SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Global Development 
Lab Act of 2016’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The effectiveness of United States foreign 
assistance can be greatly enhanced by fostering in-
novation, applying science and technology, and 
leveraging the expertise and resources of the private 
sector to find low-cost, common sense solutions to 
today’s most pressing development challenges. 
(2) Breakthroughs that accelerate economic 
growth and produce better health outcomes in devel-
oping countries can help support the growth of 
healthier, more stable societies and foster trade rela-
tionships that translate into jobs and economic 
growth in the United States. 
(3) In 2014, the Office of Science and Tech-
nology and the Office of Innovation and Develop-
ment Alliances at the United States Agency for 
International Development (USAID) were stream-
lined and merged into the United States Global De-
velopment Lab. 
(4) The Lab partners with entrepreneurs, ex-
perts, nongovernmental organizations, universities, 
and science and research institutions to find solu-
tions to specific development challenges in a faster, 
more cost-efficient, and more sustainable way. 
(5) The Lab utilizes competitive innovation in-
centive awards, a ‘‘pay-for-success’’ model, whereby 
a development challenge is identified, competitions 
are launched, ideas with the greatest potential for 
success are selected and tested, and awards are pro-
vided only after the objectives of a competition have 
been substantially achieved. 
(6) Enhancing the authorities that support this 
pay-for-success model will better enable the Lab to 
diversify and expand both the number and sources 
of ideas that may be developed, tested, and brought 
to scale, thereby increasing USAID’s opportunity to 
apply high value, low-cost solutions to specific devel-
opment challenges. 
SEC. 3. UNITED STATES GLOBAL DEVELOPMENT LAB. 
(a) ESTABLISHMENT.—There is established in 
USAID an entity to be known as the United States Global 
Development Lab. 
(b) DUTIES.—The duties of the Lab shall include— 
(1) increasing the application of science, tech-
nology, innovation and partnerships to develop and 
scale new solutions to end extreme poverty;
(2) discovering, testing, and scaling develop-
ment innovations to increase cost effectiveness and 
support United States foreign policy and develop-
ment goals; 
(3) leveraging the expertise, resources, and in-
vestment of businesses, nongovernmental organiza-
tions, science and research organizations, and uni-
versities to increase program impact and sustain-
ability; 
(4) utilizing innovation-driven competitions to 
expand the number and diversity of solutions to de-
velopment challenges; and 
(5) supporting USAID missions and bureaus in 
applying science, technology, innovation, and part-
nership approaches to decisionmaking, procurement, 
and program design. 
(c) AUTHORITIES.— 
(1) IN GENERAL.—In carrying out the duties of 
the Lab under subsection (b), the Administrator, in 
addition to such other authorities as may be avail-
able to the Administrator, including authorities 
under part I of the Foreign Assistance Act of 1961 
(22 U.S.C. 2151 et seq.), and subject to the limita-
tions described in paragraph (3), is authorized to—
(A) provide innovation incentive awards (as 
defined in section 4(5) of this Act); and 
(B) use funds made available to carry out 
the provisions of part I of the Foreign Assist-
ance Act of 1961 for each of the fiscal years 
2017 through 2021 for the employment of not 
more than 30 individuals on a limited term 
basis pursuant to schedule A of subpart C of 
part 213 of title 5, Code of Federal Regula-
tions, or similar provisions of law or regula-
tions. 
(2) RECOVERY OF FUNDS.— 
(A) AUTHORITY.— 
(i) IN GENERAL.—In carrying out the 
duties of the Lab under subsection (b), the 
Administrator, subject to the limitation de-
scribed in clause (ii), is authorized to re-
quire a person or entity that receives fund-
ing under a grant, contract, or cooperative 
agreement made by the Lab to return to 
the Lab any program income that is attrib-
utable to funding under such grant, con-
tract, or cooperative agreement. 
(ii) LIMITATION.—The amount of pro-
gram income that a person or entity is re-
quired to return to the Lab under clause 
(i) shall not exceed the amount of funding 
that the person or entity received under 
the grant, contract, or cooperative agree-
ment. 
(B) TREATMENT OF PAYMENTS.— 
(i) IN GENERAL.—The amount of any 
program income returned to the Lab pur-
suant to subparagraph (A) may be credited 
to the account from which the obligation 
and expenditure of funds under the grant, 
contract, or cooperative agreement de-
scribed in subparagraph (A) was made. 
(ii) AVAILABILITY.— 
(I) IN GENERAL.—Except as pro-
vided in subclause (II), amounts re-
turned and credited to an account 
under clause (i)— 
(aa) shall be merged with 
other funds in the account; and 
(bb) shall be available, sub-
ject to appropriation, for the 
same purposes and period of time 
for which other funds in the ac-
count are available for programs 
and activities of the Lab. 
(II) EXCEPTION.—Amounts re-
turned and credited to an account 
under clause (i) may not be used to 
pay for the employment of individuals 
described in paragraph (1)(B). 
(3) LIMITATIONS.— 
(A) IN
GENERAL.—Concurrent with the 
submission of the Congressional Budget Jus-
tification for Foreign Operations for each fiscal 
year, the Administrator shall submit to the ap-
propriate congressional committees a detailed 
accounting of USAID’s use of authorities under 
this section, including the sources, amounts, 
and uses of funding under each of paragraphs 
(1) and (2). 
(B) INNOVATION INCENTIVE AWARDS.—In 
providing innovation incentive awards under 
paragraph (1)(A), the Administrator shall— 
(i) limit the amount of individual 
awards for fiscal year 2017 to not more 
than $100,000;
(ii) limit the total number of awards 
for fiscal year 2017 to not more than 10 
awards; and 
(iii) notify the appropriate congres-
sional committees not later than 15 days 
after providing each such award. 
(C) STAFF.—In exercising the authority 
under paragraph (1)(B), the Administrator 
should seek to ensure that increases in the 
number of staff assigned to the Lab are offset 
by an equivalent reduction in the total number 
of staff serving elsewhere in USAID. 
SEC. 4. DEFINITIONS. 
In this Act: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the United 
States Agency for International Development. 
(2) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Foreign Affairs and 
the Committee on Appropriations of the House 
of Representatives; and
(B) the Committees on Foreign Relations 
and the Committee on Appropriations of the 
Senate. 
(3) LAB.—The term ‘‘Lab’’ means the United 
States Global Development Lab established under 
section 3. 
(4) USAID.—The term ‘‘USAID’’ means the 
United States Agency for International Develop-
ment. 
(5) INNOVATION INCENTIVE AWARD.—The term 
‘‘innovation incentive award’’ means the provision of 
funding on a competitive basis that— 
(A) encourages and rewards the develop-
ment of solutions for a particular, well-defined 
problem relating to the alleviation of poverty; or 
(B) helps identify and promote a broad 
range of ideas and practices, facilitating further 
development of an idea or practice by third par-
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 Inter-
national Development an entity to be known as 
the United States Global Development Lab, and 
for other purposes.