WASHINGTON – Today, Representative Lance Gooden (R-TX) introduced the "Protecting Federal Funds from Human Trafficking and Smuggling Act of 2023," a bill to prevent the misuse of federal funds by nonprofit organizations involved in human trafficking or alien smuggling.

  • This legislation directs the Director of the Office of Management and Budget (OMB) to require nonprofit organizations receiving federal funds to certify they are in compliance with federal laws related to human trafficking, alien smuggling, fraud, bribery, or gratuity and have not been convicted of an offense under section 274 of the Immigration and Nationality Act (8 U.S.C. 1324). 
  • This bill imposes penalties on organizations that fail to submit the required certification or are found to have violated federal laws.
  • The bill amends the Internal Revenue Code to deny tax exemptions for organizations that fail to meet the certification requirements or are determined by the Director of OMB to have violated federal law. Such organizations may reapply for tax-exempt status after one year. 
  • The Secretary of Homeland Security is required to develop a written strategy and best practices guide for nonprofit organizations to ensure compliance with federal law and to detect, deter, and report human trafficking and alien smuggling.
  • The Secretary must also publish information on nonprofit organizations' compliance with federal and state laws related to human trafficking and alien smuggling on the Department of Homeland Security website.
"The 'Protecting Federal Funds from Human Trafficking and Smuggling Act of 2023' is a critical step in our fight against human trafficking and smuggling," said Rep. Gooden. "By ensuring federal funds are not awarded to organizations that engage in these heinous activities, we can safeguard taxpayer dollars and hold bad actors accountable."

The Federation for American Immigration Reform, the largest immigration reform group in the country, issued the following statement on Rep. Gooden's legislation:
“Many of these open- borders nonprofits have been urging— outright demanding— that the government abandon all immigration enforcement. Now that the Biden Administration has consented, they are lining their coffers with government grants paid for by American taxpayers.  Even worse, their actions encourage more illegal immigration and contribute to the humanitarian disaster we are witnessing at the border. The Protecting Federal Funds from Human Trafficking and Smuggling Act would prevent federal contracts and grants being awarded to NGOs unless they can certify that they are not involved in human trafficking or smuggling. Further, it protects the American taxpayer by ensuring that tax dollars do not flow to organizations actively contributing to the border crisis. We applaud Congressman Gooden for his continued leadership on this issue. " - Dan Stein, FAIR President

Read the full bill here.