In what most deem as the first real "Obama team budget," the MCC received a nod of approval with an FY10 request of $1.45 billion. Despite the fact that the request is the lowest since its launch in FY04, it is one of the largest increases from FY09 enacted (63% increase) and seems to set the record straight on the Administration's plans to sustain the program, which for the MCC is priceless. Now things will get interesting, as we watch Congress have at the International Affairs Budget in general and the MCC in specific. In a tough budget climate overall, maintaining a robust budget will be difficult and, in past years, the MCC has taken the brunt of cuts to the IA budget. This year's request seems to me to be a smart one -- big enough to put an Obama Administration "seal of approval" on the program and small enough to allow the MCC to fund a couple of new compacts but focus most of its attention on implementing well the compacts already underway. And yet, even smart approaches can come under attack -- recall prior attempts to rescind MCC resources in order to fund humanitarian needs. The Administration will, in all likelihood, need to show its true commitment when it comes time to prepare its Statement of Administration Policy (SAP) in response to Congressional mark-ups. Stay tuned.
