[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7644 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7644

To amend the Millennium Challenge Act of 2003 to modify the authorities 
     of the Millennium Challenge Corporation relating to strategic 
        competitors of the United States and critical minerals.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 23, 2026

   Mr. Barr introduced the following bill; which was referred to the 
                      Committee on Foreign Affairs

_______________________________________________________________________

                                 A BILL


 
To amend the Millennium Challenge Act of 2003 to modify the authorities 
     of the Millennium Challenge Corporation relating to strategic 
        competitors of the United States and critical minerals.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Millennium Challenge Corporation 
Strategic Modernization Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The Millennium Challenge Corporation is an independent 
        United States Government agency that delivers results-driven 
        foreign assistance, using a transparent, data-driven model 
        rooted in good governance, economic freedom, and investment in 
        people to advance America's economic and strategic interests.
            (2) Strategic competitors of the United States, including 
        the People's Republic of China, the Russian Federation, and the 
        Islamic Republic of Iran, increasingly deploy state-directed 
        finance, infrastructure development, and resource investments 
        to gain long-term political and economic leverage in developing 
        countries.
            (3) The global supply of critical minerals is increasingly 
        concentrated, opaque, and vulnerable to coercion by strategic 
        competitors of the United States, creating risks to United 
        States national security, energy security, and advanced 
        manufacturing.
            (4) The Millennium Challenge Corporation's tools, including 
        grant-based financing, policy reform conditionality, and high 
        governance standards, are well-suited to addressing constraints 
        in critical mineral supply chains, such as infrastructure gaps, 
        regulatory weaknesses, and workforce development limitations.
            (5) Earlier and more systematic engagement by the 
        Millennium Challenge Corporation with the United States private 
        sector can improve project design, crowd in private capital, 
        and strengthen economic ties between partner countries and the 
        United States.
            (6) The modernization of the Millennium Challenge 
        Corporation should strengthen, not dilute, its core development 
        mission and independence.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) strategic competition considerations should inform but 
        not replace the Millennium Challenge Corporation's existing 
        eligibility standards;
            (2) reforms should increase transparency, accountability, 
        and value to United States taxpayers; and
            (3) the Millennium Challenge Corporation should be 
        modernized as a strategic asset in an era of global 
        competition.

SEC. 4. PURPOSES.

    Section 602 of the Millennium Challenge Act of 2003 (22 U.S.C. 
7701) is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) to advance United States economic security and 
        strategic competitiveness by supporting eligible country 
        reforms and investments that strengthen critical mineral supply 
        chains, strategic infrastructure, and market-based economic 
        integration, while also supporting poverty reduction and 
        sustainable economic growth.''.

SEC. 5. CRITICAL MINERALS TASK FORCE.

    Section 604 of the Millennium Challenge Act of 2003 (22 U.S.C. 
7703) is amended by adding at the end the following:
    ``(d) Critical Minerals Task Force.--
            ``(1) Establishment.--The Board of Directors shall 
        establish in the Corporation a Critical Minerals Task Force (in 
        this subsection referred to as the `Task Force').
            ``(2) Duties.--The Task Force shall--
                    ``(A) assess global and regional critical mineral 
                supply chain vulnerabilities to United States economic 
                and national security;
                    ``(B) identify candidate countries in which 
                Corporation engagement could enhance transparent, 
                diversified, and sustainable mineral supply chains;
                    ``(C) evaluate infrastructure, regulatory, 
                environmental, labor, and governance constraints 
                affecting mineral development and downstream 
                processing;
                    ``(D) recommend priority policy reforms and 
                investment areas appropriate for Corporation 
                assistance; and
                    ``(E) coordinate, as appropriate, with relevant 
                United States Government agencies, multilateral 
                institutions, and private sector stakeholders.
            ``(3) Rule of construction.--Nothing in this subsection may 
        be construed to authorize the Corporation to engage in 
        extractive activities or to subsidize mineral production.''.

SEC. 6. GREAT POWER COMPETITION FACTSHEET.

    Section 607 of the Millennium Challenge Corporation Act of 2003 (22 
U.S.C. 7706) is amended by adding at the end the following:
    ``(g) Great Power Competition Factsheet.--
            ``(1) In general.--In determining eligible countries under 
        this section, the Board shall assess strategic exposure and 
        resilience of candidate countries to the People's Republic of 
        China, the Russian Federation, the Islamic Republic of Iran, 
        and other strategic competitors of the United States using the 
        factors described in paragraph (2). The assessment carried out 
        under this paragraph may be referred to as the `Great Power 
        Competition Factsheet' (in this subsection referred to as the 
        `GPC Factsheet').
            ``(2) Factors described.--The GPC Factsheet shall include, 
        where data are available--
                    ``(A) trade volumes, export dependencies, and 
                import reliance involving the People's Republic of 
                China, the Russian Federation, the Islamic Republic of 
                Iran, and other strategic competitors of the United 
                States;
                    ``(B) foreign direct investment, sovereign lending, 
                and state-owned enterprise activity from such 
                countries;
                    ``(C) foreign assistance, concessional finance, and 
                debt exposure linked to such countries;
                    ``(D) ownership, control, financing, or operation 
                of strategic infrastructure, including ports, rail, 
                power generation, transmission, digital networks, and 
                data systems such countries;
                    ``(E) critical mineral endowments, processing 
                capacity, export controls, and governance frameworks; 
                and
                    ``(F) alignment with international transparency, 
                labor, environmental, and anti-corruption standards.
            ``(3) Limitation.--The GPC Factsheet shall inform Board 
        deliberations but shall not replace other eligibility criteria 
        under other provisions of law.''.

SEC. 7. MILLENNIUM CHALLENGE COMPACT.

    Section 609 of the Millennium Challenge Act of 2003 (22 U.S.C. 
7708) is amended--
            (1) by amending subsection (j) to read as follows:
    ``(j) Duration of Compact.--
            ``(1) In general.--The implementation of a Compact shall 
        not exceed 5 years.
            ``(2) Other matters.--The Corporation shall--
                    ``(A) obligate the entire funding for a Compact 
                upon the execution of the Compact; and
                    ``(B) consult with the appropriate congressional 
                committees at the commencement of the implementation 
                period of a Compact.''; and
            (2) by adding at the end the following:
    ``(m) Early Private Sector Engagement.--In developing a Compact 
under this section or under other programs developed under section 616, 
the Corporation shall, to the extent practicable, engage United States 
private sector entities, investors, and technical experts during the 
early stages of project identification and design. Such engagement 
shall seek to--
            ``(1) improve the feasibility and effectiveness of Compact 
        projects;
            ``(2) mobilize private capital to supplement assistance 
        provided under this title; and
            ``(3) enhance the long-term sustainability and impact of 
        assistance provided under this title.
    ``(n) Timely Completion of Constraint Analysis and Due Diligence.--
            ``(1) In general.--The Corporation shall use best efforts 
        to commence implementation of the program by ensuring that all 
        required constraint analyses, feasibility studies, 
        environmental assessments, economic analyses, and other forms 
        of due diligence necessary for project commencement are 
        conducted in an expeditious and efficient manner, consistent 
        with the Corporation's policies.
            ``(2) Safeguards.--Nothing in this subsection may be 
        construed to authorize the circumvention of any requirements 
        for a Compact described in subsection (b)(1).
            ``(3) Board oversight.--During the period beginning on 
        which a Compact or an agreement under section 616 is entered 
        into and ending on the date on which the Compact or agreement 
        has commenced implementation, the Corporation shall 
        periodically provide a written update to the Board and consult 
        with the appropriate congressional committees to describe--
                    ``(A) the status of the program, including the 
                anticipated date of implementation the program will 
                commence;
                    ``(B) issues that may negatively impact the 
                anticipated date implementation will commence and steps 
                taken to resolve such issues; and
                    ``(C) any measures adopted with the intent to 
                mitigate the issues identified in subparagraph (B) for 
                future Compacts or agreements under section 616.''.

SEC. 8. CONGRESSIONAL AND PUBLIC NOTIFICATION.

    Section 610(a) of the Millennium Challenge Corporation Act of 2003 
(22 U.S.C. 7709(a)) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following:
            ``(4) Complementary framework.--
                    ``(A) In general.--In addition to a report 
                describing the economic rate of return of the Compact 
                as required under paragraph (3)(A), the Corporation 
                shall develop and include in the report a complementary 
                framework to assess benefits accruing to the United 
                States under the Compact.
                    ``(B) Matters to be included.--Such complementary 
                framework may include--
                            ``(i) diversification and resilience of 
                        critical supply chains and inputs to United 
                        States productive activities;
                            ``(ii) increased participation of United 
                        States companies and investors;
                            ``(iii) actions to reduce recipient country 
                        exposure to strategic competitors;
                            ``(iv) export of goods and services from 
                        the United States; and
                            ``(v) strengthened diplomatic and economic 
                        partnerships.''.
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