December 18th, 2007 by Sean

The Millennium Challenge Corporation is facing a potential budget cut for fiscal year 2008, as H.R.2764, an omnibus appropriations bill making its way through Congress, provides 1.5 billion for the agency, half of the administration’s request and 207 million below FY07 levels.

MCC Chief Executive Officer John Danilovich has responded to a NYT article discussing criticism of the U.S. agency for its slow pace.

Last week the MCC announced the countries eligible for funding in 2008. Morocco and Jordan have maintained their eligibility, and Mauritania has been added as a candidate for threshold assistance grants. Yemen’s status appears to remain uncertain.

Update: Though the spending cuts have come under criticism for tying funds to projects instead of longer-term compacts, which would make the MCC more like the World Bank, a House Appropriations Committee summary justifies the cuts due to the availability of previously unspent funds.

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