FIGDA Act of 2023

Subjects: International Affairs


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2824 Introduced in House (IH)]

&lt;DOC&gt;






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.
                                 &lt;all&gt;
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