Bill Overview
Title: Millennium Challenge Corporation Eligibility Expansion Act
Description: This bill modifies income-related eligibility requirements for assistance from the Millennium Challenge Corporation (MCC), a program that provides assistance through a competitive selection process to eligible developing countries based on various factors, including a country's level of economic freedom and effectiveness of government. Currently, to be a candidate to receive MCC assistance, a country must, among other requirements, must (1) fit the World Bank's income-based criteria for a low- or lower-middle-income country, or (2) be among the 75 lowest per capita income countries according to the World Bank. Under this bill, a candidate country must have a gross national income per capita no higher than the 125th poorest country as identified by the World Bank for the fiscal year.
Sponsors: Rep. Castro, Joaquin [D-TX-20]
Target Audience
Population: Individuals in low to lower-middle-income countries eligible for MCC assistance
Estimated Size: 0
- The Millennium Challenge Corporation (MCC) targets developing countries, particularly those with low or lower-middle income status.
- Prior to this bill, eligible countries had to fit within World Bank income criteria for low or lower-middle income or be among the 75 poorest countries by per capita income.
- MCC assistance programs could impact millions in these countries through infrastructure and economic projects funded by the MCC.
- The expansion to include countries poorer than the 125th country by per capita income under the World Bank criteria will open eligibility to a broader range of developing nations.
- This change could potentially benefit up to around 600 million more people based on the population of countries ranked 76-125 by income.
- On a global scale, the increased eligibility could positively impact global poverty levels through enhanced economic support projects.
Reasoning
- The Millennium Challenge Corporation (MCC) is focused on providing aid to developing countries. This policy does not directly provide aid to US citizens because it targets countries abroad.
- The primary impact of this policy on Americans might be through indirect channels. For example, employees of the MCC and related industries might be affected.
- Some Americans may consider the expansion of eligibility to a broader range of countries as a positive step towards reducing global poverty, which can indirectly stabilize global markets and improve international relations.
- There may be concerns among US taxpayers about the budget allocation and whether these funds could be better used domestically.
- Thus, the simulation includes interviews with people from different walks of life such as government employees involved in the MCC, taxpayers, and even those who may not feel directly impacted at all.
Simulated Interviews
Government Employee - Millennium Challenge Corporation (MCC) (Washington, D.C.)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I see the expansion as a positive move. It allows us to do more good and help more nations by loosening the financial constraints on eligibility.
- Our team will be preparing to accommodate a larger number of projects.
- I'm satisfied knowing that the work will have more reach.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Journalist (New York, NY)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- The expansion could lead to positive developments in many countries, contributing to global stability.
- There's always a concern about effective utilization of taxpayer dollars, but MCC has shown good results in the past.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 6 |
Taxpayer/Contractor supporting government projects (Chicago, IL)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I feel mixed about this expansion. On one hand, it spreads American values and potentially generates goodwill; on the other, we have issues at home that could use funding.
- We're putting a lot of money into foreign projects; it would be nice to see a transparent evaluation of outcomes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 4 | 4 |
| Year 20 | 3 | 3 |
Tech Industry Professional (San Francisco, CA)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- This expansion might open more opportunities for tech-driven solutions in developing regions.
- I'm hopeful that aiding more countries can eventually result in better trade relations and economic opportunities for US companies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 7 | 6 |
Social Worker (Portland, OR)
Age: 35 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 1.0 years
Commonness: 18/20
Statement of Opinion:
- I honestly don't feel directly impacted by foreign aid policies except through taxes.
- I hope the money is used fairly and effectively though.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 4 |
| Year 2 | 4 | 4 |
| Year 3 | 4 | 4 |
| Year 5 | 4 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 4 |
Retired Diplomat (Miami, FL)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- During my service, I saw MCC projects transform regions.
- The expansion might bolster diplomatic ties but increases administrative workload significantly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 7 | 6 |
University Student (Austin, TX)
Age: 22 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 12/20
Statement of Opinion:
- As someone who's been involved in grassroots movements, I see this as a chance for more inclusive global development.
- I'm eager to see the long-term effects of widened aid criteria.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Healthcare Worker (Los Angeles, CA)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 13/20
Statement of Opinion:
- I’m not sure how expanding the eligibility affects me directly, but we always hope such funds could improve lives abroad and create better health outcomes.
- I wish there were more funds directed towards global health.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 4 |
Economist (Boston, MA)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- It's potentially a strategic move; expanding MCC could strengthen the US influence in geopolitically important regions.
- Tracking the economic return on investment can lead to more impactful projects.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
IT Specialist (Baltimore, MD)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 6/20
Statement of Opinion:
- With the eligibility expansion, I anticipate new project opportunities.
- It's gratifying to know our tech support could contribute to broader economic development.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $150000000 (Low: $100000000, High: $200000000)
Year 2: $155000000 (Low: $105000000, High: $205000000)
Year 3: $160000000 (Low: $110000000, High: $210000000)
Year 5: $170000000 (Low: $120000000, High: $220000000)
Year 10: $190000000 (Low: $150000000, High: $250000000)
Year 100: $250000000 (Low: $200000000, High: $300000000)
Key Considerations
- The expansion of MCC eligibility requires balancing budget increases with US foreign aid policy goals.
- Possibility of increased administrative burden and the need for scaling MCC's operational capabilities.
- The effectiveness and impacts of the programs on recipient countries' economic conditions.