US Congress approves long-sought Foreign Aid Transparency and Accountability Act

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Devex

It was first introduced more than five years ago, but after many negotiations, the Foreign Aid Transparency and Accountability Act has been approved by the United States Congress and is on its way to President Barack Obama’s desk for his signature.

The legislation will require U.S. government agencies to closely monitor and evaluate all foreign aid programs based on their outcomes and improve transparency by publicly sharing the data about what’s working and what’s not, in large part through the foreignassistance.gov portal.

“I think it’s a very significant action by the Congress,” said George Ingram, a senior fellow with the global economy and development program at Brookings Institution, and the co-chair of the Modernizing Foreign Assistance Network, whose reaction to the bill was a full-voiced “Hooray.”

While many of the proposed requirements outlined in the bill are already being pursued by U.S. government agencies, the legislation sends a clear signal about the importance Congress places on aid measurement, accountability and transparency. It will also push the world’s largest foreign aid donor country to set and achieve high reporting standards that other countries can follow.

A long path

The first version of the bill was introduced in the House of Representatives in October 2011. The bill nearly passed back in 2013, but was hung up on several key concerns.

While there isn’t one specific turning point that explains why the bill passed now, its passage is being largely credited to a group of committed sponsors who worked through a series of issues over the years in the lead up to the unanimous approval in the House and Senate.

Rep. Ted Poe, a Republican from Texas, Rep. Gerry Connolly, a Democrat from Virginia, Sen, Marco Rubio, a Republican from Florida, and Sen. Cardin, a Democrat from Maryland, sponsored the bill.

Poe’s position and evolution on foreign aid has been closely watched by the global development community in Washington. In speeches on the House floor six years ago, Poe voiced criticism over international development programs, but in the process of shepherding this bill through the congressional process, he became a champion of aid effectiveness.

“The bill itself evolved a lot to achieve consensus,” said Porter Delaney, a founding partner at the Kyle House Group, who consulted for the MFAN on the legislation, adding that the core objectives of improving monitoring and evaluation and promoting improved transparency have remained.

One major challenge was writing a bill that would be cost neutral. It also took some time to reconcile language and objectives between foreign affairs and appropriations committees. Concessions were made on behalf of the NGO community and MFAN to get the bill over the finish line, according to Delaney, including leaving out security assistance from the new requirements.

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