What This Bill Does
This bill stops federal agencies from giving money or contracts to certain entities that the United States government has put on sanctions lists. The bill also prevents organizations that receive federal money from doing business with these sanctioned entities.
Who It Affects
Federal agencies (departments and offices of the executive branch of government) and any organizations that receive federal funds.
Key Provisions
• Federal agencies cannot sign new contracts, renew contracts or extend contracts with covered entities (Sec. 2(a))
• No federal money given to any organization can be used by that organization to buy goods or services from, invest in, make contracts with, or send money to a covered entity (Sec. 2(b))
• A "covered entity" includes any organization on the Office of Foreign Assets Control's list of specially designated nationals and blocked persons, also known as the SDN list (Sec. 2(c)(1)(A))
• A "covered entity" includes Chinese military companies on specific government lists (Sec. 2(c)(1)(B) and (C))
• A "covered entity" includes any organization owned or controlled by, or under common ownership with, any of the above entities (Sec. 2(c)(1)(F))
What Changes
Federal agencies and federally-funded organizations will not be allowed to enter into business relationships with entities on designated government sanctions lists.
Important Definitions
The bill defines "executive agency" by referring to another federal law but does not define this term itself in the bill text.
Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION
H. R. 749
To prohibit the provision of Federal funds to certain entities subject to
sanctions imposed by the United States.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 2, 2023
Ms. TENNEY introduced the following bill; which was referred to the
Committee on Oversight and Accountability
A BILL
To prohibit the provision of Federal funds to certain entities
subject to sanctions imposed by the United States.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Turn Off Federal
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Funding of Threatening Entities that Thwart American
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Prosperity Act’’ or the ‘‘Turn OFF THE TAP Act’’.
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SEC. 2. PROHIBITION ON PROVIDING FEDERAL FUNDS TO
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CERTAIN ENTITIES SUBJECT TO SANCTIONS
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IMPOSED BY THE UNITED STATES.
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(a) PROHIBITION ON FEDERAL CONTRACTS.—The
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head of an executive agency may not enter into, renew,
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or extend a contract with a covered entity.
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(b) PROHIBITION
ON
PROVISION
OF
FEDERAL
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FUNDS.—No amounts provided by the Federal Govern-
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ment to any entity may be used by that entity to purchase
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goods or services from, invest in, enter into contract with,
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or otherwise provide funding to a covered entity.
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(c) DEFINITIONS.—In this section:
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(1) COVERED ENTITY.—The term ‘‘covered en-
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tity’’ means any of the following:
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(A) An entity on the list of specially des-
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ignated nationals and blocked persons main-
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tained by the Office of Foreign Assets Control
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of the Department of the Treasury (commonly
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referred to as the ‘‘SDN list’’).
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(B) An entity on the Non-SDN Chinese
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Military-Industrial Complex Companies List—
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(i) established pursuant to Executive
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Order 13959 (50 U.S.C. 1701 note; relat-
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ing to addressing the threat from securities
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investments that finance Communist Chi-
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nese military companies), as amended be-
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•HR 749 IH
fore, on, or after the date of the enactment
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of this Act; and
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(ii) maintained by the Office of For-
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eign Assets Control.
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(C) A Chinese military company on the list
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required by section 1260H of the William M.
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(Mac) Thornberry National Defense Authoriza-
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tion Act for Fiscal Year 2021 (Public Law
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116–283; 10 U.S.C. 113 note).
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(D) An entity on the Entity List main-
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tained by the Bureau of Industry and Security
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of the Department of Commerce and set forth
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in Supplement No. 4 to part 744 of title 15,
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Code of Federal Regulations.
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(E) An entity that produces equipment or
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services on the list of communications equip-
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ment and services that pose an unacceptable
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risk to the national security of the United
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States or the security and safety of United
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States persons maintained by the Federal Com-
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munications Commission under section 2 of the
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Secure and Trusted Communications Networks
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Act of 2019 (47 U.S.C. 1601).
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(F) Any entity that is owned or controlled
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by, or under common ownership or control with,
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an entity described in any of subparagraphs (A)
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through (E).
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(2) EXECUTIVE AGENCY.—The term ‘‘executive
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agency’’ has the meaning given the term in section
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133 of title 41, United States Code.
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Æ
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