The USTDA Modernization Act of 2026 amends the Foreign Assistance Act to allow the U.S. Trade and Development Agency to use up to 15 percent of its annual appropriated funds to support development and infrastructure projects in high-income countries, particularly those that advance American interests in energy, critical minerals, transportation, and telecommunications sectors. Previously, the agency's assistance was limited primarily to emerging markets. The bill also expands the agency's personnel flexibility by increasing the number of non-career appointees it can hire from two to five and authorizing the use of personal services contractors without triggering federal employee protections or requirements. The legislation requires the agency to submit annual reports to Congress detailing the number of personal services contractors hired, their roles, and associated costs. Overall, the bill modernizes the agency's authorities to better respond to strategic economic and national security priorities in developed nations while maintaining its traditional focus on emerging markets.
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