[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8030 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 8030
To amend the Defense Production Act of 1950 to limit eligibility for
assistance, increase monetary penalties, establish fraud risk
management processes, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 20, 2026
Ms. Waters introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Defense Production Act of 1950 to limit eligibility for
assistance, increase monetary penalties, establish fraud risk
management processes, 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 ``DPA Transparency Act of 2026''.
SEC. 2. LIMITATION ON ELIGIBILITY FOR ASSISTANCE.
Title III of the Defense Production Act of 1950 (50 U.S.C. 4531 et
seq.) is amended by adding at the end the following:
``SEC. 306. LIMITATION ON ELIGIBILITY FOR ASSISTANCE.
``(a) In General.--A covered entity is not eligible for assistance
authorized under this title.
``(b) Definitions.--In this section:
``(1) Covered entity.--The term `covered entity' means an
entity in which a covered individual directly or indirectly
holds a significant interest. For the purpose of determining
whether an entity is a covered entity, if securities of the
entity are owned, controlled, or held by 2 or more individuals
who are related as described in paragraph (2), such securities
shall be aggregated.
``(2) Covered individual.--The term `covered individual'
means--
``(A) the President, the Vice President, or a
member of the Defense Production Act Committee; and
``(B) the spouse, child, son-in-law, or daughter-
in-law of an individual described in subparagraph (A).
``(3) Equity interest.--The term `equity interest' means--
``(A) a share in an entity, without regard to
whether the share is--
``(i) transferable; or
``(ii) classified as stock or a similar
classification;
``(B) a capital or profit interest in a limited
liability company or partnership; and
``(C) a warrant or right (other than a right to
convert) to purchase, sell, or subscribe to a share or
interest described in subparagraph (A) or (B),
respectively.
``(4) Significant interest.--The term `significant
interest' means owning, controlling, or holding not less than
20 percent, by vote or value, of the outstanding amount of any
class of equity interest in an entity.''.
SEC. 3. ENHANCED MONETARY PENALTIES.
The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is
amended--
(1) in section 103, by striking ``$10,000'' and inserting
``$100,000'';
(2) in section 705, by striking ``$10,000'' each place it
appears and inserting ``$100,000''; and
(3) in section 710(f), by striking ``$10,000'' and
inserting ``$100,000''.
SEC. 4. FRAUD RISK MANAGEMENT.
Section 722 of the Defense Production Act of 1950 (50 U.S.C. 4567)
is amended--
(1) in subsection (d)--
(A) in paragraph (5), by striking ``and'' at the
end;
(B) in paragraph (6), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(7) a summary of any steps taken to reduce fraud in
transactions under this Act and a fraud risk assessment for all
activities under undertaken under this Act.'';
(2) by redesignating subsection (e) as subsection (f); and
(3) by inserting after subsection (d) the following new
subsection:
``(e) Fraud Risk Management.--Not later than 1 year after the date
of the enactment of this subsection, the Committee shall--
``(1) establish and implement processes and procedures
consistent with leading practices included in the publication
of the Comptroller General of the United States titled `A
Framework for Managing Fraud Risks in Federal Programs' (GAO-
15-593SP; published July 28, 2015) to combat fraud in
transactions undertaken under this Act;
``(2) train personnel about the standards and practices
established and implemented under paragraph (1); and
``(3) designate a point of contact within the Committee to
be responsible for managing issues relating to fraud, including
coordinating with agencies to review fraud-related issues.''.
SEC. 5. SHORT TITLE CORRECTION.
The first undesignated section of the the Defense Production Act of
1950 is amended, effective on the date of enactment of such Act, by
striking ``cited as ``the Defense'' and inserting ``cited as the
``Defense''.
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