The Model Context Protocol (MCP) is driving innovative advancements in AI and agent interactions with tools, codebases, and browsers, leading to the development of AI-native workflows and agentic tooling. Supported by the Microsoft Open Source Program Office, GitHub Copilot, and VS Code teams, nine projects have been sponsored to enhance innovation, security, and sustainability in open source, focusing on three key areas: integrating MCP capabilities with popular frameworks for real-world applications, enhancing developer productivity through AI-first tools and intelligent IDE assistants, and ensuring reliability and quality assurance of MCP infrastructure through automation and testing. These projects are part of a rapidly growing ecosystem, with tools that developers find valuable, and are supported by initiatives like GitHub Sponsors to further the development of MCP and agent-native solutions.