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119-hr-10922119th CongressWALLET

Fraud Accountability and Mandatory Sentencing Act

Sponsored By: Representative Cline, Ben [R-VA-6]

Introduced

Summary

Tougher civil and criminal penalties for fraud in major federal and State benefit programs. This bill would make State officers civilly liable if they knowingly fail to stop fraud in covered benefits and would impose loss‑based mandatory minimum prison terms for many fraud offenses.

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  • State officers and employees would face civil suits by the U.S. Attorney General for failing to act on known fraud. Damages are capped by aggregate loss: up to the loss when the loss is $500,000 or less, and up to three times the loss when it exceeds $500,000. No immunity is provided for actions taken within the scope of office.
  • People who commit covered fraud offenses would face mandatory minimum sentences under a new Section 3559A. The bill sets six loss tiers with floors from 1 year for losses under $40,000 up to 20 years for losses of $100 million or more, allows life as the statutory maximum, bars probation, and requires at least double the term for successive violations.
  • The rule covers a wide range of programs. “Covered benefit” lists SNAP, OASDI (Social Security Title II), State unemployment (Title III), SSI, Medicare (Title XVIII), Medicaid (Title XIX), the Child Care and Development Block Grant, and other programs that provide funds to States.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Federal suits and damages for fraud

If enacted, the bill would let the U.S. Attorney General sue a State officer or employee in federal court for failing to prevent covered‑benefit fraud. For aggregate losses of $500,000 or less, damages could not exceed the loss. For aggregate losses above $500,000, damages could not exceed three times the loss. The bill would also remove immunity for acts taken in the scope of office in these suits. These rules would start upon enactment.

How fraud loss is measured

If enacted, the bill would define “loss” for fraud cases as the largest of three measures: actual loss, intended loss, or the fraudster’s gain. Actual loss would mean reasonably foreseeable monetary harm. Intended loss would include money harm the actor tried to cause, even if that harm was unlikely or impossible. Those rules would start upon enactment and would guide how penalties and damages are calculated.

State officers must stop fraud

If enacted, the bill would make it unlawful for a State officer or employee who knows about fraud in a covered benefit and who has the power to stop it to fail or refuse to act. The duty applies only when both knowledge of the fraud and the ability to prevent continued fraud are present. This duty would start upon enactment and would not change who qualifies for benefits or how much they get.

Which benefits are covered

If enacted, the bill would define which federal and State benefit programs count as “covered benefits” for its fraud rules. That list would include SNAP, Social Security (old‑age, survivors, and disability), State unemployment insurance, Supplemental Security Income, Medicare, Medicaid and waivers, and the Child Care and Development Block Grant. It would also include any other program that provides funds to States. This change would start upon enactment and would not itself change who qualifies or how much people receive.

Sponsors & CoSponsors

Sponsor

Cline, Ben [R-VA-6]

VA • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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