Locally Led Development and Humanitarian Response Act

This bill requires USAID to prioritize direct funding and partnership with local organizations in developing countries for humanitarian and development programs. Key mechanisms include increasing USAID’s de minimis indirect cost rate for local partners to 15%, allowing applications in local languages, streamlining reporting requirements, and ensuring local entities can lead program design and evaluation. It directly affects local community groups, NGOs, and informal organizations working in recipient countries by reducing bureaucratic barriers to accessing U.S. aid. USAID must also submit annual reports tracking direct funding amounts and progress toward local leadership in all programs.