S. 226 — No Tax Dollars for Terrorists Act

This section establishes definitions for this Act, including (1) "appropriate congressional committees," meaning the Senate Committee on Foreign Relations, Senate Committee on Appropriations, House Committee on Foreign Affairs, and House Committee on Appropriations; and (2) "hawala," meaning a system of transferring money through a network of money lending brokers.

This section declares it the policy of the United States to oppose financial or material support to the Taliban by foreign countries and nongovernmental organizations (NGOs), particularly those receiving U.S. foreign assistance, and to review U.S. assistance provided to such entities. It requires the Secretary of State, not later than 30 days after enactment, to submit to the appropriate congressional committees a report identifying (1) countries and NGOs that have provided such support to the Taliban—including the amount of U.S. assistance each receives (if any), the amount of support provided, and Taliban usage thereof—and (2) U.S. efforts since August 2021 to oppose such support. It further directs the Secretary to develop, not later than 30 days after enactment, and implement, not later than 60 days after enactment, a strategy to discourage such support (including by leveraging U.S. foreign assistance); submit an initial report detailing the strategy and implementation plan upon strategy completion; and submit subsequent reports on implementation and impact, not later than 180 days after strategy completion and every 180 days thereafter.

This section directs the Secretary of State, in consultation with the Administrator of the United States Agency for International Development, to submit to the appropriate congressional committees, not later than 60 days after enactment of this Act, a report on U.S. government-funded direct cash assistance programs in Afghanistan from August 1, 2021, through 30 days after enactment. The report must (1) identify implementing partners and recipients, (2) describe payment methods, (3) describe how and where currency exchanges occur, (4) describe hawala use (i.e., informal money transfer networks) and related oversight mechanisms, and (5) describe program oversight, including how the Department of State prevents Taliban access to such assistance.

This section requires the Secretary of State, in consultation with the Administrator of the United States Agency for International Development and the Secretary of the Treasury, to submit to the appropriate congressional committees a report on the status of the Afghan Fund (i.e., entity holding Afghanistan's frozen foreign exchange reserves to enable humanitarian assistance without benefiting the Taliban) not later than 60 days after enactment of this Act and every 180 days thereafter. The report must include (1) a list of Taliban members working at or serving on the Supreme Council of Da Afghanistan Bank (Afghanistan's central bank); and (2) descriptions of (A) the Taliban's influence over the Bank, (B) the Afghan Fund's Board of Trustees (including trustees' vetting and selection process and U.S. agencies involved), (C) conditions for releasing Fund assets to the Bank, (D) the Board's process for approving Fund activities (including information sources, collection, and verification), and (E) controls to prevent diversion or misuse of funds by the Taliban or other actors upon disbursement.