Notices. Notice
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BILLING CODE 4510-FN-P MILLENNIUM CHALLENGE CORPORATION [MCC FR 24-04] Millennium Challenge Corporation Candidate Country Report for Fiscal Year 2025 AGENCY: Millennium Challenge Corporation. ACTION: Notice. SUMMARY: The Millennium Challenge Act of 2003, as amended, requires the Millennium Challenge Corporation to publish a report that identifies countries that are “candidate countries” for Millennium Challenge Account assistance during Fiscal Year 2025. The report is set forth in full below.
(Authority: 22 U.S.C. 7707(a)) Dated: September 3, 2024. Peter E. Jaffe, Vice President, General Counsel, and Corporate Secretary. Millennium Challenge Corporation Candidate Country Report for Fiscal Year 2025 Summary This report to Congress is provided in accordance with section 608(a) of the Millennium Challenge Act of 2003, as amended, 22 U.S.C. 7701, 7707(a) (the Act). The Act authorizes the provision of assistance for global development through the Millennium Challenge Corporation
(MCC)for countries that enter into a Millennium Challenge Compact with the United States to support policies and programs that advance the progress of such countries to achieve lasting economic growth and poverty reduction. The Act also authorizes the provision of assistance to countries for the purpose of assisting such country to become compact eligible. The Act requires MCC to take a number of steps in selecting countries to which MCC will seek to provide assistance, including determining the countries that will be eligible countries for fiscal year
(FY)2025 based on
(a)a country's demonstrated commitment to
(i)just and democratic governance,
(ii)economic freedom, and
(iii)investments in its people;
(b)the opportunity to reduce poverty and generate economic growth in the country; and
(c)the availability of funds to MCC. These steps include the submission to the congressional committees specified in the Act and publication in the **Federal Register** of reports on the following: • The countries that are “candidate countries” for FY 2025 are based on their per capita income levels and their eligibility to receive assistance under U.S. law and countries that would be candidate countries but for specified legal prohibitions on assistance (section 608(a) of the Act); • The criteria and methodology that the MCC Board of Directors (the Board) will use to measure and evaluate the relative policy performance of the “candidate countries” consistent with the requirements of subsections
(a)and
(b)of section 607 of the Act in order to determine “eligible countries” from among the “candidate countries” (section 608(b) of the Act); and • The list of countries determined by the Board to be “eligible countries” for FY 2025, identification of such countries with which the Board will seek to enter into compacts, and a justification for such eligibility determination and selection for compact negotiation (section 608(d) of the Act). This report is the first of three required reports listed above. Candidate Countries for FY 2025 The Act requires the identification of all countries that are candidate countries for purposes of eligibility for MCC assistance for FY 2025 and the identification of all countries that would be candidate countries for purposes of eligibility for MCC assistance but for specified legal prohibitions on assistance. Qualification as a candidate country is defined in sections 606(a) and
(b)of the Act, under which: A country will be a candidate country in the low income category for FY 2025 if it: • has a per capita income that is not greater than the World Bank's lower middle income country threshold for such fiscal year ($4,515 gross national income per capita for FY 2025); • is among the 75 countries identified by the World Bank as having the lowest per capita income; and • is not ineligible to receive United States economic assistance under part I of the Foreign Assistance Act of 1961, as amended (the Foreign Assistance Act), by reason of the application of the Foreign Assistance Act or any other provision of law. A country will be a candidate country in the lower middle income category for FY 2025 if it: • has a per capita income that is not greater than the World Bank's lower middle income country threshold for such fiscal year ($4,515 gross national income per capita for FY 2025); • is not among the 75 countries identified by the World Bank as having the lowest per capita income; and • is not ineligible to receive United States economic assistance under part I of the Foreign Assistance Act by reason of the application of the Foreign Assistance Act or any other provision of law. Under section 606(c) of the Act as applied for FY 2025, a country with per capita income changes from FY 2024 to FY 2025 such that the country would be reclassified from the low income category to the lower middle income category or vice versa will retain its income status in its former category for FY 2025 and two subsequent fiscal years (FY 2026 and FY 2027). A country that has transitioned to the upper middle income category does not qualify as a candidate country. Under section 616 of the Act, the Board may select countries from this list of candidate countries for the purpose of assisting such country to become an eligible country (traditionally referred to as threshold programs) if such country demonstrates a significant commitment to meeting the requirements of subsections
(a)and
(b)of section 607 of the Act but fails to meet such requirements. Pursuant to section 606(d) of the Act, the Board identified the following countries as candidate countries under the Act for FY 2025. In so doing, the Board referred to the prohibitions on assistance to countries for FY 2024 under the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2024 (FY 2024 SFOAA) contained in Division F of the Further Consolidated Appropriations Act, 2024 (Pub. L. 118-47). Candidate Countries: Low Income Category 1. Afghanistan * 2. Angola 3. Bangladesh 4. Benin 5. Bhutan 6. Bolivia 7. Burundi 8. Cabo Verde 9. Cambodia * 10. Cameroon 11. Central African Republic 12. Chad 13. Comoros 14. Congo, Dem. Rep. 15. Congo, Rep. 16. Cote d'Ivoire 17. Djibouti * 18. Egypt, Arab Rep. 19. Eswatini 20. Ethiopia 21. Gambia, The 22. Ghana 23. Guinea-Bissau 24. Honduras 25. India 26. Kenya 27. Kiribati 28. Kyrgyz Republic 29. Lao PDR 30. Lebanon 31. Lesotho 32. Liberia 33. Madagascar 34. Malawi 35. Mauritania 36. Morocco 37. Mozambique 38. Nepal 39. Nigeria 40. Pakistan 41. Papua New Guinea * 42. Philippines 43. Rwanda 44. Sao Tome and Principe 45. Senegal 46. Sierra Leone 47. Solomon Islands 48. Somalia 49. Tajikistan 50. Tanzania 51. Timor-Leste 52. Togo 53. Tunisia 54. Uganda 55. Uzbekistan 56. Vanuatu 57. Vietnam 58. Yemen, Rep. 59. Zambia * This country was ranked Tier 3 in the 2024 Trafficking in Persons Report issued by the U.S. Department of State. If, consistent with section 110 of the Trafficking Victims Protection Act of 2000, the President determines that the United States will not provide non-humanitarian nontrade-related assistance to the country, then it would no longer be a candidate country for FY 2025. Candidate Countries: Lower Middle Income Category 1. Jordan 2. Micronesia, Federated States of 3. Samoa Countries That Would Be Candidate Countries but for Legal Provisions That Prohibit Assistance Countries that would be considered candidate countries for purposes of eligibility for MCC assistance for FY 2025 but are ineligible to receive United States economic assistance under part I of the Foreign Assistance Act by reason of the application of any provision of the Foreign Assistance Act or any other provision of law are listed below. This list is based on legal prohibitions against economic assistance that apply as of July 29, 2024. Prohibited Countries: Low Income Category • *Burkina Faso* is ineligible to receive foreign assistance pursuant to the military coup restriction in section 7008 of the FY 2024 SFOAA. • *Burma* is ineligible to receive foreign assistance as it is subject to numerous restrictions including for concerns relative to its record on human rights and pursuant to the military coup restriction in section 7008 of the FY 2024 SFOAA. • *Eritrea* is ineligible to receive foreign assistance as it is subject to numerous restrictions including for concerns related to its record on human rights and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 *et seq.* ). • *Guinea* is ineligible to receive foreign assistance pursuant to the military coup restriction in section 7008 of the FY 2024 SFOAA. • *Haiti* is ineligible to receive foreign assistance unless the Secretary of State provides a certification pursuant to section 7045(g)(2) of the FY 2024 SFOAA. • *Korea, North* is ineligible to receive foreign assistance as it is subject to numerous restrictions including section 7007 of the FY 2024 SFOAA and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 *et seq.* ). • *Mali* is ineligible to receive foreign assistance pursuant to the military coup restriction in section 7008 of the FY 2024 SFOAA. • *Nicaragua* is ineligible to receive foreign assistance as it is subject to numerous restrictions including under section 7047(c) of the FY 2024 SFOAA related to its recognition posture with respect to the Russian Federation occupied Georgian territories of Abkhazia and Tskhinvali Region/South Ossetia, and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 *et seq.* ). • *Niger* is ineligible to receive foreign assistance pursuant to the military coup restriction in section 7008 of the FY 2024 SFOAA. • *South Sudan* is ineligible to receive foreign assistance as it is subject to numerous restrictions including for concerns relative to its record on human rights, and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 *et seq.* ). • *Sudan* is ineligible to receive foreign assistance as it is subject to numerous restrictions including the military coup restriction in section 7008 of the FY 2024 SFOAA. • *Syria* is ineligible to receive foreign assistance as it is subject to numerous restrictions including section 7007 of the FY 2024 SFOAA and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 *et seq.* ). • *Zimbabwe* is ineligible to receive foreign assistance, including pursuant to section 7042(j)(2) of the FY 2024 SFOAA, which prohibits (with limited exceptions) assistance for the central government of Zimbabwe unless the Secretary of State certifies and reports to Congress that the rule of law has been restored, including respect for ownership and title to property, and freedoms of expression, association, and assembly. Prohibited Countries: Lower Middle Income Category • *Sri Lanka* is ineligible to receive foreign assistance pursuant to section 7044(c)(2) of the FY 2024 SFOAA, which restricts (with limited exceptions) assistance for the central government unless the Secretary makes certain certifications regarding actions taken by the Government of Sri Lanka and reports to the Committees on Appropriations. Countries identified above as candidate countries, as well as countries that would be considered candidate countries but for the applicability of legal provisions that prohibit U.S. economic assistance, may be the subject of future statutory restrictions or determinations, or changed country circumstances, that affect their legal eligibility for assistance under part I of the Foreign Assistance Act by reason of application of the Foreign Assistance Act or any other provision of law for FY 2025. Appendix: Candidate Countries and Prohibited Countries in the Event of Enactment of Millennium Challenge Corporation Candidate Country Reform Act Legislation or Similar Legislation As of the date of this report, legislation known as the Millennium Challenge Corporation Candidate Country Reform Act is under active consideration by the United States Congress. If passed as currently drafted, the legislation would reform the income threshold for countries to be candidate countries for purposes of eligibility for MCC assistance by changing it to the World Bank threshold for initiating the International Bank for Reconstruction and Development graduation process for the fiscal year ($7,895 gross national income per capita for FY 2025). It would also eliminate the distinction between lower income category and lower middle income category countries. Should this legislation (or legislation that similarly reforms the income threshold for countries to become candidates) become law before FY 2026, the Board identified that the following countries would be qualified, based on their income status, as candidate countries for consideration under the Act for FY 2025: 1. Afghanistan * 2. Albania 3. Algeria 4. Angola 5. Armenia 6. Bangladesh 7. Belize 8. Benin 9. Bhutan 10. Bolivia 11. Botswana 12. Burundi 13. Cabo Verde 14. Cambodia * 15. Cameroon 16. Central African Republic 17. Chad 18. Colombia 19. Comoros 20. Congo, Dem. Rep. 21. Congo, Rep. 22. Cote d'Ivoire 23. Djibouti * 24. Ecuador 25. Egypt, Arab Rep. 26. El Salvador 27. Equatorial Guinea 28. Eswatini 29. Ethiopia 30. Fiji 31. Gambia, The 32. Georgia 33. Ghana 34. Guatemala 35. Guinea-Bissau 36. Honduras 37. India 38. Indonesia 39. Iraq 40. Jamaica 41. Jordan 42. Kenya 43. Kiribati 44. Kosovo 45. Kyrgyz Republic 46. Lao PDR 47. Lebanon 48. Lesotho 49. Liberia 50. Libya 51. Madagascar 52. Malawi 53. Marshall Islands 54. Mauritania 55. Micronesia, Federated States of 56. Moldova 57. Mongolia 58. Morocco 59. Mozambique 60. Namibia 61. Nepal 62. Nigeria 63. North Macedonia 64. Pakistan 65. Papua New Guinea * 66. Paraguay 67. Peru 68. Philippines 69. Rwanda 70. Samoa 71. Sao Tome and Principe 72. Senegal 73. Sierra Leone 74. Solomon Islands 75. Somalia 76. South Africa 77. Suriname 78. Tajikistan 79. Tanzania 80. Thailand 81. Timor-Leste 82. Togo 83. Tonga 84. Tunisia 85. Tuvalu 86. Uganda 87. Ukraine 88. Uzbekistan 89. Vanuatu 90. Vietnam 91. Yemen, Rep. 92. Zambia * This country was ranked Tier 3 in the 2024 Trafficking in Persons Report issued by the U.S. Department of State. If, consistent with section 110 of the Trafficking Victims Protection Act of 2000, the President determines that the United States will not provide non-humanitarian nontrade-related assistance to the country then it would no longer be a candidate country for FY 2025. If the Millennium Challenge Corporation Candidate Country Reform Act legislation or legislation that similarly reforms the income threshold for countries to become candidates were to become law, the following countries would be considered candidate countries for purposes of eligibility for MCC assistance for FY 2025, but are ineligible to receive United States economic assistance under part I of the Foreign Assistance Act by reason of the application of any provision of the Foreign Assistance Act or any other provision of law are listed below. This list is based on legal prohibitions against economic assistance that apply as of July 29, 2024. Prohibited Countries • *Azerbaijan* is ineligible to receive foreign assistance pursuant to section 907 of the FREEDOM Support Act (22 U.S.C. 5801). • *Belarus* is ineligible to receive foreign assistance as it is subject to numerous restrictions including for concerns relative to its record on human rights and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 *et seq.* ). • *Burkina Faso* is ineligible to receive foreign assistance pursuant to the military coup restriction in section 7008 of the FY 2024 SFOAA. • *Burma* is ineligible to receive foreign assistance as it is subject to numerous restrictions including for concerns relative to its record on human rights and pursuant to the military coup restriction in section 7008 of the FY 2024 SFOAA. • *Eritrea* is ineligible to receive foreign assistance as it is subject to numerous restrictions including for concerns relative to its record on human rights and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 *et seq.* ). • *Guinea* is ineligible to receive foreign assistance pursuant to the military coup restriction in section 7008 of the FY 2024 SFOAA. • *Haiti* is ineligible to receive foreign assistance unless the Secretary of State provides a certification pursuant to section 7045(g)(2) of the FY 2024 SFOAA. • *Iran* is ineligible to receive foreign assistance as it is subject to numerous restrictions including section 7007 of the FY 2024 SFOAA and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 *et seq.* ). • *Korea, North* is ineligible to receive foreign assistance as it is subject to numerous restrictions including section 7007 of the FY 2024 SFOAA and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 *et seq.* ). • *Mali* is ineligible to receive foreign assistance pursuant to the military coup restriction in section 7008 of the FY 2024 SFOAA. • *Nicaragua* is ineligible to receive foreign assistance as it is subject to numerous restrictions including under section 7047(c) of the FY 2024 SFOAA related to its recognition posture with respect to the Russian Federation occupied Georgian territories of Abkhazia and Tskhinvali Region/South Ossetia and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 *et seq.* ). • *Niger* is ineligible to receive foreign assistance pursuant to the military coup restriction in section 7008 of the FY 2024 SFOAA. • *South Sudan* is ineligible to receive foreign assistance as it is subject to numerous restrictions including for concerns relative to its record on human rights, and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 *et seq.* ). • *Sri Lanka* is ineligible to receive foreign assistance pursuant to section 7044(c)(2) of the FY 2024 SFOAA, which restricts (with limited exceptions) assistance for the central government unless the Secretary makes certain certifications regarding actions taken by the Government of Sri Lanka and reports to the Committees on Appropriations. • *Sudan* is ineligible to receive foreign assistance as it is subject to numerous restrictions including the military coup restriction in section 7008 of the FY 2024 SFOAA. • *Syria* is ineligible to receive foreign assistance as it is subject to numerous restrictions including section 7007 of the FY 2024 SFOAA and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 *et seq.* ). • *Zimbabwe* is ineligible to receive foreign assistance, including pursuant to section 7042(j)(2) of the FY 2024 SFOAA, which prohibits (with limited exceptions) assistance for the central government of Zimbabwe unless the Secretary of State certifies and reports to Congress that the rule of law has been restored, including respect for ownership and title to property, and freedoms of expression, association, and assembly. The countries identified above that would be candidate countries should the legislation pass; as well as countries that would be considered candidate countries but for the applicability of legal provisions that prohibit U.S. economic assistance, may be the subject of future statutory restrictions or determinations that affect their legal eligibility for assistance under part I of the Foreign Assistance Act by reason of application of the Foreign Assistance Act or any other provision of law for FY 2025. [FR Doc. 2024-20132 Filed 9-6-24; 8:45 am]
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- Pub. L. 118-47
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