The U.S. Agency for International Development (USAID) submits this report pursuant to Sec. 7019(e) of the Consolidated Appropriations Act, 2023 (P.L. 117-328), which incorporates by reference reporting under the heading Locally Led Development in the House Report:
“The Committee directs the USAID Administrator, not later than 120 days after enactment of this Act, to submit to the Committees on Appropriations a report on funding under this heading for programs implemented directly by local and national nongovernmental entities. The report should include a description on how USAID is working to increase funding to capable local and national nongovernmental entities as well as how USAID tracks funding to local entities, how USAID is progressing toward its stated locally-led development targets, and how the Agency plans to reach targets in subsequent fiscal years."
ln addition, requirements of the Joint Explanatory Statement include:
“Such report shall also describe how USAID: (1) defines a "locally-established partner" and an "underutilized partner", including any plans to modify such definitions, or the definition of a "local entity"; and (2) assesses the capacity of local entities to effectively implement and manage funds. Such report shall also include details on funding implemented by local entities in fiscal years 2021 and 2022, including development and humanitarian assistance programs.”
In 2021, USAID redoubled its commitment to advancing locally led development. Local leadership over development and humanitarian goals and programming is important for equity, effectiveness, and sustainability. Through a set of internal reforms, actions, and behavior changes to orient the Agency’s work around local actors’ priorities and local systems, USAID strives to advance locally led development and humanitarian assistance, in which local actors set their own agendas, develop solutions, and mobilize the capacity, leadership, and resources to make those solutions a reality. USAID is building on past efforts to promote a model of locally led, inclusive development, where the Agency’s work emphasizes local actors’ priorities, needs, goals, and ideas.
In November 2021, Administrator Power announced two ambitious Agency-wide targets to track and motivate progress toward this vision: (1) USAID will strive to channel at least a quarter of its program funds directly to local partners by the end of FY 2025, and (2) by 2030, fifty percent of Agency programming will place local communities in the lead to set priorities, co-design projects, drive implementation, and evaluate the impact of its programs.