This is a joint post with Owen McCarthy.

The development community breathed a sigh of relief on December 23 when President Obama signed a nine-bill spending package that included healthy funding for the International Affairs budget. But there is more in this behemoth than topline funding numbers. Tucked away in the State, Foreign Operations portion are new income definitions for the Millennium Challenge Corporation’s (MCC) low income and lower middle income country categories.

At first glance, this may seem like news only for MCC wonks and income data nuts, but the new specifications will have far-reaching effects. The new income definitions will create new low income country (LIC) and lower middle income country (LMIC) groups with new indicator medians that could change a country’s passing/failing status. MCC legislation also dictates that only 25% of MCC funds may be used for LMICs; the new income definitions will alter the countries that fall under this cap by altering the income country groups.

As the troubling details of the Department of Energy's loan program continue to roll out, I can’t help but think of