# The TRACKS Act: Tracking Federal Money Going to Foreign Countries

The TRACKS Act requires companies and organizations that receive federal government contracts or grants to report when they pass money along to entities in countries considered adversarial to the United States. Right now, when the government gives money to a contractor, that contractor can subcontract work to foreign companies without much transparency about where the money ends up. This bill closes that gap by demanding detailed reporting.

Here's how it works in practice: Imagine the Department of Defense awards a $10 million contract to an American tech company to develop software. That company might then hire a subcontractor in another country to do part of the work. Under current rules, there's limited visibility into these foreign subcontracts. The TRACKS Act says the American company must now report these arrangements, especially when the foreign subcontractor is located in a "country of concern"—a term already defined in existing law to include countries like China, Russia, Iran, and North Korea. The reporting requirement applies to subcontracts of any amount, so even small payments to foreign entities must be disclosed.

The practical impact is increased government oversight and public transparency. Citizens and lawmakers will be able to see exactly how much federal money is flowing to foreign entities and in which countries it's going. Within 90 days of the law passing, federal agencies must issue clear guidelines so that contractors, subcontractors, and government offices all follow the same reporting standards. This affects any company or organization that receives federal funding and uses foreign subcontractors, though the reporting burden falls primarily on those doing business with the government rather than on ordinary citizens.

TRACKS Act

Gallagher, Mike

Tracking Receipts to Adversarial Countries for Knowledge of Spending Act or the TRACKS Act This bill requires recipients of federal awards to collect and report data relating to subawards granted to entities located in a foreign country of concern. The Office of Management and Budget must issue guidance that establishes consistency for complying with this bill's requirements for agencies, prime award recipients, and covered subaward recipients, including establishing standards for disclosed data.