diff --git a/core/api/system-current.txt b/core/api/system-current.txt
index a1da9e0..1f20cb9 100644
--- a/core/api/system-current.txt
+++ b/core/api/system-current.txt
@@ -314,7 +314,7 @@
     field public static final String REMOVE_DRM_CERTIFICATES = "android.permission.REMOVE_DRM_CERTIFICATES";
     field public static final String REMOVE_TASKS = "android.permission.REMOVE_TASKS";
     field public static final String RENOUNCE_PERMISSIONS = "android.permission.RENOUNCE_PERMISSIONS";
-    field public static final String REPORT_USAGE_STATS = "android.permission.REPORT_USAGE_STATS";
+    field @FlaggedApi("backstage_power.report_usage_stats_permission") public static final String REPORT_USAGE_STATS = "android.permission.REPORT_USAGE_STATS";
     field @Deprecated public static final String REQUEST_NETWORK_SCORES = "android.permission.REQUEST_NETWORK_SCORES";
     field public static final String REQUEST_NOTIFICATION_ASSISTANT_SERVICE = "android.permission.REQUEST_NOTIFICATION_ASSISTANT_SERVICE";
     field public static final String RESET_PASSWORD = "android.permission.RESET_PASSWORD";
diff --git a/core/java/android/app/usage/flags.aconfig b/core/java/android/app/usage/flags.aconfig
index afe87de..d1f9067 100644
--- a/core/java/android/app/usage/flags.aconfig
+++ b/core/java/android/app/usage/flags.aconfig
@@ -7,3 +7,9 @@
     bug: "296061232"
 }
 
+flag {
+    name: "report_usage_stats_permission"
+    namespace: "backstage_power"
+    description: "Feature flag for the new REPORT_USAGE_STATS permission."
+    bug: "296056771"
+}
diff --git a/core/res/AndroidManifest.xml b/core/res/AndroidManifest.xml
index a54a563..84690a7 100644
--- a/core/res/AndroidManifest.xml
+++ b/core/res/AndroidManifest.xml
@@ -6122,7 +6122,9 @@
         android:protectionLevel="signature|privileged|development|appop|retailDemo" />
     <uses-permission android:name="android.permission.PACKAGE_USAGE_STATS" />
 
-    <!-- @SystemApi @hide Allows trusted system components to report events to UsageStatsManager -->
+    <!-- @SystemApi @hide
+         @FlaggedApi("backstage_power.report_usage_stats_permission")
+         Allows trusted system components to report events to UsageStatsManager -->
     <permission android:name="android.permission.REPORT_USAGE_STATS"
                 android:protectionLevel="signature|module" />
 
diff --git a/services/usage/java/com/android/server/usage/UsageStatsService.java b/services/usage/java/com/android/server/usage/UsageStatsService.java
index f3bf026..8b2de2f 100644
--- a/services/usage/java/com/android/server/usage/UsageStatsService.java
+++ b/services/usage/java/com/android/server/usage/UsageStatsService.java
@@ -53,6 +53,7 @@
 import android.app.usage.BroadcastResponseStatsList;
 import android.app.usage.ConfigurationStats;
 import android.app.usage.EventStats;
+import android.app.usage.Flags;
 import android.app.usage.IUsageStatsManager;
 import android.app.usage.UsageEvents;
 import android.app.usage.UsageEvents.Event;
@@ -2124,12 +2125,15 @@
         }
 
         private boolean canReportUsageStats() {
-            if (isCallingUidSystem()) {
-                return true; // System UID can always report UsageStats
+            final boolean isSystem = isCallingUidSystem();
+            if (!Flags.reportUsageStatsPermission()) {
+                // If the flag is disabled, do no check for the new permission and instead return
+                // true only if the calling uid is system since System UID can always report stats.
+                return isSystem;
             }
-
-            return getContext().checkCallingPermission(Manifest.permission.REPORT_USAGE_STATS)
-                    == PackageManager.PERMISSION_GRANTED;
+            return isSystem
+                    || getContext().checkCallingPermission(Manifest.permission.REPORT_USAGE_STATS)
+                        == PackageManager.PERMISSION_GRANTED;
         }
 
         private boolean hasObserverPermission() {