II 

117TH CONGRESS 

2D SESSION S. 3653 

To direct the Director of the Office of Management and Budget to require 

the disclosure of violations of Federal law with respect to human trafficking or alien smuggling, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 15, 2022 

Mr. KENNEDY introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To direct the Director of the Office of Management and 

Budget to require the disclosure of violations of Federal 

law with respect to human trafficking or alien smuggling, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Protecting Federal 

5 Funds from Human Trafficking and Smuggling Act of 

6 2022’’. 


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1 SEC. 2. MANDATORY DISCLOSURES OF HUMAN TRAF2 FICKING AND ALIEN SMUGGLING. 

3 (a) LIMITATION ON AWARD OF FEDERAL FUNDS.— 

4 (1) FUTURE RECIPIENTS.—Beginning not later 

5 than 120 days after the date of the enactment of 

6 this Act, no Federal funds may be awarded to a 

7 nonprofit entity unless such entity submits to the 

8 Director of the Office of Management and Budget a 

9 certification that the entity— 

10 (A) is in compliance with Federal law with 

11 respect to human trafficking, alien smuggling, 

12 fraud, bribery, and gratuity; and 

13 (B) has not been convicted of an offense 

14 under section 274 of the Immigration and Na15 tionality Act (8 U.S.C. 1324). 

16 (2) CURRENT AND PRIOR RECIPIENTS.— 

17 (A) IN GENERAL.—Not later than 60 days 

18 after the date of the enactment of this Act, 

19 each nonprofit entity that is in receipt of 

20 awarded Federal funds as of the date of the en21 actment of this Act, or was awarded Federal 

22 funds before January 1, 2021, and remains en23 gaged in the activities for which such Federal 

24 funds were awarded, shall submit to the Direc25 tor of the Office of Management and Budget a 

26 certification that the entity— 


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1 (i) is in compliance with Federal law 

2 with respect to human trafficking, alien 

3 smuggling, fraud, bribery, and gratuity; 

4 and 

5 (ii) has not been convicted of an of6 fense under section 274 of the Immigra7 tion and Nationality Act (8 U.S.C. 1324). 

8 (B) EFFECT OF NONCOMPLIANCE.—If an 

9 entity referred to in subparagraph (A) does not 

10 submit the certification required under such 

11 subparagraph before the date referred to in 

12 such subparagraph, or the Director of the Of13 fice of Management and Budget determines 

14 that the entity has violated section 

15 274(a)(1)(A) of the Immigration and Nation16 ality Act (8 U.S.C. 1324(a)(1)(A)), the entity 

17 shall reimburse the Federal Government for any 

18 Federal funds the entity received for the fiscal 

19 year in which such noncompliance occurred. 

20 (b) DENIAL OF TAX EXEMPTION.—Section 503 of 

21 the Internal Revenue Code of 1986 is amended by adding 

22 at the end the following: 

23 ‘‘(g) DENIAL OF EXEMPTION FOR NOT MEETING

24 CERTAIN CERTIFICATION REQUIREMENT.— 


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1 ‘‘(1) IN GENERAL.—An organization described 

2 in section 501(c) shall not be exempt from taxation 

3 under section 501(a) if— 

4 ‘‘(A) such organization does not submit the 

5 certification required under section 2(a) of the 

6 Protecting Federal Funds from Human Traf7 ficking and Smuggling Act of 2022; or 

8 ‘‘(B) the Director of the Office of Manage9 ment and Budget determines that such organi10 zation has violated section 274 of the Immigra11 tion and Nationality Act (8 U.S.C. 1324). 

12 ‘‘(2) RE-APPLICATION FOR EXEMPTION.—Be13 ginning on the date that is one year after the date 

14 on which an organization described in section 501(c) 

15 is determined not to be exempt under paragraph (1), 

16 such organization may reapply to be exempt from 

17 taxation under section 501(a).’’. 

18 (c) REPORTING REQUIREMENT.—Not later than 120 

19 days after the date of the enactment of this Act, the Sec20 retary of Homeland Security shall— 

21 (1) develop a written strategy and best prac22 tices guide for nonprofit entities to ensure the enti23 ties comply with Federal law, including how to de24 tect, deter, and report human trafficking and alien 

25 smuggling; 


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1 (2) publish, on an internet website of the De2 partment of Homeland Security, information regard3 ing violations of any nonprofit entity that pertains to 

4 compliance with Federal and State laws involving 

5 human trafficking and alien smuggling; and 

6 (3) develop a written strategy to improve co7 operation with nonprofit entities and Federal and 

8 State law enforcement agencies with respect to im9 proving cooperation on deterring, detecting, report10 ing, and removing aliens. 

11 (d) REPORT BY COMPTROLLER GENERAL.—Not later 

12 than 180 days after the date of the enactment of this Act, 

13 and annually thereafter, the Comptroller General of the 

14 United States shall submit a report to Congress that iden15 tifies each failure by a nonprofit entity to comply with the 

16 certification requirement under subsection (a) during the 

17 reporting period. 

18 (e) APPLICABILITY.—The requirement under sub19 section (a) shall apply to any nonprofit entity awarded 

20 Federal funding, including any nonprofit entity that has 

21 an agreement, contract, award, or relationship with the 

22 Federal Government on the date of the enactment of this 

23 Act. 

Æ 


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