USTDA Modernization Act of 2026

The USTDA Modernization Act of 2026 updates the rules for the United States Trade and Development Agency to allow it to use up to 15% of its annual funds for projects in high-income countries that support U.S. economic and national security interests. This change expands the agency's scope beyond emerging markets to include activities in developed nations focused on energy, critical minerals, transportation, and telecommunications sectors. The bill also increases the number of senior officials the agency can appoint to five and grants the authority to hire personal services contractors without classifying them as federal employees. To ensure transparency regarding these new hiring practices, the agency director must submit an annual report to Congress detailing the number of contractors, their roles, and associated costs.