Restrictions on use of Community Development Block Grant funds and Federal funding by tax-exempt organizations

(a) Restriction on CDBG funding Section 105 of the Housing and Community Development Act of 1974 (42 U.S.C. 5305) is amended by adding at the end the following: (i) Prohibition on monetary contributions or in-Kind goods or services for non-Citizens A recipient of a grant under this title may not use any grant funds to provide monetary contributions or in-kind goods or services to— (1) any alien (as defined in section 101(a) of the Immigration and Nationality Act (8 U.S.C. 1101(a))) who is unlawfully present in the United States; (2) any alien paroled into the United States under section 212(d)(5) or 236(a)(2)(B) of the Immigration and Nationality Act (8 U.S.C. 1182(d)(5), 1226(a)(2)(B)); (3) any alien granted asylum under section 208 of the Immigration and Nationality Act (8 U.S.C. 1158); (4) any alien granted temporary protected status under section 244 of the Immigration and Nationality Act (8 U.S.C. 1254a); (5) any alien granted deferred action or deferred enforced departure, including pursuant to the memorandum of the Department of Homeland Security entitled Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children issued on June 15, 2012; or (6) any alien granted withholding of removal under section 241(b)(3) of the Immigration and Nationality Act (8 U.S.C. 1231(b)(3)).. (b) Restriction on use of Federal funding by tax-Exempt organizations (1) In general Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (s) Prohibition of support to certain non-citizens Notwithstanding subsection (a), an organization which is described in subsection (c)(3) shall not be exempt from taxation under subsection (a) for any taxable year if, at any time during such taxable year, such organization uses any Federal grant, appropriation, or other Federal funding to provide monetary support, services, or in-kind contributions to— (1) any alien (as defined in section 101(a) of the Immigration and Nationality Act) who is unlawfully present in the United States, (2) any alien granted parole under section 212(d)(5) or 236(a)(2)(B) of the Immigration and Nationality Act, (3) any alien granted temporary protected status under section 244 of the Immigration and Nationality Act, (4) any alien granted deferred action or deferred enforced departure, including pursuant to the memorandum of the Department of Homeland Security entitled Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children issued on June 15, 2012, or (5) any alien granted withholding of removal under section 241(b)(3) of the Immigration and Nationality Act.. (2) Effective date The amendment made by this subsection shall apply to taxable years beginning after December 31, 2024.