S. 1434: Tracking Receipts to Adversarial Countries for Knowledge of Spending Act

This bill, referred to as the Tracking Receipts to Adversarial Countries for Knowledge of Spending Act or TRACKS Act, aims to enhance transparency regarding U.S. taxpayer dollars sent to foreign entities considered adversarial or of concern. Here are the primary points of what the bill proposes:

Purpose

The main goal of the TRACKS Act is to track and report federal funds that are awarded to entities in certain countries or foreign entities deemed adversarial. It seeks to ensure that the flow of taxpayer money is monitored and disclosed, particularly when it is sent outside the United States.

Amendments to Existing Legislation

The bill proposes amendments to the Federal Funding Accountability and Transparency Act of 2006. Key changes include:

• Definition of Subawards: The bill defines "subaward" as any financial transaction, such as a grant or contract, made by a primary recipient of federal funds to another entity to carry out project work. This definition includes multiple tiers of subawards but excludes payments made directly to beneficiaries of a federal program.
• Reporting Requirements: It establishes new reporting requirements for covered subawards, which are defined as those provided to:
  • Entities located in foreign countries of concern, as defined by existing national security legislation.
  • Foreign entities of concern, under the same definition.
• Data Disclosure: Recipients of covered subawards will be required to disclose certain data regarding these subawards in a manner similar to existing reporting requirements for federal funds.
• Guidance for Compliance: The bill mandates that the Director of the relevant federal agency issue guidance within 90 days after enactment. This guidance will outline consistent procedures for compliance by federal agencies, prime award recipients, and those who receive covered subawards.

Impact of the Legislation

By implementing these tracking and reporting measures, the TRACKS Act aims to provide greater accountability and visibility over how taxpayer money is allocated and spent, particularly in relation to foreign entities that may pose risks to national security. The bill focuses on improving oversight and ensuring that federal funds are used responsibly and transparently, especially in contexts involving foreign adversaries.

Relevant Companies

• None found