CANDIDACY STATUS.

SEC. 201. CANDIDACY STATUS. (a) Low Income Countries.—Section 606(a) of the Millennium Challenge Act of 2003 (22 U.S.C. 7705(a)) is amended— (1) in paragraph (1)(B), by striking “(3)” and inserting “(4)”; (2) in paragraph (2)— (A) by amending the paragraph heading to read as follows: “Fiscal years 2005 through 2012”; and (B) by striking “fiscal year 2005 or a subsequent fiscal year” and inserting “each of fiscal years 2005 through 2012”; (3) by redesignating paragraph (3) as paragraph (4); and (4) by inserting after paragraph (2) the following: “(3) Fiscal year 2013 and subsequent fiscal years.—A country shall be a candidate country for purposes of eligibility for assistance for fiscal year 2013 or a subsequent fiscal year if the country— “(A) has a per capita income not greater than the lower middle income country threshold established by the International Bank for Reconstruction and Development for such fiscal year; “(B) is among the 75 countries identified by the International Bank for Reconstruction and Development as having the lowest per capita income; and “(C) meets the requirements under paragraph (1)(B).” . (b) Lower Middle Income Countries.—Section 606(b) of the Millennium Challenge Act of 2003 (22 U.S.C. 7705(b)) is amended— (1) in paragraph (1)— (A) by amending the paragraph heading to read as follows: “Fiscal years 2006 through 2012”; and (B) in the matter preceding subparagraph (A), by striking “fiscal year 2006 or a subsequent fiscal year” and inserting “fiscal years 2006 through 2012”; (2) by redesignating paragraph (2) as paragraph (3); and (3) by inserting after paragraph (1) the following: “(2) Fiscal year 2013 and subsequent fiscal years.—In addition to the countries described in subsection (a), a country shall be a candidate country for purposes of eligibility for assistance for fiscal year 2013 or a subsequent fiscal year if the country— “(A) has a per capita income not greater than the lower middle income country threshold established by the International Bank for Reconstruction and Development for the fiscal year; “(B) is not among the 75 countries identified by the International Bank for Reconstruction and Development as having the lowest per capita income; and “(C) meets the requirements under subsection (a)(1)(B).” . (c) Reclassification.—Section 606 of the Millennium Challenge Act of 2003 (22 U.S.C. 7705) is amended— (1) by redesignating subsection (c) as subsection (d); and (2) by inserting after subsection (b) the following: “(c) Treatment of Countries With Per Capita Income Changes.—A country qualifying for candidate status under this section with a per capita income that changes during the fiscal year such that the country would be reclassified from a low income country to a lower middle income country or from a lower middle income country to a low income country shall retain its candidacy status in its former income classification for such fiscal year and the 2 subsequent fiscal years.” .