Access to information

(a) Defined term In this section, the term E-Verify purposes means— (1) preventing identity theft, fraud, and misuse of E-Verify; and (2) administering and enforcing the provisions of this Act and section 274A of the Immigration and Nationality Act (8 U.S.C. 1324a) governing employment eligibility verification. (b) Federal records Notwithstanding any other provision of law, including section 6103 of the Internal Revenue Code of 1986, with respect to Employer Identification Number information, the Secretary of Homeland Security shall have access to relevant Federal records described in clauses (i) through (iii) of section 274A(d)(3)(G) of the Immigration and Nationality Act (8 U.S.C. 1324a(d)(3)(G)) for E-Verify purposes. (c) Federal cooperation Any Federal agency or other Federal Government entity possessing records described in subsection (a) shall provide such assistance and cooperation as the Secretary of Homeland Security may request to resolve initial verification inquiries, further action required results, cases in continuance, and final nonconfirmation results relating to such records or to otherwise improve the accuracy of E-Verify. (d) State cooperation (1) Driver’s license information Notwithstanding section 2721 of title 18, United States Code, or any other law, a State department of motor vehicles may provide information described in section 274A(d)(3)(G)(iv) of the Immigration and Nationality Act, as added by section 2(a) of this Act, obtained by the department, including an individual’s photograph, to the Secretary of Homeland Security for E-Verify purposes. (2) Information sharing agreements The Secretary of Homeland Security shall maximize enrollment of States and other non-Federal Government entities possessing information described in section 274A(d)(3)(G)(iv) of the Immigration and Nationality Act in information sharing agreements that provide access to such information to the Secretary for E-Verify purposes and fully implement such agreements. (3) Conditions for federal grant funding (A) Economic development assistance grants Section 3(4) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3122(4)) is amended by adding at the end the following: (C) Grants conditioned on information sharing The term eligible recipient does not include, with respect to grants authorized under section 201, 203, 205, or 207— (i) a State that— (I) does not provide access to driver’s license or identity card information (including photographs) maintained by the State department of motor vehicles to the Secretary of Homeland Security for E-Verify purposes (as defined in section 10(a) of the Mandatory E-Verify Act of 2026); or (II) does not provide such assistance and cooperation as the Secretary may request to resolve initial verification inquiries, further action required results, cases in continuance, and final nonconfirmation results relating to such records; or (ii) a city, or other political subdivision of a State described in clause (i), including a special purpose unit of such State or political subdivision engaged in economic or infrastructure development activities, or a consortium of such political subdivisions.. (B) Community development block grants Section 104 of the Housing and Community Development Act of 1974 (42 U.S.C. 5304) is amended by adding at the end the following: (n) Protections for authorized workers (1) In general Amounts appropriated to carry out this title may not be obligated or expended for any State (or any unit of general local government that is a political subdivision of such State) that— (A) does not provide access to driver’s license or identity card information (including photographs) maintained by the State department of motor vehicles to the Department of Homeland Security for E-Verify purposes (as defined in section 10(a) of the Mandatory E-Verify Act of 2026); or (B) does not provide such assistance and cooperation as the Secretary may request to resolve initial verification inquiries, further action required results, cases in continuance, and final nonconfirmation results relating to such records. (2) Returned amounts (A) State If a State receives funding under this title during any period in which the State is ineligible to receive such funding pursuant to paragraph (1), the Secretary shall— (i) direct the State to immediately return to the Secretary any such funding; and (ii) reallocate amounts returned under clause (i) for grants under this title to other States that are not ineligible for such funding. (B) Unit of general local government If a unit of general local government receives funding under this title during any period in which it is ineligible for such funding pursuant to paragraph (1)— (i) the local government shall return any such amounts to the Secretary; and (ii) the Secretary shall reallocate such amounts for grants under this title to States and other units of general local government that are not ineligible for such funding. (C) Reallocation rules In reallocating amounts pursuant to subparagraphs (A) and (B), the Secretary— (i) shall apply the relevant allocation formula under subsection (b), with all entities ineligible for funding pursuant to paragraph (1) excluded; and (ii) shall not be subject to the rules for reallocation under subsection (c).. (C) Effective date The amendments made by this paragraph shall take effect on the date that is 1 year after the date of the enactment of this Act.