The MCC concept differs in several fundamental respects from past and current U.S. aid practices
a competitive selection process that rewards countries for their commitment to free market economic and democratic policies as 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; a mandate to seek poverty reduction through economic growth, not encumbered with multiple sector objectives or congressional directives; 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. Congress approved the new initiative in January 2004 in the Millennium Challenge Act of 2003 (Division D of P.L. Currently, compacts are fully operating in 9 countries—Benin II, El Salvador II, Georgia II, Ghana II, Liberia, Malawi, Morocco II, Niger, and Zambia—and will enter into force in two more within the next two years—Cote d'Ivoire and Nepal. Burkina Faso II . 108-199 ). On March 23, 2018, the Consolidated Appropriations Act, 2018 ( P.L. 115-141 ) was signed into law, providing $905 million for the MCC, the same level as in FY2017. MCC Appropriations Request and Congressional Action for FY2019

On February 12, 2018, the Trump Administration issued its FY2019 budget request, including $800 million for the MCC, a cut of $105 million (-11.6%) from FY2018-enacted levels. The "MCC Effect."
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; 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 12, 2018, the Trump Administration issued its FY2019 budget request, including $800 million for the MCC, a cut of $105 million (-11.6%) from FY2018-enacted levels.
On March 23, 2018, the Consolidated Appropriations, 2018 (P.L. 115-141) was signed into law, providing $905 million for the MCC, the same level as in FY2017.
Congress authorized the MCC in P.L. 108-199 (January 23, 2004). Since that time, the MCC has signed 33 grant agreements, known as compacts, with 29 countries, including with Madagascar (calendar year 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 (2008), Burkina Faso (2008), Namibia (2008), Senegal (2009), Moldova (2010), Philippines (2010), Jordan (2010), Malawi (2011), Indonesia (2011), Cape Verde II (2012), Zambia (2012), Georgia II (2013), El Salvador II (2014), Ghana II (2014), Benin II (2015), Liberia (2015), Morocco II (2015), Niger (2016), Cote D'Ivoire (2017), and Nepal (2017).
MCC issues include the level of funding to support MCC programs, the results of MCC compacts, sustainability, and corruption concerns.