LETITIA Act
Sponsored By: Senator Cornyn, John [R-TX]
Introduced
Summary
This bill would create enhanced, tiered criminal penalties for public officials who commit bank, loan, or tax fraud. It would also raise maximum punishments for repeat offenders and require DOJ and the Treasury to issue coordinated enforcement guidance.
Show full summary
- Public officials would face a tiered penalty system for bank fraud and falsified loan or credit applications. Repeat offenders could be fined up to $2.0 million and imprisoned up to 40 years, and the bill broadens the definition of "state-chartered credit union" to include credit unions chartered under state, District of Columbia, or territorial law.
- Public officials who submit false tax filings would face stiffer criminal penalties. Repeat tax offenses could carry fines up to $200,000 and prison terms up to 10 years.
- Directs the Attorney General and the Secretary of the Treasury to issue directives within 90 days after enactment to federal law enforcement and task forces on investigating the updated offenses and on cross-agency collaboration.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 0 benefits, 3 costs, 1 mixed.
Higher bank fraud penalties for officials
If enacted, the bill would raise criminal penalties for bank fraud. For most people, the law would allow fines up to $1 million and prison up to 30 years. If the person is a public official at the time of the offense, first or second offenses would face fines up to $1.5 million and 1 to 35 years in prison. A third or later offense by a public official would face fines up to $2 million and 5 to 40 years in prison.
Higher loan fraud penalties for officials
If enacted, the bill would raise penalties for knowingly falsifying loan or credit applications. For most people, penalties would allow fines up to $1 million and prison up to 30 years. If the offender is a public official, a first or second offense would face fines up to $1.5 million and 1 to 35 years in prison. A third or later offense by a public official would face fines up to $2 million and 5 to 40 years in prison. The bill also clarifies that a "State-chartered credit union" includes credit unions chartered by States, DC, and U.S. commonwealths, territories, or possessions.
Stronger tax-filing penalties for officials
If enacted, the bill would raise fines and add minimum prison terms for public officials who falsify tax filings. For a first or second offense by a public official, fines would be up to $150,000 and prison from 6 months to 5 years. For a third or later offense by a public official, fines would be up to $200,000 and prison from 2 to 10 years. The bill defines who counts as a "public official" for these rules.
When new penalties and guidance start
If enacted, the bill would apply the new penalty rules only to convictions after the date of enactment. It would also require the Attorney General to issue a directive within 90 days explaining the changes to bank fraud and loan-fraud rules and how to investigate public officials. The Secretary of the Treasury would have 90 days, in consultation with the Attorney General, to issue a directive explaining changes to tax-filing rules and how Treasury investigators should work with DOJ.
Sponsors & CoSponsors
Sponsor
Cornyn, John [R-TX]
TX • R
Cosponsors
Sen. Fischer, Deb [R-NE]
NE • R
Sponsored 8/2/2025
Roger Wicker
MS • R
Sponsored 8/2/2025
Sen. Budd, Ted [R-NC]
NC • R
Sponsored 8/2/2025
Sen. Kennedy, John [R-LA]
LA • R
Sponsored 8/2/2025
Sen. Ricketts, Pete [R-NE]
NE • R
Sponsored 8/2/2025
Sen. Daines, Steve [R-MT]
MT • R
Sponsored 8/2/2025
Sen. Barrasso, John [R-WY]
WY • R
Sponsored 9/2/2025
Roll Call Votes
No roll call votes available for this bill.
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