WASHINGTON – Today, U.S. Senators Chris Coons (D-Del.), Joni Ernst (R-Iowa), Tim Kaine (D-Va.), and Pete Ricketts (R-Neb.) introduced the Locally Led Development and Humanitarian Response Act to improve U.S. Agency for International Development (USAID) collaboration with local partners when implementing humanitarian and development programs around the world. 

The bill incentivizes USAID to localize its partner base by granting new authorities to the agency. Notably, the bill would make it easier for local partners to submit grant applications in their native language, authorize USAID to provide local organizations with time extensions for certain reporting requirements, and authorize USAID to limit competition to local organizations for awards of up to $25 million.

“Development and humanitarian assistance programs are more effective and sustainable when local communities drive assistance goals and implementation,” said Senator Coons. “After all, local communities often know best where resources are needed and how assistance can be implemented most effectively to meet local needs. The Locally Led Development and Humanitarian Response Act will push a larger share of funding directly to local leaders, reduce burdens on local partners, and create incentives for USAID to strengthen projects led by local communities. I’m proud to introduce this bill with my colleagues and hope the Senate will swiftly take up our legislation.”

“I have been tirelessly working to ensure that taxpayer dollars are spent discerningly and efficiently. While USAID has resisted my previous oversight, I’m taking bipartisan action to clarify USAID’s policies to ensure they are localizing needs and ending abuses of taxpayer dollars, so developing countries reduce their dependence on U.S. dollars,” said Senator Ernst.

USAID recognizes that local leadership and authority are important for creating long-lasting results across humanitarian assistance and development work. In November 2021, USAID set a goal of providing at least 25% of the agency’s program funds directly to local partners by the end of 2025. By 2030, 50% of USAID’s programs will put local communities in the lead. While prior administrations have worked to direct funding to local organizations, only 10% of all USAID funding has been allotted to local entities in recent years.

The Locally Led Development and Humanitarian Response Act seeks to increase transparency around USAID’s efforts to engage with local entities that would expand and diversify its partner base. Specifically, the bill would:

  • Authorize USAID to limit competitions just to local entities for awards valued up to $25 million
  • Authorize USAID to increase the de minimis indirect cost rate to 15% for local entities receiving assistance awards
  • Authorize USAID to accept applications or proposals in languages other than English, and order USAID to explore various options for resources and translation services for local languages
  • Require USAID to submit an annual progress report focused on the strategies and polices its executing to advance locally-led development, including details on funding allocated both directly and indirectly by local entities   

A one-pager on the bill is available here.

The text of the bill is available here.

Senator Coons is chair of the Senate Appropriations Subcommittee on State and Foreign Operations (SFOPS) and a member of the Senate Foreign Relations committee.