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Fostering Innovation in Development Aid: New USAID Approaches

This act aims to boost the effectiveness of U.S. foreign assistance by promoting innovative solutions. This means taxpayer money will be spent more thoughtfully to achieve better results in addressing global challenges, which can indirectly impact stability and economic development in partner countries, and consequently, trade relations and jobs in the U.S.
Key points
Establishment of a Chief Innovation Officer within USAID, responsible for implementing new, effective aid methods.
Introduction of programs like Development Innovation Ventures and Proven Solutions, designed to test and scale proven development solutions.
Increased flexibility in project funding, allowing for quicker response to needs and utilization of innovative results-based payment models.
Support for collaboration with the private sector, NGOs, and universities to find cost-effective and sustainable solutions.
Raising the fixed amount subaward cap for contractors to $1,000,000, facilitating partnerships with smaller entities and innovators.
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Additional Information
Print number: 118_HR_2824
Sponsor: Rep. Castro, Joaquin [D-TX-20]
Process start date: 2023-04-25