PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the Committee on the Judiciary, and in addition to the Committees on Oversight and Government Reform, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Congressional Research Service
Version 00 · Introduced in House · Feb 10, 2025
Protecting Federal Funds from Human Trafficking and Smuggling Act of 2025
This bill prohibits a nonprofit entity from receiving federal funds (and denies a tax exemption) unless the entity certifies compliance with certain federal laws (e.g., laws with respect to human trafficking and smuggling).
The bill also establishes reporting requirements, including that the Government Accountability Office must annually report to Congress on those nonprofit entities that do not certify their compliance with these laws.
Finally, the bill removes the provision of federal law that exempts nonprofit charitable organizations that provide federal public benefits from having to verify the eligibility of program participants.
People & committees
Rep. Gooden, Lance [R-TX-5] · R–TX
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Referred to the Committee on the Judiciary, and in addition to the Committees on Oversight and Government Reform, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Judiciary, and in addition to the Committees on Oversight and Government Reform, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Judiciary, and in addition to the Committees on Oversight and Government Reform, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Apr 24, 2025. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-02-10 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
This proposal would require nonprofits seeking federal funds to certify compliance with specified federal laws, including laws against human trafficking and migrant smuggling, and certify that they have no conviction under a specified immigration provision. It would also require certifications from current and certain past funding recipients, with repayment required for failing to certify or for an agency finding of a specified immigration violation. Organizations could also lose tax-exempt status for failing to meet the certification requirement or for such a violation.
no Federal funds may be awarded to a non-profit entity unless such entity submits to the Director of the Office of Management and Budget a certification that the entity is in compliance with Federal law with respect to human trafficking, alien smuggling, fraud, bribery, or gratuity and has not been convicted of an offense under section 274 of the Immigration and Nationality Act (8 U.S.C. 1324).
each non-profit entity that is in receipt of awarded Federal funds as of the date of the enactment of this Act, or was awarded Federal funds prior to January 1, 2025, shall submit to the Director of the Office of Management and Budget a certification
If the entity does not submit the certification, or is determined by the Director of the Office of Management and Budget to have violated section 274 of the Immigration and Nationality Act (8 U.S.C. 1324), the entity shall repay any such funds awarded.
An organization described in section 501(c) shall not be exempt from taxation under section 501(a) if such organization does not submit the certification required pursuant to section 2(a) of the Protecting Federal Funds from Human Trafficking and Smuggling Act of 2025, or is determined by the Director of the Office of Management and Budget to have violated section 274 of the Immigration and Nationality Act (8 U.S.C. 1324).
Section 1 would name the legislation the Protecting Federal Funds from Human Trafficking and Smuggling Act of 2025.
This Act may be cited as the Protecting Federal Funds from Human Trafficking and Smuggling Act of 2025.
The restriction on future federal awards would begin no later than 120 days after enactment. A nonprofit would have to submit its certification to the Director of the Office of Management and Budget before receiving an award.
Beginning not later than 120 days after the date of the enactment of this Act, no Federal funds may be awarded to a non-profit entity unless such entity submits to the Director of the Office of Management and Budget a certification
The certification would cover compliance with federal laws concerning human trafficking, migrant smuggling, fraud, bribery, and gratuities. It would also certify that the nonprofit has not been convicted under section 274 of the Immigration and Nationality Act; the supplied bill does not reproduce that provision's offenses.
a certification that the entity is in compliance with Federal law with respect to human trafficking, alien smuggling, fraud, bribery, or gratuity and has not been convicted of an offense under section 274 of the Immigration and Nationality Act (8 U.S.C. 1324).
Nonprofits receiving awarded federal funds on the enactment date, and nonprofits awarded federal funds before January 1, 2025, would have to submit the same certification within 60 days after enactment. The provision gives no earliest date for the past awards it covers.
Not later than 60 days after the date of the enactment of this Act, each non-profit entity that is in receipt of awarded Federal funds as of the date of the enactment of this Act, or was awarded Federal funds prior to January 1, 2025, shall submit to the Director of the Office of Management and Budget a certification that the entity is in compliance with Federal law with respect to human trafficking, alien smuggling, fraud, bribery, or gratuity and has not been convicted of an offense under section 274 of the Immigration and Nationality Act (8 U.S.C. 1324).
For those current and past recipients, repayment of the covered awards would be mandatory if they failed to submit the certification or the budget office's Director determined that they violated section 274. The repayment trigger uses an agency determination of a violation, rather than requiring a conviction.
If the entity does not submit the certification, or is determined by the Director of the Office of Management and Budget to have violated section 274 of the Immigration and Nationality Act (8 U.S.C. 1324), the entity shall repay any such funds awarded.
The bill would add a rule denying federal tax exemption to organizations described in tax-code section 501(c) if they failed to submit the required certification or the budget office's Director determined that they violated immigration-law section 274.
Section 503 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
An organization described in section 501(c) shall not be exempt from taxation under section 501(a) if such organization does not submit the certification required pursuant to section 2(a) of the Protecting Federal Funds from Human Trafficking and Smuggling Act of 2025, or is determined by the Director of the Office of Management and Budget to have violated section 274 of the Immigration and Nationality Act (8 U.S.C. 1324).
An organization losing its tax exemption under the new rule could reapply after at least one year. The provision permits an application; it does not promise restoration of the exemption.
Not sooner than one year after the date on which an organization described in section 501(c) is not exempt pursuant to paragraph (1), such organization may reapply to be exempt from taxation under section 501(a).
Within 120 days after enactment, the Homeland Security Secretary would have to prepare a compliance strategy and best practices guide for nonprofits, including how to detect, deter, and report trafficking and migrant smuggling. The Secretary would also have to publish information about nonprofits' violations of state and federal trafficking and smuggling laws on the department's website.
Not later than 120 days after the date of the enactment of this Act, the Secretary of Homeland Security shall— (1) develop a written strategy and best practices guide for non-profit entities to ensure they are in compliance with Federal law, including how to detect, deter, and report human trafficking and alien smuggling; (2) publish on the internet website of the Department of Homeland Security information on violations of any non-profit entity as it pertains to compliance with State and Federal laws with respect to human trafficking, and alien smuggling;
Within the same 120-day period, the Homeland Security Secretary would have to develop a strategy for cooperation with nonprofits and state and federal law enforcement. The text describes this cooperation as concerning “deterring, detecting, reporting, and removing” noncitizens, without specifying which noncitizens in that clause.
Not later than 120 days after the date of the enactment of this Act, the Secretary of Homeland Security shall—
(3) develop a written strategy to improve cooperation with non-profit entities, State, and Federal law enforcement agencies with respect to improving cooperation on deterring, detecting, reporting, and removing aliens.
The Comptroller General would have to report to Congress on each nonprofit's failure to meet the certification requirement within 180 days after enactment and annually afterward. This reporting requirement has no stated end date.
Not later than 180 days after the date of the enactment of this Act, and annually thereafter, the Comptroller General of the United States shall report to Congress on each violation by a non-profit entity to certify under subsection (a).
The certification requirement would apply to any nonprofit awarded federal funding, expressly including nonprofits with an existing federal agreement, contract, award, or relationship on the enactment date.
The requirement under subsection (a) shall apply to any non-profit entity awarded Federal funding, including a non-profit entity who has an agreement, contract, award, or relationship with the Federal Government on the date of the enactment of this Act.
Section 3 would delete subsection (d) of section 432 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. Its heading concerns verification requirements for nonprofit charitable organizations, but the deleted language is not supplied, so the specific change to existing verification duties cannot be established from this bundle.
3. Verification requirement for nonprofit charitable organizations Section 432 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1642) is amended by striking subsection (d).
The supplied action snapshot, updated April 24, 2025, records introduction in the House on February 10, 2025, and referral that day to the Judiciary, Oversight and Government Reform, and Ways and Means Committees. It does not establish subsequent legislative action or enactment.
Source snapshot updated 2025-04-24T16:20:48Z.
2025-02-10: Introduced in House
2025-02-10: Referred to the Committee on the Judiciary, and in addition to the Committees on Oversight and Government Reform, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
A closer look
Reviewed version: Introduced in House · 2025-02-10. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy change attached to appropriations was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish attachment history or the contents of other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for a particular recipient or place was identified in the complete supplied introduced text. This conclusion is limited to that version; formal earmark disclosures and accompanying materials are not supplied.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow carve-out, special exemption, or preferential benefit was identified in the complete supplied introduced text. This conclusion is limited to that version and the statutory context it supplies.
Full text preserved for this analysis. Legislative record snapshot: Apr 24, 2025. How PlainBill uses AI