Protecting Federal Funds from Human Trafficking and Smuggling Act of 2025
Protecting Federal Funds from Human Trafficking and Smuggling Act of 2025
Plain Language Summary
# Protecting Federal Funds from Human Trafficking and Smuggling Act of 2025 **What the Bill Would Do** This bill would require nonprofit organizations that receive federal funding to certify they comply with laws addressing human trafficking and smuggling. If passed, nonprofits would lose their federal funding and tax-exempt status if they fail to make this certification. The bill would also require nonprofit charities to verify that people receiving federal benefits through their programs are actually eligible for those benefits—a requirement they're currently exempt from. **Who It Affects and Key Provisions** The bill primarily affects nonprofit and charitable organizations that receive federal grants or funding.
Additionally, people who use services provided by these nonprofits could be impacted by new eligibility verification requirements. The bill includes a reporting requirement for the Government Accountability Office (GAO) to publish an annual list of nonprofits that don't certify their compliance, making this information available to Congress and the public. **Current Status** The bill is currently in committee, meaning it has been introduced but not yet voted on by the full House of Representatives. It was sponsored by Representative Lance Gooden (R-TX).
CRS Official Summary
Protecting Federal Funds from Human Trafficking and Smuggling Act of 2025This bill prohibits a nonprofit entity from receiving federal funds (and denies a tax exemption) unless the entity certifies compliance with certain federal laws (e.g., laws with respect to human trafficking and smuggling).The bill also establishes reporting requirements, including that the Government Accountability Office must annually report to Congress on those nonprofit entities that do not certify their compliance with these laws.Finally, the bill removes the provision of federal law that exempts nonprofit charitable organizations that provide federal public benefits from having to verify the eligibility of program participants.
Latest Action
Referred to the Committee on the Judiciary, and in addition to the Committees on Oversight and Government Reform, 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.