FRAUD Act
Sponsored By: Representative Stauber, Pete [R-MN-8]
Introduced
Summary
Mandatory state reporting and penalties for fraud involving federal funds. This bill would require designated state officials to report written fraud warnings about covered federal funds to the FBI within 180 days and make federal funding contingent on certification of compliance.
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- State chief executives must certify that covered officials substantially complied with reporting requirements during the previous fiscal year to be eligible for federal funds.
- Covered officials, including governors, heads of state agencies that manage federal funds, and state inspectors general, would face criminal fines or up to 10 years in prison for knowingly failing to report or for obstructing fraud investigations. Federal agency heads could debar convicted officials from overseeing federal funds.
- A "fraud warning" must be a written allegation supported by documentary evidence alleging misuse, theft, diversion, or improper expenditure of at least $250,000 in covered federal funds. "Covered federal funds" includes grants, cooperative agreements, reimbursement programs, direct appropriations, and other federal funding mechanisms.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
New fraud-reporting rules for state officials
This bill would require certain state officials to report a written fraud warning of at least $250,000 in federal funds to the FBI within 180 days of receiving it. Covered officials would include governors, state agency heads who manage federal funds, and state inspectors general. A governor would have to certify yearly that covered officials substantially complied for the State to be eligible for federal funds for a fiscal year. The bill would also create a federal crime for knowing failures to report or for obstructing fraud investigations, punishable by fines under Title 18 and up to 10 years in prison. After conviction, the federal agency that oversees the funds could bar that official from overseeing those funds.
Sponsors & CoSponsors
Sponsor
Stauber, Pete [R-MN-8]
MN • R
Cosponsors
Rep. Emmer, Tom [R-MN-6]
MN • R
Sponsored 7/2/2026
Rep. Finstad, Brad [R-MN-1]
MN • R
Sponsored 7/2/2026
Rep. Fischbach, Michelle [R-MN-7]
MN • R
Sponsored 7/2/2026
Rep. Hamadeh, Abraham J. [R-AZ-8]
AZ • R
Sponsored 7/14/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov