

4.

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.

May 4, 2023

Reported without amendment