Bill Overview
Title: Protecting Federal Funds from Human Trafficking and Smuggling Act of 2022
Description: This bill prohibits a nonprofit entity from receiving federal funds unless the entity certifies compliance with certain federal laws (e.g., laws with respect to human trafficking and smuggling). It 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.
Sponsors: Rep. Gooden, Lance [R-TX-5]
Target Audience
Population: People served by federally funded nonprofits impacted by trafficking and smuggling laws
Estimated Size: 3000000
- Nonprofit entities that receive federal funds are directly affected, as they must certify compliance with laws concerning human trafficking and smuggling.
- Approximately 1.3 million nonprofit organizations are registered in the U.S. according to the National Center for Charitable Statistics; however, not all receive federal funds.
- Internationally, NGOs that receive U.S. aid could also be impacted, especially those working in regions with high risks of trafficking and smuggling.
- There are approximately 30 million nonprofit organizations worldwide, but a much smaller percentage will be receiving U.S. federal funds directly.
- Any nonprofit failing to comply might lose funding, potentially impacting services they provide to vulnerable populations, affecting millions globally.
Reasoning
- This policy will primarily impact nonprofit organizations receiving federal funds, requiring them to comply with laws against human trafficking and smuggling or risk losing funding.
- Not all nonprofits receive federal funds, so only a segment of the nonprofit community will be directly affected.
- Many nonprofits provide critical services, including to vulnerable populations, so changes in funding or administrative burden could impact service delivery and the wellbeing of those served.
- Considering the budget outlined, the impact may be selective and focused on high-risk entities or those already suspected of non-compliance.
- Estimates suggest millions of people are served by nonprofits receiving federal aid in the U.S., but the direct impact will vary greatly by community and organization.
Simulated Interviews
Nonprofit Manager (New York, NY)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I believe the policy is necessary to ensure funds are not misused in ways that could support trafficking.
- The compliance requirements add administrative work, which strains our already tight budget.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Nonprofit Volunteer (Austin, TX)
Age: 28 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- Our nonprofit might struggle with the certification process, which could disrupt our operations temporarily.
- I hope this policy helps more funding reach organizations truly committed to tackling trafficking.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Social Worker (Los Angeles, CA)
Age: 45 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 12/20
Statement of Opinion:
- I'm worried about nonprofits losing funding; many clients depend on their services for survival.
- Additional bureaucracy might divert resources away from direct services.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 3 |
Policy Analyst (Chicago, IL)
Age: 52 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- It's a positive step for accountability and could ensure more funds reach intended services.
- Ensuring compliance could be very challenging and cost-intensive for smaller organizations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 7 | 8 |
Retired (Birmingham, AL)
Age: 67 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 14/20
Statement of Opinion:
- This policy reassures me that my donations align better with supported causes.
- I am concerned about how this affects funding stability for small nonprofits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 3 |
Nonprofit Executive Director (Seattle, WA)
Age: 41 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- While I support the end goals, in the short term, this puts a lot of pressure on staff to maintain compliance.
- Hopefully, this will filter out organizations not genuinely working against trafficking.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
IT Specialist (Portland, OR)
Age: 30 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- The increased demand for compliance might mean more work for my field, which is positive.
- The decision could slow down nonprofits in their core activities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Researcher (Miami, FL)
Age: 39 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 4.0 years
Commonness: 9/20
Statement of Opinion:
- Nonprofits will need data to meet compliance, which might increase demand for research collaborations.
- There's concern about smaller organizations being overwhelmed.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Student (Denver, CO)
Age: 27 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 11/20
Statement of Opinion:
- I'm hopeful this leads to better-managed resources and effectiveness in our programs.
- Certification might slow down new initiatives due to heightened scrutiny.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Small Business Owner (Rural Nebraska)
Age: 60 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 7/20
Statement of Opinion:
- This might hold nonprofits more accountable, but the added bureaucracy might deter good projects.
- Small towns like mine rely heavily on the work of these nonprofits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Cost Estimates
Year 1: $5000000 (Low: $4000000, High: $6000000)
Year 2: $5000000 (Low: $4000000, High: $6000000)
Year 3: $5000000 (Low: $4000000, High: $6000000)
Year 5: $5000000 (Low: $4000000, High: $6000000)
Year 10: $5000000 (Low: $4000000, High: $6000000)
Year 100: $5000000 (Low: $4000000, High: $6000000)
Key Considerations
- The cost of enforcement versus the potential savings from enhanced compliance needs careful balance.
- Ensuring that compliance requirements are not too burdensome on small nonprofits could be critical to maintain services to vulnerable populations.
- Potential impact on international aid projects handled by NGOs abroad may present logistical and operational challenges.