"The Millennium Challenge Corporation (MCC) provides economic assistance through a competitive selection process to developing nations that demonstrate positive performance in three areas: ruling justly, investing in people, and fostering economic freedom. Established in 2004, the MCC differs in several respects from past and current U.S. aid practices:  the competitive process that rewards countries for past actions measured by objective performance indicators;  the pledge to segregate the funds from U.S. strategic foreign policy objectives that often strongly influence where U.S. aid is spent;  its mandate to seek poverty reduction through economic growth, not encumbered with multiple sector objectives;  the requirement to solicit program proposals developed solely by qualifying countries with broad-based civil society involvement;  the responsibility of recipient countries to implement their own MCC-funded programs, known as compacts;  a compact duration limited to five years, with funding committed up front;  the expectation that compact projects will have measurable impact; and  an emphasis on public transparency in every aspect of agency operations. On February 13, 2012, the Administration issued its FY2013 State, Foreign Operations budget, requesting $898.2 million for the MCC, the same amount it received in FY2012 and FY2011. In September 2012, the Continuing Appropriations Resolution, 2013 (H.J.Res. 117, P.L. 112-175), was approved by Congress, providing FY2013 funding for the MCC at the level in the FY2012 Consolidated Appropriations Act (P.L. 112-74) plus 0.612%--$904 million. The resolution expires on March 27, 2013."
CRS Report for Congress, RL32427