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The Locally Led Development and Humanitarian Response Act authorizes and encourages the U.S. foreign assistance agencies to shift toward a model of locally led development and humanitarian response by expanding partnerships with local actors and simplifying their access to U.S. funding. The bill directs agencies to increase direct funding to local entities, enable local communities to lead program design and implementation, and provide greater flexibility in staffing, timelines, and funding mechanisms. It also authorizes regulatory modifications including increased indirect cost rates for local partners, exemptions from certain federal reporting requirements, and authority to limit competition to local entities in specified circumstances.
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