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119-s-4024119th Congress

Federal Taxpayer Funds Protection and Clawback Act

Sponsored By: Senator Scott, Rick [R-FL]

Introduced

Summary

Mandatory rapid clawbacks and tighter oversight of federal funds passed through states. This bill would amend the False Claims Act and create a mandatory process to recover federal grant money that moves through State or local intermediaries.

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Bill Overview

Analyzed Economic Effects

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

Faster federal clawback for state funds

If enacted, the bill would require a State or State agency to send 100% of the federal funds at issue to the U.S. Treasury within 180 days after written notice in certain civil or qui tam cases. The money would be held in escrow until final judgment, settlement, and any appeals finish. If the government wins or settles, the escrowed funds would go to the federal general fund; if the case is dismissed or the defendant wins, the money would be returned to the State or agency. The bill would also clarify that a "claim" covers requests for federal money that pass through States or intermediaries and allow the Attorney General to treat States or local governments as "persons" in some False Claims Act actions, while preserving criminal and other remedies.

Stronger audit rules and recoupment for grant recipients

If enacted, each State would have to certify it will follow federal rules for inspections, audits, recordkeeping, and data sharing (including 2 C.F.R. part 200) as a condition of receiving federal awards. Federal agencies or pass-through entities could impose specific conditions and, if problems are not fixed, use remedies such as withholding payments, disallowing costs, suspending or terminating awards, or pursuing suspension or debarment. The bill would also require immediate recoupment of all federal funds from any recipient or subrecipient found, by final agency decision or court judgment, to have violated federal hiring rules (8 U.S.C. 1324a), and could permanently bar those entities after notice and a hearing.

Sponsors & CoSponsors

Sponsor

Scott, Rick [R-FL]

FL • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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