I 
118TH CONGRESS 
1ST SESSION H. R. 3638 
To direct the Director of the Office of Management and Budget to require 
the disclosure of violations of Federal law with respect to human traf-
ficking or alien smuggling, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 24, 2023 
Mr. GOODEN of Texas (for himself, Mr. TIFFANY, Mr. ROSENDALE, Mr. 
DONALDS, Mr. GOSAR, Mr. BABIN, Mr. WEBER of Texas, Mr. SESSIONS, 
Mr. MOORE of Alabama, Mr. SANTOS, and Mr. BRECHEEN) introduced 
the following bill; which was referred to the Committee on the Judiciary, 
and in addition to the Committees on Oversight and Accountability, 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 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Protecting Federal 
Funds from Human Trafficking and Smuggling Act of 
2023’’. 
SEC. 2. MANDATORY DISCLOSURES OF HUMAN TRAF-
FICKING AND ALIEN SMUGGLING. 
(a) LIMITATION ON AWARD OF FEDERAL FUNDS.— 
(1) FUTURE RECIPIENTS.—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 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). 
(2) CURRENT
AND
PRIOR
RECIPIENTS.—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 en-
actment of this Act, or was awarded Federal funds 
prior to January 1, 2021, shall submit to the Direc-
tor of the Office of Management and Budget a cer-
tification that the entity is in compliance with Fed-
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eral 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). If the entity does not submit the certifi-
cation, 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. 
(b) DENIAL OF TAX EXEMPTION.—Section 503 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subsection: 
‘‘(g) DENIAL OF EXEMPTION FOR NOT MEETING 
CERTAIN CERTIFICATION REQUIREMENT.— 
‘‘(1) IN GENERAL.—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 2023’, or is deter-
mined by the Director of the Office of Management 
and Budget to have violated section 274 of the Im-
migration and Nationality Act (8 U.S.C. 1324). 
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‘‘(2) RE-APPLICATION
FOR
EXEMPTION.—Not 
sooner than one year after the date on which an or-
ganization 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).’’. 
(c) REPORTING REQUIREMENT.—Not later than 120 
days after the date of the enactment of this Act, the Sec-
retary of Homeland Security shall— 
(1) develop a written strategy and best prac-
tices guide for non-profit entities to ensure they are 
in compliance with Federal law, including how to de-
tect, deter, and report human trafficking and alien 
smuggling; 
(2) publish on the internet website of the De-
partment of Homeland Security information on vio-
lations of any non-profit entity as it pertains to com-
pliance with State and Federal laws with respect to 
human trafficking, and alien smuggling; and 
(3) develop a written strategy to improve co-
operation with non-profit entities, State, and Fed-
eral law enforcement agencies with respect to im-
proving cooperation on deterring, detecting, report-
ing, and removing aliens. 
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(d) REPORT BY COMPTROLLER GENERAL.—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). 
(e) APPLICABILITY.—The requirement under sub-
section (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 Fed-
eral Government on the date of the enactment of this Act. 
SEC. 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). 
Æ 
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