This bill directs the U.S. Agency for International Development (USAID) to shift toward a "locally led" development model that gives greater control and funding directly to local organizations in countries receiving American aid, rather than routing assistance primarily through large international contractors. The legislation requires USAID to simplify application processes, accept submissions in local languages, reduce bureaucratic reporting requirements, and increase direct funding to local partners within 180 days of enactment. The bill also grants USAID new flexibilities, including allowing competitions limited to local entities for contracts up to $25 million annually, raising the indirect cost rate for local organizations to 15 percent, and exempting some local entities from federal transparency reporting requirements. USAID must submit annual reports to Congress detailing progress on localization efforts, including the percentage of funding reaching local organizations and assessments of implementing new authorities. The bill provides no specific new funding appropriation but aims to redirect existing USAID resources toward local capacity-building and sustainable development outcomes.
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