Millennium Challenge Corporation

Curt Tarnoff
Specialist in Foreign Affairs

The Millennium Challenge Corporation (MCC) provides economic assistance through a competitive selection process to developing nations that are pursuing political and economic reforms 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 and current actions measured by 17 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;
• the requirement to solicit program proposals developed solely by qualifying countries with broad-based civil society involvement; and 
• the responsibility of recipient countries to implement their own MCC-funded programs.

As announced by President Bush in March 2002, the initial plan had been to fund the MCC annually at $5 billion by FY2006, but this figure has never been reached.

On February 1, 2010, the Obama Administration issued its FY2011 budget request, providing $1.280 billion for the MCC, a 16% increase over the FY2010-appropriated level. FY2011 funding for the MCC is currently provided under the terms of the Continuing Appropriations Act 2011 (P.L. 111-242, H.R. 3081), approved September 30, 2010, which provides foreign aid spending at the level in the FY2010 Consolidated Appropriations Act (P.L. 111-117).

Congress authorized the MCC in P.L. 108-199 (January 23, 2004). Since that time, the MCC’s Board of Directors has approved 22 compacts: with Madagascar (2005), Honduras (2005), Cape Verde (2005), Nicaragua (2005), Georgia (2005), Benin (2006), Vanuatu (2006), Armenia (2006), Ghana (2006), Mali (2006), El Salvador (2006), Mozambique (2007), Lesotho (2007), Morocco (2007), Mongolia (2007), Tanzania (2007), Burkina Faso (2008), Namibia (2008), Senegal (2009), Moldova (2009), Philippines (2010), and Jordan (2010). In June 2009, the Madagascar compact was terminated early, as were uncontracted components of the Nicaragua compact. A hold on the roads portion of the Armenia compact has been continued. In September 2009, uncontracted portions of the Honduras compact were terminated as a result of an undemocratic change in government.

MCC implementation concerns include the relationship of MCC and USAID, the level of funding to support MCC programs, the impact of budget reductions on MCC programs, the rate of program implementation, and the results of MCC compact and threshold programs.


Date of Report: November 16, 2010
Number of Pages: 37
Order Number: RL32427
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The Peace Corps: Current Issues

Curt Tarnoff
Specialist in Foreign Affairs

Founded in 1961, the Peace Corps has sought to meet its legislative mandate of promoting world peace and friendship by sending American volunteers to serve at the grassroots level in villages and towns in all corners of the globe. About 8,655 volunteers currently serve in 77 nations.

In 2010, the 111th Congress is considering the President’s annual funding request for the Peace Corps, efforts to reauthorize the Peace Corps, and related issues. On February 1, the Obama Administration issued its FY2011 budget request, proposing $446.2 million for the Peace Corps, a 12% increase over the FY2010-appropriated level of $400 million (H.R. 3288, P.L. 111-117). On June 30, 2010, the House State, Foreign Operations Subcommittee marked up a draft FY2011 State, Foreign Operations Appropriations bill, providing $446.2 million for the Peace Corps, matching the Administration request and $46.2 million above the previous year’s level. On July 29, 2010, the Senate Appropriations Committee approved S. 3676 (S.Rept. 111-237), the FY2011 State, Foreign Operations Appropriations, providing $420.15 million for the Peace Corps, $20 million more than the previous year’s appropriation and $26 million less than the Administration request. On September 30, 2010, the Continuing Appropriations Act of 2011 (P.L. 111-242, H.R. 3081) was signed, providing FY2011 funding for the Peace Corps at the level in the FY2010 Consolidated Appropriations Act (P.L. 111-117). It expires on December 3, 2010.

The last Peace Corps authorization (P.L. 106-30), approved in 1999, covered the years FY2000 to FY2003. On June 10, 2009, the House approved H.R. 2410, the Foreign Relations Authorization Act for 2010 and 2011 (H.Rept. 111-136). Title VI of the act contains several Peace Corps provisions, including authorization of an appropriation level in FY2011of “such sums as may be necessary.” The Senate has not addressed this legislation. On April 27, 2010, the Senate Foreign Relations Committee reported S. 2971, the Foreign Relations Authorization Act for FY2010- 2011. It incorporates most of the language of the Peace Corps Improvement and Expansion Act of 2009, introduced as S. 1382 on June 25, 2009, and reported out of the committee on April 13, 2010 (S.Rept. 111-219). It would authorize funding for the Peace Corps at “such sums as may be necessary.”

A comprehensive assessment of Peace Corps operations was published in June 2010. It makes 64 recommendations supporting a six-point strategy to be implemented in the coming years.

Current issues include the extent to which there is available funding for Peace Corps expansion, whether the Peace Corps has the institutional capacity to expand, and whether volunteers are able to function in a safe and secure environment.


Date of Report: November 16, 2010
Number of Pages: 14
Order Number: RS21168
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The Millennium Development Goals: The September 2010 U.N. High-level Meeting

Luisa Blanchfield
Specialist in International Relations

Marian Leonardo Lawson
Analyst in Foreign Assistance

From September 20 to 22, 2010, heads of state and government convened at United Nations (U.N.) Headquarters for a High-level Plenary Meeting to review progress toward the U.N. Millennium Development Goals (MDGs). The MDGs are a group of measurable development targets agreed to by 189 U.N. member states—including the United States—as part of the 2000 Millennium Declaration. The Goals, which governments aim to achieve by 2015, include (1) eradicating extreme hunger and poverty; (2) achieving universal primary education; (3) promoting gender equality and women’s empowerment; (4) reducing the under-five child mortality rate; (5) reducing the maternal mortality rate; (6) combating HIV/AIDS and other diseases; (7) ensuring environmental sustainability; and (8) developing a Global Partnership for Development.

Since 2000, governments have worked to achieve the MDGs with mixed results. Experts generally agree that while some MDGs are on track to be met, the majority of Goals are unlikely to be achieved by 2015. Many have also found that progress toward the Goals is unevenly distributed across regions and countries. India and China, for example, have made considerable progress in achieving the MDGs, while many countries in Africa have failed to meet almost all of the Goals.

President Barack Obama supports the MDGs and attended the September High-level meeting. In July 2010, the Administration published The United States’ Strategy for Meeting the Millennium Development Goals, which identifies four “imperatives” for achieving the Goals—innovation, sustainability, measuring outcomes, and mutual accountability.

Members of the 111th Congress may be interested in the MDGs and the September High-level meeting from three primary perspectives. First, Congress may wish to consider the MDGs in the context of authorizing and funding broader U.S. development assistance efforts. Second, Members may wish to be aware of the commitments made by the United States at the High-level meeting. Additionally, Congress may consider conducting oversight of international progress toward the MDGs, including U.S. efforts and the future of the Goals.

While evidence of MDG effectiveness in advancing global development is uneven a decade after the Millennium Declaration, the international community—and many policymakers in the United States—continue to use the Goals as a paradigm for development assistance. This raises a number of overarching questions for Congress about the role and future of the MDGs, including: 

·         In what areas, if any, have the MDGs been successful? 

·         Are the MDGs practical?

·         What is the role of U.S. foreign aid in the MDGs? 

·         Who is accountable for MDG progress? 

This report will be not be updated further. .


Date of Report: September 23, 2010
Number of Pages: 21
Order Number: R41410
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Youth Transitioning from Foster Care: Issues for Congress

Adrienne L. Fernandes-Alcantara
Specialist in Social Policy

Recent research has demonstrated that compared to their peers, current and former foster youth are more likely to experience negative outcomes in adulthood. This research, along with the efforts of policymakers and child welfare advocates, has brought greater attention to the challenges facing youth transitioning from foster care. In response, Congress has sought to improve existing services and provide additional supports for this population. Most recently, the 110th Congress passed, and President George W. Bush enacted, the Fostering Connections to Success and Increasing Adoptions Act of 2008 (P.L. 110-351), which is arguably one of the most significant laws passed in recent history that expands services and supports for older youth in care. This reports presents issues around implementation of P.L. 110-351. It also describes other issues affecting older youth as they transition from foster care into adulthood.

As enacted, the new law extends eligibility, beginning in FY2011, for federal foster care assistance to youth who remain in care after age 18 (at state option until 19, 20, or 21). P.L. 110- 351 additionally authorizes this assistance on behalf of older youth eligible for federal foster care if they reside in an independent living setting (as well as foster family homes or other eligible settings). The law requires the Department of Health and Human Services (HHS) to define independent living settings in regulation.

P.L. 110-351 also expands the purposes of the Chafee Foster Care Independence Program (CFCIP). The CFCIP was established in 1999 (P.L. 106-169) to provide supports and services to current and former foster youth who are likely to be emancipated from care. Changes made by P.L. 110-351 explicitly permit states to provide CFCIP services to youth who leave care at age 16 or older through kinship guardianship or adoption. Funding for the CFCIP was not increased, and whether states will expand their independent living programs to include this population remains to be seen. In addition, the new law requires child welfare agencies to assist youth who are leaving foster care in developing a transition plan so that they have specific options on housing, employment, education, and mentoring. In July 2010, HHS issued program instructions that provide guidance to states on the implementation of P.L. 110-351.

One possible challenge in implementing the law is that even with assistance from the federal government, states (and tribes, pursuant to P.L. 110-351) may be hesitant to extend care to older youth because of the cost. Child welfare agencies may also face difficulties in retaining youth in care, even if remaining in care would be beneficial. Further, despite the passage of the new law and issuance of accompanying guidance, policymakers and advocates remain concerned that older foster youth and those who have aged out will continue to experience challenges during the transition to adulthood. Emancipated youth face particular obstacles in fostering permanent connections with caring adults, securing health insurance and housing, and staying connected to work and school. Further, little is known about youth as they transition from foster care, although a new national database will likely provide some insight into their outcomes across a number of areas, such as education, employment, and contact with social service and criminal justice systems.

This report will be updated as programmatic and regulatory activity occurs. For background information about older foster youth and the current federal policies and programs for this population, see CRS Report RL34499, Youth Transitioning from Foster Care: Background and Federal Programs, by Adrienne L. Fernandes-Alcantara.


Date of Report: September 8, 2010
Number of Pages: 45
Order Number: R40218
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Community Development Block Grant Funds in Disaster Relief and Recovery

Eugene Boyd
Analyst in Federalism and Economic Development Policy

In the aftermath of presidentially declared disasters, Congress has used a variety of programs to help states and local governments finance recovery efforts, among them the Community Development Block Grant (CDBG) program. Over the years, Congress has appropriated supplemental CDBG funds to assist states and communities recover from such natural disasters as hurricanes, earthquakes, and tornadoes. In addition, CDBG funds supported recovery efforts in New York City following the terrorist attacks of September 11, 2001; in Oklahoma City following the bombing of the Alfred Murrah Building in 1995; and in the city and county of Los Angeles following the riots of 1992. In response to those calamities, CDBG funds were made available for short-term relief efforts, mitigation actions, and long-term recovery, and to provide housing and business assistance, infrastructure reconstruction, and public services.

The Gulf Coast hurricanes of 2005 (Katrina, Rita, and Wilma) resulted in the largest appropriation of CDBG funds for disaster relief and recovery in the program’s history. Since December 2005, Congress has provided $19.85 billion in CDBG disaster-related assistance to the five states (Alabama, Florida, Louisiana, Mississippi, and Texas) affected by the Gulf Coast hurricanes of 2005. This included $11.5 billion in CDBG assistance appropriated in the Defense Appropriations Act for FY2006, P.L. 109-148; $5.2 billion in the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery Act of 2006, P.L. 109-234; and $3 billion (exclusively for Louisiana’s Road Home Program) appropriated in the Department of Defense Appropriations Act for FY2008, P.L. 110-116.

The 110th Congress appropriated $6.8 billion in CDBG funds to be used to respond to presidentially declared disasters occurring in 2008. This included $300 million appropriated under the Department of Defense Appropriations Act, P.L. 110-252, and $6.5 billion included in the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009, P.L. 110-329.

In general, CDBG disaster relief acts passed since 2005 have included provisions that limit the amount a state could use for administrative expenses to 5%; allow a state to seek waivers of program requirements, except those related to fair housing, nondiscrimination, labor standards, and environmental review; prohibit the use of funds for activities that were reimbursable by or made available by the Federal Emergency Management Agency (FEMA) or the Army Corp of Engineers; and require each state to develop and HUD to approve state recovery plans

As a condition for the receipt of CDBG disaster recovery assistance, states are required to submit quarterly reports to the House and Senate Appropriations Committees on all awards and use of funds. The acts do not prescribe the form these quarterly reports are to take nor the content they are to include, except for identifying and rationalizing the use of sole source contracts.

The 111th Congress approved a supplemental appropriations act for 2010, H.R. 4899, which was signed by the President on July 29, 2010, as P.L. 111-212. The act provided an additional $100 million in CDBG funds to help states and communities undertake disaster recovery activities in presidentially declared disaster areas affected by severe storms and flooding during the period from March 2010 through May 2010. The act limited distribution of these funds to states where the entire state was declared a disaster area (Rhode Island) and to states where at least 20 counties within the state were declared disaster areas (Tennessee, Kentucky, and Nebraska).


Date of Report: September 1, 2010
Number of Pages: 15
Order Number: RL33330
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