Understanding USAID’s Funding Priorities

May 22, 2024
Potential Partners
People sitting near containers and bags of riceUSAID supports projects in Cambodia that align with its first development objective of promoting inclusive and sustainable economic growth. (Photo credit: PACT)

Jan Cartwright is the Senior Communications & Content Manager in USAID's Office of Acquisition and Assistance.

The United States is the world’s largest development donor, but that doesn’t mean that its development dollars are infinite. In fact, USAID must make careful and strategic choices about what activities and interventions to fund in every part of the world where it works. USAID sets priorities to ensure that (1) its activities support local objectives articulated by communities and partner governments, (2) its activities can achieve a positive impact on people’s lives, and (3) its projects align with the U.S. government’s other foreign policy priorities in a particular country or region.

Why do you need to know about USAID’s funding priorities? If you understand where USAID will be investing in a given country, you can better evaluate how your organization’s work maps to USAID’s goals. This will help you know whether partnering with USAID makes sense for your organization or not.

Getting to Know the CDCS

Fortunately, USAID is very transparent about its funding priorities, and all of that information is at your fingertips in the form of Country Development Cooperation Strategies, or CDCSs. CDCSs are typically five-year plans that outline the areas of focus for a USAID Mission (for Regional Missions, USAID creates Regional Development Cooperation Strategies, or RDCSs). Most CDCSs and RDCSs outline a handful of development objectives (DOs) that USAID seeks to accomplish in that country or region, and they even break those down into intermediate results (IRs) as well. The CDCS will provide context around the rationale for its particular DOs, including how they support the partner government’s goals. The CDCS may not describe in detail how USAID wants to achieve those DOs and IRs—that’s where partners come in with their innovative and context-specific solutions. 

“Reading the CDCS for the country in which you're interested in working is one of the first steps we recommend to partners who are interested in working with USAID,” says Matthew Johnson, USAID’s Industry Liaison. “The CDCS really sets the parameters for what is likely to be funded in a particular country, so it’s essential that partners know how their skill sets and expertise line up with USAID’s goals and objectives.”

Found Alignment? Here’s What to Do Next

Great news! Your organization works in a sector that USAID seeks to fund—what do you do next? Monitor USAID’s Business Forecast and Funding Feed for any opportunities that are coming up. When we speak with USAID prime partners, many of them say they check these resources daily to stay on top of upcoming USAID solicitations. You can also search for subaward or subcontract opportunities with organizations that are already working with USAID in your country/sector. 

If no anticipated or active opportunities are available, don’t worry. Continue watching for funding opportunities while also introducing yourself to USAIDresponding to Requests for Information (RFIs) and Sources Sought Notices (SSNs), and joining the Work with USAID Partner Directory. That will help you be on USAID’s radar when a funding opportunity becomes available. You can also go ahead and register on SAM.gov so that your organization is positioned to apply for funding. 

Once an opportunity pops up, don’t forget about the CDCS! Review the language and framing used by USAID and attempt to reflect that approach in your application or proposal. This will show USAID that you are on the same page and that you’ve done your homework to put in place the building blocks of a strong partnership.

What If You Don’t Find Alignment?

If your organization’s capabilities and expertise don’t align with USAID’s priorities as outlined in its CDCS for your country, partnering with USAID may not be right for you. But don’t get discouraged! There are many organizations that are funding development work around the world, so cast a wide net to find the right partner. Search the WorkwithUSAID.gov Partner Directory to find organizations working in your country and sector.  

In the end, understanding what’s in the USAID’s CDCSs—and what’s not—can save you and your team valuable research time and can help you make sure that you have realistic expectations for partnership.

Explore your country’s CDCS here to learn about USAID’s funding priorities. Check out USAID’s How to Work with USAID Training Series for additional information on the partnership process. Sign up to receive updates from the USAID Business Forecast every Monday and Wednesday with upcoming USAID opportunities.

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