USTDA Modernization Act of 2026
- Bill Number
- H.R. 8625
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- International Affairs
- Status
- Introduced
- Latest Action
- 2026-04-30: Referred to the House Committee on Foreign Affairs.
- Last Updated
- 2026-05-12T19:40:07Z
AI-Generated Summary
H.R. 8625: United States Trade and Development Agency Modernization Act of 2026
Purpose
This bill aims to update the authority of the United States Trade and Development Agency (USTDA), a federal agency that supports early project planning and technical help for infrastructure and trade projects abroad. It expands USTDA's ability to fund activities in high-income countries (wealthy nations, as defined by World Bank standards) when these advance U.S. economic, energy, digital, infrastructure, and national security interests.
Key Provisions
- Sense of Congress (Sec. 2): Recognizes USTDA's role in priority emerging markets and supports using some funds for high-income countries that impact U.S. interests.
- Country Eligibility Expansion (Sec. 3): Amends the Foreign Assistance Act of 1961 to allow USTDA's Director to use up to 15% of annual appropriated funds for:
- Early-stage project preparation or technical assistance in high-income countries.
- Projects in high-income countries focused on U.S. strategic sectors like energy, critical minerals, transport, or telecommunications.
- Personnel Enhancements (Sec. 4):
- Increases the limit on certain non-competitive appointments from 2 to 5 positions.
- Authorizes hiring personal services contractors (temporary individual hires) who are not treated as federal employees for rules managed by the Office of Personnel Management (OPM, the agency overseeing federal hiring).
- Requires an annual report to Congress on contractor numbers, roles, and costs.
Significant Changes to Existing Law
- Expands geographic scope: Previously restricted to lower-income or emerging markets; now permits limited funding (15% cap) for high-income countries under specific conditions.
- Boosts hiring flexibility: Raises appointment limits and introduces contractor authority, bypassing standard federal employee rules for efficiency.
Potential Impacts
- Government Agencies: Gives USTDA more tools to pursue U.S. priorities globally, potentially increasing its workload and reporting requirements.
- Citizens and Businesses: U.S. companies in energy, minerals, transport, and telecom may gain better access to international projects, boosting exports and jobs.
- International Relations: Strengthens U.S. influence in high-income allies or partners by funding joint projects, without major shifts in aid to poorer nations.
Main Stakeholders Affected
- USTDA and its Director: Gains expanded funding and hiring powers.
- U.S. Businesses: Benefits from project support in strategic sectors.
- High-Income Countries: Eligible for targeted U.S.-backed development activities.
- Congress: Receives oversight via annual reports.
- Federal Workforce: Indirectly affected by new contractor options.
Notable Legal, Constitutional, or Political Implications
- Legal: Modifies the Foreign Assistance Act without overriding other laws; the 15% cap and reporting ensure fiscal accountability.
- Constitutional: Aligns with Congress's power to regulate foreign commerce and appropriations; no major challenges anticipated.
- Political: Bipartisan sponsorship (introduced by Reps. Moylan and Tokuda); promotes U.S. competitiveness amid global rivalries (e.g., in critical minerals), but limited scope avoids broad foreign aid debates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Del. Moylan, James C. [R-GU-At Large]
Cosponsors (1)
Recent Actions
- 2026-04-30: Referred to the House Committee on Foreign Affairs.
- 2026-04-30: Introduced in House
- 2026-04-30: Introduced in House
Bill Versions
- United States Trade and Development Agency Modernization Act of 2026 — issued 2026-04-30 — PDF (3 pages)