Section 1 Short title
This Act may be cited as the “Protecting Taxpayer Dollars from Taliban Theft Act”.
Protecting Taxpayer Dollars from Taliban Theft Act
A BILL
To direct the Secretary of State and the Administrator of the United States Agency for International Development to promulgate regulations to require all implementing partners receiving foreign assistance funds with activities in Afghanistan to submit a report on any payments or withholdings, including for taxes, fees, duties, and utilities, made to the Taliban, state-owned enterprises, or governing institutions in Afghanistan, and for other purposes.
Sec. 2 Findings
Congress makes the following findings:
A May 2024 report by the Special Inspector General for Afghanistan Reconstruction (SIGAR) found that the Department of State and the United States Agency for International Development (USAID) do not know the full scope of the taxes, fees, duties, and utilities paid to the Taliban using United States-funded assistance in Afghanistan.
Despite requirements in the Department of State’s Foreign Assistance Directive and USAID’s Acquisitions Regulations and Automatic Directives System, the Department of State and USAID do not include tax reporting clauses in all eligible awards globally, and even then, only require reporting on certain value-added tax and customs duties, rather than all forms of taxation.
Sec. 3 Statement of policy
It is the policy of the United States that United States taxpayer dollars should not be paid to the Taliban, nor should United States funding directly benefit the Taliban.
Sec. 4 Regulations to require certain reports from implementing partners
In general— Not later than 180 days after the date of the enactment of this Act—
the Secretary of State shall promulgate regulations to require all implementing partners receiving foreign assistance funds from the Department of State with activities in Afghanistan to submit to the Department a report on any payments or withholdings, including for taxes, fees, duties, and utilities, made to the Taliban, state-owned enterprises, or governing institutions in Afghanistan; and
the Administrator of USAID shall promulgate regulations to require all implementing partners receiving foreign assistance funds from USAID with activities in Afghanistan to submit to USAID a report on any payments or withholdings, including for taxes, fees, duties, and utilities, made to the Taliban, state-owned enterprises, or governing institutions in Afghanistan.
Existing contracts, grants, and other funding awards— Not later than 180 days after the date of the enactment of this Act, the Secretary of State and the Administrator of USAID shall amend existing contracts, grants, and other funding awards relating to Afghanistan to include provisions to prohibit implementing partners from making any payments or withholdings, including for taxes, fees, duties, and utilities, to the Taliban, state-owned enterprises, or governing institutions in Afghanistan.
Sec. 5 Report
In general— Not later than 1 year after the date of the enactment of this Act, and every 180 days thereafter, the Secretary of State and the Administrator of USAID shall submit to the appropriate congressional committees a report that includes a description of any payments or withholdings, including for taxes, fees, duties, and utilities, made by implementing partners to the Taliban, state-owned enterprises, or governing institutions in Afghanistan, including—
an identification of—
the implementing partner making the payment;
the state-owned enterprise or governing institution to which the payment was made;
the type of payment made; and
the amount of the payment.
Appropriate congressional committees defined— In this section, the term appropriate congressional committees means—
the Committee on Foreign Affairs of the House of Representatives; and
the Committee on Foreign Relations of the Senate.