Stop Auto Fraud Act of 2026
Sponsored By: Representative Gillen, Laura [D-NY-4]
Introduced
Summary
Criminalizes staged motor vehicle collisions and false insurance claims. This bill would add a new federal offense that targets schemes that cause, stage, fabricate, or simulate crashes and then submit false claims for medical treatment, repairs, lost wages, or benefits.
Show full summary
- People who knowingly stage or fake crashes and submit fraudulent insurance claims would face fines and prison time, with penalties up to 10 years, up to 20 years if the crime causes serious bodily injury, and any term of years or life if death results.
- The offense explicitly covers false claims for medical treatment, repair costs, lost wages, and lost benefits under an insurance policy.
- Any fines collected under the new offense would be deposited into the federal Highway Trust Fund to support highway-related financing.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Crash-fraud fines fund highways
If enacted, the bill would require that fines collected under the new motor vehicle collision fraud offense be deposited into the Highway Trust Fund established by section 9503(a) of the Internal Revenue Code. The rule applies only to fines from that new offense. The bill specifies this deposit would begin upon enactment. The law does not set a dollar amount; the funding effect would depend on how much is collected.
New crime for staged car crashes
If enacted, the bill would create a federal crime for knowingly causing, staging, fabricating, or simulating a motor vehicle accident and then filing a false insurance claim. The rule covers claims for medical treatment, repair costs, lost wages, and lost benefits. Violators would face fines under title 18 and up to 10 years in prison. Penalties would rise to up to 20 years if the fraud causes serious bodily injury (per 18 U.S.C. §1365) and to any term of years or life if it causes death. The change would take effect upon enactment.
Sponsors & CoSponsors
Sponsor
Gillen, Laura [D-NY-4]
NY • D
Cosponsors
Rep. Nehls, Troy E. [R-TX-22]
TX • R
Sponsored 9/3/2026
Rep. Gottheimer, Josh [D-NJ-5]
NJ • D
Sponsored 9/3/2026
Rep. Fong, Vince [R-CA-20]
CA • R
Sponsored 9/3/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov