S. 2509Senate117th Congress (2021-2023)In Committee

New Partnerships Initiative Authorization Act

AI-Generated Summary

Updated February 8, 2026 at 5:46 AM UTC

The New Partnerships Initiative Authorization Act directs USAID to broaden its partner base by making it easier for new, under‑utilized and locally based nonprofit organizations to receive assistance. It defines these partner categories, requires the agency to simplify solicitations, use collaborative award methods, and seek matching resources from partners. The law also mandates an annual congressional report and provides up to $250 million each fiscal year from 2022‑2026 for these grants, with a portion allowed for administrative costs.

Key Provisions

Defines “local partner,” “new partner,” and “underutilized partner” to clarify eligibility for USAID funding.
Requires the USAID Administrator to simplify access to resources, using two‑step solicitations, co‑creation, and diversified award types.
Mandates that at least 50% of award value be matched by partner resources such as NGOs, other donors, or individuals.
Encourages use of subawards, mentoring awards, and other tools to build local capacity and leadership.
Calls for measuring progress, simplifying reporting, and identifying new funding sources to sustain partnerships.
Requires an annual report to Congress on funding to new, under‑utilized, and local partners.
Authorizes up to $250 million per fiscal year for FY2022‑FY2026 to fund the initiative.
Allows up to 15% of the authorized amount each year to cover USAID administrative expenses for managing the program.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Foreign Relations. (Sponsor introductory remarks on measure: CR S5143-5144)

Foreign Relations Committee

July 28, 2021

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SenateIntro Referral

Introduced in Senate

July 28, 2021

SenateIntro Referral

Read twice and referred to the Committee on Foreign Relations. (Sponsor introductory remarks on measure: CR S5143-5144)

Foreign Relations Committee

July 28, 2021

Floor Debate

4 members

What members said about S. 2509 on the floor

4 Democrats

Sen. Catherine Cortez MastoD-NV · Jul 28, 2021

Mr. President, I rise today to tell you about Brian Neuman, an Iraq combat veteran who was wounded while serving our Nation overseas in 2004. Brian has spent years working with the Wounded Warrior…

Mr. President, I rise today to tell you about Brian Neuman, an Iraq combat veteran who was wounded while serving our Nation overseas in 2004.

Brian has spent years working with the Wounded Warrior Project to help other veterans get the benefits that they need.

Years after returning home, Brian applied for an annual clothing allowance of $841. This allowance should be available to veterans like Brian when a medication or a medical device causes irregular wear or damage to their clothing.

As many vets with service injuries will tell you, their clothes wear down much faster than other people's, and the prosthetics can rip or tear clothes as well. Some veterans need tailoring to make clothing fit more comfortably around their injuries. Others have to treat skin conditions with creams that damage their clothes.

These veterans get compensation for the expenses associated with their injuries--and rightly so. Our veterans have given this country so much, and Congress has a responsibility to hold up its end of the bargain, to care for them when they are injured during their service to our Nation.

But right now, this benefit isn't accessible for many veterans, and that is wrong, and we need to change it.

In the case of the clothing allowance benefits, as Brian discovered, the VA currently requires veterans to be evaluated for this benefit in person, every year. One year, Brian physically went to a VA clinic to submit the clothing allowance application, and his request was denied because the VA had no record that he received a prosthetic at that specific clinic. At that point, like many vets, Brian gave up on the process in frustration.

That is just unacceptable. These are brave men and women who are living with severe burns or who wear prosthetic devices as a result of their service. In many cases, the VA already knows these veterans have a medical condition that isn't going to change year from year.

And that didn't make any sense to Brian, so he did something about it. He reached out to see if Congress could solve the problem. He did. He did it, he says, less for himself, but more for the many veterans in rural States, like mine in Nevada, who live hours away from the nearest VA Brian knows that many of them are so worn out by the process of applying for what is owed them that they just give up.

These men and women are tired of jumping through hoops to access their earned benefits. So why are we forcing them to navigate this complicated bureaucracy? There are certainly places to cut costs, but this isn't one of them.

The Senate can fix this problem easily, and I have introduced a bipartisan bill to do just that. I am glad to be working across the aisle with my colleague Senator Boozman to support injured and disabled veterans. Our bill makes it easier for them to get clothing that works for their specific needs. My legislation requires the VA to automatically renew this clothing allowance. Veterans can get it until they say they don't need it anymore or until the VA's records indicate that they don't require it. This will make sure they aren't forced to drive long distances to access a VA benefit they are owed.

I am looking forward to moving this legislation through Congress so we can make life a little easier for the 40,000 wounded warriors who currently receive this benefit and for the thousands more who qualify. There shouldn't be any redtape stopping veterans from getting their benefits, so let's pass this bill and fix this problem.

I am going to continue to work in every way I can to make sure that veterans in Nevada and across the country get the Federal resources they need

Sen. Jack ReedD-RI · Jul 28, 2021

Mr. President, today I am reintroducing the Veterans and Consumers Fair Credit Act (VCFCA) along with Senator Merkley, Senate Banking Committee Chairman Brown, and many of my colleagues. This…

Mr. President, today I am reintroducing the Veterans and Consumers Fair Credit Act (VCFCA) along with Senator Merkley, Senate Banking Committee Chairman Brown, and many of my colleagues. This important legislation would extend the bipartisan Military Lending Act's (MLA) protections for active-duty servicemembers and their families to all Americans by imposing a nationwide 36 percent cap on the annual percentage rate (APR) for most extensions of consumer credit.

The MLA was enacted on a bipartisan basis in 2006 to rein in payday and other unscrupulous lenders that targeted American troops with abusive and predatory loans. Unfortunately, the MLA does not protect veterans or Gold Star families from these exploitative practices. Our servicemembers and their families should not lose important consumer protections simply because they retire, separate from honorable service, or lose their loved ones. As such, our legislation would extend the MLA' s protections to veterans and Gold Star families as well as ensure that all Americans are shielded from predatory loans.

Hundreds of millions of American consumers could benefit from a 36 percent APR cap. In states that do not have such a cap, predatory lenders are permitted to offer loans with triple-digit APRs that trap individuals in cycles of debt. For instance, the Consumer Financial Protection Bureau found that 80 percent of payday loans are rolled over or renewed within two weeks. This practice can cause borrowers to pay more in fees than the amount of money they originally borrowed, which is a sign of predatory lending and poor underwriting.

According to a coalition of community organizations, payday lenders are known to target the most vulnerable, including seniors, veterans, and low-income borrowers. Many in these communities were already struggling to make ends meet before the pandemic, and continuing to pay exorbitant APRs may cause them to fall deeper into economic insecurity. This is why it's important to extend strong protections against unscrupulous lenders to all Americans.

The MLA's successful track record demonstrates that providing for reasonable, responsible limits on interest rates does not cut off consumers' access to credit. According to a May 2021 report from the Department of Defense, ``credit cards, auto loans, and personal loans are widely available at risk-based rates under the 36 percent [military] APR'' and ``[s]ervice members continue to have ample access to necessary credit.''

Moreover, this legislation would follow the trend in many states towards greater protections against predatory loans. Eighteen states and the District of Columbia have enacted APR caps of 36% or lower for payday loans or banned them altogether. Lenders in these states have incentives to offer more affordable loans that borrowers have an ability to repay. The same incentives should apply across the nation.

I thank the bill's supporters, including the Consumer Federation of America, the National Consumer Law Center (on behalf of its low income clients), the Center for Responsible Lending, Americans for Financial Reform, Veterans Education Success, the Military Officers Association of America, and the National Military Family Association.

I urge our colleagues to join us in supporting this important legislation.

Sen. Tim KaineD-VA · Jul 28, 2021

Mr. President. The United States Agency for International Development's (USAID) New Partnerships Initiative (NPI) was formed to help small and local nonprofit organizations partner with the agency on…

Sen. Tim KaineD-VA · Jul 28, 2021

Sen. Amy KlobucharD-MN · Apr 14, 2021

Mr. President, I ask unanimous consent for the legislative activities report of the Committee on Rules and Administration during the 116th Congress be printed in the Congressional Record.

Bill Text

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Introduced in SenateIssued July 28, 2021

117th CONGRESS

1st Session

S. 2509

IN THE SENATE OF THE UNITED STATES

July 28, 2021

Mr. Kaine (for himself and Mr. Rubio) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations

A BILL

To authorize the New Partnerships Initiative to expand and diversify the partner base of the United States Agency for International Development and to provide more entry points for organizations to work with USAID.

Short title

This Act may be cited as the New Partnerships Initiative Authorization Act.

Definitions

In this Act:

(1)

Local partner

(A)

In general

The term local partner refers to a local entity or a locally established partner of a United States-based nonprofit organization.

(B)

Local entity

The term local entity means a corporation, nonprofit organization, or other body of persons that—

(i)

is legally organized under the laws of a country receiving assistance from USAID;

(ii)

has its principal place of business or operations in such country;

(iii)

is majority-controlled by individuals who are citizens or lawful permanent residents of such country; and

(iv)

is managed by a governing body, the majority of whom are citizens or lawful permanent residents of such country.

(C)

Locally established partner

The term locally established partner means a United States or international nonprofit organization that—

(i)

works through locally led operations and programmatic models that have maintained continuous operations in a country receiving assistance from USAID for at least 5 years; and

(ii)

has materially demonstrated a locally led long-term presence in such country by—

(I)

registering with the appropriate local authorities;

(II)

maintaining a dedicated local office;

(III)

maintaining personnel in such office that consists of at least 50 percent local staff;

(IV)

maintaining a local bank account; and

(V)

maintaining a portfolio of locally implemented programs.

(D)

Majority-controlled

The terms majority-controlled, managed by, and locally led include beneficiary interests and the power (either directly or indirectly and whether exercised or exercisable) to control, by any means, the election, appointment, or tenure of the organization’s managers or a majority of the organization’s governing body.

(2)

New partner

The term new partner means a nonprofit organization that has not received funding from USAID as a prime partner during the most recently completed 5-year period.

(3)

Nonprofit

The term nonprofit means any organization that is exempt from the payment of Federal income taxes, including research institutes, faith-based charities, and private nongovernmental groups.

(4)

Underutilized partner

The term underutilized partner means an organization that—

(A)

is a nonprofit entity, such as a research institute, a faith-based charity, a nongovernmental group, or a government entity; and

(B)

has received less than $25,000,000 in direct or indirect awards from USAID during the most recently completed 5-year period.

(5)

USAID

The term USAID means the United States Agency for International Development.

Purpose

The purpose of this Act is to authorize and encourage USAID to use the New Partnerships Initiative to diversify its partner base by reducing barriers to entry for new partners and underutilized partners.

New partnerships initiative

The USAID Administrator shall implement the New Partnerships Initiative by—

(1)

simplifying access to USAID resources to make it easier for new, underutilized, and local partners to share their ideas and innovations by diversifying solicitation and award approaches, including—

(A)

increasing the number of awards to new partners and underutilized partners in all program sectors;

(B)

using solicitations that lower barriers to entry, including two-step approaches such as first-round expressions of interest under assistance and phased acquisition;

(C)

using co-creation and other collaborative techniques to design prime and subawards;

(D)

encouraging the strategic use of subawards, mentoring awards, and facilitative partnerships, grants under contract, and other instruments that develop local capacity, and promote tools and approaches to enable implementation led by local entities and local partners;

(E)

diversifying award types to be fit for purpose, such as fixed amount awards and fixed amount subawards, and eliminating threshold limitations on fixed amount subawards;

(F)

measuring progress in achieving the principles and approaches described in this section;

(G)

simplifying reporting;

(H)

identifying new sources of funding to sustain partnerships and scale impact;

(I)

mobilizing partner resources equal to not less than 50 percent of the proposed value of the award, which may include resources from nongovernmental organizations, other donor governments, or individuals; and

(J)

prioritizing solicitations and awards that contribute matching or leveraged funds;

(2)

promoting local leadership; and

(3)

strengthening local capacity so that partner countries gain new knowledge and skills to lead and sustain their own development.

Annual report

The USAID Administrator shall submit an annual report to Congress that identifies the funding for grants to new, underutilized, and local partners in accordance with the principles set forth in section 4.

Authorization of appropriations

(a)

In general

There are authorized to be appropriated for USAID, for each of the fiscal years 2022 through 2026, $250,000,000, which shall be expended through the New Partnerships Initiative for grants to new, underutilized, and local partners in accordance with the principles set forth in section 4.

(b)

Implementation costs

In addition to amounts otherwise available for such purposes, not more than 15 percent of the amounts appropriated pursuant to subsection (a) in any fiscal year may be used for USAID administrative expenses related to the program management, implementation, and oversight of the New Partnerships Initiative.