2 CFR § 175.10 - Statutory requirement.
In each agency award (i.e., grant or cooperative agreement) under which funding is provided to a private entity, section 106(g) of the TVPA, as amended, requires the agency to include a condition that authorizes the agency to terminate the award, without penalty, if the recipient or a subrecipient -
(a) Engages in severe forms of trafficking in persons during the period of time that the award is in effect;
(b) Procures a commercial sex act during the period of time that the award is in effect; or
(c) Uses forced labor in the performance of the award or subawards under the award.