Fostering Innovation in Global Development Assistance Act of 2023 or the FIGDA Act of 2023
This bill addresses innovation in U.S. development assistance.
For example, the bill authorizes or provides statutory authority for the United States Agency for International Development (USAID) to
The bill also requires USAID to establish a program to integrate proven and rigorously demonstrated innovations into USAID programming and operating budgets.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2824 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 2824
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
April 25, 2023
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 of 2023'' or the
``FIGDA Act of 2023''.
(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. Development Innovation Ventures program.
Sec. 7. Proven Solutions program.
Sec. 8. Increase in fixed amount subawards.
Sec. 9. Authorization for United States participation in the Global
Innovation Fund.
Sec. 10. Collaboration with United States International Development
Finance Corporation.
Sec. 11. Global innovation strategy.
Sec. 12. Limitations.
Sec. 13. 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-
effective, 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 proven
solutions that may be developed, tested, and scaled up, thereby
increasing 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 proven solutions that
may be scaled up.
(5) USAID's Center for Innovation and Impact serves as an
important effort to incubate new proven solutions, put them
into practice, and scale up effective approaches by drawing on
non-traditional skill sets in innovation, market-based
solutions and digital health.
(6) USAID's efforts to incorporate lessons learned into
future programs should be open to both building on successful
approaches and learning from failures.
(7) Enabling uptake of evidence-based innovation across
USAID's operating units will enable USAID to scale up proven
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);
(ii) the authorities described in section 5; and
(iii) the Proven Solutions program under section 7;
and
(B) develop the strategy required by section 11(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 up proven 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 repository of innovative solutions and
best practices to be shared across USAID and fostering a
culture of innovation across USAID;
(5) convening and coordinating innovation units, divisions,
and programs to ensure knowledge around innovative solutions
and best practices are shared and implemented across USAID;
(6) 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;
(7) 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;
(8) ensuring proper utilization of the authorities relating
to grants, contracts, challenges, and prize awards, including
Innovation Incentive Awards under section 5(a) and the
authority relating to Innovation Fellows under section 5(b);
and
(9) conduct rigorous evaluation of new mechanisms,
approaches, and technologies to ensure that innovation drives
learning and impact.
(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, pursuant to the
authorities described in section 635 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2395), 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 grants
(including fixed amount awards), contracts (including firm-
fixed price contracts), advanced market commitments,
development impact bonds, performance-based contracts,
conditional cash transfers, and prize awards, including--
(A) Innovation Incentive Awards; and
(B) evidence-driven, tiered awards under the
Development Innovation Ventures program established
under section 6.
(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 grant,
contract, advanced market commitment,
development impact bond, performance-based
contract, conditional cash transfer, 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 grant, contract, advanced market
commitment, development impact bond,
performance-based contract, conditional cash
transfer, 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
grant, contract, advanced market commitment,
development impact bond, performance-based
contract, conditional cash transfer, 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 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) 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. Such amounts are in
addition to amounts otherwise available to USAID to carry out
authorities to support expanded innovation and other activities
of the type as described in this section.
(2) Availability.--Amounts authorized to be appropriated to
carry out this section are authorized to remain available until
expended.
(3) Additional funding.--Amounts authorized to be
appropriated under part III of the Foreign Assistance Act of
1961 (22 U.S.C. 2351 et seq.) for each of the fiscal years 2024
through 2028 are authorized to be made available to carry out
subsection (b). Such amounts are in addition to amounts
authorized to be appropriated under paragraph (1) to carry out
this section.
SEC. 6. DEVELOPMENT INNOVATION VENTURES PROGRAM.
(a) In General.--There is established in USAID a program to be
known as the Development Innovation Ventures program (in this
subsection referred to as the ``program'').
(b) Duties.--In carrying out the program, the Administrator shall
provide flexible funding to global innovators to test new ideas, build
evidence of what works to improve development outcomes, and transition
to scale up those proven solutions with rigorously demonstrated
potential to improve millions of lives on a cost-effective basis.
(c) Applications.--In carrying out the program, the Administrator
shall assess applications for funding under this subsection according
to the following three core principles:
(1) Rigorous evidence of impact.
(2) Cost-effectiveness.
(3) Potential for scaling up proven solutions.
(d) Administrative Provisions.--In carrying out the program, the
Administrator shall--
(1) 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
(2) work across all countries and sectors supported by
USAID, with the goal of finding, testing, and scaling up proven
solutions.
(e) Reporting Requirement.--Not later than 60 days after the date
of the enactment of this Act, the Administrator shall submit to the
appropriate congressional committees and make available to the public a
report on the implementation of the program that includes--
(1) an assessment from USAID of the extent to which proven
solutions have been scaled up, inside and outside of USAID; and
(2) a description of USAID's decision-making process,
including with respect to use of funding received from external
sources.
(f) Authorization of Appropriations.--
(1) In general.--Amounts authorized to be appropriated
under section 5 are authorized to be made available to carry
out this section.
(2) Availability.--Amounts made available to carry out this
section are authorized to remain available until expended.
SEC. 7. PROVEN SOLUTIONS PROGRAM.
(a) In General.--There is established in USAID a program to be
known as 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
USAID, 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, including by 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 submit to the appropriate congressional committees and
the public a report on all proven solutions and USAID operating
units involved in the activities described in paragraph (1) for
the prior fiscal year.
(c) Coordination.--Each USAID operating unit that manages more than
$50,000,000 of assistance each fiscal year shall--
(1) review the proven solutions identified by the program;
and
(2) submit to the Chief Innovation Officer and the Chief
Economist of USAID--
(A) a list of proven solutions that can be
supported by the unit;
(B) an assessment of potential impact of such
proven solutions;
(C) an assessment of available funding to scale up
proven solutions; and
(D) any other information requested by the Chief
Innovation Officer and the Chief Economist to inform
opportunities to scale up proven solutions.
(d) 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 or supported by USAID,
including the Development Innovation Ventures program
established under section 6, Innovation Challenges and
Prizes, and innovations developed or supported by other
government entities, including the United States
International Development Finance Corporation; and
(B) innovations developed by USAID partners,
including nongovernmental organizations, social
enterprises, foreign governments, and multilateral
institutions.
(e) 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. 8. 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. 9. 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. 10. 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 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, fixed payment rates
for desired outcomes, and other mechanisms, as authorized by law.
SEC. 11. 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 the authorities described in
sections 5, 6, and 7;
(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 up of
proven solutions 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 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) provides budgetary recommendations for scaling up
proven solutions in future fiscal years;
(5) 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;
(6) 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;
(7) 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, 6, and 7;
(8) outlines steps the Administrator will take to evaluate
investments made by the United States International Development
Finance Corporation and prioritize future funding for scaling
up proven solutions from the United States International
Development Finance Corporation; and
(9) 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. 12. 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. 13. 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) Cost-effective; cost-effectiveness.--The terms ``cost-
effective'' and ``cost-effectiveness'', with respect to a
process, technology, policy, or service, means the process,
technology, policy, or service produces more impact, such as in
terms of benefit or value, for the same cost or produces the
same impact for a lower cost as compared to another process,
technology, policy, or service.
(5) 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.
(6) 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;
(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; or
(C) leverages new incentives for achieving a
desired result, including establishing fixed payment
rates for services, or outcomes, paid retroactively to
a provider upon verification of the provision of
service or the achievement of the desired outcome.
(7) Scale up.--The term ``scale up'', with respect to an
innovation that is proven solution (as such term is defined in
section 7(d)) to a development problem in one context, means
the application of the innovation to a development problem in
another context, such as a development problem in a different
geographic region or sector.
(8) USAID.--The term ``USAID'' means the United States
Agency for International Development.
(9) 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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