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 2022’, 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. 
Æ 
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