S 1340119th CongressIn Committee

Aid Accountability Act of 2025

Introduced: Apr 8, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

Aid Accountability Act of 2025 would add new penalties for violations of section 104(f) of the Foreign Assistance Act of 1961. The bill specifies consequences for federal employees who knowingly violate the subsection’s requirements (termination from federal service, a prohibition on future federal employment, and restitution equal to the illegally allocated funds), and it expands sanctions on recipients of federal funds (grantees, subgrantees, contractors, etc.) who violate those requirements (loss of eligibility for future federal funds). The Secretary of State would make final determinations of violations and associated penalties, with limited avenues for review, and would be required to report to Congress within 60 days describing the violation, involved parties, and steps to prevent recurrence. Final determinations would be subject to the procedures of the Congressional Review Act. In short, the act tightens enforcement and procedural control around violations of 104(f) by imposing stiff penalties, limiting review, and mandating congressional reporting.

Key Points

1Adds penalties for knowingly violating any requirement under section 104(f) of the Foreign Assistance Act, including termination from federal employment, prohibition on future federal employment, and restitution to the government equal to the illegally allocated funds (for individuals).
2Recipients of federal funds (grantees, subgrantees, contractors, etc.) who violate these requirements may not receive any federal funds in the future.
3The Secretary of State would make the final determination of violations and penalties, with such determinations largely exempt from review except by a federal court of competent jurisdiction; the Secretary must report to Congress within 60 days describing the violation, involved parties, and measures to prevent recurrence.
4Final determinations under this measure would be subject to the procedures in the Congressional Review Act (Chapter 8 of title 5), providing a limited post-determination review process.
5The act is titled the “Aid Accountability Act of 2025” and would amend existing law to create these penalties and procedures.

Impact Areas

Primary group/area affected- Federal employees who violate section 104(f) requirements (risk of termination, loss of eligibility for future federal work, and required restitution).- Recipients of federal funds (grantees, subgrantees, contractors, and other recipients) who violate the subsection (risk of losing eligibility for future federal funding).Secondary group/area affected- The Department of State, which would issue final determinations and oversee reporting to Congress.- Congress, which would receive mandatory post-determination reports within 60 days and would engage through the Congressional Review Act framework for final actions.- Federal agencies administering foreign assistance programs, which may experience increased compliance efforts and potential financial liability.Additional impacts- Deterrence and accountability: stronger penalties could deter misuse of foreign assistance funds and improve safeguarding of program integrity.- Due process considerations: the finality of determinations and limited avenues for review may raise concerns among affected individuals or entities about recourse.- Administrative and fiscal implications: potential restitution payments and increased enforcement activity; administrative processes to enforce terminations and fund denial.- Legal and fiscal risk management for recipients: recipients may need enhanced compliance programs to avoid loss of funding and penalties.

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