Number: RL31687
Title: The Millennium Challenge Account: Congressional Consideration of a New Foreign Aid Initiative
Authors: Larry Nowels, Foreign Affairs, Defense, and Trade Division 
Abstract: In a speech on March 14, 2002, President Bush outlined a proposal for the United States to increase foreign economic assistance in FY2004 so that by FY2006 American aid would be $5 billion higher than three years earlier. The new funds would be placed in a Millennium Challenge Account (MCA) and be available on a competitive basis to a few countries that have demonstrated a commitment to sound development policies and where U.S. support is believed to have the best opportunities for achieving the intended results. Congress will play a key role in the MCA initiative by considering authorization and funding legislation, and in confirming the head, or CEO, of the proposed Millennium Challenge Corporation. A number of issues are likely to be addressed in the congressional debate, including country eligibility criteria, performance indicators, creation of a new agency to manage the MCA, and budget considerations.
Pages: 38
Date: Updated March 19, 2004