US Sens. Kaine and Rubio back bill to diversify USAID funding

U.S. Sens. Tim Kaine and Marco Rubio introduced legislation Wednesday to cement a U.S. Agency for International Development initiative that was created to broaden the agency’s partner base by making it easier for smaller organizations to access funding. The bill would provide legal authorization for the ​​New Partnerships Initiative, which was created under former USAID Administrator Mark Green, and direct USAID to spend $250 million through the initiative. Kaine described the bill during Tuesday’s Senate Foreign Relations Committee nomination hearing for Isobel Coleman, one of two nominees recently announced by President Joe Biden for USAID deputy administrator roles. The lawmakers’ proposal lists several requirements for USAID aimed at pushing the agency “to diversify its partner base by reducing barriers to entry for new partners and underutilized partners.” These include using different types of solicitations, program design, and awards, as well as simplifying reporting and identifying additional sources of funding. A “new partner” is defined as a nonprofit organization that has not received funding as a prime partner of USAID in the past five-year period, while an “underutilized partner” is one that has received less than $25 million from the agency during that period. A press release announcing the bill includes a list of supporting organizations, many of which are faith-based. Why it matters: Multiple administrations — and USAID administrators — have tried to shift the agency’s funding toward small and local organizations, with mixed results. Earlier this month, USAID Administrator Samantha Power testified in Congress that only 5.6% of the agency’s funding went to local organizations in fiscal year 2020. She said a locally led approach is “vital to our long-term success to sustainable development.” What’s next: The bipartisan backing from Rubio, a Republican, and Kaine, a Democrat, suggests prominent lawmakers from both parties are looking for ways to support the new partner push. Also, the bill would require the USAID administrator to report back to Congress on the agency’s progress.