1. Short title This Act may be cited as the Protecting Federal Funds from Human Trafficking and Smuggling Act of 2023 . 2. Mandatory disclosures of human trafficking and alien smuggling (a) Limitation on award of Federal funds (1) Future recipients Beginning not later than 120 days after the date of the enactment of this Act, no Federal funds may be awarded to a non-profit entity unless such entity submits to the Director of the Office of Management and Budget a certification that the entity is in compliance with Federal law with respect to human trafficking, alien smuggling, fraud, bribery, or gratuity and has not been convicted of an offense under section 274 of the Immigration and Nationality Act ( 8 U.S.C. 1324 ). (2) Current and prior recipients Not later than 60 days after the date of the enactment of this Act, each non-profit entity that is in receipt of awarded Federal funds as of the date of the enactment of this Act, or was awarded Federal funds prior to January 1, 2021, shall submit to the Director of the Office of Management and Budget a certification that the entity is in compliance with Federal law with respect to human trafficking, alien smuggling, fraud, bribery, or gratuity and has not been convicted of an offense under section 274 of the Immigration and Nationality Act ( 8 U.S.C. 1324 ). If the entity does not submit the certification, or is determined by the Director of the Office of Management and Budget to have violated section 274 of the Immigration and Nationality Act ( 8 U.S.C. 1324 ), the entity shall repay any such funds awarded. (b) Denial of tax exemption Section 503 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (g) Denial of exemption for not meeting certain certification requirement (1) In general An organization described in section 501(c) shall not be exempt from taxation under section 501(a) if such organization does not submit the certification required pursuant to section 2(a) of the Protecting Federal Funds from Human