State Department Raises Fines Because Inflation Hits Everything
Published Date: 1/10/2025
Rule
Summary
Starting January 10, 2025, the Department of State is raising its fines for breaking certain rules to keep up with inflation. This means anyone who gets fined after this date will pay a bit more, helping the penalties stay fair and effective. These changes follow government guidelines to update fines every year so they don’t lose value over time.
Analyzed Economic Effects
4 provisions identified: 0 benefits, 4 costs, 0 mixed.
Higher False-Claim Fines from Jan 10, 2025
If you are an individual or firm subject to Program Fraud Civil Remedies Act penalties, some fines increase on January 10, 2025. For example, the penalty figures in 22 CFR 35.3 change from $13,946 to $14,308 and from $418,405 to $429,275.
Higher ITAR/Arms-Export Penalties
Exporters and others subject to ITAR penalties will see larger maximum fines from January 10, 2025. Examples in 22 CFR 127.10 include increases to $1,271,078 (or the greater of twice the transaction value), $1,055,721 (or five times the prohibited payment), and $1,256,607.
Bumped Lobbying Penalties for Federal Recipients
Recipients of Federal contracts, grants, or loans who violate lobbying prohibitions or fail to disclose lobbying will face higher penalties starting January 10, 2025. For example, first-offender amounts change to $24,726 and other penalty figures rise up to $251,322 (previously $244,958).
Recordkeeping & Inspection Penalties Up
Companies or persons subject to the Chemical Weapons Convention rules will face higher penalties starting January 10, 2025. The penalty in 22 CFR 103.6(a)(1) rises from $46,901 to $48,119, and 103.6(a)(2) rises from $9,380 to $9,624.
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