[Congressional Record Volume 171, Number 214 (Thursday, December 18, 2025)]
[Senate]
[Pages S8928-S8929]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4123. Ms. HIRONO submitted an amendment intended to be proposed to 
amendment SA 3951 submitted by Ms. Collins and intended to be proposed 
to the bill H.R. 4016, making appropriations for the Department of 
Defense for the fiscal year ending September 30, 2026, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:
       Sec. __. (a) Section 25F of the Internal Revenue Code of 
     1986 is amended--
       (1) in subsection (c), by striking paragraph (1) and 
     inserting the following:
       ``(1) Covered state.--
       ``(A) In general.--The term `covered State' means one of 
     the States, or the District of Columbia, that--
       ``(i) for a calendar year, voluntarily elects to 
     participate under this section and to identify scholarship 
     granting organizations in the State, in accordance with 
     subsection (g), and

[[Page S8929]]

       ``(ii) as applicable, agrees to make any payments described 
     in subparagraph (C) to the Secretary.
       ``(B) Exception for fraud.--The term `covered State' shall 
     not include any State that, for the preceding calendar year, 
     had identified a scholarship granting organization under 
     subsection (g) that, pursuant to an investigation described 
     in subsection (h)(2)(A), was subsequently determined by the 
     Treasury Inspector General for Tax Administration to have 
     committed fraud.
       ``(C) Clawback.--In the case of a State described in 
     subparagraph (B), the State shall make payment to the 
     Secretary in an amount equal to the total amount of qualified 
     contributions received by the scholarship granting 
     organization described in such subparagraph during any 
     calendar year in which the Treasury Inspector General for Tax 
     Administration has determined that such organization 
     committed fraud.'',
       (2) by redesignating subsection (h) as subsection (i), and
       (3) by inserting after subsection (g) the following new 
     subsection:
       ``(h) Review by Treasury Inspector General for Tax 
     Administration.--
       ``(1) Reports.--The Treasury Inspector General for Tax 
     Administration shall annually submit a report to the 
     applicable Congressional committees detailing the amount of 
     qualified contributions that each scholarship granting 
     organization in each State received during the preceding 
     calendar year pursuant to this section.
       ``(2) Investigations.--The Treasury Inspector General for 
     Tax Administration shall--
       ``(A) investigate cases of fraud committed by scholarship 
     granting organizations (including employees of such 
     organizations) that have received qualified contributions 
     pursuant to this section, and
       ``(B) annually submit a report to the applicable 
     Congressional committees regarding the cases described in 
     subparagraph (A).
       ``(3) Applicable congressional committees.--For purposes of 
     this subsection, the term `applicable Congressional 
     committees' means--
       ``(A) the Committees on Finance and Health, Education, 
     Labor, and Pensions of the Senate, and
       ``(B) the Committees on Ways and Means and Education and 
     the Workforce of the House of Representatives.''.
       (b) The amendments made by subsection (a) shall apply to 
     taxable years beginning after December 31, 2026.
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