July 13, 2026
Ms. Ernst introduced the following bill; which was read the first time
July 14, 2026
Read the second time and placed on the calendar
To combat fraud in Federal programs, and for other purposes.
Section 1. Short title
This Act may be cited as the Protecting American Taxpayers Act
.
Sec. 2. Table of contents
The table of contents for this Act is as follows:
Division A Recovering stolen funds
Title I Improper Payments
Sec. 1101. Short title
This title may be cited as the Stop Fraud Before Payment Act
.
Sec. 1102. Preventing fraud in child care services
(a) State plan
Section 658E of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858c) is amended—
(1)
in subsection (c)(2), by adding by striking subparagraph (S) and inserting the following:
(S) Attendance-based billing
The plan shall include an assurance that the lead agency will provide payment under this subchapter to a child care provider based on recorded attendance, rather than enrollment alone, in the program of the provider.; and
(2)
by adding at the end the following:
(e) Timing of payment
Nothing in this subchapter shall be construed to require a lead agency to make a payment to a child care provider prior to the provision of child care services. The lead agency shall make a payment under this subchapter to such a provider as reimbursement, in a timely manner, and on the basis of the provider's provision of child care services.
(b) Audits
Section 658K of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858i) is amended by adding at the end the following:
(c) Federal audits
Each child care provider that receives a payment under this subchapter shall prepare a record of attendance in the provider's program and of the provider's provision of child care services, and maintain the record for a period of 7 years after the date of preparation of such record. The provider shall make such records available for audits by the Secretary, the Attorney General, and the Comptroller General of the United States.
Sec. 1103. Identifying fraud in health care services
(a) Medicare
(1) In general
The Secretary of Health and Human Services shall, not later than 60 days after making a determination described in paragraph (2), notify the Inspector General of the Department of Health and Human Services of such determination.
(2) Determination
A determination described in this paragraph is a determination that—
(A)
the aggregate amount paid under the Medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) for an item or service or items or services in a zip code and county or county equivalent increased by more than 100 percent in a single year; or
(B)
the number of provider of services or suppliers (as those terms are defined under section 1861 of the Social Security Act (42 U.S.C. 1395x)) who received payment for items or services furnished under the Medicare program increased in a zip code and county or county equivalent by more than 100 percent in a single year.
(b) Qualified health plans under the American Health Benefit Exchanges
(1) In general
The Secretary of Health and Human Services shall, not later than 60 days after making a determination described in paragraph (2), notify the Inspector General of the Department of Health and Human Services of such determination.
(2) Determination
A determination described in this paragraph is a determination that—
(A)
the aggregate amount paid under all qualified health plans offered through the American Health Benefit Exchanges established under sections 1311 and 1321 of the Patient Protection and Affordable Care Act (42 U.S.C. 18031, 18041) for an item or service or items or services in a zip code and county or county equivalent increased by more than 100 percent in a single year; or
(B)
the number of providers of services who received payment for items or services under such qualified health plans increased in a zip code and county or county equivalent by more than 100 percent in a single year.
(3) Requirement to submit certain information
Annually, each American Health Benefit Exchange established under section 1311 or 1321 of the Patient Protection and Affordable Care Act (42 U.S.C. 18031, 18041) shall collect from each qualified health plan offered through such an Exchange, and submit to the Secretary of Health and Human Services, the information necessary for the Secretary to make a determination described in paragraph (2).
(c) Medicaid and CHIP
(1) Medicaid
Section 1902 of the Social Security Act (42 U.S.C. 1396a) is amended—
(A)
in subsection (a)—
(i)
in paragraph (88), by striking ; and
and inserting a semicolon;
(ii)
in paragraph (89), by striking the period at the end and inserting ; and
; and
(iii)
by adding after paragraph (89) the following new paragraph:
(90)
provide that, not later than 60 days after making a determination described in subsection (yy), the State agency shall notify the Secretary and the Inspector General of the Department of Health and Human Services of such determination.; and
(B)
by adding at the end the following new subsection:
(yy) Determination of certain increased payments or providers in a single year
For purposes of subsection (a)(90), a determination described in this subsection is a determination that—
(1)
the aggregate amount paid under the State plan under this title, or under a waiver of such plan, for an item or service or items or services in a zip code and county or county equivalent increased by more than 100 percent in a single year; or
(2)
the number of providers of items or services who received payments for items or services furnished in a zip code and county or county equivalent under such State plan or waiver increased by more than 100 percent in a single year.
(2) CHIP
Section 2107(e)(1) of the Social Security Act (42 U.S.C. 1397gg(e)(1)) is amended by—
(A)
redesignating subparagraphs (I) through (W) as subparagraphs (J) through (X), respectively; and
(B)
inserting after subparagraph (H) the following subparagraph:
(I)
Subsections (a)(90) and (yy) of section 1902 (relating to determination of certain increased payments or providers in a single year and notification to the Secretary and the Inspector General of Health and Human Services).
(d) Audit by the Inspector General of Health and Human Services
Not later than 5 years after the date of enactment of this Act, and annually thereafter, the Inspector General of Health and Human Services shall—
(1)
identify, based on the results of any notifications received under subsection (a) or (b), or under section 1902(a)(90) of the Social Security Act (42 U.S.C. 1396a(a)(90)) or section 2107(e)(1)(I) of such Act (42 U.S.C. 1397gg(e)(1)(I)), any program or State plan or waiver (in the case of Medicaid and the State Children's Health Insurance Program) under which the aggregate amount paid for an item or service or items or services in a zip code and county or county equivalent or the number of providers of items or services or suppliers, as applicable, who received payments for items or services furnished in a zip code and county or county equivalent increased by at least 400 percent during the preceding 5-year period; and
(2)
audit any such program, State plan, or waiver.
(e) Effective date
(1) Medicare
Subsection (a) shall take effect on the date that is 180 days after the date of enactment of this Act.
(2) Qualified health plans under the American Health Benefit Exchanges
Subsection (b) shall take effect on the date that is 180 days after the date of enactment of this Act.
(3) Medicaid and CHIP
(A) In general
Except as provided in subparagraph (B), the amendments made by subsection (c) shall take effect on the date that is 180 days after the date of enactment of this Act.
(B) Delay permitted if State legislation required
In the case of a State plan approved under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) or title XXI of such Act (42 U.S.C. 1397aa et seq.) which the Secretary of Health and Human Services determines requires State legislation (other than legislation appropriating funds) in order for the plan to meet the additional requirements imposed by the amendments made by subsection (c), the State plan shall not be regarded as failing to comply with the requirements of such title XIX or XXI (as applicable) solely on the basis of the failure of the plan to meet such additional requirements before the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that ends after the 1-year period beginning with the date of enactment of this section. For purposes of the preceding sentence, in the case of a State that has a 2-year legislative session, each year of the session is deemed to be a separate regular session of the State legislature.
Sec. 1104. Recovering improper payments
(a) Guidance
The Director of the Office of Management and Budget shall prescribe guidance to all agencies (as defined in section 551 of title 5, United States Code) to ensure that all improper payments (as defined in section 3351 of title 31, United States Code) are recovered.
(b) Annual Inspector General report
Section 3353(a)(1) of title 31, United States Code, is amended—
(1)
in subparagraph (A), by striking and
at the end;
(2)
in subparagraph (B)(iv), by striking the period at the end and inserting ; and
; and
(3)
by adding at the end the following:
(C)
include in each report submitted under subparagraph (B) the amount of improper payments recovered by the executive agency in the fiscal year covered by the report.
Title II Assisting Small Businesses Not Fraudsters
Sec. 1201. Short title
This title may be cited as the Assisting Small Businesses Not Fraudsters Act
.
Sec. 1202. Assistance prohibited after fraud conviction
(a) In general
Section 16 of the Small Business Act (15 U.S.C. 645) is amended by adding at the end the following:
(h) Financial assistance prohibition
(1) In general
An associate of a small business concern who is finally convicted of any crime involving or relating to financial misconduct or a false statement with respect to a covered loan or grant shall be ineligible to receive any financial assistance from the Administrator, other than financial assistance under section 7(b).
(2) Business concerns
A small business concern that has as an associate an individual subject to paragraph (1) shall be ineligible to receive any financial assistance from the Administrator, other than financial assistance under section 7(b).
(3) Definitions
In this subsection:
(A) Associate
The term associate means, with respect to a small business concern—
(i)
an officer, director, or owner of more than 20 percent of the equity of, or a key employee of, such small business concern;
(ii)
any entity not less than 20 percent owned or controlled by one or more individuals referred to in clause (i); and
(iii)
any other individual or entity in control of or controlled by such small business concern, except for a licensed small business investment company (as defined in section 103(3) of the Small Business Investment Act of 1958 (15 U.S.C. 662(3))).
(B) Covered loan or grant
The term covered loan or grant means—
(i)
a loan made under—
(I)
paragraph (36) or (37) of section 7(a); or
(II)
section 7(b) in response to the COVID–19 pandemic; or
(ii)
a grant made under—
(I)
section 5003 of the American Rescue Plan Act of 2021 (15 U.S.C. 9009c); or
(II)
section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (15 U.S.C. 9009a).
(C) Finally convicted
The term finally convicted means, with respect to a person, that such person has been convicted of an offense and such conviction—
(i)
has not been appealed and is no longer appealable because the time for taking an appeal has expired; or
(ii)
has been appealed and the appeals process for such conviction is completed.
(b) Applicability
Subsection (h) of section 16 of the Small Business Act (15 U.S.C. 645), as added by subsection (a) of this section, shall not apply to any contract or other agreement entered into by the Government prior to the date of enactment of this Act.
Title III Welfare Abuse and Laundering Zillions
Sec. 1301. Short title
This title may be cited as the Welfare Abuse and Laundering Zillions Act
or the WALZ Act
.
Sec. 1302. Requiring investigations of certain payment increases under State programs funded by the Department of Health and Human Services
In the case that the total amount paid to providers of services and suppliers under a State program that receives Federal financial assistance administered by the Secretary of Health and Human Services during any 6-month period increases by 10 percent or more as compared to that amount during the prior 6-month period, the Inspector General of the Department of Health and Human Services shall open an investigation into such program.
Title IV Returning Unspent COVID Funds
Sec. 1401. Short title
This title may be cited as the Returning Unspent COVID Funds Act
.
Sec. 1402. Rescission of unused COVID funding
(a) In general
Subject to subsection (b), effective on the date of enactment of this Act, the unobligated balances of amounts made available under the following are rescinded:
(1)
The American Rescue Plan Act of 2021 (Public Law 117–2; 135 Stat. 4).
(2)
Division M or N of the Consolidated Appropriations Act, 2021 (Public Law 116–260; 134 Stat. 1182).
(3)
The Paycheck Protection Program and Health Care Enhancement Act (Public Law 116–139; 134 Stat. 620).
(4)
The CARES Act (Public Law 116–136; 134 Stat. 281).
(5)
The Families First Coronavirus Response Act (Public Law 116–127; 134 Stat. 178).
(6)
The Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 (Public Law 116–123; 134 Stat. 146).
(b) National security waiver
Amounts described in subsection (a) that were made available for an account or program shall not be rescinded if, not later than 60 days after the date of enactment of this Act, the President submits to the Committee on the Budget of the House of Representatives and the Committee on Finance of the Senate a notice waiving the rescission under subsection (a) with respect to the account or program.
(c) Use for deficit reduction
Amounts rescinded under subsection (a) shall remain in the general fund of the Treasury for the sole purpose of deficit reduction.
Title V Bonuses for cost-cutters
Sec. 1501. Short title
This title may be cited as the Bonuses for Cost-Cutters Act of 2026
.
Sec. 1502. Cost savings enhancements
(a) In general
(1) Definitions
Section 4511 of title 5, United States Code, is amended—
(A)
in the section heading, by striking Definition
and inserting Definitions
; and
(B)
in subsection (a)—
(i)
by striking this subchapter, the term
and inserting the following: “this subchapter—
(1)
the term;
(ii)
by striking the period at the end and inserting ; and
; and
(iii)
by adding at the end the following:
(2)
the term surplus salaries and expenses funds means amounts made available for the salaries and expenses account, or equivalent account, of an agency—
(A)
that are identified by an employee of the agency under section 4512(a) as unnecessary;
(B)
that the Inspector General of the agency or other agency employee designated under section 4512(b) determines are not required for the purpose for which the amounts were made available;
(C)
that the Chief Financial Officer of the agency determines are not required for the purpose for which the amounts were made available; and
(D)
the rescission of which would not be detrimental to the full execution of the purposes for which the amounts were made available.
(2) Authority
Section 4512 of title 5, United States Code, is amended—
(A)
in subsection (a)—
(i)
in the matter preceding paragraph (1), by inserting or identification of surplus salaries and expenses funds
after mismanagement
;
(ii)
in paragraph (2), by inserting or identification
after disclosure
; and
(iii)
in the matter following paragraph (2), by inserting or identification
after disclosure
; and
(B)
by adding at the end the following:
(c)
(1)
The Inspector General of an agency or other agency employee designated under subsection (b) shall refer to the Chief Financial Officer of the agency any potential surplus salaries and expenses funds identified by an employee that the Inspector General or other agency employee determines meet the requirements under subparagraphs (B) and (D) of section 4511(a)(2), along with any recommendations of the Inspector General or other agency employee.
(2)
(A)
If the Chief Financial Officer of the agency determines that potential surplus salaries and expenses funds referred under paragraph (1) meet the requirements under section 4511(a)(2), except as provided in subsection (d), the head of the agency shall transfer the amount of the surplus salaries and expenses funds from the applicable appropriations account to the general fund of the Treasury.
(B)
Any amounts transferred under subparagraph (A) shall be deposited in the Treasury and used for deficit reduction, except that in the case of a fiscal year for which there is no Federal budget deficit, such amounts shall be used to reduce the Federal debt (in such manner as the Secretary of the Treasury considers appropriate).
(3)
The Inspector General or other agency employee designated under subsection (b) for each agency and the Chief Financial Officer for each agency shall issue standards and definitions for purposes of making determinations relating to potential surplus salaries and expenses funds identified by an employee under this subsection.
(d)
(1)
The head of an agency may retain not more than 10 percent of amounts to be transferred to the general fund of the Treasury under subsection (c)(2).
(2)
Amounts retained by the head of an agency under paragraph (1) may be—
(A)
used for the purpose of paying a cash award under subsection (a) to 1 or more employees who identified the surplus salaries and expenses funds; and
(B)
to the extent amounts remain after paying cash awards under subsection (a), transferred or reprogrammed for use by the agency, in accordance with any limitation on such a transfer or reprogramming under any other provision of law.
(e)
(1)
Not later than October 1 of each fiscal year, the head of each agency shall submit to the Secretary of the Treasury a report identifying the total savings achieved during the previous fiscal year through disclosures of possible fraud, waste, or mismanagement and identifications of surplus salaries and expenses funds by an employee.
(2)
Not later than September 30 of each fiscal year, the head of each agency shall submit to the Secretary of the Treasury a report that, for the previous fiscal year—
(A)
describes each disclosure of possible fraud, waste, or mismanagement or identification of potentially surplus salaries and expenses funds by an employee of the agency determined by the agency to have merit; and
(B)
provides the number and amount of cash awards paid by the agency under subsection (a).
(3)
The head of each agency shall include the information described in paragraphs (1) and (2) in each budget request of the agency submitted to the Office of Management and Budget as part of the preparation of the budget of the President submitted to Congress under section 1105(a) of title 31.
(4)
The Secretary of the Treasury shall submit to the Committee on Appropriations of the Senate, the Committee on Appropriations of the House of Representatives, and the Government Accountability Office an annual report on Federal cost saving and awards based on the reports submitted under paragraphs (1) and (2).
(f)
The Director of the Office of Personnel Management shall—
(1)
ensure that the cash award program of each agency complies with this section; and
(2)
submit to Congress an annual certification indicating whether the cash award program of each agency complies with this section.
(g)
Not later than 3 years after the date of enactment of this subsection, and every 3 years thereafter, the Comptroller General of the United States shall submit to Congress a report on the operation of the cost savings and awards program under this section, including any recommendations for legislative changes.
(3) Technical and conforming amendment
The table of sections for subchapter II of chapter 45 of title 5, United States Code, is amended by striking the item relating to section 4511 and inserting the following:
(4) Sunset
Effective 6 years after the date of enactment of this Act—
(A)
section 4511 of title 5, United States Code, is amended—
(i)
in the section heading, by striking Definitions
and inserting Definition
; and
(ii)
in subsection (a)—
(I)
in paragraph (1), by striking ; and
and inserting a period;
(II)
by striking this subchapter—
and all that follows through the term agency means
and inserting this subchapter, the term agency means
; and
(III)
by striking paragraph (2);
(B)
section 4512 of title 5, United States Code, is amended—
(i)
in subsection (a)—
(I)
in the matter preceding paragraph (1), by striking or identification of surplus salaries and expenses funds
;
(II)
in paragraph (2), by striking or identification
; and
(III)
in the matter following paragraph (2), by striking or identification
; and
(ii)
by striking subsections (c) through (g); and
(C)
the table of sections for subchapter II of chapter 45 of title 5, United States Code, is amended by striking the item relating to section 4511 and inserting the following:
(b) Officers eligible for cash awards
(1) In general
Section 4509 of title 5, United States Code, is amended to read as follows:
4509. Prohibition of cash award to certain officers
(a) Definition
In this section, the term agency—
(1)
has the meaning given the term in section 551(1); and
(2)
includes an entity described in section 4501(1).
(b) Prohibition
An officer may not receive a cash award under this subchapter if the officer—
(1)
serves in a position at level I of the Executive Schedule;
(2)
is the head of an agency; or
(3)
is a commissioner, board member, or other voting member of an independent establishment.
(2) Technical and conforming amendment
The table of sections for subchapter I of chapter 45 of title 5, United States Code, is amended by striking the item relating to section 4509 and inserting the following:
Title VI Improper payments transparency
Sec. 1601. Short title
This title may be cited as the Improper Payments Transparency Act
.
Sec. 1602. Including improper payment information in President's budget submission
Section 1105(a) of title 31, United States Code, is amended by adding at the end the following:
(39)
information with respect to improper payment (as such term is defined in section 3351) amounts and rates for programs and activities at each executive agency required to submit improper payment reports under subchapter IV of chapter 33, including—
(A)
a narrative description, including a detailed explanation with respect to why any improper payment amounts and rates occurred and trends of—
(i)
each program and activity with improper payment amounts and rates that have increased or decreased on average over the previous 3 years; and
(ii)
each program and activity whose improper payment amounts and rates did not change over such years; and
(B)
any corrective actions, including any such action in any corrective action plan under section 3352(d), with respect to such programs and activities that are incomplete, and steps the executive agency will take to address issues relating to improper payment amounts and rates.
Division B Protecting taxpayers
Title I Strengthening TANF Program Integrity
Sec. 2101. Strengthening program integrity by measuring improper payments
(a) Applicability of improper payments laws
Section 404 of the Social Security Act (42 U.S.C. 604) is amended by adding at the end the following:
(l) Applicability of improper payments laws
(1) In general
The Improper Payments Information Act of 2002 and the Improper Payments Elimination and Recovery Act of 2010 shall apply to a State in respect of the State program funded under this part and any other State program funded with qualified State expenditures (as defined in section 409(a)(6)(B)(i)) in the same manner in which such Acts apply to a Federal agency.
(2) Regulations
Within 2 years after the date of the enactment of this subsection, the Secretary shall prescribe regulations governing how a State reviews and reports improper payments under the State program funded under this part and any other State program funded with qualified State expenditures (as defined in section 409(a)(6)(B)(i)).
(b) Report to Congress
Within 1 year after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit to the Congress a written report that contains a plan to reduce or eliminate improper payments made by States under part A of title IV of the Social Security Act within 10 years.
Sec. 2102. Prohibition on State diversion of Federal funds to replace State spending
Section 408(a) of the Social Security Act (42 U.S.C. 608(a)) is amended by adding at the end the following:
(13) Non-supplantation requirement
Funds made available to a State under this part shall be used to supplement, not supplant, State general revenue spending on activities described in section 404.
Sec. 2103. Aligning and improving data reporting
(a) Requirement that States report full-population data
Section 411(a)(1) of the Social Security Act (42 U.S.C. 611(a)(1)) is amended—
(1)
by striking subparagraph (B);
(2)
by striking (1) General reporting requirement.—
; and
(3)
by—
(A)
redesignating—
(i)
subparagraph (A) as paragraph (1);
(ii)
clauses (i) through (xvii) of subparagraph (A) as subparagraphs (A) through (Q), respectively;
(iii)
subclauses (I) through (V) of clause (ii) as clauses (i) through (v), respectively;
(iv)
subclauses (I) through (VII) of clause (xi) as clauses (i) through (vii), respectively; and
(v)
subclauses (I) through (V) of clause (xvi) as clauses (i) through (v), respectively; and
(B)
moving each such redesignated provision 2 ems to the left.
(b) Report on participation in work activities
Section 411(a)(1) of the Social Security Act (42 U.S.C. 611(a)(1)), as amended by subsection (a)(3) of this section, is further amended by striking subparagraphs (K) and (L) and inserting the following:
(K)
The work eligibility status of each individual in the family, and—
(i)
in the case of each work-eligible individual (as defined in the regulations promulgated pursuant to section 407(i)(1)(A)(i)) in the family, the number of hours (including zero hours) per month of participation in work activities (as defined in section 407(d)); and
(ii)
in the case of each individual in the family who is not a work-eligible individual (as so defined), the reason for that status.
(L)
For each work-eligible individual (as so defined) and each adult in the family who did not participate in work activities (as so defined) during a month, the reason for the lack of participation.
(c) Reporting of information on employment and earnings outcomes
Section 411(c) of the Social Security Act (42 U.S.C. 611(c)) is amended to read as follows:
(c) Reporting of information on employment and earnings outcomes
The Secretary, in consultation with the Secretary of Labor, shall determine the information that is necessary to compute the employment and earnings outcomes and the statistical adjustment model for the employment and earnings outcomes required under section 407, and each eligible State shall collect and report that information to the Secretary.
Sec. 2104. Technical corrections to data exchange standards to improve program coordination
(a) In general
Section 411(d) of the Social Security Act (42 U.S.C. 611(d)) is amended to read as follows:
(d) Data exchange standards for improved interoperability
(1) Designation
The Secretary shall, in consultation with an interagency work group established in consultation with the Office of Management and Budget and considering State government perspectives, by rule, designate data exchange standards to govern, under this part—
(A)
necessary categories of information that State agencies operating programs under State plans approved under this part are required under applicable Federal law to electronically exchange with another State agency; and
(B)
Federal reporting and data exchange required under applicable Federal law.
(2) Requirements
The data exchange standards required by paragraph (1) shall, to the extent practicable—
(A)
incorporate a widely accepted, non-proprietary, searchable, computer-readable format, such as the eXtensible Markup Language;
(B)
contain interoperable standards developed and maintained by intergovernmental partnerships, such as the National Information Exchange Model;
(C)
incorporate interoperable standards developed and maintained by Federal entities with authority over contracting and financial assistance;
(D)
be consistent with and implement applicable accounting principles;
(E)
be implemented in a manner that is cost-effective and improves program efficiency and effectiveness; and
(F)
be capable of being continually upgraded as necessary.
(3) Rule of construction
Nothing in this subsection shall be construed to require a change to existing data exchange standards found to be effective and efficient.
(b) Effective date
Not later than the date that is 24 months after the date of the enactment of this section, the Secretary of Health and Human Services shall issue a proposed rule that—
(1)
identifies federally required data exchanges, include specification and timing of exchanges to be standardized, and address the factors used in determining whether and when to standardize data exchanges; and
(2)
specifies State implementation options and describes future milestones.
Title II Restriction on United States assistance for foreign agents
Sec. 2201. Short title
This title may be cited as the No Funding for Foreign Agents Act
.
Sec. 2202. Definitions
In this title:
(1) Agent of a covered foreign principal
The term agent of a covered foreign principal means—
(A)
any person who acts as an agent, representative, employee, or servant, or in any other capacity at the order, request, or under the direction or control, of a covered foreign principal or of a person any of whose activities are directly or indirectly supervised, directed, controlled, financed, or subsidized in whole or in major part by a covered foreign principal, whether or not that person represents the interests of such foreign principal before any agency or official of the Government of the United States or engages in any official activity within the United States;
(B)
any duly accredited diplomatic or consular officer of the government of a covered nation who is so recognized by the Department of State;
(C)
any official of the government of a covered nation whose duties are known by the Department of State;
(D)
any member of the staff of, or any person employed by, a duly accredited diplomatic or consular officer of the government of a covered nation who is so recognized by the Department of State;
(E)
any agent of a covered foreign principal who engages in lobbying activities and has registered or would be required to register under section 4 of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1603); and
(F)
any person who has provided notice to the Attorney General as an agent of a foreign government or would be required to provide such notice under section 951 of title 18, United States Code.
(2) Controlled
The term controlled has the meaning given the term control
in section 80.208 of title 31, Code of Federal Regulations, provided that any officer, executive, proprietor, director, partner, senior manager, or combination of agents who together own a majority or a dominant minority of the total outstanding voting interest, of an entity shall be understood to control it for purposes of this Act.
(3) Covered foreign principal
The term covered foreign principal means—
(A)
the government of a covered nation and any political party in a covered nation;
(B)
a person in a covered nation, unless such person—
(i)
(I)
is an individual citizen of, and domiciled within, the United States; and
(II)
is not an agent of a covered foreign principal; or
(ii)
(I)
is not an individual;
(II)
is organized under, or created by, the laws of the United States or of any State or other place subject to the jurisdiction of the United States;
(III)
has its principal place of business within the United States; and
(IV)
is not controlled by an agent of a covered foreign principal;
(C)
a partnership, association, corporation, organization, or other combination of persons organized under the laws of, or having its principal place of business in, a covered nation; or
(D)
any organization named in section 1003 of the Anti-Terrorism Act of 1987 (22 U.S.C. 5202).
(4) Covered nation
The term covered nation means the Democratic People’s Republic of Korea, the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Islamic Emirate of Afghanistan, Burkina Faso, Myanmar (formerly known as Burma
), Chad, Republic of the Congo, Equatorial Guinea, Eritrea, Haiti, Laos, Libya, Mali, Niger, Sierra Leone, Somalia, South Sudan, Sudan, Syria, or Yemen.
(5) Direct financial assistance
The term direct financial assistance means financial assistance from the Government of the United States that is received by an entity selected by the Government or a pass-through entity, including any contract, grant, loan, cooperative agreement, or other agreement.
(6) Entity
The term entity means any partnership, association, corporation, organization, or other combination of individuals.
(7) Indirect financial assistance
The term indirect financial assistance means financial assistance from the Government of the United States that is received by a service provider which is paid by means of a voucher, certificate, or other means of Government-funded payment provided to a beneficiary who is able to choose a service provider.
(8) Pass-through entity
The term pass-through entity means any entity, including a nonprofit or nongovernmental organization, acting under a contract, grant, loan, cooperative agreement, or other agreement with the Government of the United States or with a State or local government in the United States that—
(A)
accepts direct financial assistance as a primary recipient or grantee; and
(B)
distributes such assistance to other organizations that provide services.
(9) Person
The term person means any individual, partnership, association, corporation, organization, or other combination of individuals.
Sec. 2203. Restriction on United States financial assistance
Any entity that is controlled by an agent of a covered foreign principal is ineligible to receive direct financial assistance or indirect financial assistance.
Sec. 2204. Rule of construction
Nothing in this title may be construed to terminate—
(1)
United States financial assistance to entities that are not controlled by an agent of a covered foreign principal; or
(2)
any foreign assistance (as defined in section 634(b)(1) of the Foreign Assistance Act of 1962 (22 U.S.C. 2394(b)(1))).
Title III Opposing international support for the Taliban
Sec. 2301. Short title
This title may be cited as the No Tax Dollars for Terrorists Act
.
Sec. 2302. Strategy to oppose foreign assistance by foreign countries and nongovernmental organizations to the Taliban
(a) Statement of policy
It is the policy of the United States—
(1)
to oppose the provision of foreign assistance by foreign countries and nongovernmental organizations to the Taliban, particularly those countries and organizations that receive United States-provided foreign assistance; and
(2)
to review United States-provided foreign assistance to such foreign countries and nongovernmental organizations that have provided foreign assistance to the Taliban.
(b) Report
Not later than 180 days after the date of the enactment of this Act, the Secretary of State shall submit a report to the appropriate congressional committees that identifies, to the extent possible—
(1)
foreign countries and nongovernmental organizations that have provided foreign assistance to the Taliban, including—
(A)
the amount of United States-provided foreign assistance each country or organization receives, if any;
(B)
the amount of foreign assistance each country or organization has provided to the Taliban; and
(C)
a description of how the Taliban has utilized such foreign assistance; and
(2)
efforts the United States has taken since August 2021 to oppose foreign countries and nongovernmental organizations from providing foreign assistance to the Taliban, particularly those foreign countries and organizations that receive United States-provided foreign assistance.
(c) Strategy and reports
(1) In general
Not later than 180 days after the date of the enactment of this Act, the Secretary of State shall develop and implement a strategy to discourage foreign countries and nongovernmental organizations from providing foreign assistance to the Taliban. The strategy shall include efforts to support Afghan women and girls who are suffering under Taliban edicts, in a way that does not support the Taliban.
(2) Reports
(A) Initial report
Not later than the date on which the strategy required under paragraph (1) is completed, the Secretary of State shall submit a report to the appropriate congressional committees detailing the strategy and a plan for its implementation.
(B) Subsequent reports
Not later than 180 days after the date on which the strategy required under paragraph (1) is completed, and every 180 days thereafter for the following 5 years, the Secretary of State shall submit a report to the appropriate congressional committees describing the implementation of the strategy, including the impact of the strategy in discouraging foreign countries and nongovernmental organizations from providing financial or material support to the Taliban.
(C) Additional report
(i) In general
Not later than 30 days after the date of the enactment of this Act, the Secretary of State shall submit a report to the appropriate congressional committees regarding the decision to terminate the bounty on Sirajuddin Haqqani and other key members of the Haqqani Network under the Rewards for Justice program.
(ii) Matters to be included
The report required under clause (i) shall include the following:
(I)
The status of the bounty on Sirajuddin Haqqani, Abdul Aziz Haqqani, and Yahya Haqqani under the Rewards for Justice program and the rationale for any changes made since September 1, 2021.
(II)
An identification of members of the Haqqani Network who are Specially Designated Global Terrorists and the status of the designation of the Haqqani Network as a foreign terrorist organization.
(III)
A description of any United States Government engagements with Sirajuddin Haqqani, Abdul Aziz Haqqani, Yahya Haqqani, or the Haqqani Network since September 1, 2021.
(IV)
Whether new information has emerged relating to the involvement of the Haqqani Network in terrorist attacks targeting the United States Military or United States civilians.
(iii) Form
The report required under clause (i) shall be submitted in unclassified form, but may include a classified annex.
(d) Suspension of foreign assistance
The Secretary of State shall immediately suspend all foreign assistance being sent to any country or nongovernmental organization that has provided assistance to the Taliban, as determined by the Secretary.
Sec. 2303. Report on direct cash assistance programs in Afghanistan
(a) In general
Not later than 90 days after the date of the enactment of this Act, the Secretary of State shall submit a report to the appropriate congressional committees regarding United States Government-funded direct cash assistance programs in Afghanistan during the period beginning on August 1, 2021, and ending on the date that is 30 days after the date of the enactment of this Act.
(b) Matters to be included
The report required under subsection (a) shall, with respect to such direct cash assistance programs, include—
(1)
a general description of the types of implementing partners and recipients;
(2)
a description of method of payments;
(3)
a description of how and where currency exchanges occur;
(4)
a description of how hawalas are used and the oversight mechanism in place regarding use of hawalas to transfer funds;
(5)
concealment of all personally identifiable information of individuals or groups that received United States Government-funded direct cash assistance; and
(6)
a description of how oversight is conducted, including information on how the Department of State prevents the Taliban from accessing cash assistance under such programs.
(c) Defined term
In this section, the term hawala’ means a system of transferring money through a network of money lending brokers.
Sec. 2304. Report on status of Afghan Fund
(a) In general
Not later than 90 days after the date of the enactment of this Act, and every 180 days thereafter for the following 5 years, the Secretary of State, in consultation with the Secretary of the Treasury, shall submit a report to the appropriate congressional committees regarding the status of the Afghan Fund.
(b) Matters to be included
The report required under subsection (a) shall, to the extent possible, include—
(1)
a list of Taliban members working at Da Afghanistan Bank or serving on the Bank’s board; and
(2)
a description of—
(A)
the Taliban’s influence over Da Afghanistan Bank;
(B)
the Afghan Fund’s board of trustees, including how the Fund’s trustees were vetted and selected, and what United States agencies were involved in the vetting and selection process;
(C)
the conditions necessary for funds in the Afghan Fund to be released to Da Afghanistan Bank;
(D)
how the Afghan Fund’s board of trustees will decide on the type and appropriateness of the Fund’s activities, including what kind of information will inform the board’s decisions and how the board will collect and verify this information; and
(E)
a description of what controls have been put into place to ensure funds are not diverted to or misused by the Taliban or other actors when the Fund begins making disbursements.
(c) Rescission of funding for Afghan reconstruction activities for deficit reduction purposes
(1) Rescission
There is hereby rescinded all of the unobligated balances from the amounts appropriated or otherwise made available for reconstruction activities in Afghanistan through any of the following funds, programs, or accounts:
(A)
The Afghanistan Security Forces Fund (ASFF).
(B)
The Economic Support Fund (ESF).
(C)
International Narcotics Control and Law Enforcement (INCLE).
(D)
The Commanders’ Emergency Response Program (CERP).
(E)
Drug Interdiction and Counter-Drug Activities (DICDA).
(F)
Migration and Refugee Assistance (MRA).
(G)
International Disaster Assistance (IDA).
(H)
Non-Proliferation, Antiterrorism, Demining, and Related (NADR).
(I)
Commander’s Emergency Response Program (CERP)
(J)
Afghanistan Infrastructure Fund (AIF)
(K)
Development Assistance (DA)
(L)
Task Force for Business and Stability Operations (TFBSO)
(M)
Global Health Programs (GHP)
(N)
Contributions to International Organizations (CIO)
(O)
U.S. Agency for Global Media (USAGM)
(P)
U.S. International Development Finance Corporation (DFC)
(Q)
Drug Enforcement Administration (DEA)
(R)
Educational and Cultural Exchange Programs (ECE)
(S)
USAID-Other (Other)
(T)
Commodity Credit Corp (CCC)
(U)
Human Rights and Democracy Fund (HRDF)
(2) Appropriation
The amount rescinded under paragraph (1) shall be transferred to the general fund of the Treasury and be applied to deficit reduction.
Sec. 2305. Sense of Congress opposing activities that support the Taliban or normalize diplomatic relations with the Taliban
It is the sense of Congress that the United States should not normalize diplomatic relations with the Taliban unless, at a minimum, the Taliban—
(1)
coordinates with the United States to expel al-Qaeda and other terrorist groups located in Afghanistan;
(2)
ceases the taking of United States citizens as hostages and the wrongful detention or persecution of Afghans who—
(A)
worked for, or on behalf of, the United States;
(B)
served in the Government or security forces of the Islamic Republic of Afghanistan; or
(C)
advocated for good governance or internationally recognized human rights, including the rights of women, girls, and minority groups in Afghanistan;
(3)
repeals all edicts and policies prohibiting, and takes demonstrable and consistent action to support, the education, employment, free movement, and free expression of women and girls in Afghanistan; and
(4)
repeals all edicts and policies curtailing, and takes demonstrable and consistent action to support and respect, the rights of ethnic, religious, and other minority groups within Afghanistan, including Hazara communities.
Sec. 2306. Defined term
In this title, the term appropriate congressional committees’ means—
(1)
the Committee on Foreign Relations of the Senate;
(2)
the Committee on Appropriations of the Senate;
(3)
the Committee on Foreign Affairs of the House of Representatives; and
(4)
the Committee on Appropriations of the House of Representatives.
Division C Catching fraudsters
Title I Preventing deep fake scams
Sec. 3101. Short title
This title may be cited as the Preventing Deep Fake Scams Act
.
Sec. 3102. Findings
The Congress finds the following:
(1)
Artificial intelligence is being used in new and innovative ways by the financial services sector.
(2)
Artificial intelligence may provide benefits to banks, credit unions, and banking consumers.
(3)
Artificial intelligence poses unique threats to the safety and security of customer accounts.
(4)
Voice banking is offered by many banks for security and convenience reasons.
(5)
The popularity of social media has made video and audio of potential targets easier to obtain for bad actors. These materials can be exploited to replicate the voices and appearances of other people in pursuit of data theft, identity theft, or fraud.
(6)
Bad actors could utilize deep fakes, including voice and audio manipulation, to compromise and access the financial accounts of a consumer.
Sec. 3103. Report
(a) In general
The Secretary of the Treasury, in consultation with the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Bureau of Consumer Financial Protection, the Financial Crimes Enforcement Network of the Department of the Treasury, the National Credit Union Administration, and private-sector stakeholders, shall submit to Congress a report containing the contents described in subsection (c).
(b) Consultation
(1) Request for Information
Not later than 90 days after the date of enactment of this Act, the Secretary of the Treasury shall solicit public feedback on the report required under subsection (a).
(2) Industry and expert stakeholders
In developing the report required under subsection (a), the Secretary of the Treasury shall seek out and consult with industry and expert stakeholders, including—
(A)
depository institutions of varying asset sizes;
(B)
credit unions of varying asset sizes;
(C)
third-party vendors who use artificial intelligence when providing services to depository institutions and credit unions; and
(D)
artificial intelligence experts.
(c) Contents
The contents of the report described in this subsection are as follows:
(1)
A description of how banks and credit unions proactively protect themselves and consumers from fraud utilizing artificial intelligence.
(2)
A list of standard definitions for the different manners in which artificial intelligence is used, including terms like generative AI
, machine learning
, natural language processing
, algorithmic AI
, and deep fakes
.
(3)
A description of potential risks that could result from the use of artificial intelligence by bad actors to steal data and identities of consumers and commit fraud.
(4)
A list of best practices for financial institutions to protect their customers from attempts to steal data and identities of consumers or commit fraud.
(5)
Legislative and regulatory recommendations for the regulation of artificial intelligence and to protect consumers from data theft, identity theft, and fraud.
Title II SBA Fraud Enforcement Extension Act
Sec. 3201. Short title
This title may be cited as the SBA Fraud Enforcement Extension Act
.
Sec. 3202. Statute of limitations for certain programs
(a) Shuttered venue operators
Section 324 of division N of the Consolidated Appropriations Act, 2021 (15 U.S.C. 9009a) is amended by adding at the end the following:
(g) Statute of limitations
Notwithstanding any other provision of law, any criminal prosecution or civil enforcement action for a violation of, or conspiracy to violate, section 371, 641, 1001, 1028A, 1029, 1341, 1343, 1349, 1956, or 1957 of title 18, United States Code, or section 3729 or 3802 of title 31, United States Code, with respect to any grant for shuttered venue operators under this section shall be filed not later than 10 years after the date of the violation or conspiracy.
(b) Restaurant revitalization
Section 5003 of the American Rescue Plan Act of 2021 (15 U.S.C. 9009c) is amended by adding at the end the following:
(d) Statute of limitations
Notwithstanding any other provision of law, any criminal prosecution or civil enforcement action for a violation of, or conspiracy to violate, section 371, 641, 1001, 1028A, 1029, 1341, 1343, 1349, 1956, or 1957 of title 18, United States Code, or section 3729 or 3802 of title 31, United States Code, with respect to any restaurant revitalization grant under this section shall be filed not later than 10 years after the date of the violation or conspiracy.
Title III Recover Fraudulent COVID Funds
Sec. 3301. Short title
This title may be cited as the Recover Fraudulent COVID Funds Act
.
Sec. 3302. Statute of limitations for violations relating to pandemic-era programs
(a) Definitions
In this section—
(1)
the term pandemic-era law means—
(A)
the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 (Public Law 116–123; 134 Stat. 146);
(B)
the Families First Coronavirus Response Act (Public Law 116–127; 134 Stat. 177);
(C)
the CARES Act (Public Law 116–136; 134 Stat. 281);
(D)
the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116–139; 134 Stat. 620);
(E)
divisions M and N of the Consolidated Appropriations Act, 2021 (Public Law 116–260; 134 Stat. 1182);
(F)
the American Rescue Plan Act of 2021 (Public Law 117–2; 135 Stat. 4); or
(G)
an amendment made by a law described in subparagraphs (A) through (F); and
(2)
the term pandemic-era program violation means an offense or other violation of law involving conduct that relates to or involves—
(A)
a program, project, or activity that was authorized or established by, or was carried out under, a pandemic-era law; or
(B)
funding provided under a pandemic-era law.
(b) Extension of statute of limitations
(1) Crimes
No person shall be prosecuted, tried, or punished for any pandemic-era program violation that is a criminal offense unless the indictment is found or the information is instituted—
(A)
notwithstanding section 3282(a) of title 18, United States Code, within 10 years after such offense shall have been committed; or
(B)
within such longer period of years after such offense shall have been committed as is otherwise provided by law.
(2) Tariff Act of 1930
Notwithstanding section 621 of the Tariff Act of 1930 (19 U.S.C. 1621), no civil action, suit, or proceeding for the forfeiture of property accruing under the customs laws of the United States related to a pandemic-era program violation shall be instituted unless such civil action, suit, or proceeding is commenced within 10 years after the time when the alleged pandemic-era program violation was discovered, or within 3 years after the time when the involvement of the property in the alleged pandemic-era program violation was discovered, whichever was later, except that the time of the absence from the United States of the person whose property is subject to forfeiture, or of any concealment or absence of the property, shall not be reckoned within the 10-year period of limitation.
(3) False claims
(A) In general
Notwithstanding section 3731(b)(1) of title 31, United States Code, a civil action under section 3730 of such title alleging a violation of section 3729 of such title that is a pandemic-era program violation may not be brought more than 10 years after the date on which the violation was committed.
(B) Notice
Notwithstanding section 3808 of title 31, United States Code, a notice to the person alleged to be liable with respect to a claim or statement that involves a pandemic-era violation shall be mailed or delivered in accordance with section 3803(d)(1) of such title not later than 10 years after the date on which the violation of section 3802 of such title is committed.
(c) Exclusion of offenses with a lapsed period of limitation
Subsection (b)(1)(A) shall not apply to a pandemic-era program violation that is a criminal offense for which, but for the extension under such subsection, the date by which an indictment was required to be found or an information was required to be instituted occurred before the date of enactment of this Act.
Title IV Fraud Alert Systems
Sec. 3401. Short title
This title may be cited as the Fraud Alert Systems Act
.
Sec. 3402. Mandatory reporting and verification of payment information
(a) In general
Subchapter II of chapter 33 of title 31, United States Code is amended by adding at the end the following:
3337. Mandatory reporting and verification of payment information
(a) Definitions
In this section:
(1) Agency
The term agency means—
(A)
an executive agency;
(B)
an independent regulatory agency, as defined in section 3502 of title 44; or
(C)
an entity that—
(i)
(I)
is the Congress;
(II)
is a court of the United States;
(III)
is a government of a territory or possession of the United States; or
(IV)
is the District of Columbia; and
(ii)
uses a Treasury disbursement system.
(2) Secretary
The term Secretary means the Secretary of the Treasury.
(3) Treasury disbursement system
The term Treasury disbursement system means any system operated by the Secretary for the purpose of disbursing public money.
(b) Mandatory reporting of payment information
For each payment authorized by the head of an agency that is submitted to a Treasury disbursement system for disbursement by the Secretary, the head of the agency shall provide to the Secretary, in such format as the Secretary requires, for inclusion in the Treasury disbursement system—
(1)
a brief description of the purpose for which the payment is being made;
(2)
the appropriations account (Treasury Account Symbol, or any successor thereto) from which the payment is to be drawn; and
(3)
the type of activity being reported (Business Event Type Code, or any successor thereto).
(c) Periodic updates
Not less frequently than once each fiscal year—
(1)
for each payment—
(A)
the certifying official shall evaluate whether the information collected under subsection (b) is accurate and complete; and
(B)
the head of each certifying agency shall provide written confirmation to the disbursing official attesting to the accuracy of such information; and
(2)
the disbursing official shall consult with the certifying official to improve the management of the Treasury disbursement system.
(d) Public reporting
Not later than 30 days after the date on which each payment that is subject to this subchapter is certified, the Director of the Office of Management and Budget shall direct the Secretary, or, if the payment is disbursed by an accountable official who is not in a position in the Department of the Treasury, the head of the agency with jurisdiction over the accountable official, to make available on the public website operated under the Federal Funding Accountability and Transparency Act of 2006 (31 U.S.C. 6101 note) the data required to be provided under subsection (b) with respect to the payment.
(b) Implementation
The Secretary of the Treasury may issue regulations or guidance to implement the amendments made by this title.
(c) Rule of construction
Nothing in this section, or an amendment made by this section, shall be construed to impose a legal liability on a disbursing official resulting from any action taken pursuant to this section, or an amendment made by this section.
(d) Conforming amendment
The table of sections for chapter 33 of title 31, United States Code is amended by inserting after the item relating to section 3336 the following:
Sec. 3403. Data access for purposes of program integrity
(a) Access to the National Directory of New Hires
Section 453(j) of the Social Security Act (42 U.S.C. 653(j)) is amended by adding at the end the following:
(12) Information to assist in the prevention of improper payments
(A) In general
The Secretary of the Treasury shall have access to the information in the National Directory of New Hires for the purpose of identifying, preventing, and recovering improper payments.
(B) Redisclosure
For the purpose of identifying, preventing, and recovering improper payments, the Secretary of the Treasury may redisclose information in the National Directory of New Hires to—
(i)
agents and contractors of the Secretary of the Treasury;
(ii)
Federal and non-Federal agencies authorized to receive information in the National Directory of New Hires directly from the Secretary; and
(iii)
such additional persons and entities as agreed to by the Secretary and the Secretary of the Treasury.
(b) Access to information covered by FCRA
(1) Definitions
Section 603(k)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681a(k)(1)) is amended—
(A)
in subparagraph (A), by striking and
at the end;
(B)
in subparagraph (B), by striking the period at the end and inserting ; and
; and
(C)
by adding at the end the following:
(C)
does not include—
(i)
any change to a Federal disbursement, including the pre-certification termination of such disbursement, that is—
(I)
based on a consumer report; and
(II)
made to improve the accuracy of the disbursement; or
(ii)
any action taken by an authorized user of the Working System of the Do Not Pay Initiative authorized by section 3354 of title 31, United States Code, in connection with the disbursement of a payment, as defined in section 3351 of that title, that is based on a consumer report.
(2) Permissible uses of consumer reports
Section 604(a) of the Fair Credit Reporting Act (15 U.S.C. 1681b(a)) is amended by adding at the end the following:
(7)
To the Secretary of the Treasury for purposes of assisting Federal and non-Federal entities identify, prevent, and recover improper payments, including redisclosing information in a consumer report to—
(A)
agents and contractors of the Department of the Treasury; and
(B)
Federal and non-Federal entities authorized to receive such information directly from the Secretary.
(c) Privacy-Preserving validation of select tax information
(1) In general
Section 6103(i) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
(9) Do not pay working system
(A) In general
In response to an inquiry by the Secretary with respect to a specific individual, the Commissioner shall provide the Secretary with any return information described in subparagraph (B) with respect to such individual for the applicable period, in a manner which preserves the confidentiality of such information, for the purposes of enhancing the Do Not Pay working system described in section 3354(c) of title 31, United States Code, which may include disclosing such information—
(i)
to agents and contractors of the Department of Treasury who are authorized to access the Do Not Pay working system, and
(ii)
other Federal agencies and State agencies that manage Federally-funded State-administered programs (including agents and contractors of such agencies) who are authorized to access the Do Not Pay working system,
for purposes of using the Do Not Pay working system to identify, prevent, and recover improper payments.
(B) Return information
The return information described in this subparagraph is the following:
(i)
Taxpayer identification number.
(ii)
Filing status.
(iii)
Adjusted gross income.
(iv)
Income or loss reported on Schedule C of Form 1040 (or successor forms).
(v)
Filing year.
(vi)
Any reported identity theft related to the taxpayer identification number.
(vii)
Whether a tax return was not filed for any taxable year.
(C) Applicable period
For purposes of this paragraph, the term applicable period means, with respect to any individual, the period—
(i)
consisting of the number of taxable years specified by the Secretary in the inquiry made under subparagraph (A) (but not less than 3 taxable years), and
(ii)
ending with the most recently completed taxable year for which the information described in such subparagraph is available.
(2) Effective date
The amendment made by this subsection shall apply to disclosures made after the date of enactment of this Act.
(d) Access to Social Security information
Title II of the Social Security Act (42 U.S.C. 401 et seq.) is amended by adding at the end the following new section:
235. Disclosure of information for do not pay system
(a) In general
For the purposes described in subsection (b), the Commissioner of Social Security shall, upon request of the Secretary of the Treasury, enter into an agreement with the Department of the Treasury to regularly provide personally identifiable information held by the Social Security Administration, which shall, with respect to any individual, include, at a minimum, the name, date of birth, and Social Security number of such individual.
(b) Purposes
Information provided under subsection (a) shall be used solely for purposes of enhancing the Do Not Pay working system described in section 3354(c) of title 31, United States Code, with respect to identifying, preventing, and recovering improper payments, including fraudulent payments.
Title V Stopping Transfers of Public Funds Abroad
Sec. 3501. Short title
This title may be cited as the Stopping Transfers of Public Funds Abroad Act
.
Sec. 3502. Prohibiting individuals receiving public assistance from conducting remittance transfers
(a) In general
(1) Enforcement
The head of any Federal agency responsible for the administration of any public assistance program shall require any individual applying or reapplying for any payment or other benefit under such program to provide a written declaration, under penalty of perjury pursuant to section 1746 of title 28, United States Code, that such individual will not transfer any funds through a remittance transfer during any period in which such individual receives any payment or other benefit under such program.
(2) Penalty
Any individual who has provided a written declaration described in paragraph (1) and subsequently transferred funds through a remittance transfer during any period in which such individual received any payment or other benefit under the public assistance program to which such declaration applies shall be subject to a fine of $100,000.
(b) Definitions
In this section:
(1) Public assistance program
The term public assistance program means any program described in paragraph (1), (2), (3), (4), (5), or (7) of section 416.1142(a) of title 20, Code of Federal Regulations (as in effect of the date of enactment of this Act).
(2) Remittance transfer
The term remittance transfer has the same meaning given such term under section 920(g) of the Electronic Fund Transfer Act (15 U.S.C. 1693o-1(g)).
(c) Effective date
This section shall apply to any payment or other benefit under a public assistance program which is provided after the date which is 30 days after the date of enactment of this Act.
Title VI Veterans Scam and Fraud Evasion Act of 2026
Sec. 3601. Short title
This title may be cited as the Veterans Scam And Fraud Evasion Act of 2026
or the VSAFE Act of 2026
.
Sec. 3602. Veterans Scam and Fraud Evasion Officer
(a) In general
Chapter 3 of title 38, United States Code, is amended by adding at the end the following new section:
326. Veterans Scam and Fraud Evasion Officer
(a) Establishment
There is in the Veterans Experience Office of the Department a Veterans Scam and Fraud Evasion Officer, who shall—
(1)
be responsible for consumer fraud and scam prevention, reporting, and incident response plans at the Department; and
(2)
serve as a central point of contact to direct employees, veterans, and beneficiaries to resources to prevent and mitigate consumer fraud and scams.
(b) Responsibilities
The Veterans Scam and Fraud Evasion Officer shall carry out the following responsibilities:
(1)
Providing comprehensive communication from the Secretary to employees of the Department and veterans, their families, caregivers, and survivors during strategic and time-sensitive fraud and scam incidents.
(2)
Providing consistent guidance developed with the Inspector General of the Department for employees as well as veterans, their families, caregivers, and survivors on how to identify, report, and avoid fraud and scam attempts.
(3)
Promoting the VSAFE Fraud Hotline and VSAFE.gov website of the Department (and any successor resources) and identifying other identity theft resources available to veterans, their families, caregivers, and survivors, including with respect to actions made by the Secretary to protect the identities of veterans and their beneficiaries.
(4)
Developing methods to monitor consumer fraud and scam metrics within the Department to facilitate proactive and robust trend identification and report internally and annually to the Committee on Veterans' Affairs of the Senate and the Committee on Veterans' Affairs of the House of Representatives.
(5)
Coordinating with the Inspector General of the Department to provide training for Department employees on fielding fraud and scam inquiries and reports.
(6)
Working with the Inspector General of the Department—
(A)
to coordinate with other relevant agencies and departments; and
(B)
to identify the proper avenues for veterans to report fraud and scam attempts and receive assistance.
(7)
Consulting with veterans service organizations and State, local, and Tribal governments, as necessary, to improve understanding of potential fraud and scam risks to veterans, their families, caregivers, and survivors.
(c) Full-time employees
Nothing in this section authorizes an increase in the number of full-time employees otherwise authorized for the Department.
(d) Rule of construction
Nothing in this section shall be construed to limit, diminish, or otherwise affect the authority of the Office of Inspector General of the Department to prevent, detect, and prosecute fraud, waste, and abuse in Department programs and operations. The responsibilities of the Veterans Scam and Fraud Evasion Officer shall be exercised in coordination and not supersede or interfere with the authorities provided to the Inspector General in this title or in chapter 4 of title 5 (commonly referred to as the Inspector General Act of 1978).
(e) Sunset
The requirements and authorities of this section shall terminate on September 30, 2030.
(f) Definition of consumer fraud
In this section, the term consumer fraud means deceptive, unfair, or illegal practices that deceive veterans into giving money, personal information, or property primarily as it relates to their personal or family use that does not have a nexus to Department programs and operations.
(b) Clerical amendment
The table of sections at the beginning of such chapter is amended by adding at the end the following new item:
Title VII Expanding Whistleblower Protections for Contractors Act of 2026
Sec. 3701. Short title
This title may be cited as the Expanding Whistleblower Protections for Contractors Act of 2026
.
Sec. 3702. Defense contractor employees: protection from reprisal for disclosure of certain information
Section 4701 of title 10, United States Code, is amended—
(1)
in subsection (a)—
(A)
in paragraph (1)—
(i)
in the matter preceding subparagraph (A)—
(I)
by striking An employee
and all that follows through services contractor
and inserting A protected individual
; and
(II)
by striking disclosing
and all that follows through evidence of
; and
(ii)
by striking subparagraphs (A), (B), and (C) and inserting the following subparagraphs:
(A)
Refusing to obey an order that would require the protected individual to violate a law, rule, or regulation related to any contract, subcontract, grant, or subgrant.
(B)
Disclosing to a person or body described in paragraph (2) information that the protected individual reasonably believes is evidence of the following:
(i)
Gross mismanagement of any Department of Defense contract or grant, any gross waste of Department funds, any abuse of authority relating to any Department contract, subcontract, grant, or subgrant, or any violation of law, rule, or regulation related to any Department contract or subcontract (including the competition for or negotiation of a contract or subcontract) or grant or subgrant.
(ii)
Gross mismanagement of any National Aeronautics and Space Administration contract or grant, any gross waste of Administration funds, any abuse of authority relating to an Administration contract, subcontract, grant, or subgrant, or any violation of law, rule, or regulation related to any Administration contract or subcontract (including the competition for or negotiation of a contract or subcontract) or grant or subgrant.
(iii)
A substantial and specific danger to public health or safety.; and
(B)
in paragraph (3)—
(i)
in subparagraph (A), by striking an employee
and inserting a protected individual
; and
(ii)
by striking subparagraph (B) and inserting the following subparagraph:
(B)
it shall not be within the authority of an executive branch official to request that a contractor, subcontractor, grantee, or subgrantee engage in a reprisal prohibited by paragraph (1).;
(2)
in subsection (c)—
(A)
in paragraph (1), by adding at the end the following subparagraph:
(E)
Propose appropriate disciplinary action against any executive branch official for any request made of a contractor, subcontractor, grantee, or subgrantee that subjected the complainant to a reprisal prohibited by subsection (a).; and
(B)
by striking paragraph (7) and inserting the following paragraph:
(7)
The rights, forum, and remedies provided for in this section may not be waived by any public or private agreement, policy, form, or condition of employment, including by any predispute arbitration agreement.;
(3)
by striking subsection (e) and redesignating subsections (f) and (g) as subsections (e) and (f), respectively;
(4)
in subsection (e), as so redesignated—
(A)
by striking an employee
and inserting a protected individual
; and
(B)
by striking the employee
and inserting the protected individual
; and
(5)
in subsection (f), as so redesignated, by adding at the end the following new paragraph:
(8)
The term protected individual means—
(A)
a contractor, subcontractor, grantee, or subgrantee of the Department of Defense or the National Aeronautics and Space Administration, including—
(i)
the government of each of the several States, the District of Columbia, an Indian tribe or authorized tribal organization, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, or any other territory or possession of the United States;
(ii)
the government of any political subdivision of, agency of, or instrumentality of, a government listed in clause (i); and
(iii)
an element of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) within the Department of Defense;
(B)
an employee of a contractor, subcontractor, grantee, or subgrantee of the Department of Defense or the National Aeronautics and Space Administration, or a former employee of such contractor, subcontractor, grantee, or subgrantee whose protected disclosure or engagement in any activity protected against reprisal under this section occurred prior to termination, including an employee of—
(i)
the government of each of the several States, the District of Columbia, an Indian tribe or authorized tribal organization, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, or any other territory or possession of the United States;
(ii)
the government of any political subdivision of, agency of, or instrumentality of, a government listed in clause (i); and
(iii)
an element of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) within the Department of Defense; or
(C)
a person performing personal services for the Department of Defense or the National Aeronautics and Space Administration pursuant to a contractual agreement for the performance of personal services, including a personal services contract or personal services agreement, and who engages in an activity for which any reprisal is prohibited under subsection (a), including a person performing personal services pursuant such a contractual agreement for—
(i)
the government of each of the several States, the District of Columbia, an Indian tribe or authorized tribal organization, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, or any other territory or possession of the United States;
(ii)
the government of any political subdivision of, agency of, or instrumentality of, a government listed in clause (i); and
(iii)
an element of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) within the Department of Defense.
Sec. 3703. Enhancement of non-defense contractor protection from reprisal for disclosure of certain information
Section 4712 of title 41, United States Code, is amended—
(1)
in subsection (a)—
(A)
by striking paragraph (1) and inserting the following paragraph:
(1) In general
A protected individual may not be discharged, demoted, or otherwise discriminated against as a reprisal for the following:
(A)
Refusing to obey an order that would require the protected individual to violate a law, rule, or regulation related to any contract, subcontract, grant, or subgrant.
(B)
Disclosing to a person or body described in paragraph (2) information that the protected individual reasonably believes is evidence of the following:
(i)
Gross mismanagement of any Federal contract or grant, any gross waste of Federal funds, any abuse of authority relating to any Federal contract, subcontract, grant, or subgrant, or any violation of law, rule, or regulation related to any Federal contract or subcontract (including the competition for or negotiation of a contract or subcontract) or grant or subgrant.
(ii)
A substantial and specific danger to public health or safety.; and
(B)
in paragraph (3)—
(i)
in subparagraph (A), by striking an employee
and inserting a protected individual
; and
(ii)
by striking subparagraph (B) and inserting the following subparagraph:
(B)
it shall not be within the authority of an executive branch official to request that a contractor, subcontractor, grantee, or subgrantee engage in a reprisal prohibited by paragraph (1).;
(2)
in subsection (c)—
(A)
in paragraph (1), by adding at the end the following new subparagraph:
(E)
Propose appropriate disciplinary action against any executive branch official for any request made of a contractor, subcontractor, grantee, or subgrantee that subjected the complainant to a reprisal prohibited by subsection (a).; and
(B)
by striking paragraph (7) and inserting the following paragraph:
(7) Rights, forum, and remedies not waivable
The rights, forum, and remedies provided for in this section may not be waived by any public or private agreement, policy, form, or condition of employment, including by any predispute arbitration agreement.;
(3)
in subsection (e)—
(A)
by striking an employee
and inserting a protected individual
; and
(B)
by striking the employee
and inserting the protected individual
;
(4)
by striking subsection (f) and redesignating subsections (g) and (h) as subsections (f) and (g), respectively; and
(5)
in subsection (f), as so redesignated, by inserting after paragraph (2) the following new paragraph:
(3)
The term protected individual means—
(A)
a contractor, subcontractor, grantee, or subgrantee of the Federal Government, including—
(i)
the government of each of the several States, the District of Columbia, an Indian tribe or authorized tribal organization, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, or any other territory or possession of the United States;
(ii)
the government of any political subdivision of, agency of, or instrumentality of, a government listed in clause (i); and
(iii)
an element of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003));
(B)
an employee of a contractor, subcontractor, grantee, or subgrantee of the Federal Government or a former employee of such contractor, subcontractor, grantee, or subgrantee whose protected disclosure or engagement in any activity protected against reprisal under this section occurred prior to termination, including an employee of—
(i)
the government of each of the several States, the District of Columbia, an Indian tribe or authorized tribal organization, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, or any other territory or possession of the United States;
(ii)
the government of any political subdivision of, agency of, or instrumentality of, a government listed in clause (i); and
(iii)
an element of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)); or
(C)
a person performing personal services for the Federal Government pursuant to a contractual agreement for the performance of personal services, including a personal services contract or personal services agreement, including a person performing personal services pursuant to such a contractual agreement for—
(i)
the government of each of the several States, the District of Columbia, an Indian tribe or authorized tribal organization, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, or any other territory or possession of the United States;
(ii)
the government of any political subdivision of, agency of, or instrumentality of, a government listed in clause (i); and
(iii)
an element of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)).
Division D Severability
Sec. 4101. Severability
If any provision of this Act or any amendment made by this Act, or the application of a provision of this Act or an amendment made by this Act to any person or circumstance, is held to be unconstitutional, the remainder of this Act and the amendments made by this Act, and the application of the provisions or amendments of this Act to any other person or circumstance, shall not be affected.