Restrictions on uses of funds; protection of parental rights

Title I of the Child Abuse Prevention and Treatment Act (42 U.S.C. 5101 et seq.) is amended by adding at the end the following: 115. Restrictions on uses of funds; protection of parental rights (a) In general In administering, enforcing, or awarding funds under this title, the Secretary shall not treat affirmation of a child’s sex by a parent, legal guardian, caregiver, foster parent, or prospective foster or adoptive parent as child abuse, emotional abuse, neglect, maltreatment, abandonment, contrary to the child’s best interests, contrary to a child’s health, safety, or welfare, or an indication of parental unfitness or incapacity. (b) Condition on receipt of funds; rights protected As a condition of receiving funds under this title, including any grants, subgrants, or other allocations, a covered entity shall protect the following rights and shall not discriminate or take an adverse State action against an individual because such individual exercises, has exercised, or intends to exercise any such right: (1) A parent or legal guardian has the right to affirm a child's sex, including the right for the child not to be subjected by any covered entity, even if the child is in the legal or physical custody of the covered entity, to— (A) the provision, facilitation, funding, authorization, or permission of any sex-rejecting intervention for the child; (B) the use of pronouns or titles that do not correspond to the child's sex, without the express written consent of the child's parent or legal guardian; or (C) if the child is 4 years of age or older, being permitted or assigned the use of sleeping quarters (other than sleeping quarters shared only with a sibling), bathrooms, showers, locker rooms, changing rooms, or any other area in which the child would be in a state of undress, with individuals of the opposite sex. (2) A parent or legal guardian has the right not to be required to consent to the child being subjected to any of the actions described in subparagraph (A), (B), or (C) of paragraph (1) as a condition of custody or return of the child, or visitation, communication, or reunification with the child. (3) A parent, legal guardian, caregiver, foster parent, prospective foster parent, or prospective adoptive parent has a right to be free from discrimination or adverse State action for affirming or intending to affirm a child’s sex. (4) A child has the right not to be subjected by any covered entity, even if the child is in the legal or physical custody of the covered entity, to any sex-rejecting intervention. (c) Prohibited uses of funds The Secretary shall ensure that no funds provided under this title, including any grants, subgrants, and other allocations to States, Indian Tribes or Tribal organizations, and public and private agencies and organizations, are used for any of the following: (1) Conducting, supporting or promoting any program, project, curriculum, guidance, protocol, or training that supports or promotes a principle that— (A) sex-rejecting interventions are in the best interest of the child or consistent with the health, safety, and welfare of the child; (B) affirmation of a child’s sex by a parent, legal guardian, caregiver, foster parent, or prospective foster or adoptive parent is child abuse, emotional abuse, neglect, maltreatment, abandonment, contrary to a child's best interests, contrary to a child's health, safety, or welfare, or an indication of parental unfitness or incapacity; or (C) a child’s expression of psychological distress, including a statement or report of suicidal ideation, related to the affirmation of a child’s sex is grounds for removal of the child from the home, intervention by a child welfare agency, or any other adverse State action. (2) Conducting, supporting, or promoting any adverse State action. (3) Providing, facilitating, funding, authorizing, or permitting any sex-rejecting intervention for a child, or referring a child for a sex-rejecting intervention. (4) Removing children from parents, legal guardians, or caregivers and placing children into any home, institution, or other placement setting that facilitates or provides sex-rejecting interventions, or without parental consent, uses pronouns or titles that do not correspond to the child’s sex. (d) Obligations on recipients and subrecipients A State, Indian Tribe or Tribal organization, or public or private agency or organization receiving an award under this title, or a recipient of a subgrant of such an award, may not use such award for programs, trainings, or other activities that violate any of the restrictions on uses of funds set forth in subsection (b) or (c). (e) Withholding and recoupment for noncompliance (1) Authority to withhold and recover funds (A) In general If the Secretary determines that any State, Indian Tribe or Tribal organization, or public or private agency or organization, including any recipient of a subgrant, has violated the conditions under subsection (b) or used funds in violation of subsection (c), the Secretary shall disallow the costs associated with such violation, withhold funds as described in subparagraph (B) or recover funds as described in subparagraph (C), as applicable, and impose the applicable penalty amount determined under paragraph (3). (B) Withholding of funds In the case of a violation described in subparagraph (A), the Secretary shall withhold from the recipient any future payments or funding tranches not yet disbursed until the Secretary certifies that the violation has been remediated and that the recipient has adopted policies and procedures sufficient to prevent recurrence. (C) Recovery of funds In the case of a violation described in subparagraph (A), the Secretary shall recover grant funds already disbursed to the recipient, and such disbursed funds shall constitute a debt to the Federal Government as of the date of the Secretary's written determination of noncompliance, collectible in accordance with parts 200 and 300 of title 2, Code of Federal Regulations (or any successor regulations), including through administrative offset against any other Federal payments owed to the entity under this title or any other Federal program administered by the Department of Health and Human Services. (D) Basis for determination In making a determination under subparagraph (A), a violation described in any of clauses (xxvi) through (xxviii) of section 106(b)(2)(B) includes a State's failure to— (i) include in its State plan under section 106(b), the certification and assurance required under such clauses; or (ii) adequately enforce, or maintain in effect, programs certified under any such clause. (2) Subgrants The direct recipient of an award under this title shall be responsible for ensuring that recipients of subgrants awarded by such direct recipient complies with this section, and any violation by a recipient of such a subgrant shall be attributed to the direct recipient of the award from the Secretary. (3) Penalties (A) In general The penalty amount applicable to a recipient of a grant under this title awarded by the Secretary and who has violated subsection (b) or (c) shall be as follows: (i) For the first finding of such a violation by the recipient within a grant period, 5 percent of the total funds provided to the recipient under this title for the applicable grant period. (ii) For the second finding of such a violation by the recipient within a grant period, 10 percent of the total funds provided to the recipient under this title for the applicable grant period. (iii) For the third or any subsequent finding of violation by the recipient within a grant period, 15 percent of the total funds provided to the direct recipient under this title for the applicable grant period. (B) Limitation In no case shall the total penalty imposed against a single direct recipient for all findings within a single grant period exceed 15 percent of the total funds provided to the recipient for the applicable grant period. (C) Required penalty The penalties described in this paragraph are mandatory and the Secretary has no discretion to waive or reduce such a penalty except through the appeals process under subparagraph (D). (D) Appeals A direct recipient of a grant who is assessed a penalty under this paragraph may file an appeal of such penalty with the Secretary. Appeals from any determination of noncompliance or penalty amount under this subsection shall be governed by part 16 of title 45 Code of Federal Regulations (or any successor regulations). The filing of an appeal shall not stay the withholding of future payments or funding tranches pending resolution of the appeal, but any amounts recovered by the Secretary from already-disbursed funds shall not be collected pending final resolution of the appeal. (4) Regulations The Secretary shall issue such regulations as are necessary and appropriate to carry out this subsection, including regulations establishing procedures for written notice of noncompliance, opportunity to respond, and administrative review prior to any final determination under paragraph (1). (5) Clarifications Nothing in this subsection shall be construed to limit the authority of the Secretary to pursue any other remedy available under part 200 or 300 of title 2, Code of Federal Regulations (or any successor regulations) or any other applicable Federal law with respect to violations of any other provision of this title, or to limit the Secretary's authority to impose remedies in addition to the penalties prescribed in paragraph (3) for violations of subsection (b) or (c) where the Secretary determines that additional remedies are necessary to protect Federal funds..