Protecting Federal Funds from Human Trafficking and Smuggling Act of 2025

This bill aims to keep federal money from going to nonprofits that break laws on human trafficking or smuggling. Nonprofits that take federal funds must certify to the Office of Management and Budget that they follow federal laws on trafficking, smuggling, fraud, bribery, and gratuities, and that they have not been convicted of smuggling people under 8 U.S.C. 1324. If they don’t certify or are found to have violated the law, they can’t receive funds, may have to pay back past funds, and can lose their tax‑exempt status for at least a year before reapplying.

Within 120 days of enactment, the Department of Homeland Security must publish a best‑practices guide for nonprofits, post information online about nonprofit violations, and work to improve cooperation with law enforcement. The Government Accountability Office must report to Congress within 180 days and then every year on nonprofits that do not certify their compliance. The bill also ends a rule that let nonprofit charities skip checking whether people were eligible for federal public benefits; going forward, those nonprofits would have to verify eligibility .

Key points

• Who is affected: Nonprofit organizations that receive federal funds, including those with existing contracts or agreements with the federal government.
• What changes: Must certify legal compliance to receive funds; failure can mean repaying funds and losing tax‑exempt status (with a chance to reapply after one year). DHS will share violation info and guidance; GAO will report annually. Nonprofit charities that provide federal public benefits must verify participant eligibility .
• When: Current or past recipients must certify within 60 days of enactment; new awards require certification within 120 days; DHS guidance due in 120 days; GAO’s first report due in 180 days; tax‑exempt status can be re‑applied for after one year .