	Introduction

Malawi is a small, poor southeastern African country of just over 18 million people that in the early 1990s underwent a democratic transition from one-party rule. The country has long relied on foreign assistance, and U.S. aid is the main focus of U.S.-Malawian relations. Congressional interest centers mostly on such assistance, in particular health aid, as well as on concerns over governance trends, notably under the presidency of the late President Bingu wa Mutharika, the brother of incumbent President Peter Mutharika. In recent years, State Department and U.S. Agency for International Development (USAID) bilateral assistance to Malawi has ranged between $196 million (FY2014) and $261 million (FY2016), supplemented in FY2016 with an additional $102.6 million in disaster response funding, primarily made up of food aid (see Table 1 ). The Obama Administration requested $195.6 million for FY2017. 115-31 ) congressional appropriators mandated that at least $56 million in Development Assistance account funds be allocated to Malawi, and that up to $10 million of this funding be made available for higher education programs. The Trump Administration requested $161.3 million for Malawi in FY2018. Roughly 6.7 million Malawians were experiencing acute food insecurity in early 2017. These developments prompted various international donors to withhold aid. A key point of electoral controversy was an unsuccessful attempt by Banda to annul the election. Mutharika Administration

Mutharika took office in June 2014. GDP per capita—which is among the world's lowest—fell substantially, from $354 in 2015 to $294 last year. Malawi is landlocked, and its agriculturally-centered and undiversified economy is import-dependent for many products, such as fuel and manufactured goods. In 2014, Malawi was the fifth most aid-dependent country or territory globally; the amount of official development assistance (ODA) it received was equivalent to 75% of the value of government expenditures, and the percentage has been even higher in the past (reaching a peak of 113% in 2012). Most members of CABS, along with the United States, currently provide project-based or otherwise targeted development aid, rather than direct budget support, notably for social services, humanitarian needs, and infrastructure and public institutional development. U.S. Relations

U.S.-Malawi relations warmed following Malawi's democratic transition in 1994, but became strained during President Wa Mutharika's second term (see " Political Background ," above), before improving under Banda. Malawi is eligible for trade benefits, including apparel benefits, under the U.S. African Growth and Opportunity Act (AGOA, Title I, P.L. A significant portion of U.S. assistance for Malawi has been allocated toward health programs, including through the President's Emergency Plan for AIDS Relief (PEPFAR), the President's Malaria Initiative (PMI), and the presidential Global Health Initiative (GHI). Malawi has also been a Feed the Future (FTF) participant country. MCC

Malawi was awarded a $21 million Millennium Challenge Corporation Threshold program in 2005 that focused on enhancing good governance and fighting corruption. The MCC approved a $350 million, 5-year MCC compact for Malawi in January 2011, but little progress was initially made due to concern over the Wa Mutharika administration's policies, and the compact was suspended in March 2012. The Compact was reinstated in June 2012, after the inauguration of President Banda. It entered into force in September 2013 and is slated to be completed in September 2018.
Malawi is a poor, landlocked country in southeastern Africa. A former British colony, Malawi transitioned from one-party rule to a democratic system in the early 1990s. It has since held a series of multi-party elections—though the most recent polls, held in 2014, featured some logistical shortcomings, limited violence, and a number of controversies, including a failed attempt by then-incumbent President Joyce Banda to annul the election. The race was ultimately won by Peter Mutharika, whose brother, Bingu wa Mutharika, served as president from 2004 until his death in 2012, when he was succeeded by Banda. Peter Mutharika took office in June 2014 after besting Banda in presidential elections that year.
Malawi's economy is agriculturally centered, undiversified, and import-dependent for many inputs. Its gross domestic product (GDP) per capita ranks among the lowest in the world. A regional drought in 2015-2016 hit the domestic agricultural economy hard and left an estimated 6.7 million Malawians acutely food insecure as of early 2017. Malawi is heavily reliant on donor aid; in 2014, it ranked as the world's fifth most aid-dependent country or territory with respect to the amount of development assistance received relative to government expenditures. A major corruption scandal emerged during the Banda administration in 2013 and remains an ongoing political concern and an object of continuing policy and judicial action. It prompted many European and multilateral agency donors to withhold direct budget support to Malawi, and such holds continue. Nevertheless, many donors, including the United States, provide targeted development aid, including for social services, humanitarian needs, and infrastructure and public institutional development.
U.S.-Malawi ties warmed following Malawi's democratic transition but faced strains during the 2004-2012 tenure of President Bingu wa Mutharika, whose administration was marred by semi-authoritarian leadership and human rights concerns. Relations improved markedly under Joyce Banda and have remained positive under President Peter Mutharika. U.S. development assistance has long been the main focus of U.S.-Malawian relations. Congressional interest has traditionally centered on such assistance, notably in the health sector, and on governance concerns.
In recent years, State Department and U.S. Agency for International Development (USAID) bilateral assistance to Malawi has ranged between $196 million (FY2014) and $261 million (FY2016). This was supplemented in FY2016 with an additional $102.6 million in disaster response funding, primarily for emergency food aid. The Obama Administration requested $195.6 million for FY2017, and Congress mandated that at least $56 million be allocated to Malawi, and that up to $10 million of this funding be made available for higher education programs. The Trump Administration requested $161.3 million for Malawi in FY2018, centered almost exclusively on health system aid.
In recent years, a large portion of U.S. assistance to Malawi has been provided through the President's Emergency Plan for AIDS Relief (PEPFAR) and other health programs, including the President's Malaria Initiative (PMI) and the presidential Global Health Initiative (GHI). The United States has also provided assistance through the Feed the Future (FTF) initiative. Malawi has received some U.S. security assistance focused on military professionalization and peacekeeping capacity building. Malawi is eligible for trade benefits under the U.S. African Growth and Opportunity Act (AGOA). The country was also awarded a five-year, $350 million Millennium Challenge Corporation (MCC) compact focused on electric power in January 2011, but the compact was temporarily suspended due to concerns over anti-democratic trends. It was reinstated in 2012 and is slated to be completed in September 2018.