114TH CONGRESS 

2D SESSION H. R. 3924 

AN ACT 

To establish in the United States Agency for International 

Development an entity to be known as the United States 

Global Development Lab, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Global Development 

3 Lab Act of 2016’’. 

4 SEC. 2. FINDINGS. 

5 Congress finds the following: 

6 (1) The effectiveness of United States foreign 

7 assistance can be greatly enhanced by fostering in8 novation, applying science and technology, and 

9 leveraging the expertise and resources of the private 

10 sector to find low-cost, common sense solutions to 

11 today’s most pressing development challenges. 

12 (2) Breakthroughs that accelerate economic 

13 growth and produce better health outcomes in devel14 oping countries can help support the growth of 

15 healthier, more stable societies and foster trade rela16 tionships that translate into jobs and economic 

17 growth in the United States. 

18 (3) In 2014, the Office of Science and Tech19 nology and the Office of Innovation and Develop20 ment Alliances at the United States Agency for 

21 International Development (USAID) were stream22 lined and merged into the United States Global De23 velopment Lab. 

24 (4) The Lab partners with entrepreneurs, ex25 perts, nongovernmental organizations, universities, 

26 and science and research institutions to find solu-
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1 tions to specific development challenges in a faster, 

2 more cost-efficient, and more sustainable way. 

3 (5) The Lab utilizes competitive innovation in4 centive awards, a ‘‘pay-for-success’’ model, whereby 

5 a development challenge is identified, competitions 

6 are launched, ideas with the greatest potential for 

7 success are selected and tested, and awards are pro8 vided only after the objectives of a competition have 

9 been substantially achieved. 

10 (6) Enhancing the authorities that support this 

11 pay-for-success model will better enable the Lab to 

12 diversify and expand both the number and sources 

13 of ideas that may be developed, tested, and brought 

14 to scale, thereby increasing USAID’s opportunity to 

15 apply high value, low-cost solutions to specific devel16 opment challenges. 

17 SEC. 3. UNITED STATES GLOBAL DEVELOPMENT LAB. 

18 (a) ESTABLISHMENT.—There is established in 

19 USAID an entity to be known as the United States Global 

20 Development Lab. 

21 (b) DUTIES.—The duties of the Lab shall include— 

22 (1) increasing the application of science, tech23 nology, innovation and partnerships to develop and 

24 scale new solutions to end extreme poverty; 
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1 (2) discovering, testing, and scaling develop2 ment innovations to increase cost effectiveness and 

3 support United States foreign policy and develop4 ment goals; 

5 (3) leveraging the expertise, resources, and in6 vestment of businesses, nongovernmental organiza7 tions, science and research organizations, and uni8 versities to increase program impact and sustain9 ability; 

10 (4) utilizing innovation-driven competitions to 

11 expand the number and diversity of solutions to de12 velopment challenges; and 

13 (5) supporting USAID missions and bureaus in 

14 applying science, technology, innovation, and part15 nership approaches to decisionmaking, procurement, 

16 and program design. 

17 (c) AUTHORITIES.— 

18 (1) IN GENERAL.—In carrying out the duties of 

19 the Lab under subsection (b), the Administrator, in 

20 addition to such other authorities as may be avail21 able to the Administrator, including authorities 

22 under part I of the Foreign Assistance Act of 1961 

23 (22 U.S.C. 2151 et seq.), and subject to the limita24 tions described in paragraph (3), is authorized to— 
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1 (A) provide innovation incentive awards (as 

2 defined in section 4(5) of this Act); and 

3 (B) use funds made available to carry out 

4 the provisions of part I of the Foreign Assist5 ance Act of 1961 for each of the fiscal years 

6 2017 through 2021 for the employment of not 

7 more than 30 individuals on a limited term 

8 basis pursuant to schedule A of subpart C of 

9 part 213 of title 5, Code of Federal Regula10 tions, or similar provisions of law or regula11 tions. 

12 (2) RECOVERY OF FUNDS.— 

13 (A) AUTHORITY.— 

14 (i) IN GENERAL.—In carrying out the 

15 duties of the Lab under subsection (b), the 

16 Administrator, subject to the limitation de17 scribed in clause (ii), is authorized to re18 quire a person or entity that receives fund19 ing under a grant, contract, or cooperative 

20 agreement made by the Lab to return to 

21 the Lab any program income that is attrib22 utable to funding under such grant, con23 tract, or cooperative agreement. 

24 (ii) LIMITATION.—The amount of pro25 gram income that a person or entity is re-
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1 quired to return to the Lab under clause 

2 (i) shall not exceed the amount of funding 

3 that the person or entity received under 

4 the grant, contract, or cooperative agree5 ment. 

6 (B) TREATMENT OF PAYMENTS.— 

7 (i) IN GENERAL.—The amount of any 

8 program income returned to the Lab pur9 suant to subparagraph (A) may be credited 

10 to the account from which the obligation 

11 and expenditure of funds under the grant, 

12 contract, or cooperative agreement de13 scribed in subparagraph (A) was made. 

14 (ii) AVAILABILITY.— 

15 (I) IN GENERAL.—Except as pro16 vided in subclause (II), amounts re17 turned and credited to an account 

18 under clause (i)— 

19 (aa) shall be merged with 

20 other funds in the account; and 

21 (bb) shall be available, sub22 ject to appropriation, for the 

23 same purposes and period of time 

24 for which other funds in the ac-
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1 count are available for programs 

2 and activities of the Lab. 

3 (II) EXCEPTION.—Amounts re4 turned and credited to an account 

5 under clause (i) may not be used to 

6 pay for the employment of individuals 

7 described in paragraph (1)(B). 

8 (3) LIMITATIONS.— 

9 (A) IN GENERAL.—Concurrent with the 

10 submission of the Congressional Budget Jus11 tification for Foreign Operations for each fiscal 

12 year, the Administrator shall submit to the ap13 propriate congressional committees a detailed 

14 accounting of USAID’s use of authorities under 

15 this section, including the sources, amounts, 

16 and uses of funding under each of paragraphs 

17 (1) and (2). 

18 (B) INNOVATION INCENTIVE AWARDS.—In 

19 providing innovation incentive awards under 

20 paragraph (1)(A), the Administrator shall— 

21 (i) limit the amount of individual 

22 awards for fiscal year 2017 to not more 

23 than $100,000; 
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1 (ii) limit the total number of awards 

2 for fiscal year 2017 to not more than 10 

3 awards; and 

4 (iii) notify the appropriate congres5 sional committees not later than 15 days 

6 after providing each such award. 

7 (C) STAFF.—In exercising the authority 

8 under paragraph (1)(B), the Administrator 

9 should seek to ensure that increases in the 

10 number of staff assigned to the Lab are offset 

11 by an equivalent reduction in the total number 

12 of staff serving elsewhere in USAID. 

13 SEC. 4. DEFINITIONS. 

14 In this Act: 

15 (1) ADMINISTRATOR.—The term ‘‘Adminis16 trator’’ means the Administrator of the United 

17 States Agency for International Development. 

18 (2) APPROPRIATE CONGRESSIONAL COMMIT19 TEES.—The term ‘‘appropriate congressional com20 mittees’’ means— 

21 (A) the Committee on Foreign Affairs and 

22 the Committee on Appropriations of the House 

23 of Representatives; and 
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1 (B) the Committees on Foreign Relations 

2 and the Committee on Appropriations of the 

3 Senate. 

4 (3) LAB.—The term ‘‘Lab’’ means the United 

5 States Global Development Lab established under 

6 section 3. 

7 (4) USAID.—The term ‘‘USAID’’ means the 

8 United States Agency for International Develop9 ment. 

10 (5) INNOVATION INCENTIVE AWARD.—The term 

11 ‘‘innovation incentive award’’ means the provision of 

12 funding on a competitive basis that— 

13 (A) encourages and rewards the develop14 ment of solutions for a particular, well-defined 

15 problem relating to the alleviation of poverty; or 

16 (B) helps identify and promote a broad 

17 range of ideas and practices, facilitating further 

18 development of an idea or practice by third par19 ties. 

Passed the House of Representatives September 21, 

2016. 

Attest: 

Clerk. 
114TH CONGRESS 

2D SESSION H. R. 3924 

AN ACT 

To establish in the United States Agency for Interfor other purposes. the United States Global Development Lab, and national Development an entity to be known as