# Plain Language Summary: Locally Led Development and Humanitarian Response Act

This bill tells the U.S. Agency for International Development (USAID) to shift how it does development and humanitarian work around the world. Instead of having American organizations run programs in other countries, the bill pushes USAID to work more directly with local organizations and communities in those countries. The idea is that people living in a community understand their own needs better than outsiders do, so programs designed and run locally tend to work better and last longer.

Right now, USAID often works through large international contractors and American nonprofits, which can create layers of bureaucracy and slow things down. This bill wants to change that by making it easier for local groups—including small nonprofits, community organizations, and even informal groups—to get USAID funding directly. To do this, the bill asks USAID to simplify its application process, accept applications in local languages instead of just English, reduce paperwork requirements, and make funding more flexible so local organizations have time to build their capacity. It also tells USAID to work with the Office of Management and Budget to remove rules that accidentally make it harder for smaller local groups to compete for funding.

The bill also gives USAID new powers to make these changes happen. For example, USAID can now increase the indirect cost rate (basically overhead costs) that local organizations can charge, can accept applications in languages other than English, and can limit some competitions to only local organizations if that makes sense. USAID has to report back to Congress annually on how much money is actually going to local organizations and whether these changes are working. The goal is straightforward: get more money and decision-making power into the hands of the people actually living in the communities being helped, rather than having distant organizations make all the decisions.