Locally Led Development and Humanitarian Response Act
The proposed legislation is expected to modify the existing framework of how USAID operates, allowing for increased flexibility in the funding process and the adoption of criteria tailored to local conditions. Specific provisions include an increase in the de minimis indirect cost rate for local entities and authorizing contracts that limit competition to local organizations when deemed beneficial. This would shift some control to local stakeholders, enabling them to have a prominent role in their community's development projects, thereby enhancing ownership and accountability.
SB3994, titled the 'Locally Led Development and Humanitarian Response Act', aims to empower local partners by fostering a model of development and humanitarian response that prioritizes local engagement and leadership. The bill emphasizes that locally led initiatives can lead to more equitable and sustainable outcomes. By expanding direct funding to local entities, it seeks to enhance the effectiveness of U.S. development efforts through local insights and capabilities. This approach is viewed as essential in building long-term self-reliance in communities served by USAID.
While the bill is widely supported for its intent to strengthen local capacities, there are concerns regarding the implementation of such an approach. Critics argue that transitioning to a model heavily reliant on local entities may introduce risks related to accountability and efficacy. The bill outlines various assessments and reports that USAID must maintain, which could lead to bureaucratic challenges. Additionally, opponents might question whether all local partners are adequately equipped to take on such responsibilities without sufficient oversight and resources.