MCC Tweaks Country Aid Scorecards: Who Gets Billions in 2026?
Published Date: 10/9/2025
Notice
Summary
The Millennium Challenge Corporation (MCC) is updating how it picks countries for aid in fiscal year 2026. They’ll use clear, fair scorecards based on income levels to decide who gets help, whether it’s their first time or a follow-up. This means countries can expect a transparent process starting soon, with funding decisions that could impact development projects worldwide.
Analyzed Economic Effects
7 provisions identified: 3 benefits, 3 costs, 1 mixed.
Scorecard Passing Rules and Hard Hurdles
A country generally must pass at least 11 of 22 scorecard indicators to be considered, must pass the Personal Freedom indicator (minimum score 25 out of 60), and must pass either the Control of Corruption indicator or the Government Accountability indicator (Government Accountability pass is a minimum score of 17 out of 40). Failing either of the two "hard hurdle" requirements (Personal Freedom or the Control of Corruption/Accountability hurdle) means the country does not pass the scorecard overall.
Statutorily-Prohibited Countries Listed
The report lists countries that are statutorily prohibited from receiving MCC assistance for FY2026, including (for example) Burkina Faso, Burma, Eritrea, Ghana, Guinea, Haiti, Iran, Mali, Nicaragua, Niger, North Korea, South Sudan, Sri Lanka, Sudan, Syria, Venezuela, and Zimbabwe. These countries are identified as statutorily-prohibited for evaluation purposes.
Three Income Groups Define Comparisons
For FY2026, MCC will group candidate countries into three income categories for scorecard comparisons: GNI per capita of $2,155 or less; GNI per capita between $2,156 and $4,495; and GNI per capita between $4,496 and $7,855. Countries are compared against peers in the same income group when measuring policy performance.
Specific Indicator Threshold: Inflation Limit
On the Encouraging Economic Freedom category, the Inflation indicator requires a country's most recent average annual consumer price change to be 15 percent or less to 'pass' that indicator. MCC uses this numeric threshold when evaluating that specific indicator as part of the 22-indicator scorecard.
Threshold Program Option for Near-Eligible Countries
MCC will evaluate countries for the threshold program when they show significant commitment to meeting eligibility criteria but fail to meet them; the Board will consider whether a country appears on a trajectory to become viable for compact eligibility in the short or medium term. Threshold programs are intended to help such countries make reforms toward compact eligibility.
Rules for Subsequent and Concurrent Compacts
MCC may consider countries for a subsequent compact only after a country completes its compact or is within 18 months of its compact end date; selection is not automatic and requires (among other things) successful prior compact performance and improved policy performance. Concurrent compacts are allowed only if one or both compacts focus on regional economic integration, increased regional trade, or cross-border collaboration and the Board finds 'considerable and demonstrable progress' implementing the existing compact.
U.S. Business Opportunity Considered in Selection
When selecting countries for compacts, the Board will consider market fundamentals, trade dynamics, critical supply chains, and opportunities to facilitate U.S. business investments and private-sector-led growth. The Board explicitly weighs opportunities to advance U.S. business interests as part of assessing the investment opportunity.
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Key Dates
Department and Agencies
Related Federal Register Documents
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