FIGDA Act of 2023

I 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 Develop- ment, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Fostering Innovation in Global Development Assistance 5 Act of 2023’’ or the ‘‘FIGDA Act of 2023’’. 6 (b) TABLE OF CONTENTS.—The table of contents for 7 this Act is as follows: 8 Sec. 1. Short title and table of contents. Sec. 2. Findings. Sec. 3. Sense of Congress. VerDate Sep 11 2014 22:53 May 01, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\H2824.IH H2824 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2824 IH 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. 1 Congress finds the following: 2 (1) The effectiveness of United States foreign 3 assistance can be greatly enhanced by fostering in- 4 novation, applying research and technology, and 5 leveraging the expertise and resources of the private 6 sector to find cost-effective solutions to today’s most 7 pressing development challenges. 8 (2) Partnerships with entrepreneurs, experts, 9 nongovernmental organizations, universities, and 10 science and research institutions allow the United 11 States to find solutions to specific development chal- 12 lenges in a faster, more cost-effective, and more fi- 13 nancially sustainable way. 14 (3) Enhancing the authorities that support re- 15 sults-based and pay-for-success innovation models 16 will better enable USAID to diversify and expand 17 both the number and sources of proven solutions 18 that may be developed, tested, and scaled up, there- 19 by increasing USAID’s opportunity to apply high 20 VerDate Sep 11 2014 22:53 May 01, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2824.IH H2824 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2824 IH value, cost-effective solutions to global development 1 challenges. 2 (4) As demonstrated by USAID’s Development 3 Innovation Ventures program, innovation within 4 United States foreign assistance can generate high 5 social returns when it is centered on the creation of 6 and reliance on rigorous evidence of impact on glob- 7 al development outcomes, a focus on cost-effective- 8 ness, and attention to financially-sustainable proven 9 solutions that may be scaled up. 10 (5) USAID’s Center for Innovation and Impact 11 serves as an important effort to incubate new proven 12 solutions, put them into practice, and scale up effec- 13 tive approaches by drawing on non-traditional skill 14 sets in innovation, market-based solutions and dig- 15 ital health. 16 (6) USAID’s efforts to incorporate lessons 17 learned into future programs should be open to both 18 building on successful approaches and learning from 19 failures. 20 (7) Enabling uptake of evidence-based innova- 21 tion across USAID’s operating units will enable 22 USAID to scale up proven solutions that accelerate 23 economic growth and produce better development 24 outcomes, which can help support the growth of 25 VerDate Sep 11 2014 22:53 May 01, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2824.IH H2824 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2824 IH healthier, more stable societies and foster trade rela- 1 tionships that translate into jobs and economic 2 growth in the United States. 3 SEC. 3. SENSE OF CONGRESS. 4 It is the sense of Congress that innovation is central 5 to identifying solutions to global development challenges. 6 SEC. 4. CHIEF INNOVATION OFFICER. 7 (a) IN GENERAL.—There shall be established within 8 USAID a Chief Innovation Officer who shall— 9 (1) serve as the principal advisor on issues re- 10 lated to the prioritization and expanded use of inno- 11 vation to improve the effectiveness and outcomes of 12 the development and humanitarian goals of the 13 United States, including related to policy, manage- 14 ment, and procurement; 15 (2)(A) carry out— 16 (i) the duties described in subsection (b); 17 (ii) the authorities described in section 5; 18 and 19 (iii) the Proven Solutions program under 20 section 7; and 21 (B) develop the strategy required by section 22 11(a); and 23 (3) report directly to— 24 VerDate Sep 11 2014 22:53 May 01, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2824.IH H2824 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 2824 IH (A) the Deputy Administrator for Policy 1 and Programming of USAID; or 2 (B) such other senior official of USAID, as 3 determined by the Administrator. 4 (b) DUTIES.—The duties of the Chief Innovation Of- 5 ficer shall include— 6 (1) increasing the application of innovation to 7 develop, test, and scale up proven solutions to im- 8 prove effectiveness and outcomes of development and 9 humanitarian goals of the United States; 10 (2) leveraging the innovations, expertise, re- 11 sources, and investments of businesses, nongovern- 12 mental organizations, science and research organiza- 13 tions, United States Government organizations that 14 pursue science, technology, and research, and uni- 15 versities for the purposes of improving effectiveness 16 and outcomes of development and humanitarian as- 17 sistance efforts of the United States, and serving as 18 a liaison between USAID and such partners to en- 19 sure USAID is meaningfully engaging with such 20 partners; 21 (3) utilizing innovation-driven competitions, ad- 22 vanced market commitments, and co-creation ar- 23 rangements to expand the number and diversity of 24 solutions to development and humanitarian chal- 25 VerDate Sep 11 2014 22:53 May 01, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2824.IH H2824 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 2824 IH lenges and the partners with whom USAID works 1 and funds; 2 (4) maintaining a repository of innovative solu- 3 tions and best practices to be shared across USAID 4 and fostering a culture of innovation across USAID; 5 (5) convening and coordinating innovation 6 units, divisions, and programs to ensure knowledge 7 around innovative solutions and best practices are 8 shared and implemented across USAID; 9 (6) supporting USAID operating units in apply- 10 ing findings from development economics and re- 11 search, technology, innovation, co-creation, and part- 12 nership approaches to decision making, procurement, 13 and program design; 14 (7) examining and providing input into current 15 internal USAID policy related to management and 16 procurement to ensure innovation is integrated in 17 policy guidance and procurement mechanisms; 18 (8) ensuring proper utilization of the authori- 19 ties relating to grants, contracts, challenges, and 20 prize awards, including Innovation Incentive Awards 21 under section 5(a) and the authority relating to In- 22 novation Fellows under section 5(b); and 23 VerDate Sep 11 2014 22:53 May 01, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2824.IH H2824 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 2824 IH (9) conduct rigorous evaluation of new mecha- 1 nisms, approaches, and technologies to ensure that 2 innovation drives learning and impact. 3 (c) BUREAU SENIOR ADVISORS.— 4 (1) IN GENERAL.—The Administrator shall ap- 5 point in each bureau of USAID, from among officers 6 and employees of such bureau, a senior advisor with 7 respect to matters relating to innovation, to— 8 (A) serve as the principal advisor for such 9 bureau on such matters; and 10 (B) coordinate with the Chief Innovation 11 Officer the activities of such bureau on such 12 matters. 13 (2) CONTINUATION OF SERVICE.—An individual 14 appointed to serve as a senior advisor pursuant to 15 paragraph (1) may continue to serve concurrently in 16 the individual’s original position in such bureau. 17 SEC. 5. AUTHORITIES TO SUPPORT EXPANDED USE OF IN- 18 NOVATION. 19 (a) INNOVATION AUTHORITIES.— 20 (1) IN GENERAL.—The Administrator, acting 21 through the Chief Innovation Officer, is authorized, 22 pursuant to the authorities described in section 635 23 of the Foreign Assistance Act of 1961 (22 U.S.C. 24 2395), to provide flexible, results- and milestones- 25 VerDate Sep 11 2014 22:53 May 01, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2824.IH H2824 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 2824 IH based funding to support expanded use of innova- 1 tion, encourage improved development and humani- 2 tarian outcomes, expand USAID partner bases, and 3 support cost-effective and sustainable-led develop- 4 ment solutions in partnership with local and non- 5 traditional development partners, including the pri- 6 vate sector. 7 (2) TYPES OF FUNDING.—The Administrator 8 may provide funding authorized under paragraph (1) 9 in the form of grants (including fixed amount 10 awards), contracts (including firm-fixed price con- 11 tracts), advanced market commitments, development 12 impact bonds, performance-based contracts, condi- 13 tional cash transfers, and prize awards, including— 14 (A) Innovation Incentive Awards; and 15 (B) evidence-driven, tiered awards under 16 the Development Innovation Ventures program 17 established under section 6. 18 (3) RECOVERY OF FUNDS.— 19 (A) AUTHORITY.— 20 (i) IN GENERAL.—The Administrator, 21 subject to the limitation described in clause 22 (ii), is authorized to provide funds under a 23 grant, contract, advanced market commit- 24 ment, development impact bond, perform- 25 VerDate Sep 11 2014 22:53 May 01, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2824.IH H2824 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 2824 IH ance-based contract, conditional cash 1 transfer, or prize award under this sub- 2 section to a recipient under terms requir- 3 ing a proportion of such funds be returned 4 to USAID at a future date in accordance 5 with such requirements as may be estab- 6 lished by the Administrator. 7 (ii) LIMITATION.—The amount of 8 funds that a recipient is required to return 9 to USAID under clause (i) may not exceed 10 the total amount of funds that the recipi- 11 ent receives under the grant, contract, ad- 12 vanced market commitment, development 13 impact bond, performance-based contract, 14 conditional cash transfer, or prize award. 15 (B) TREATMENT OF PAYMENTS.— 16 (i) IN GENERAL.—The amount of 17 funds returned to USAID under subpara- 18 graph (A) may be credited to the account 19 from which the obligation and expenditure 20 of funds under the grant, contract, ad- 21 vanced market commitment, development 22 impact bond, performance-based contract, 23 conditional cash transfer, or prize award 24 under this subsection were made. 25 VerDate Sep 11 2014 22:53 May 01, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2824.IH H2824 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 2824 IH (ii) AVAILABILITY.—Amounts re- 1 turned and credited to an account under 2 clause (i)— 3 (I) shall be merged with other 4 funds in the account; and 5 (II) shall be available, subject to 6 appropriation, for the same purposes 7 and period of time for which other 8 funds in the account are available for 9 programs and activities of the Chief 10 Innovation Officer under section 4(b). 11 (b) INNOVATION FELLOWS.— 12 (1) IN GENERAL.—The Administrator, acting 13 through the Chief Innovation Officer, is authorized 14 to employ individuals, to be known as ‘‘Innovation 15 Fellows’’, at any given time who shall, following an 16 initial period of service with the Chief Innovation 17 Officer, be assigned on a detail basis to USAID op- 18 erating units for purposes of expanding the use of 19 innovation, technology, and research with respect to 20 the development assistance authorities of USAID. 21 (2) ADMINISTRATIVE PROVISIONS.—The au- 22 thority to employ individuals under paragraph (1) is 23 in addition to the authority to employ individuals 24 under such other authorities as may be available to 25 VerDate Sep 11 2014 22:53 May 01, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2824.IH H2824 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 2824 IH the Administrator, including authorities under parts 1 I and II of the Foreign Assistance Act of 1961 (22 2 U.S.C. 2151 et seq.). 3 (3) LIMITATION.—The employment of individ- 4 uals under paragraph (1) shall be a limited-term 5 basis pursuant to schedule A of subpart C of part 6 213 of title 5, Code of Federal Regulations, or simi- 7 lar laws or regulations. 8 (c) AUTHORIZATION OF APPROPRIATIONS.— 9 (1) IN GENERAL.—There is authorized to be 10 appropriated to carry out this section not less than 11 $45,000,000 for each of the fiscal years 2024 12 through 2028. Such amounts are in addition to 13 amounts otherwise available to USAID to carry out 14 authorities to support expanded innovation and 15 other activities of the type as described in this sec- 16 tion. 17 (2) AVAILABILITY.—Amounts authorized to be 18 appropriated to carry out this section are authorized 19 to remain available until expended. 20 (3) ADDITIONAL FUNDING.—Amounts author- 21 ized to be appropriated under part III of the For- 22 eign Assistance Act of 1961 (22 U.S.C. 2351 et 23 seq.) for each of the fiscal years 2024 through 2028 24 are authorized to be made available to carry out sub- 25 VerDate Sep 11 2014 22:53 May 01, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2824.IH H2824 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 2824 IH section (b). Such amounts are in addition to 1 amounts authorized to be appropriated under para- 2 graph (1) to carry out this section. 3 SEC. 6. DEVELOPMENT INNOVATION VENTURES PROGRAM. 4 (a) IN GENERAL.—There is established in USAID a 5 program to be known as the Development Innovation Ven- 6 tures program (in this subsection referred to as the ‘‘pro- 7 gram’’). 8 (b) DUTIES.—In carrying out the program, the Ad- 9 ministrator shall provide flexible funding [Text truncated for display. Full text available on Congress.gov.]