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119-hr-7891119th CongressWALLET

Student Aid Fraud Oversight and Accountability Act of 2026

Sponsored By: Representative Thompson, Glenn [R-PA-15]

In Committee

Summary

Identity-verification failures in federal student aid would become a top trigger for targeted oversight. This bill would require the Education Secretary to use an identity-fraud detection system to identify and categorize institutions that disburse Title IV funds to FAFSA applicants flagged for suspected identity fraud and to prioritize program reviews, while excluding schools that document pre-disbursement in-person or live, synchronous audiovisual verification and retain verification records.

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  • Students: Students whose FAFSA applications trigger the Secretary's identity-fraud detection system could face identity checks by their school before Title IV aid is disbursed, including in-person or live audiovisual verification.
  • Institutions: Colleges and career schools that disburse Title IV aid on or after October 1, 2026 to students whose FAFSAs show reasonable suspicion of identity fraud would be flagged and placed in a new priority review category unless they documented pre-disbursement verification.
  • Federal oversight: The Secretary may use these identifications to guide program reviews, audits, and investigations, but identification alone would not constitute a finding that a school violated Title IV rules.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Schools listed for suspected student identity fraud

This bill would require the Secretary of Education to identify schools that, on or after October 1, 2026, disbursed Title IV aid to any student whose FAFSA showed a reasonable suspicion of identity fraud. A school could avoid being identified if, before paying aid, it verified each student in person or by live, synchronous video, notified the Secretary, and kept a record of that verification. The identification could be used for program reviews, audits, and investigations, but being listed would not by itself mean the school broke Title IV rules.

Sponsors & CoSponsors

Sponsor

Thompson, Glenn [R-PA-15]

PA • R

Cosponsors

  • Rep. Foxx, Virginia [R-NC-5]

    NC • R

    Sponsored 3/18/2026

Roll Call Votes

No roll call votes available for this bill.

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