Sponsors (11)
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Amends Section 432 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 by striking subsection (d).
Adds a new subsection (g) to 26 U.S.C. 503 denying tax-exempt status under section 501(a) for organizations described in section 501(c) that do not submit the certification required pursuant to section 2(a) of this Act, or are 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); provides that such organizations may reapply for exemption not sooner than one year after loss of exemption.
Requires nonprofit organizations that receive federal funds to certify to the OMB Director that they comply with federal laws on human trafficking, alien smuggling, fraud, bribery, and gratuities and that they have not been convicted under INA §274. Failure to certify or violations can trigger repayment of federal funds and denial of tax‑exempt status; DHS must issue guidance and the Comptroller General must report regularly to Congress. The bill also deletes an existing subsection of a 1996 welfare law related to a verification requirement for charitable organizations.
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 February 10, 2025 by Lance Gooden · Last progress February 10, 2025