[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6916 Engrossed in House (EH)]
<DOC>
119th CONGRESS
2d Session
H. R. 6916
_______________________________________________________________________
AN ACT
To amend title 31, United States Code, to prohibit Federal Funds from
being provided to individuals convicted of certain Federal felonies,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Program Integrity and Fraud
Prevention Act of 2026''.
SEC. 2. PROHIBITING FEDERAL FUNDS FROM BEING PROVIDED TO INDIVIDUALS
CONVICTED OF CERTAIN FEDERAL FELONIES.
(a) Prohibition.--Subchapter II of chapter 33 of title 31, United
States Code, is amended by adding at the end the following:
``Sec. 3337. Prohibiting Federal Funds from being provided to
individuals convicted of certain Federal felonies.
``(a) Prohibition.--
``(1) In general.--The head of an agency may not enter
into, renew, or extend a Federal contract, or provide a grant
or other Federal financial assistance to, an individual
convicted of a covered felony arising out of any Federal
contract, grant, cooperative agreement, loan, or other
financial assistance, or to an entity of which such individual
is a beneficial owner, during the three year period following
the date of the conviction.
``(2) Application.--The prohibition under paragraph (1)
shall apply with respect to an individual convicted after the
date of the enactment of this section.
``(b) Waiver.--
``(1) Authority.--The head of an agency may waive on a
case-by-case basis the prohibition under subsection (a) with
respect to an individual or entity described under such
subsection if the head of the agency determines such waiver is
justifiable.
``(2) Written congressional notification of waiver.--
Immediately after making a determination to issue a waiver
under paragraph (1), the head of an agency shall provide to
Congress a written notification of such determination that
includes the justification for the waiver.
``(c) Notice Requirements.--For each individual convicted of a
covered felony arising out of any Federal contract, grant, cooperative
agreement, loan, or other financial assistance--
``(1) the Attorney General shall notify the Administrator
of General Services in a timely manner of such conviction; and
``(2) the Administrator shall promptly update the System
for Award Management Exclusions list described in part 9 of
title 48, Code of Federal Regulations, and part 180 of title 2
of such Code, or any successor regulation, to include such
individual.
``(d) Guidance.--Not later than 1 year after the date of the
enactment of this Act, the Director of the Office of Management and
Budget shall issue guidance for the implementation of, and compliance
with, the requirements of this section.
``(e) Federal Acquisition Regulation.--The Federal Acquisition
Regulation shall be revised as necessary to implement the provisions of
this section.
``(f) Rules of Construction.--
``(1) Federal interests.--Nothing in this section may be
construed to prohibit an agency from seeking or taking any
other available criminal, civil, or administrative action to
protect Federal Government interests, including the proposal or
implementation of suspension or debarment actions pursuant to
subpart 9.4 of title 48, Code of Federal Regulations, and part
180 of title 2 of such Code.
``(2) Exclusion.--Nothing in subsection (b) may be
construed to affect any other statutory or regulatory waiver
authority related to an exclusion.
``(g) Definitions.--In this section:
``(1) Agency.--The term `agency' means--
``(A) an Executive department (as defined under
section 101 of title 5);
``(B) a military department (as defined under
section 102 of title 5);
``(C) a Government corporation (as defined under
section 103 of title 5); and
``(D) an independent establishment (as defined
under section 104(1) of title 5).
``(2) Beneficial owner.--The term `beneficial owner'--
``(A) means, with respect to an entity, an
individual who, directly or indirectly, through any
contract, arrangement, understanding, relationship, or
otherwise--
``(i) exercises substantial control over
the entity; or
``(ii) owns or controls not less than 25
percent of the ownership interests of the
entity; and
``(B) does not include--
``(i) a minor child, as defined in the
jurisdiction in which the entity is formed, if
the information of the parent or guardian of
the minor child is reported in accordance with
this section;
``(ii) an individual acting as a nominee,
intermediary, custodian, or agent on behalf of
another individual;
``(iii) an individual acting solely as an
employee of a corporation, limited liability
company, or other similar entity and whose
control over or economic benefits from such
entity is derived solely from the employment
status of the person;
``(iv) an individual whose only interest in
a corporation, limited liability company, or
other similar entity is through a right of
inheritance; or
``(v) a creditor of a corporation, limited
liability company, or other similar entity,
unless the creditor meets the requirements of
subparagraph (A).
``(3) Convicted.--The term `convicted' means any of the
following:
``(A) A judgment of conviction has been entered
against the individual by a Federal court, except for
any individual whose conviction has been reversed or
vacated.
``(B) A plea of guilty or nolo contendere by the
individual has been accepted by a Federal court, except
for any case in which the conviction entered as result
of such plea has been reversed or vacated.
``(C) The individual has entered into a first
offender, deferred adjudication, deferred prosecution,
or other arrangement or program in which the individual
admitted guilt or responsibility to the underlying
offense.
``(4) Covered felony.--The term `covered felony' means a
felony described under section 286, 287, 371, 508, 641, 666,
1001, 1002, 1014, 1017, 1028, 1028A, 1030, 1031, 1040(a)(2),
1341, 1342, 1343, 1344, 1345, 1349, 1956, or 1957 of title 18
or section 16 of the Small Business Act (15 U.S.C. 645).''.
(b) Table of Contents.--The table of contents for subchapter II of
chapter 33 of title 31, United States Code, is amended by adding at the
end the following:
``3337. Prohibiting Federal funds from being provided to individuals
convicted of certain Federal felonies.''.
Passed the House of Representatives June 8, 2026.
Attest:
Clerk.
119th CONGRESS
2d Session
H. R. 6916
_______________________________________________________________________
AN ACT
To amend title 31, United States Code, to prohibit Federal Funds from
being provided to individuals convicted of certain Federal felonies,
and for other purposes.