S. 1340: Aid Accountability Act of 2025

The Aid Accountability Act of 2025 aims to introduce new penalties for violations related to federal assistance as outlined in the Foreign Assistance Act of 1961. The key points of the bill are as follows:

Penalties for Federal Employees

The bill specifies that if a federal employee knowingly violates the regulations in section 104(f) of the Foreign Assistance Act, the following penalties will apply:

• The employee shall be terminated from federal employment.
• They will not be eligible for any future employment with the federal government.
• They must repay the federal government for the amount of funds that were improperly allocated to the activity that violated the requirements.

Penalties for Recipients of Federal Funds

For grantees, subgrantees, contractors, or other entities that receive federal funds, the bill establishes that:

• If they violate the requirements outlined in section 104(f), they will not be able to receive any federal funds in the future.

Determination of Violations

The Secretary of State will be responsible for making a final determination on whether a violation has occurred and what penalties are to be imposed. This includes:

• The determination made by the Secretary of State is not subject to reversal, except by a federal court.
• Within 60 days of a determination, the Secretary is required to submit a report to Congress, which must include:
• A description of the violation.
• Identification of those involved in the violation.
• Measures to prevent future violations.

Final Determinations Review Process

Any final determination made by the Secretary of State about violations and penalties will be subject to the procedures of the Congressional Review Act, which provides a mechanism for Congress to review and possibly disapprove the actions taken.

Overall Objective

The overall goal of the Aid Accountability Act of 2025 is to enhance accountability in the use of federal funds and to ensure compliance with the established guidelines regarding foreign assistance, thereby preventing misuse of resources.

Relevant Companies

• None found