Sec. 5. Authorities to support expanded use of innovation
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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. 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— Innovation Incentive Awards; and evidence-driven, tiered awards under the Development Innovation Ventures program established under section 6. 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. 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. 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. Amounts returned and credited to an account under clause (i)— shall be merged with other funds in the account; and 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). 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. 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. ). 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. 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. Amounts authorized to be appropriated to carry out this section are authorized to remain available until expended. 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.
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