What This Bill Does
This bill stops the federal government from giving money to certain organizations that the United States has put on sanctions lists (official lists of entities banned or restricted by the government). The bill also prevents any organization that receives federal money from using that money to buy from, invest in, or do business with these banned entities.
Who It Affects
Federal agencies, businesses and organizations that receive federal funds, and entities on various government sanctions lists maintained by the Treasury Department, Commerce Department, Federal Communications Commission and Defense Department.
Key Provisions
• Executive agencies cannot sign new contracts with, renew existing contracts with, or extend contracts with covered entities (Sec. 2(a))
• No federal money given to any entity can be used by that entity to purchase goods or services from, invest in, enter into contract with, or otherwise provide funding to a covered entity (Sec. 2(b))
• "Covered entities" include organizations on the SDN list (Specially Designated Nationals and Blocked Persons list) maintained by the Treasury Department (Sec. 2(c)(1)(A))
• "Covered entities" include Chinese military-industrial companies on lists maintained by the Treasury Department or Defense Department (Sec. 2(c)(1)(B) and (C))
• "Covered entities" include any organization owned or controlled by entities described above (Sec. 2(c)(1)(F))
What Changes
Federal agencies will no longer be able to do business with organizations on specified government sanctions lists. Organizations receiving federal money will be prohibited from using that money to conduct business with sanctioned entities.
Important Definitions
"Covered entity" means any organization listed on the Treasury Department's SDN list, the Non-SDN Chinese Military-Industrial Complex Companies List, Chinese military company lists from the Defense Department, the Commerce Department's Entity List, or the Federal Communications Commission's communications equipment and services list, plus any entity owned or controlled by these organizations.
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 143
To prohibit the provision of Federal funds to certain entities subject to
sanctions imposed by the United States.
IN THE SENATE OF THE UNITED STATES
JANUARY 30, 2023
Mr. RUBIO (for himself and Mrs. BLACKBURN) introduced the following bill;
which was read twice and referred to the Committee on Homeland Secu-
rity and Governmental Affairs
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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•S 143 IS
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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•S 143 IS
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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•S 143 IS
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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