The Administration's FY2010 budget proposal, which requests a 150% increase in the OTI account to support a Rapid Response Fund, as well as significant increases for the Civilian Stabilization Initiative at the State Department, does little to clarify OTI's role or niche functions. Atwood proposed to bridge the gap between emergency disaster relief programs and long-term development assistance with a small staff provided with core funding and special crisis waiver authority. For necessary expenses for international disaster rehabilitation and reconstruction assistance pursuant to section 491 of the Foreign Assistance Act of 1961, $50,000,000, to remain available until expended, to support transition to democracy and to long-term development of countries in crisis: Provided, That such support may include assistance to develop, strengthen, or preserve democratic institutions and processes, revitalize basic infrastructure, and foster the peaceful resolution of conflict. This allows almost complete executive discretion in responding to foreign disasters. Together with the notwithstanding provision of Section 491, these annual appropriations provisions allow OTI to pursue a wide range of activities without having to meet certain administrative requirements, particularly related to contracting and procurement. OTI Locations, 1994-2008

Since beginning its first projects in Angola and Haiti in 1994, OTI has worked in 36 countries and territories. For FY2010, the Obama Administration has proposed $126 million for the TI account, a 150% increase over the estimated FY2009 funding level. Most OTI grants are small, ranging from $5,000 to $50,000, but OTI country representatives have the authority to approve grants of up to $100,000. OTI was intended in part to be a laboratory within USAID to try innovative approaches to development, and there may be a range of lessons to be learned from the program, both positive and negative. The following are a few issues related to OTI that Congress may wish to consider as part of oversight or reform activities concerning OTI, USAID, and foreign assistance in general. Interagency Coordination and Structural Considerations

OTI's role within USAID and the larger U.S. foreign assistance structure is not always well understood, even among U.S. government development and other professionals. When the Iraq Transition Initiative closed in March 2006, it had disbursed $337 million in grants. There is also little if any data about the long-term impact of the employment programs on the participants.
The Office of Transition Initiatives (OTI) at the U.S. Agency for International Development (USAID) was created in 1994 to bridge the gap between emergency disaster relief programs and long-term development assistance. The program is relatively small, with regular appropriations averaging $40-$60 million annually and a full-time staff of about 50. Supplemental funding and transfers from other foreign assistance accounts, particularly through the Iraq Relief and Reconstruction Fund, have at times substantially increased the program's funding levels. Congress may take particular interest in OTI this year, as the Administration's FY2010 budget proposal requests $126 million for the Transition Initiatives account, a 150% increase over the 2009 estimate.
OTI's legislative authority is based on the disaster relief provision of the Foreign Assistance Act of 1961, which allows for broad executive discretion. This freedom from administrative requirements, intended to enhance the program's rapid response capability, allows OTI to pursue a wide range of activities but also reduces program transparency and, according to some, accountability.
OTI has been active in 36 countries since its inception, and program focus varies widely from country to country. Typical activities include reintegrating combatants in a post-conflict environment through employment programs, providing equipment and technical support for independent media organizations, organizing civic forums, and supporting small, community-led infrastructure projects intended to show quick and tangible benefits from transitions toward peace and democracy. Most OTI grants are small and in-kind, ranging in value from $5,000 to $50,000, though much larger grants have been approved.
There is considerable congressional interest in and support for strengthening capacities at USAID and other civilian agencies involved in foreign affairs. In its 15 years in operation, OTI has served in part as a laboratory within USAID to try innovative approaches to development, and there may be a range of lessons to be learned from the program that are applicable to this broader debate. The 111th Congress may wish to consider several aspects of the OTI program, from personnel structure and contracting mechanisms to coordination with other U.S. assistance programs, as part of oversight or legislated reform activities concerning OTI, USAID, or foreign assistance in general.