U.S. President Barack Obama is asking Congress to allocate USD1.28 billion for the Millenium Challenge Corp. for fiscal 2011. MCC Chief Executive Officer Daniel Yohannes said the proposed budget, released Monday (Feb. 1), will allow the agency to continue providing poverty reduction solutions in its partner countries. He added that he will be working with the U.S. Congress in coming weeks to discuss potential compact programs for Indonesia, Jordan, Zambia, the Philippines and Malawi.

As part of the same USD3.8 trillion budget proposal, Obama is also seeking USD33 billion to fund the Afghanistan troop increase he announced in December 2009, Reuters reports. These funds will complement the USD130 billion Afghanistan and Iraq war budget already approved by the U.S. Congress. The proposed budget likewise includes a USD1.2 billion allocation for Pakistan military aid Reuters reports.

In an initial statement Rep. David Obey (D-WI), chairman of the House Appropriations Committee, indicated that he may try to push for cuts to the White House proposal.

“We will not exceed his requested level for appropriations; but we will also not exempt any department or activity from review, including foreign aid and the Pentagon, because none of them are without waste,” he said, according to the Agence France Presse.

Read the Department of State and U.S. Agency for International Development 2011 budget justification document here. Stay tuned for more in-depth coverage of the 2011 budget.