Welfare Fraud Deterrence and Recovery Act of 2026
Sponsored By: Senator Sen. Cotton, Tom [R-AR]
Introduced
Summary
Expanded penalties for welfare fraud. This bill would stiffen criminal and civil punishments, add immigration consequences for fraud convictions, and create a centralized Welfare Fraud Recovery Task Force to sue and recover lost funds.
Show full summary
- People convicted of welfare fraud would face tougher prison terms, including up to 15 years and a mandatory minimum of 2 years for noncitizens.
- Naturalized citizens could be denaturalized for welfare fraud and barred from readmission for 20 years, and the bill broadens grounds for deportation and expedited removal for fraud offenses.
- A Welfare Fraud Recovery Task Force would be able to bring civil suits, place recoveries into a dedicated fund that reimburses Federal programs and pays enforcement costs, and share recoveries with cooperating States who may receive up to 20%.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 1 benefits, 1 costs, 2 mixed.
New DOJ welfare fraud Task Force
If enacted, the Attorney General would create a Welfare Fraud Recovery Task Force at DOJ to investigate and sue over federal welfare fraud. The Task Force would be able to bring civil suits and seek penalties of $10,000–$20,000, treble damages (3×), and attorney fees. For noncitizens, courts would add a civil penalty equal to twice the damages plus interest. Recovered money would go into a Welfare Fraud Recovery Fund available to HHS without further appropriation, and whistleblowers could get 15–30% of recoveries. Civil suits could be filed up to the later of 15 years after the conduct or 3 years after discovery.
Tools for international fraud recovery
If enacted, the Task Force would be able to use mutual legal assistance, extradition, INTERPOL, and civil forfeiture to freeze, seize, and repatriate assets tied to cross‑border welfare fraud. Recovered foreign assets would go into the Welfare Fraud Recovery Fund. The Secretary of State could tie foreign aid to cooperation. The Task Force would report yearly to Congress on international requests and recoveries.
Harsher criminal and immigration penalties
If enacted, false‑statement or welfare‑related crimes tied to federal welfare programs could carry up to 15 years in prison. If the defendant is a noncitizen or naturalized citizen, prison would be at least 2 years; if the person obtained $100,000 or more, prison would be at least 5 years. Courts would be required to revoke naturalization when a naturalized person is convicted of defrauding public benefits for acts after naturalization, and a denaturalized person would be inadmissible for readmission for 20 years. The bill would also add many fraud convictions as grounds for deportation and expand expedited removal, including before release from incarceration.
State cooperation and fund penalties
If enacted, the Task Force would be able to enter into agreements with States to share records and run joint investigations. States that join joint investigations could receive up to 20% of recovered funds. If a State refuses to help, an agency could withhold up to 10% of that State's federal welfare funds until it complies.
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Sponsors & CoSponsors
Sponsor
Sen. Cotton, Tom [R-AR]
AR • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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