On July 21, the House approved, by voice vote, a bill (H.R. 4660) to reauthorize additional assistance under the Millennium Challenge Account (MCA). Rep. Tom Lantos (D-CA) sponsored the measure.
Enacted as part of the FY2004 Consolidated Appropriations Act (P.L. 108-199), the MCA grants foreign assistance to developing nations based on a country’s commitment to democratic rule, capitalism, and the respect of human rights. The bill also created a threshold program to provide assistance for countries that have not yet become eligible for assistance under the MCA. Authorization for the threshold program is set to expire on October 1, 2004. H.R. 4660 would authorize funding for the threshold program through FY2005, which is when the MCA is set to expire.
Rep. Jim Leach (R-IA) said that the Millennium Challenge Corporation (MCC) has selected 16 countries that are eligible for assistance under the MCA and expressed his concern for the countries “that just missed passing the eligibility bar.” He explained that the law “authorized the MCC to provide limited assistance through a threshold program to these countries for the purpose of improving in the areas where they fell short. This was done partly in recognition of the fact that many threshold countries have limited resources to invest in the well-being of their people. This [bill] will allow us to continue to support the preparation of worthy threshold countries for their full participation in the Millennium Challenge Account.”
Pointing out that the MCA “has already begun to mitigate the effects of global poverty and to provide poor citizens around the world with the tools for their advancement,” Rep. Lantos stated, “But for the MCA to succeed fully and to maintain solid congressional support, the Millennium Challenge Corporation must undertake serious efforts to expand the number of countries that will benefit from the millennium initiative. The lucky 16 countries that are currently eligible to receive MCA assistance represent only about 3 percent of the world’s poor. The most effective way to expand the number of poor countries that can receive MCA funds is through a program for threshold countries that just miss clearing the eligibility bar. Unfortunately, the threshold program is only authorized through the current fiscal year. My legislation helps ensure that the millennium initiative continues to be available to as many poor people as possible by reauthorizing the threshold program for as long as the MCA operates.”
