This bill directs U.S. foreign assistance agencies to shift toward partnerships with local organizations and communities in countries receiving aid, rather than relying primarily on large international contractors. The legislation affects the State Department and U.S. Agency for International Development (USAID), as well as local nonprofits, governments, and businesses in countries receiving U.S. development and humanitarian assistance. The bill requires agencies to simplify funding access for local partners, provide staff and resources in local languages, offer more flexible multi-year funding, and reduce reporting burdens on smaller local organizations. Key timelines include policy implementation within 180 days of enactment, an assessment of local language support options within one year, and annual reporting on progress toward increasing direct funding to local entities. The legislation contains no new direct appropriations but authorizes agencies to increase indirect cost rates for local partners, exempt some entities from certain federal reporting requirements, and limit competition on contracts up to $25 million annually if doing so strengthens local capacity.
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