Millennium Challenge Corporation Candidate Country Report for Fiscal Year 2027

MILLENNIUM CHALLENGE CORPORATION [MCC FR 26-06] Millennium Challenge Corporation Candidate Country Report for Fiscal Year 2027 AGENCY: Millennium Challenge Corporation. ACTION: Notice. SUMMARY: The Millennium Challenge Act of 2003, as amended, requires the Millennium Challenge Corporation to publish a report that identifies countries that are “candidate countries” for Millennium Challenge Account assistance during Fiscal Year 2027. The report is set forth in full below. (Authority: 22 U.S.C. 7707(a)) Dated: August 31, 2026. Brian Finkelstein, Acting Vice President, General Counsel, and Corporate Secretary. Millennium Challenge Corporation Candidate Country Report for Fiscal Year 2027 Summary This report to Congress is provided in accordance with section 608(a) of the Millennium Challenge Act of 2003, as amended, 22 U.S.C. 7701, 7707(a) (the Act). The Act authorizes the provision of assistance through the Millennium Challenge Corporation (MCC) for countries that enter into a Millennium Challenge Compact with the United States to support policies and programs that advance the progress of such countries to achieve lasting economic growth. Section 607(c)(2) of the Act requires MCC to take a number of steps in selecting countries with which MCC will seek to enter into a compact, including determining the countries that will be eligible countries for fiscal year (FY) 2027 based on (a) a country's demonstrated commitment to (i) just and democratic governance, (ii) economic freedom, and (iii) investments in its people; (b) the opportunity to reduce poverty and generate economic growth in the country; and (c) the availability of funds to MCC. These steps include the submission to the congressional committees specified in the Act and publication in the Federal Register of reports on the following: • The countries that are “candidate countries” for FY 2027 based on their per capita income levels and their eligibility to receive assistance under U.S. law and countries that would be candidate countries but for specified legal prohibitions on assistance (section 608(a) of the Act); • The criteria and methodology that the MCC Board of Directors (the Board) will use to measure and evaluate the relative policy performance of the “candidate countries” consistent with the requirements of subsections (a) and (b) of section 607 of the Act in order to determine “eligible countries” from among the “candidate countries” (section 608(b) of the Act); and • The list of countries determined by the Board to be “eligible countries” for FY 2027, identification of such countries with which the United States, through MCC, will seek to enter into compacts, and a justification for such eligibility determination and selection for compact negotiation (section 608(d) of the Act). This report is the first of the three required reports listed above. Candidate Countries for FY 2027 The Act requires the identification of all countries that are candidate countries for purposes of eligibility for MCC compact assistance for FY 2027 and the identification of all countries that would be candidate countries for purposes of eligibility for MCC compact assistance but for specified legal prohibitions on assistance. Under sections 606(a) of the Act, a country is considered a candidate country for FY 2027 if it: • has a per capita income that is not greater than the World Bank's threshold for initiating the International Bank for Reconstruction and Development graduation process for such fiscal year ($8,105 gross national income per capita for FY 2027); • is not ineligible to receive United States economic assistance under part I of the Foreign Assistance Act of 1961, as amended (the Foreign Assistance Act), by reason of the application of the Foreign Assistance Act or any other provision of law. Pursuant to section 606(b) of the Act, the Board identified the following countries as candidate countries under the Act for FY 2027. In so doing, the Board referred to the prohibitions on assistance to countries for FY 2026 under the National Security, Department of State, and Related Programs Appropriations Act, 2026 (Div. F, P.L. 119-75) (FY 2026 NSRP). Candidate Countries 1. Algeria 2. Angola 3. Azerbaijan 4. Bangladesh 5. Belize 6. Benin 7. Bhutan 8. Bolivia 9. Botswana 10. Burundi 11. Cabo Verde 12. Cambodia 13. Cameroon 14. Central African Republic 15. Colombia 16. Comoros 17. Congo, Democratic Republic of the 18. Congo, Republic of the 19. Côte d'Ivoire 20. Djibouti 21. Ecuador 22. Egypt 23. El Salvador 24. Equatorial Guinea 25. Eswatini 26. Ethiopia 27. Fiji 28. Gabon 29. Gambia, The 30. Ghana 31. Guatemala 32. Guinea 33. Guinea-Bissau  1 1  Guinea-Bissau shall be considered a candidate country to the extent it is deemed to be consistent with law. 34. Haiti 35. Honduras 36. India 37. Indonesia 38. Iraq 39. Jamaica 40. Jordan 41. Kenya 42. Kiribati 43. Kosovo 44. Kyrgyz Republic 45. Lao PDR 46. Lebanon 47. Lesotho 48. Liberia 49. Libya 50. Madagascar  2 2  Madagascar shall be considered a candidate country to the extent it is deemed to be consistent with law. 51. Malawi 52. Mauritania 53. Micronesia, Federated States of 54. Moldova 55. Mongolia 56. Morocco 57. Mozambique 58. Namibia 59. Nepal 60. Nigeria 61. Pakistan 62. Papua New Guinea 63. Paraguay 64. Philippines 65. Rwanda 66. Samoa 67. Sao Tome and Principe 68. Senegal 69. Sierra Leone 70. Solomon Islands 71. Somalia 72. South Africa 73. Sri Lanka 74. Suriname 75. Syria 76. Tajikistan 77. Tanzania 78. Thailand 79. Timor-Leste 80. Togo 81. Tonga 82. Tunisia 83. Turkmenistan 84. Uganda 85. Ukraine 86. Uzbekistan 87. Vanuatu 88. Venezuela 89. Vietnam 90. Yemen 91. Zambia Countries That Would Be Candidate Countries but for Legal Provisions That Prohibit Assistance Countries that would be considered candidate countries for purposes of eligibility for MCC compact assistance for FY 2027 but are ineligible to receive United States economic assistance under part I of the Foreign Assistance Act by reason of the application of any provision of the Foreign Assistance Act or any other provision of law are listed below. This list is based on legal prohibitions against economic assistance that apply as of August 12, 2026. Prohibited Countries • Afghanistan is ineligible to receive foreign assistance pursuant to section 706 of the Foreign Relations Authorization Act, Fiscal Year 2003 (Public Law 107-228), addressing major drug transit or major illicit drug producing countries, and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq. ). There is also a restriction on assistance to the Taliban in section 7044(a) of the FY 2026 NSRP. • Burkina Faso is ineligible to receive foreign assistance pursuant to the military coup restriction in section 7008 of the FY 2026 NSRP. • Burma is ineligible to receive foreign assistance as it is subject to numerous restrictions including for concerns regarding its record on human rights and pursuant to the military coup restriction in section 7008 of the FY 2026 NSRP, and pursuant to section 7043(a) of the FY 2026 NSRP. • Chad is ineligible to receive foreign assistance pursuant to its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq. ). • Democratic People's Republic of Korea is ineligible to receive foreign assistance as it is subject to numerous restrictions including pursuant to section 7007 of the FY 2026 NSRP and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq. ). • Eritrea is ineligible to receive foreign assistance as it is subject to numerous restrictions including for concerns relative to its record on human rights and pursuant to its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq. ). • Iran is ineligible to receive foreign assistance as it is subject to numerous restrictions including pursuant to section 7007 of the FY 2026 NSRP and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq. ). • Mali is ineligible to receive foreign assistance pursuant to the military coup restriction in section 7008 of the FY 2026 NSRP. • Nicaragua is ineligible to receive foreign assistance as it is subject to numerous restrictions including pursuant to section 7047(c) of the FY 2026 NSRP related to its recognition posture with respect to the Russian Federation occupied Georgian territories of Abkhazia and Tskhinvali Region/South Ossetia and its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq. ). • Niger is ineligible to receive foreign assistance pursuant to the military coup restriction in section 7008 of the FY 2026 NSRP. • South Sudan is ineligible to receive foreign assistance as it is subject to numerous restrictions including for concerns relative to its record on human rights, and pursuant to its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq. ). • Sudan is ineligible to receive foreign assistance as it is subject to numerous restrictions including pursuant to the military coup restriction in section 7008 of the FY 2026 NSRP. • Zimbabwe is ineligible to receive foreign assistance, including pursuant to section 7042(h)(2) of the FY 2026 NSRP, which prohibits (with limited exceptions) assistance for the central government of Zimbabwe unless the Secretary of State certifies and reports to Congress that the rule of law has been restored, including respect for ownership and title to property and freedoms of expression, association, and assembly. Countries identified above as candidate countries, as well as countries that would be considered candidate countries but for the applicability of legal provisions that prohibit U.S. economic assistance, may be the subject of future statutory restrictions or determinations ( e.g. a country being ranked on Tier 3 in the annual Trafficking in Persons Report issued by the U.S. Department of State, which has not received an appropriate waiver), or changed country circumstances, that affect their legal eligibility for assistance under part I of the Foreign Assistance Act by reason of application of the Foreign Assistance Act or any other provision of law for FY 2027. [FR Doc. 2026-17997 Filed 9-2-26; 8:45 am] BILLING CODE 9211-03-P