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HR6196119th CongressWALLET

Locally Led Development and Humanitarian Response Act

Sponsored By: Representative Jacobs, Sara [D-CA-51]

In Committee

Summary

Locally led development and humanitarian response is the core goal. The bill shifts U.S. foreign assistance to let local actors set priorities, receive more flexible funding, and lead program design and delivery.

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  • Local partners and communities get easier access to funding and fewer administrative barriers. The bill raises the de minimis indirect cost rate by 5 percentage points and allows awards limited to local entities up to $25 million, plus measures to support full cost recovery and multilingual solicitations.
  • U.S. foreign assistance agencies must adopt these practices quickly and boost staff capacity. Agencies are directed to begin institutionalizing changes within 180 days and must produce a contracting and grant officer recruitment and retention report within 180 days.
  • International and oversight changes aim to track results and incentives. The bill requires a review within 1 year of how public international organizations support locally led work and starts annual reporting on funds implemented by local partners and the effects of new authorities.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Easier funding and rules for local groups

If enacted, the bill would make it easier for local groups to get and manage U.S. awards. It would raise the de minimis indirect cost rate by 5 percentage points for eligible local partners and apply that rate to certain acquisition awards. Agencies would be encouraged to use multi-year, flexible awards and support full cost recovery. The bill would let agencies limit competitions to local entities (but no award over $25 million and no more than 10% of an agency's annual appropriations in a year). It would allow up to a 180-day delay in getting a Unique Entity ID and SAM registration, let some foreign awardees use local or international accounting standards instead of U.S. GAAP, allow non-English proposals when evaluation is feasible, and require outreach and NICRA training in local languages.

Who counts as a local partner

If enacted, the bill would define who counts as a "local partner" for U.S. foreign aid. Local partners could be local individuals, sole proprietors, or entities organized and operating in the country or region served. Local groups would need mostly local leaders (51% of a board) and, for corporations, 75% beneficial local ownership at application. The bill would also name the main U.S. foreign assistance agency and the congressional committees that would get reports.

New agency rules and reports

If enacted, the bill would require the lead U.S. foreign assistance agency to start policy changes to make local leadership standard. The agency head would have to begin those actions within 180 days. The agency must give Congress a report on progress each year, with the first due one year after the end of the first full fiscal year after enactment. The bill would also require a review of how multilateral international organizations support local leadership within one year and a report on contracting and grants officer recruitment and retention within 180 days.

Sponsors & CoSponsors

Sponsor

Jacobs, Sara [D-CA-51]

CA • D

Cosponsors

  • Rep. Kim, Young [R-CA-40]

    CA • R

    Sponsored 11/20/2025

  • Rep. Lawler, Michael [R-NY-17]

    NY • R

    Sponsored 3/3/2026

  • Rep. Sherman, Brad [D-CA-32]

    CA • D

    Sponsored 3/3/2026

Roll Call Votes

No roll call votes available for this bill.

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