GovDiscovery AI Podcast with Mike Shanley

Episode 64: Foreign Assistance Business Opportunities in FY26
Date: October 15, 2025
Guest: Carrie Lowry – Former Chief of Staff, Millennium Challenge Corporation (MCC)

Episode Overview

In this episode, host Mike Shanley sits down with Carrie Lowry, former MCC Chief of Staff and board member at the Society for International Development (US), to dive deep into emerging business opportunities in foreign assistance for FY26. The discussion highlights recent developments at MCC—including expanded eligibility, notable board decisions, procurement processes, and actionable strategies for organizations seeking to partner with MCC as part of their global strategy.

Key Discussion Points and Insights

1. Introduction to the Millennium Challenge Corporation (MCC)

• Historical Context & Mission

  • MCC was created in 2004 by President Bush to drive transformative investments in countries with good governance and anti-corruption credentials.
  • “It’s a tool that I think is primed and ready for this administration to really unleash.” – Carrie Lowry [01:36]

• Alignment with Current Administration

  • MCC’s flexible authorities and regional compact authority (since 2018) are being leveraged as new board leadership expands eligibility to 33 new countries.
  • “Now that there are a few regional compacts… it’s really now the time where I think we can start, we will start to see some of the fruits of that authority and some potential business opportunities for the Agency…” – Carrie Lowry [02:37]

2. MCC’s Role in the Foreign Assistance Landscape

• How MCC Fits Among State, USAID, and DFC
  • MCC operates with an independent board structure (public and private sector seats), ensuring rigorous oversight and strategic independence.
  • The agency’s involvement by other government departments (State, Treasury, USTR, USAID) reinforces its integrative approach, but with clear operational differences.
  • “The fact that those three, four public sector entities are so intimately involved with the agency’s work, I don’t foresee a change…” – Carrie Lowry [06:45]

3. Board Operations and Decision-Making

• What Happens in the MCC Boardroom
  • Regular, structured board meetings drive decisions on program selection, oversight, and new authorities.
  • “It is a well-oiled machine that we take extremely seriously.” – Carrie Lowry [07:49]
  • Notable anecdote: Secretary John Kerry’s dog once distracted a country director by licking his feet during a high-stakes briefing [09:17].

4. FY26 Priorities and Technical Focus

• Recent and Upcoming Decisions

  • The addition of Fiji and Tonga for new compacts and threshold programs [11:25].
  • December remains the key month for selection of new programs and countries, though this year accelerated decisions have emerged.
  • Budget expected to remain at ~$1 billion/year, with an emphasis on effective use and minimizing uncommitted balances.
  • “The unobligated uncommitted money at the agency really doesn’t exist anymore.” – Carrie Lowry [14:33]

• Opportunities from Country Contributions

  • “Benin actually put in more money than MCC did by $2 million to basically double the investment…” – Carrie Lowry [16:36]
  • MCC’s model demands country ownership, participation, and co-funding.

5. Procurement Pipeline & Bidding Process

• Headquarters vs. Country-Level Opportunities

  • MCC HQ manages ~$70M in opportunities per year, mainly for technical studies, due diligence, and M&E.
  • Country-led Millennium Challenge Accounts (MCAs) administer ~$500M annually in procurements tied to local implementation.
    • “The actual MCA is responsible for all of the procurement, all the financial management, all of the contracting…” – Carrie Lowry [20:07]
  • Opportunities cover a spectrum: technical due diligence, program management, sectoral investments, monitoring & evaluation.

• Host Country Involvement

  • MCAs are semi-independent but closely monitored by MCC—process is similar to UN/World Bank procurements but underpinned by US funds and oversight.

• Types of Contracts and Engagements

  • Mix of BPAs, IDIQs, sole source, and open competitive procurements.
  • Structure varies by country, sector, and investment size—for example, multiple contracts may stem from a single compact, or bundled approaches may be adopted.

6. Strategies for Industry Engagement

• Best Practices for Getting Involved
  • Attend MCC industry days; subscribe to MCC’s Doing Business newsletter for real-time opportunity alerts [23:28].
  • Forge local partnerships and maintain dialogue with MCA and MCC contracting officers.
  • “If you don’t know who to contact…ask those MCAs and they know how to get back in touch with MCC…” – Carrie Lowry [24:05]

7. Forward-Looking Signals for FY26 and Beyond

• Expected Trends & Action Items
  • Monitor MCC closely over the next 3–6 months as new compacts and adjustments emerge after the government shutdown.
  • Côte d’Ivoire and Benin are immediate hotspots for new procurements, with Fiji and Tonga ramping up.
  • Organizations should invest in relationship-building now to position themselves ahead of new releases.

Memorable Moments & Notable Quotes

• On MCC’s Model:
  “Partner countries… have more skin in the game and really have that country ownership of whatever the program is that MCC and the country are doing together.” – Carrie Lowry [15:20]

• On Unexpected Boardroom Moments:
  “Secretary Kerry would at times bring his dog…his dog was actually underneath the table licking our country Director’s feet as he was trying to present on the program.” – Carrie Lowry [09:17]

• On Industry Readiness:
  “Keep an eye on the agency over the next three to six months where I do think a lot more business opportunities will come forward.” – Carrie Lowry [26:45]

• On MCC’s Importance Going Forward:
  “There are a lot of elements [in the America First Global Health Strategy] that really look a lot like how MCC works…there’s some really core elements of what MCC does that this administration really likes and you’re now starting to see pieces of it come out from the Department.” – Carrie Lowry [27:30]

Timestamps for Key Segments

• [00:48] – Introduction to MCC and its mission
• [02:20] – Regional compact authority and board updates
• [05:04] – MCC’s board structure and relationship to other agencies
• [07:46] – Inside MCC board meetings and how decisions trickle down to opportunities
• [11:22] – Country expansion and technical priorities
• [13:23] – Budget overview and implications for bids
• [15:08] – MCC’s emphasis on country ownership and types of funding opportunities
• [19:13] – Distinguishing HQ vs. country-level procurement
• [19:59] – Detailed walk-through of the MCA bidding process
• [21:28] – How opportunities are structured (single or multiple procurements)
• [23:28] – Best ways for industry to engage and find opportunities
• [25:12] – What’s next: Early market signals and emerging focus countries
• [27:13] – Final advice to industry: Build relationships, look for overlap with new US health strategies

Conclusion

This episode offers clear, actionable guidance for companies aiming to tap into MCC’s upcoming foreign assistance funding in FY26. Listeners learned about the agency’s structure, new country priorities, procurement processes, and the best avenues for building strategic relationships—backed by insights from someone who lived both the policy and operational sides of MCC. Carrie’s advice is both practical and encouraging: start your engagement now, stay informed, and leverage MCC’s transparent forecasting and industry engagement mechanisms to maximize your organization’s global business impact.