TRACKS Act
- Bill Number
- H.R. 2917
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-04-14: Referred to the House Committee on Oversight and Government Reform.
- Last Updated
- 2025-12-05T22:00:26Z
AI-Generated Summary
Purpose of the Legislation
The TRACKS Act aims to increase transparency in how U.S. taxpayer funds are distributed through federal awards (like grants or contracts) that end up reaching adversarial foreign countries or entities. It focuses on tracking "subawards"—funds passed from initial recipients to others—to prevent unintended support for entities of national security concern.
Key Provisions
- Definition of Subaward: Adds a clear definition to the Federal Funding Accountability and Transparency Act of 2006. A subaward is any financial transaction (e.g., grant, contract, or agreement) passed from one recipient to a subrecipient to carry out part of a federal award. This includes chains of subawards but excludes direct payments to program beneficiaries.
- Reporting Requirements for Foreign Subawards:
- Defines a "covered subaward" as any subaward (of any amount) going to an entity in a "foreign country of concern" (e.g., countries like China, as defined in existing law) or a "foreign entity of concern" (e.g., certain foreign-controlled companies involved in sensitive technologies).
- Requires recipients of these covered subawards to report details in the same way as other subawards, using the existing federal transparency database.
- Guidance Issuance: Within 90 days of enactment, the Director of the Office of Management and Budget (OMB) must provide standardized guidance to ensure consistent reporting by federal agencies, initial award recipients, and foreign subaward recipients.
Significant Changes to Existing Law
- Expands the Federal Funding Accountability and Transparency Act of 2006 by requiring disclosure of subawards to foreign entities of concern, which were not previously mandated at this level of detail.
- Introduces specific tracking for adversarial foreign recipients, building on prior definitions from the 2021 National Defense Authorization Act, to close gaps in monitoring indirect fund flows.
Potential Impacts
- On Government Agencies: Increases administrative workload for agencies like the OMB and those managing federal awards, as they must enforce new reporting and guidance, potentially leading to better oversight of spending but higher compliance costs.
- On Citizens and Taxpayers: Enhances public access to information on how federal funds are used abroad, promoting accountability and reducing risks of funds supporting adversarial interests.
- On International Relations: Could deter U.S. funding partnerships with entities in countries like China or Russia, straining diplomatic or economic ties, while signaling stronger U.S. national security priorities.
Main Stakeholders Affected
- Federal Agencies and the OMB: Responsible for implementing reporting and issuing guidance.
- Prime Award Recipients: U.S.-based organizations or entities receiving initial federal funds, now required to monitor and report on downstream subawards.
- Subaward Recipients: Particularly foreign entities in adversarial countries, who must disclose details, facing potential barriers to receiving U.S. funds.
- U.S. Taxpayers and the Public: Benefit from greater transparency via public databases.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens existing transparency laws without creating new penalties, but relies on definitions from prior statutes, which could lead to challenges if those definitions are litigated (e.g., what qualifies as a "foreign entity of concern").
- Constitutional: No direct conflicts; it aligns with Congress's spending power under Article I, focusing on oversight rather than restricting speech or association.
- Political: Reflects bipartisan concerns over national security and foreign influence, potentially influencing future budgets and aid policies by highlighting risks in global funding flows.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Stefanik, Elise M. [R-NY-21]
Recent Actions
- 2025-04-14: Referred to the House Committee on Oversight and Government Reform.
- 2025-04-14: Introduced in House
- 2025-04-14: Introduced in House
Bill Versions
- Tracking Receipts to Adversarial Countries for Knowledge of Spending Act — issued 2025-04-14 — PDF (4 pages)