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US Development Policy


Amidst the big cuts in the House State, Foreign Operations mark-up yesterday, the Millennium Challenge Corporation (MCC) is one of the few agencies whose budget request remains intact.  The House subcommittee voted to keep MCC’s funding at $898.2 million, level with the President’s FY2013 request. Funding levels for the Development Assistance account and the Peace Corps are also essentially maintained at request levels.

When President Obama released his FY2013 request for the MCC, I expressed concern that this low number was only the opening salvo, subject to reduction in congressional mark-up. So it’s good to see the House recognize the importance of the MCC’s mission and model and fulfill the request.  Assuming the $898 million request for MCC is appropriated, FY2013 will be the third consecutive year that the MCC has been funded at $898 million.

Also worth noting, the House subcommittee included language on the MCC’s new income categories that define “low income” as the poorest 75 countries. These new definitions first passed in FY2012 but will have to be legislated on an annual basis.

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CGD blog posts reflect the views of the authors, drawing on prior research and experience in their areas of expertise. CGD is a nonpartisan, independent organization and does not take institutional positions.