Protecting Federal Funds from Human Trafficking and Smuggling Act of 2025

The "Protecting Federal Funds from Human Trafficking and Smuggling Act of 2025" aims to prevent federal funds from being awarded to non-profit entities involved in human trafficking or alien smuggling. It mandates that both future and current recipients of federal funds, as well as those awarded funds prior to January 1, 2025, submit a certification of compliance with federal laws regarding human trafficking, alien smuggling, fraud, bribery, or gratuity. Failure to submit this certification or a determination by the Director of the Office of Management and Budget that an entity has violated alien smuggling laws (8 U.S.C. 1324) will result in significant penalties. Such entities will be required to repay any federal funds received and will face the denial of their tax-exempt status under Section 501(c) of the Internal Revenue Code, with reapplication possible only after one year. Additionally, the bill directs the Secretary of Homeland Security to develop strategies and best practices for non-profits to detect, deter, and report human trafficking and alien smuggling. The Department of Homeland Security must also publish information on its website regarding non-profit violations and improve cooperation with law enforcement. Finally, the legislation removes a provision from existing law that allowed certain basic street outreach, crisis counseling, and referral services to be provided to individuals regardless of their immigration status.