S. 426: Ensuring Accountability and Dignity in Government Contracting Act of 2025

The designated representative of the recipient must report to the contracting or grant office if the recipient or the recipient's subcontractor, subgrantee, or agent engages in trafficking activities. The report must include the circumstances surrounding such activities and any remedial actions taken. The agency's office of the inspector general must conduct an investigation of the reported activities and remedial actions and must also notify the agency head office and the agency suspension and debarment office if an investigation was not completed because the recipient acknowledged the activity and took appropriate remedial action.

Additionally, the bill specifies that (1) the recipient's failure to take appropriate remedial action constitutes grounds for imposing certain penalties, and (2) the agency must suspend grant, contract, or cooperative agreement payments to the recipient until the recipient takes appropriate remedial action (under current law, suspending payments is optional).