Fostering Innovation in Global Development Assistance Act or the FIGDA Act
This bill provides statutory authority for the position of Chief Innovation Officer in the U.S. Agency for International Development (USAID). The bill also (1) authorizes the Chief Innovation Officer to provide flexible funding to support expanded use of innovation, (2) authorizes USAID to hire up to 30 Innovation Fellows, (3) provides statutory authority for USAID's Development Innovation Ventures program, (4) establishes a program in USAID to integrate proven solutions into programming and operating budgets, and (5) authorizes USAID to participate in the Global Innovation Fund and enter into agreements with the U.S. International Development Finance Corporation.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9500 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 9500
To support prioritization and expanded use of innovation at the United
States Agency for International Development, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 13, 2022
Mr. Castro of Texas (for himself and Mrs. Kim of California) introduced
the following bill; which was referred to the Committee on Foreign
Affairs
_______________________________________________________________________
A BILL
To support prioritization and expanded use of innovation at the United
States Agency for International Development, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Fostering
Innovation in Global Development Assistance Act'' or the ``FIGDA Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings.
Sec. 3. Sense of Congress.
Sec. 4. Chief Innovation Officer.
Sec. 5. Authorities to support expanded use of innovation.
Sec. 6. Proven Solutions program.
Sec. 7. Increase in fixed amount subawards.
Sec. 8. Authorization for United States participation in the Global
Innovation Fund.
Sec. 9. Collaboration with United States International Development
Finance Corporation.
Sec. 10. Global innovation strategy.
Sec. 11. Limitations.
Sec. 12. Definitions.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The effectiveness of United States foreign assistance
can be greatly enhanced by fostering innovation, applying
research and technology, and leveraging the expertise and
resources of the private sector to find cost-effective
solutions to today's most pressing development challenges.
(2) Partnerships with entrepreneurs, experts,
nongovernmental organizations, universities, and science and
research institutions allow the United States to find solutions
to specific development challenges in a faster, more cost-
efficient, and more financially sustainable way.
(3) Enhancing the authorities that support results-based
and pay-for-success innovation models will better enable USAID
to diversify and expand both the number and sources of ideas
that may be developed, tested, and brought to scale, thereby
increasing the USAID's opportunity to apply high value, cost-
effective solutions to global development challenges.
(4) As demonstrated by USAID's Development Innovation
Ventures program, innovation within United States foreign
assistance can generate high social returns when it is centered
on the creation of and reliance on rigorous evidence of impact
on global development outcomes, a focus on cost-effectiveness,
and attention to financially sustainable scaling pathways.
(5) Enabling uptake of evidence-based innovation across
USAID's operating units will enable USAID to scale breakthrough
solutions that accelerate economic growth and produce better
development outcomes, which can help support the growth of
healthier, more stable societies and foster trade relationships
that translate into jobs and economic growth in the United
States.
SEC. 3. SENSE OF CONGRESS.
It is the sense of Congress that innovation is central to
identifying solutions to global development challenges.
SEC. 4. CHIEF INNOVATION OFFICER.
(a) In General.--There shall be established within USAID a Chief
Innovation Officer who shall--
(1) serve as the principal advisor on issues related to the
prioritization and expanded use of innovation to improve the
effectiveness and outcomes of the development and humanitarian
goals of the United States, including related to policy,
management, and procurement;
(2)(A) carry out--
(i) the duties described in subsection (b); and
(ii) the authorities described in section 5; and
(B) develop the strategy required by section 7(a); and
(3) report directly to--
(A) the Deputy Administrator for Policy and
Programming of USAID; or
(B) such other senior official of USAID, as
determined by the Administrator.
(b) Duties.--The duties of the Chief Innovation Officer shall
include--
(1) increasing the application of innovation to develop,
test, and scale new solutions to improve effectiveness and
outcomes of development and humanitarian goals of the United
States;
(2) leveraging the innovations, expertise, resources, and
investments of businesses, nongovernmental organizations,
science and research organizations, United States Government
organizations that pursue science, technology, and research,
and universities for the purposes of improving effectiveness
and outcomes of development and humanitarian assistance efforts
of the United States, and serving as a liaison between USAID
and such partners to ensure USAID is meaningfully engaging with
such partners;
(3) utilizing innovation-driven competitions, advanced
market commitments, and co-creation arrangements to expand the
number and diversity of solutions to development and
humanitarian challenges and the partners with whom USAID works
and funds;
(4) maintaining a collection of innovative solutions and
best practices to be shared across USAID and fostering a
culture of innovation across USAID;
(5) supporting USAID operating units in applying findings
from development economics and research, technology,
innovation, co-creation, and partnership approaches to decision
making, procurement, and program design;
(6) examining and providing input into current internal
USAID policy related to management and procurement to ensure
innovation is integrated in policy guidance and procurement
mechanisms; and
(7) ensuring acquisition and assistance mechanisms utilize
the authorities relating to competitive grants, contracts,
challenges, and prize awards, including Innovation Incentive
Awards under section 5(a) and Innovation Fellows under section
5(b).
(c) Bureau Senior Advisors.--
(1) In general.--The Administrator shall appoint in each
bureau of USAID, from among officers and employees of such
bureau, a senior advisor with respect to matters relating to
innovation, to--
(A) serve as the principal advisor for such bureau
on such matters; and
(B) coordinate with the Chief Innovation Officer
the activities of such bureau on such matters.
(2) Continuation of service.--An individual appointed to
serve as a senior advisor pursuant to paragraph (1) may
continue to serve concurrently in the individual's original
position in such bureau.
SEC. 5. AUTHORITIES TO SUPPORT EXPANDED USE OF INNOVATION.
(a) Innovation Authorities.--
(1) In general.--The Administrator, acting through the
Chief Innovation Officer, is authorized to provide flexible,
results- and milestones-based funding to support expanded use
of innovation, encourage improved development and humanitarian
outcomes, expand USAID partner bases, and support cost-
effective and sustainable-led development solutions in
partnership with local and nontraditional development partners,
including the private sector.
(2) Types of funding.--The Administrator may provide
funding authorized under paragraph (1) in the form of
competitive grants (including fixed amount awards), contracts
(including firm-fixed price contracts), advanced market
commitments, and prize awards, including--
(A) Innovation Incentive Awards; and
(B) evidence-driven, tiered awards under the
Development Innovation Ventures program established
under subsection (c).
(3) Recovery of funds.--
(A) Authority.--
(i) In general.--The Administrator, subject
to the limitation described in clause (ii), is
authorized to provide funds under a competitive
grant, contract, advanced market commitment, or
prize award under this subsection to a
recipient under terms requiring a proportion of
such funds be returned to USAID at a future
date in accordance with such requirements as
may be established by the Administrator.
(ii) Limitation.--The amount of funds that
a recipient is required to return to USAID
under clause (i) may not exceed the total
amount of funds that the recipient receives
under the competitive grant, contract, or prize
award.
(B) Treatment of payments.--
(i) In general.--The amount of funds
returned to USAID under subparagraph (A) may be
credited to the account from which the
obligation and expenditure of funds under the
competitive grant, contract, or prize award
under this subsection were made.
(ii) Availability.--Amounts returned and
credited to an account under clause (i)--
(I) shall be merged with other
funds in the account; and
(II) shall be available, subject to
appropriation, for the same purposes
and period of time for which other
funds in the account are available for
programs and activities of the Chief
Innovation Officer under section 4(b).
(b) Innovation Fellows.--
(1) In general.--The Administrator, acting through the
Chief Innovation Officer, is authorized to employ not more than
30 individuals to be known as ``Innovation Fellows'' at any
given time who shall, following an initial period of service
with the Chief Innovation Officer, be assigned on a detail
basis to USAID operating units for purposes of expanding the
use of innovation, technology, and research with respect to the
development assistance authorities of USAID.
(2) Administrative provisions.--The authority to employ
individuals under paragraph (1) is in addition to the authority
to employ individuals under such other authorities as may be
available to the Administrator, including authorities under
parts I and II of the Foreign Assistance Act of 1961 (22 U.S.C.
2151 et seq.)
(3) Limitation.--The employment of individuals under
paragraph (1) shall be a limited-term basis pursuant to
schedule A of subpart C of part 213 of title 5, Code of Federal
Regulations, or similar laws or regulations.
(c) Development Innovation Ventures Program.--
(1) In general.--There is established in USAID the
Development Innovation Ventures program (in this subsection
referred to as the ``program''). The Administrator, acting
through the Chief Innovation Officer, is authorized to carry
out the program.
(2) Duties.--The program shall provide flexible funding to
global innovators to test new ideas, build evidence of what
works to improve development outcomes, and transition to scale
those innovations with rigorously demonstrated potential to
cost-effectively improve millions of lives.
(3) Applications.--The program shall assess applications
for funding under this subsection according to the following
three core principles:
(A) Rigorous evidence of impact.
(B) Cost-effectiveness.
(C) Potential for scale.
(4) Administrative provisions.--The program shall--
(A) provide funding under this subsection using
tiered, evidence-driven funding to allow for risk-
taking at early stages while mitigating risk at later
stages, thereby maximizing impact per tax dollar spent;
and
(B) work across all countries and sectors supported
by USAID, with the goal of finding, testing, and
bringing to scale those innovations that can become
proven solutions to development problems.
(d) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section not less than $45,000,000 for each of
the fiscal years 2024 through 2028.
(2) Availability.--Amounts authorized to be appropriated to
carry out this section are authorized to remain available until
expended.
SEC. 6. PROVEN SOLUTIONS PROGRAM.
(a) In General.--There is established in USAID the Proven Solutions
program (in this subsection referred to as the ``program''). The
Administrator, acting through the Chief Innovation Officer and in
consultation with the Chief Economist of the United States Agency for
International Development, shall carry out the program.
(b) Duties.--
(1) In general.--In carrying out the program, the
Administrator shall scale up proven solutions by directing
USAID operating units to integrate proven solutions into USAID
programming and operating budgets and utilizing other
authorities described in this Act.
(2) Public report.--Not later than 60 days after the end of
each of the fiscal years 2024 through 2028, the Administrator
shall develop and make available to the public a report that
describes which USAID operating units funded which proven
solutions.
(c) Definition.--In this subsection, the term ``proven
solutions''--
(1) means innovations that are rigorously demonstrated,
such as through randomized controlled trials, commercial
viability, or other appropriate methods, to have the potential
to substantially improve development outcomes; and
(2) includes--
(A) innovations developed by USAID, including the
Development Innovation Ventures program established
under subsection (c), and innovations developed by
other government entities, including the United States
International Development Finance Corporation; and
(B) innovations developed by USAID partners,
including nongovernmental organizations, foreign
governments, and multilateral institutions.
(d) Authorization of Appropriations.--
(1) In general.--Amounts authorized to be appropriated
under chapters 1 and 10 of part I of the Foreign Assistance Act
of 1961 (22 U.S.C. 2151 et seq. and 2293 et seq.), chapter 4 of
part II of such Act (22 U.S.C. 2346 et seq.), and title II of
the BUILD Act of 2018 (22 U.S.C. 9601 et seq.) are authorized
to be made available to carry out this section.
(2) Availability.--Amounts authorized to be appropriated to
carry out this section are authorized to remain available until
expended.
SEC. 7. INCREASE IN FIXED AMOUNT SUBAWARDS.
(a) In General.--The Administrator is authorized to permit
contractors to issue fixed amount subawards in excess of the monetary
cap provided for in section 200.333 of title 2, Code of Federal
Regulations (or any successor regulations), but not to exceed
$1,000,000, in a manner consistent with appropriate safeguards.
(b) Notification.--The Administrator shall notify the appropriate
congressional committees prior to any exercise of the authority of this
section.
SEC. 8. AUTHORIZATION FOR UNITED STATES PARTICIPATION IN THE GLOBAL
INNOVATION FUND.
(a) In General.--The United States is hereby authorized to
participate in the Global Innovation Fund.
(b) Board of Directors.--The Administrator is authorized to
designate an employee of USAID to serve on the Board of the Global
Innovation Fund as a representative of the United States.
(c) United States Contributions.--Amounts authorized to be
appropriated under chapters 1 and 10 of part I of the Foreign
Assistance Act of 1961 (22 U.S.C. 2151 et seq. and 2293 et seq.),
chapter 4 of part II of such Act (22 U.S.C. 2346 et seq.), and title II
of the BUILD Act of 2018 (22 U.S.C. 9601 et seq.) are authorized to be
made available for United States contributions to the Global Innovation
Fund.
SEC. 9. COLLABORATION WITH UNITED STATES INTERNATIONAL DEVELOPMENT
FINANCE CORPORATION.
The Administrator is authorized to enter into agreements with the
Chief Executive Officer of the United States International Development
Finance Corporation to carry out joint innovation projects, including
through competitive grants, contracts, and prize awards, including
Innovation Incentive Awards authorized under section 5(a), and private
sector-led development, through the use of blended finance and other
mechanisms, as authorized by law.
SEC. 10. GLOBAL INNOVATION STRATEGY.
(a) In General.--Not later than 1 year after the date of the
enactment of this Act, the Administrator, acting through the Chief
Innovation Officer, shall submit to the appropriate congressional
committees and make available to the public a 5-year strategy for the
purposes of prioritizing and expanding the use of innovation in
international development and humanitarian programs that--
(1) establishes an innovation coordination plan across
USAID operating units that includes the resources, training,
and staffing needs to exercise of authorities described in
sections 5 and 6;
(2) discusses ongoing and planned reforms to formal and
informal incentives of USAID operating units and staff to
mainstream and document their use of evidence and cost-
effectiveness in strategic and programming decisions, and how
these reforms will encourage the adoption and scaling of proven
innovations across USAID;
(3) outlines efforts to integrate innovation objectives,
including by using resources of USAID operating units to scale
up proven solutions, the use of competitive grants, contracts,
advanced market commitments, and prize awards described in
section 5 into USAID acquisition and assistance mechanisms and
into country and regional strategies;
(4) outlines external efforts to improve partnership and
collaboration with relevant businesses, nongovernmental
organizations, science and research organizations, United
States Government organizations that pursue science,
technology, and research, universities engaged with innovation
applicable to the core work and mandate of USAID, partner
governments, and multilateral institutions;
(5) identifies USAID's approach to managing the goals of
expanded innovation with ensuring rigorous oversight of Federal
funds and plans to conduct monitoring and evaluation of all
activities conducted pursuant to this Act;
(6) outlines, in coordination with the Chief Executive
Officer of the United States International Development Finance
Corporation, a joint investment plan between USAID and the
United States International Development Finance Corporation to
exercise the authorities described in sections 5 and 6; and
(7) includes any other matters determined by the
Administrator to be appropriate.
(b) Country and Regional Strategies.--The Administrator shall
require--
(1) each newly issued USAID Country Development Cooperation
Strategy, USAID Regional Development Cooperation Strategy, or
other USAID planning document, as determined by the
Administrator, to include a plan of action to promote
innovative development practices, as described in the strategy
required by subsection (a); and
(2) each USAID Country Development Cooperation Strategy,
USAID Regional Development Cooperation Strategy, or other USAID
planning document, in effect as of the date of the enactment of
this Act, to be updated in order to meet the requirements of
the strategy required by subsection (a).
SEC. 11. LIMITATIONS.
Concurrent with the submission of the Congressional Budget
Justification for Foreign Operations for each fiscal year, the
Administrator shall submit to the appropriate congressional committees
a detailed accounting of USAID's use of the authorities under this Act,
including the sources, amounts, and uses of funding for each such
authority.
SEC. 12. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of USAID.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs and the
Committee on Appropriations of the House of
Representatives; and
(B) the Committee on Foreign Relations and the
Committee on Appropriations of the Senate.
(3) Chief innovation officer.--The term ``Chief Innovation
Officer'' means the Chief Innovation Officer established by
section 4(a).
(4) Innovation.--The term ``innovation'' means the
development and implementation of new processes, technologies,
policies, or services that provide a greater impact or are more
cost effective than current practice.
(5) Innovation incentive award.--The term ``Innovation
Incentive Award'' means an award provided under section 5(a)
under which funding is provided on a competitive basis that--
(A) encourages and rewards the development of
solutions for a particular, well-defined problem
relating to the alleviation of poverty or other
development priority; or
(B) helps identify and promote a broad range of
ideas and practices, facilitating further development
of an idea or practice by third parties, relating to
the alleviation of poverty or other development
priority.
(6) USAID.--The term ``USAID'' means the United States
Agency for International Development.
(7) USAID operating unit.--The term ``USAID operating
unit'' means a bureau, independent office, mission, or
representative office of USAID.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Foreign Affairs.
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