The Millennium Challenge Corporation Strategic Modernization Act seeks to update the authorities of the Millennium Challenge Corporation (MCC) to better align its foreign assistance with United States economic security and strategic competitiveness. The bill expands the MCC's stated purposes to include supporting reforms and investments that strengthen critical mineral supply chains , strategic infrastructure, and market-based economic integration, while still promoting poverty reduction and sustainable economic growth. To achieve these goals, the legislation mandates the establishment of a Critical Minerals Task Force within the MCC. This task force will assess global supply chain vulnerabilities, identify countries for engagement, and recommend policy reforms and investments to enhance transparent and diversified mineral supply chains. Additionally, the bill requires the MCC Board to develop a "Great Power Competition Factsheet" to assess candidate countries' strategic exposure and resilience to influence from nations like China, Russia, and Iran, using factors such as trade volumes, foreign direct investment, and control of strategic infrastructure. Furthermore, the Act emphasizes increased engagement with the United States private sector during the early stages of project identification and design for MCC compacts. This aims to improve project feasibility, mobilize private capital, and enhance long-term sustainability. Finally, the bill requires the MCC to develop a complementary framework to assess direct benefits accruing to the United States from compacts, including diversification of critical supply chains, increased participation of U.S. companies, and strengthened diplomatic and economic partnerships.