Sponsors (11)
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Requires any nonprofit that receives federal money to certify to the Office of Management and Budget (OMB) that it complies with federal laws banning human trafficking, alien smuggling, fraud, bribery, and gratuities and that it has not been convicted under the federal alien-smuggling statute. Current federal nonprofit recipients must submit the certification within 60 days of enactment; new awards are barred unless the recipient certifies within 120 days. Creates penalties for noncompliance including repayment of awarded funds and loss of tax-exempt status under the Internal Revenue Code (with reapplication allowed after one year). Directs the Department of Homeland Security to publish guidance, best practices, and information about nonprofit violations and requires the Government Accountability Office to report to Congress on violations annually. Also deletes a subsection of an existing welfare/immigration statute by removing that specific text on enactment.
The bill strengthens anti-smuggling oversight, transparency, and state/immigrant flexibility, but does so by imposing new certification, reporting, and publication requirements that risk funding losses, administrative burdens, reputational harm, and reduced services for vulnerable populations.
Immigrants: removal of subsection (d) can immediately restore or expand eligibility/flexibility for certain benefits, potentially improving access to services.
Nonprofits: clearer federal guidance and best practices to detect and report human trafficking and alien smuggling will strengthen prevention and compliance efforts.
Taxpayers: federal funds can be directed away from nonprofits found to violate alien-smuggling laws, reducing taxpayer support for unlawful actors.
Nonprofits and the people who rely on them: failing to file required certifications or being found noncompliant can lead to loss of federal funding, repayment obligations, and revocation of tax-exempt status, threatening organizational survival and services to low-income communities.
Immigrants and service providers: broad application of the rules and fear of enforcement can chill nonprofit partnerships or services to immigrant populations, reducing access to assistance.
Small and community nonprofits: new certification and DHS best-practice requirements with short deadlines impose administrative burdens and compliance costs that could force program cuts or closures.
Introduced February 10, 2025 by Lance Gooden · Last progress February 10, 2025