Section 1 Short title
This Act may be cited as the “United States Trade and Development Agency Modernization Act of 2026” or the “USTDA Modernization Act of 2026”.
United States Trade and Development Agency Modernization Act of 2026
A BILL
To amend the Foreign Assistance Act of 1961 to authorize assistance for certain development activities in high-income countries, and for other purposes.
Sec. 2 Sense of Congress
It is the sense of Congress that the United States Trade and Development Agency plays a critical role in advancing United States commercial, energy, digital, and infrastructure interests in priority emerging markets by supporting early-stage project preparation and technical assistance and should be authorized to allocate some of its annual program funds for activities in high-income countries that directly affect United States economic and national security.
Sec. 3 Expansion of country eligibility
Section 661(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2421(b)) is amended—
by redesignating paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6), respectively; and
by inserting after paragraph (2) the following:
“(3) Assistance in high-income countries—Notwithstanding any other provision of law, the Director of the Trade and Development Agency is authorized to provide not more than 15 percent of the total amount of funds appropriated in a fiscal year for assistance under this section for—
“(A) activities described in paragraph (2) in high-income countries; or
“(B) projects in high-income countries that serve United States strategic interests in the energy, critical minerals, transport, or telecommunications sectors.”
Sec. 4 Personnel authorities
Section 661(c) of such Act (22 U.S.C. 2421(c)) is amended—
in paragraph (2)(C), by striking “2” and inserting “5” before “may be appointed”; and
by adding at the end the following:
“(3) Personal services contractors
“(A) The Trade and Development Agency may contract with individuals for personal services, and such individuals may not be considered Federal employees for the purpose of any provision of law administered by the Director of the Office of Personnel Management.
“(B) The Director shall submit to Congress an annual report describing the number of individuals contracted for personal services by the Trade and Development Agency, the roles of such contractors, and the costs associated with such contracts.”