FIGDA Act
Bill: H.R.9500 | Sponsor: Rep. Castro, Joaquin (D-TX)
Policy area: International Affairs

Summary:
Fostering Innovation in Global Development Assistance Act or the FIGDA Act
This bill provides statutory authority for the position of Chief Innovation Officer in the U.S. Agency for International Development (USAID).  The bill also (1) authorizes the Chief Innovation Officer to provide flexible funding to support expanded use of innovation, (2) authorizes USAID to hire up to 30 Innovation Fellows, (3) provides statutory authority for USAID's Development Innovation Ventures program, (4) establishes a program in USAID to integrate proven solutions into programming and operating budgets, and (5) authorizes USAID to participate in the Global Innovation Fund and enter into agreements with the U.S. International Development Finance Corporation.

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'' or the ``FIGDA Act''.
    (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. Proven Solutions program.
Sec. 7. Increase in fixed amount subawards.
Sec. 8. Authorization for United States participation in the Global 
                            Innovation Fund.
Sec. 9. Collaboration with United States International Development 
                            Finance Corporation.
Sec. 10. Global innovation strategy.
Sec. 11. Limitations.
Sec. 12. 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-
        efficient, 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 ideas 
        that may be developed, tested, and brought to scale, thereby 
        increasing the 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 scaling pathways.
            (5) Enabling uptake of evidence-based innovation across 
        USAID's operating units will enable USAID to scale breakthrough 
        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); and
                    (ii) the authorities described in section 5; and
            (B) develop the strategy required by section 7(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 new 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 collection of innovative solutions and 
        best practices to be shared across USAID and fostering a 
        culture of innovation across USAID;
            (5) 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;
            (6) 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; and
            (7) ensuring acquisition and assistance mechanisms utilize 
        the authorities relating to competitive grants, contracts, 
        challenges, and prize awards, including Innovation Incentive 
        Awards under section 5(a) and Innovation Fellows under section 
        5(b).
    (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 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 
        competitive grants (including fixed amount awards), contracts 
        (including firm-fixed price contracts), advanced market 
        commitments, and prize awards, including--
                    (A) Innovation Incentive Awards; and
                    (B) evidence-driven, tiered awards under the 
                Development Innovation Ventures program established 
                under subsection (c).
            (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 competitive 
                        grant, contract, advanced market commitment, 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 competitive grant, contract, 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 
                        competitive grant, contract, 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 not more than 
        30 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) Development Innovation Ventures Program.--
            (1) In general.--There is established in USAID the 
        Development Innovation Ventures program (in this subsection 
        referred to as the ``program''). The Administrator, acting 
        through the Chief Innovation Officer, is authorized to carry 
        out the program.
            (2) Duties.--The program shall provide flexible funding to 
        global innovators to test new ideas, build evidence of what 
        works to improve development outcomes, and transition to scale 
        those innovations with rigorously demonstrated potential to 
        cost-effectively improve millions of lives.
            (3) Applications.--The program shall assess applications 
        for funding under this subsection according to the following 
        three core principles:
                    (A) Rigorous evidence of impact.
                    (B) Cost-effectiveness.
                    (C) Potential for scale.
            (4) Administrative provisions.--The program shall--
                    (A) 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
                    (B) work across all countries and sectors supported 
                by USAID, with the goal of finding, testing, and 
                bringing to scale those innovations that can become 
                proven solutions to development problems.
    (d) 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.
            (2) Availability.--Amounts authorized to be appropriated to 
        carry out this section are authorized to remain available until 
        expended.

SEC. 6. PROVEN SOLUTIONS PROGRAM.

    (a) In General.--There is established in USAID 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 the United States Agency for 
International Development, 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 and 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 develop and make available to the public a report that 
        describes which USAID operating units funded which proven 
        solutions.
    (c) 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 by USAID, including the 
                Development Innovation Ventures program established 
                under subsection (c), and innovations developed by 
                other government entities, including the United States 
                International Development Finance Corporation; and
                    (B) innovations developed by USAID partners, 
                including nongovernmental organizations, foreign 
                governments, and multilateral institutions.
    (d) 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. 7. 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. 8. 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. 9. 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 competitive 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 and other 
mechanisms, as authorized by law.

SEC. 10. 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 of authorities described in 
        sections 5 and 6;
            (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 of proven 
        innovations 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 competitive 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) 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;
            (5) 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;
            (6) 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 and 6; and
            (7) 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. 11. 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. 12. 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) 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.
            (5) 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; or
                    (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.
            (6) USAID.--The term ``USAID'' means the United States 
        Agency for International Development.
            (7) USAID operating unit.--The term ``USAID operating 
        unit'' means a bureau, independent office, mission, or 
        representative office of USAID.
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