Millennium Challenge Corporation Selects Countries for 2026 Poverty-Fighting Aid
Published Date: 12/22/2025
Notice
Summary
The Millennium Challenge Corporation (MCC) picked which countries can get U.S. help in 2026 to boost their economies and fight poverty. They looked at how fair and free these countries are, plus how they invest in their people. This means some countries will get new deals and funding soon, helping them grow stronger and more prosperous.
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
Ecuador invited to develop a compact
On December 17, 2025, MCC selected Ecuador as an eligible country for Fiscal Year 2026 and invited Ecuador to develop a potential Millennium Challenge Compact. MCC says Ecuador was chosen because of a commitment to reforms toward fiscal stability, strong performance on MCC scorecards, and opportunities to address low growth and low foreign direct investment.
Bolivia tapped for a threshold program
The Board selected Bolivia to develop a potential MCC threshold program for FY 2026 to support reforms addressing an immediate macroeconomic and foreign exchange crisis and longer-term structural economic challenges. MCC describes the threshold program as an agile mechanism to support reforms that lay groundwork for private sector-led growth.
Guatemala selected for threshold program work
The Board selected Guatemala to develop a potential MCC threshold program for FY 2026. MCC notes Guatemala has shown commitment to shared prosperity and reforms to strengthen its business environment to attract private investment.
MCC may suspend or terminate funding for reversals
MCC states that if, during program implementation, a partner country demonstrates a significant policy reversal, MCC can hold the country accountable by applying its Suspension and Termination Policy. MCC provides the policy at https://www.mcc.gov/resources/doc/policy-on-suspension-and-termination/.
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