[Congressional Record Volume 162, Number 143 (Wednesday, September 21, 2016)] [House] [Pages H5787-H5789] From the Congressional Record Online through the Government Publishing Office [www.gpo.gov] GLOBAL DEVELOPMENT LAB ACT OF 2016 Mr. ROYCE. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3924) to establish in the United States Agency for International Development an entity to be known as the United States Global Development Lab, and for other purposes, as amended. The Clerk read the title of the bill. The text of the bill is as follows: H.R. 3924 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Global Development Lab Act of 2016''. SEC. 2. FINDINGS. Congress finds the following: (1) The effectiveness of United States foreign assistance can be greatly enhanced by fostering innovation, applying science and technology, and leveraging the expertise and resources of the private sector to find low-cost, common sense solutions to today's most pressing development challenges. (2) Breakthroughs that accelerate economic growth and produce better health outcomes in developing countries can help support the growth of healthier, more stable societies and foster trade relationships that translate into jobs and economic growth in the United States. (3) In 2014, the Office of Science and Technology and the Office of Innovation and Development Alliances at the United States Agency for International Development (USAID) were streamlined and merged into the United States Global Development Lab. (4) The Lab partners with entrepreneurs, experts, nongovernmental organizations, universities, and science and research institutions to find solutions to specific development challenges in a faster, more cost-efficient, and more sustainable way. (5) The Lab utilizes competitive innovation incentive awards, a ``pay-for-success'' model, whereby a development challenge is identified, competitions are launched, ideas with the greatest potential for success are selected and tested, and awards are provided only after the objectives of a competition have been substantially achieved. (6) Enhancing the authorities that support this pay-for- success model will better enable the Lab to diversify and expand both the number and sources of ideas that may be developed, tested, and brought to scale, thereby increasing USAID's opportunity to apply high value, low-cost solutions to specific development challenges. SEC. 3. UNITED STATES GLOBAL DEVELOPMENT LAB. (a) Establishment.--There is established in USAID an entity to be known as the United States Global Development Lab. (b) Duties.--The duties of the Lab shall include-- (1) increasing the application of science, technology, innovation and partnerships to develop and scale new solutions to end extreme poverty; (2) discovering, testing, and scaling development innovations to increase cost effectiveness and support United States foreign policy and development goals; (3) leveraging the expertise, resources, and investment of businesses, nongovernmental organizations, science and research organizations, and universities to increase program impact and sustainability; (4) utilizing innovation-driven competitions to expand the number and diversity of solutions to development challenges; and (5) supporting USAID missions and bureaus in applying science, technology, innovation, and partnership approaches to decisionmaking, procurement, and program design. (c) Authorities.-- (1) In general.--In carrying out the duties of the Lab under subsection (b), the Administrator, in addition to such other authorities as may be available to the Administrator, including authorities under part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.), and subject to the limitations described in paragraph (3), is authorized to-- (A) provide innovation incentive awards (as defined in section 4(5) of this Act); and (B) use funds made available to carry out the provisions of part I of the Foreign Assistance Act of 1961 for each of the fiscal years 2017 through 2021 for the employment of not more than 30 individuals on a limited term basis pursuant to schedule A of subpart C of part 213 of title 5, Code of Federal Regulations, or similar provisions of law or regulations. (2) Recovery of funds.-- (A) Authority.-- (i) In general.--In carrying out the duties of the Lab under subsection (b), the Administrator, subject to the limitation described in clause (ii), is authorized to require a person or entity that receives funding under a grant, contract, or cooperative agreement made by the Lab to return to the Lab any program income that is attributable to funding under such grant, contract, or cooperative agreement. (ii) Limitation.--The amount of program income that a person or entity is required to return to the Lab under clause (i) shall not exceed the amount of funding that the person or entity received under the grant, contract, or cooperative agreement. (B) Treatment of payments.-- (i) In general.--The amount of any program income returned to the Lab pursuant to subparagraph (A) may be credited to the account from which the obligation and expenditure of funds under the grant, contract, or cooperative agreement described in subparagraph (A) was made. (ii) Availability.-- (I) In general.--Except as provided in subclause (II), amounts returned and credited to an account under clause (i)-- (aa) shall be merged with other funds in the account; and (bb) shall be available, subject to appropriation, for the same purposes and period of time for which other funds in the account are available for programs and activities of the Lab. (II) Exception.--Amounts returned and credited to an account under clause (i) may not be used to pay for the employment of individuals described in paragraph (1)(B). (3) Limitations.-- (A) In general.--Concurrent with the submission of the Congressional Budget Justification for Foreign Operations for each fiscal year, the Administrator shall submit to the appropriate congressional committees a detailed accounting of USAID's use of authorities under this section, including the sources, amounts, and uses of funding under each of paragraphs (1) and (2). (B) Innovation incentive awards.--In providing innovation incentive awards under paragraph (1)(A), the Administrator shall-- (i) limit the amount of individual awards for fiscal year 2017 to not more than $100,000; (ii) limit the total number of awards for fiscal year 2017 to not more than 10 awards; and (iii) notify the appropriate congressional committees not later than 15 days after providing each such award. (C) Staff.--In exercising the authority under paragraph (1)(B), the Administrator should seek to ensure that increases in the number of staff assigned to the Lab are offset by an equivalent reduction in the total number of staff serving elsewhere in USAID. SEC. 4. DEFINITIONS. In this Act: (1) Administrator.--The term ``Administrator'' means the Administrator of the United States Agency for International Development. (2) Appropriate congressional committees.--The term ``appropriate congressional committees'' means-- (A) the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives; and [[Page H5788]] (B) the Committees on Foreign Relations and the Committee on Appropriations of the Senate. (3) Lab.--The term ``Lab'' means the United States Global Development Lab established under section 3. (4) USAID.--The term ``USAID'' means the United States Agency for International Development. (5) Innovation incentive award.--The term ``innovation incentive award'' means the provision of funding on a competitive basis that-- (A) encourages and rewards the development of solutions for a particular, well-defined problem relating to the alleviation of poverty; or (B) helps identify and promote a broad range of ideas and practices, facilitating further development of an idea or practice by third parties. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from California (Mr. Royce) and the gentleman from New York (Mr. Engel) each will control 20 minutes. The Chair recognizes the gentleman from California. {time} 2030 General Leave Mr. ROYCE. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and to include extraneous material in the Record. The SPEAKER pro tempore. Is there objection to the request of the gentleman from California? There was no objection. Mr. ROYCE. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of H.R. 3924, which authorizes the U.S. Global Development Lab within the U.S. Agency for International Development. Through the Lab, USAID workers, with the private sector, partner up; and they tap into the science and technology needed to source and to test proven, low-cost, high-impact solutions to pressing development challenges around the world. From maternal health to food security, the innovations supported by the Lab are changing the way we think about and the way we deliver foreign aid. This bill provides important authorities to improve the Lab's efficacy and efficiency, and it approves incentive awards through a competitive pay-for-performance process. It enables the Lab to bring in technical experts on a short-term basis without long-term salary and benefit obligations. When one of these new technologies becomes successful, it allows USAID to keep a portion of its initial investment so the Lab can become financially self-sustaining. Mr. Speaker, this is the approach that will bend the development curve. This is effective foreign aid. I want to thank Representative Castro and Representative McCaul for introducing this very important, bipartisan measure. Mr. Speaker, I reserve the balance of my time. Mr. ENGEL. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of this measure. I want to thank Chairman Ed Royce for bringing this bill forward. I want to also thank Mr. Castro of Texas for his leadership and hard work on this measure, and I thank Mr. McCaul as well. Mr. Speaker, around the world, 1.2 billion people live in extreme poverty. That means they live on less than $1.25 a day. It is hard to imagine. No one should have to live on so little. At the same time, we know that areas of extreme poverty can be hotbeds for other problems. Poverty leads to broader instability. It creates vulnerabilities that can be exploited by violent extremists, jihadists, or others spreading dangerous ideologies. It holds communities and countries back. So we view alleviating poverty as the right thing to do and also as a strategic concern. That is why USAID established the Development Lab to help develop and deploy poverty reduction technologies more widely and at a lower cost. I want to acknowledge former USAID Administrator Rajiv Shah, who did tremendous work at USAID helping build the Lab into a world-class center of innovation, working toward new solutions to extreme poverty. The Lab works with NGOs, corporations, and universities to bring in the best ideas and stay on the cutting edge of development. It is also expanding USAID's impact through a public-private dollar-for-dollar matching program that allows us to scale these innovations up without expanding USAID's budget. We are seeing real results. In 2014, the Lab invested in 362 new solutions that touch nearly 14 million people around the world. For example, the Lab funded an initiative aimed at producing more food where fresh water is hard to come by. Securing Water for Food: A Grand Challenge for Development led to a system that makes seawater or brackish water usable for drinking or agriculture. It consumes so little energy that the cost to use it is low, even in areas off the power grid. This is what we mean when we talk about innovation. Last May, the Development Lab hosted an international competition to develop technology to fight wildlife trafficking and crimes. I know that Chairman Royce has been very interested in this issue. This led to the development of an app called the Wildlife Scan that allows law enforcement to easily identify endangered species being smuggled out of countries. After just a couple of months, the app has already been downloaded more than 1,000 times. And just last month, the Global Lab finished up a Zika challenge initiative, which led to 21 new solutions targeted at combating the spread of the Zika virus and are on track to be tested and deployed. They could be available within months. The bill would build on the Lab's success by creating new authorities for the Lab to expand and manage its partnerships. It will give the Lab greater flexibility for hiring experts on a project-by-project basis, and it will allow the Lab to award small, targeted grants that have proven so effective in supporting healthcare providers. I commend Mr. Castro for his hard work on this very good bill. It makes a good initiative better, and I am pleased to support it. Mr. Speaker, I reserve the balance of my time. Mr. ROYCE. Mr. Speaker, I reserve the balance of my time. Mr. ENGEL. Mr. Speaker, I yield 3 minutes to the gentleman from Texas (Mr. Castro), a very valuable member of the Foreign Affairs Committee and the author of this measure. Mr. CASTRO of Texas. Mr. Speaker, I thank Ranking Member Engel for yielding me this time and for his support of this legislation. He, Chairman Royce, as well as their staff members have been terrific partners in moving this bill forward. I also want to say a big thank you to my fellow Texan, Representative Mike McCaul, for being the lead Republican cosponsor of this legislation, which aims to make our foreign aid efforts more impactful and cost-efficient. Created in 2014 through the streamlining and merging of two offices, USAID'S Global Development Lab is spearheading a new approach that supports the invention, testing, and utilization of more cost-efficient solutions to development challenges. The Lab collaborates with entrepreneurs, corporations, NGOs, universities, and science and research institutions to solve some of the world's most difficult development challenges faster, more cheaply, and more sustainably. Essentially, the Lab democratizes problem solving by crowdsourcing ideas and applications to find the best solutions from around the world. For example, the Lab has used what it calls Grand Challenges for Development to incentivize problem solvers to develop solutions for specific problems. The Saving Lives at Birth Grand Challenge led to the creation of the Pratt Pouch, a small ketchup packet-like pouch filled with medication that women can use in rural areas to prevent birth-related HIV infections. Other Grand Challenges have led to the development of breakthrough products that keep healthcare workers treating Ebola patients safe, desalinate water in an environmentally sustainable manner, and bring electricity to folks living off the electrical grid in Africa. The Lab also partners with outside entities, such as universities, to cultivate solutions to specific development challenges ranging from health and food insecurity to chronic conflict. Participating institutions equally match USAID's funding and leverage additional resources from private foundations. [[Page H5789]] The legislation before us today formally authorizes the U.S. Global Development Lab within USAID and provides new legislative authorities to augment the Lab's current capabilities, allowing the initiative to achieve greater results and maximize its impact. The bill allows the Lab to use a pay-for-success model and tap into good ideas, no matter their source; bring in term-limited technical experts in a more cost-effective manner; and gain the flexibility to use program income more effectively. In conclusion, Congress can be proud of the work that the Lab is currently doing and will continue to pursue once we authorize it and provide proper oversight. Mr. ROYCE. Mr. Speaker, I congratulate Mr. Castro and Mr. McCaul for their innovation. I reserve the balance of my time. Mr. ENGEL. Mr. Speaker, I yield myself the balance of my time now to close. Let me just say, in recent years, it has become very clear the way issues like global poverty fit into our broader national and international concerns. We see the links between poverty, health, stability, and security. So when we work to relieve this burden and lift up communities, we are also advancing a wide range of interests. As I like to say, it is the smart thing to do, and it is also the right thing to do. The administration has already taken steps to incorporate poverty alleviation into our development efforts. This bill will help USAID do even more. So, once again, I want to thank Mr. Castro for his hard work. I am glad to support this bill. I thank Chairman Royce for his help. I urge all of my colleagues to support this bill. Mr. Speaker, I yield back the balance of my time. Mr. ROYCE. Mr. Speaker, I thank the gentleman from New York (Mr. Engel). I yield back the balance of my time. The SPEAKER pro tempore. The question is on the motion offered by the gentleman from California (Mr. Royce) that the House suspend the rules and pass the bill, H.R. 3924, as amended. The question was taken; and (two-thirds being in the affirmative) the rules were suspended and the bill, as amended, was passed. A motion to reconsider was laid on the table. ____________________