Welfare Fraud Deterrence and Recovery Act of 2026
Sponsored By: Senator Cotton, Tom [R-AR]
Introduced
Summary
Tougher enforcement and bigger penalties for federal welfare fraud. The bill would expand criminal and civil punishments and create a Department of Justice Welfare Fraud Recovery Task Force to investigate, prosecute, and recover money stolen from federal welfare programs. It links fraud convictions to immigration consequences and sets rules for sharing and using recovered funds.
Show full summary
- Families and program beneficiaries: Recovered money would be deposited into a Welfare Fraud Recovery Fund to reimburse federal welfare programs and support fraud prevention and investigation, which could return funds to programs serving families and children.
- Noncitizens and naturalized citizens: The bill would expand deportability and denaturalization for welfare fraud and increase criminal exposure, with penalties up to 15 years in prison and mandatory minimums of 2 years in many noncitizen cases.
- States and partners: The Justice Department task force would work with states through memoranda of understanding and joint investigations. States can receive up to 20% of recoveries and face withholding of up to 10% if noncompliant.
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
4 provisions identified: 0 benefits, 2 costs, 2 mixed.
Tougher criminal and immigration penalties
If enacted, false statements about Federal welfare programs could carry up to 15 years in prison. The bill would require at least 2 years if the defendant is a noncitizen or a naturalized citizen, and at least 5 years if the defendant obtained $100,000 or more from the fraud. Naturalized citizens convicted for acts that began after naturalization would have their citizenship revoked and certificate canceled. A person denaturalized for welfare fraud would be inadmissible if they seek readmission within 20 years. Noncitizens convicted of fraud crimes would also be removable and could face faster, pre-release expedited removal.
Big civil fines and whistleblower rewards
If enacted, the Task Force could sue people who knowingly file false welfare claims or use false records. Courts could order a civil penalty of $10,000 to $20,000 per violation (adjusted for inflation) plus three times the damages and attorneys' fees. Noncitizens would face an extra civil penalty equal to two times the damages plus interest. Lawsuits could be filed up to the later of 15 years after the conduct or 3 years after the fraud was known. Whistleblowers who help recover money would get protections and a reward of 15% to 30% of amounts recovered.
Which welfare programs are covered
If enacted, the bill would define which programs count as a "Federal welfare program." It would explicitly include Child Care and Development Block Grant grants and the Child and Adult Care Food Program. It also defines who counts as a noncitizen under the law, what the Welfare Fraud Recovery Fund is, and what the Task Force is. These definitions decide who can be investigated or reimbursed under the bill.
New federal welfare fraud task force
If enacted, the Attorney General would set up a Welfare Fraud Recovery Task Force with HHS to investigate and recover money lost to fraud. Recovered funds would go into a new Welfare Fraud Recovery Fund and would be available to HHS without further appropriation to reimburse affected Federal welfare programs and cover Task Force costs. The Task Force could share up to 20% of joint recovery amounts with participating States and could ask agencies to withhold up to 10% of funds from a noncooperative State. It would use international legal tools and must report annually to Congress on foreign cooperation and recoveries. The bill authorizes "such sums as are necessary" for staff, technology, and international liaisons.
Sponsors & CoSponsors
Sponsor
Cotton, Tom [R-AR]
AR • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov