[House Hearing, 119 Congress]
[From the U.S. Government Publishing Office]
MARKUP OF VARIOUS MEASURES
=======================================================================
HEARING
before the
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED NINETEENTH CONGRESS
SECOND SESSION
__________
HEARING HELD
FEBRUARY 11, 2026
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Small Business Committee Document Number 119-030
Available via the GPO Website: www.govinfo.gov
______
U.S. GOVERNMENT PUBLISHING OFFICE
62-952 WASHINGTON : 2026
HOUSE COMMITTEE ON SMALL BUSINESS
ROGER WILLIAMS, Texas, Chairman
PETE STAUBER, Minnesota
DAN MEUSER, Pennsylvania
BETH VAN DUYNE, Texas
JAKE ELLZEY, Texas
MARK ALFORD, Missouri
NICK LALOTA, New York
BRAD FINSTAD, Minnesota
TONY WIED, Wisconsin
ROB BRESNAHAN, Pennsylvania
BRIAN JACK, Georgia
TROY DOWNING, Montana
KIMBERLYN KING-HINDS, Northern Marina Islands
DEREK SCHMIDT, Kansas
JIMMY PATRONIS, Florida
NYDIA VELAZQUEZ, New York, Ranking Member
MORGAN MCGARVEY, Kentucky
HILLARY SCHOLTEN, Michigan
LAMONICA MCIVER, New Jersey
GIL CISNEROS, California
KELLY MORRISON, Minnesota
GEORGE LATIMER, New York
DEREK TRAN, California
LATEEFAH SIMON, California
JOHNNY OLSZEWSKI, Maryland
MAGGIE GOODLANDER, New Hampshire
Lauren Holmes, Majority Staff Director
Melissa Jung, Minority Staff Director
C O N T E N T S
OPENING STATEMENTS
Page
Hon. Roger Williams.............................................. 1
Hon. Nydia Velazquez............................................. 2
APPENDIX
Additional Material for the Record:
Text of Legislation:
H.R. 7401 - Small Business Lending Fraud Prevention Act...... 13
H.R. 7396 - Native American Entrepreneurial Opportunity Act.. 16
H.R. 7412 - Put America on Commission Act of 2026............ 21
Support Documents:
Defense Credit Union Council (DCUC).......................... 39
E-Vote Results............................................... 42
Votes:
H.R. 7401 - Small Business Lending Fraud Prevention Act
Ordered to be reported by the Yeas and Nays: 24-0.......... 45
H.R. 7396 - Native American Entrepreneurial Opportunity Act
Ordered to be reported by the Yeas and Nays: 24-0.......... 46
H.R. 7412 - Put America on Commission Act of 2026 Ordered to
be reported by the Yeas and Nays: 24-0..................... 47
MARKUP OF VARIOUS MEASURES
----------
WEDNESDAY, FEBRUARY 11, 2026
House of Representatives,
Committee on Small Business,
Washington, DC.
The Committee met, pursuant to call, at 9:04 a.m., in Room
2360, Rayburn House Office Building, Hon. Roger Williams
[chairman of the Committee] presiding.
Present: Representatives Williams, Stauber, Meuser, Van
Duyne, Ellzey, Alford, LaLota, Finstad, Wied, Bresnahan,
Downing, King-Hinds, Patronis, Velazquez, McGarvey, Scholten,
McIver, Cisneros, Morrison, Latimer, Tran, Simon, Olszewski,
and Goodlander.
Chairman WILLIAMS. Before we get started with the markup, I
would like to recognize Congressman Ellzey from the Gray State
of Texas to lead us in the Pledge of Allegiance and a short
prayer.
All right. The committee will now come to order.
A quorum is present. And without objection, the Chair is
authorized to declare a recess of the committee at any time. As
required by the House rules, a copy of the legislative measures
have been made available to Members and the public at least 24
hours in advance.
Without objection, the committee will vote electronically
in accordance with committee rules and regulations developed by
the House Committees on Rules and Administration. I now
recognize myself for opening remarks.
Today, we will mark up three important bipartisan bills
that support efforts to combat waste, fraud, and abuse. These
bills reflect our continued commitment to ensure transparency
and accountability within the SBA and support efforts to root
out fraud in the SBA's COVID-era lending programs. The bills
will establish an office to help recover taxpayer dollars,
prevent conflicts of interest in loan processing, and codify
the Office of Native American Affairs. These bills will support
the SBA's ability to serve America's small businesses and
taxpayers alike.
As Chairman, I am proud of the work underway in this
committee, particularly our efforts to address systematic
failures and support existing SBA programs. The committee has
demonstrated our commitment to proactive, responsible oversight
and accountability, and for that, I say thank you.
First, we will consider a bill that targets and prevents
potential ethics violations in loan processing. The bill will
enhance accountability and oversight of the SBA loan process by
requiring conflict of interest certification. Next, we will
consider a bill to codify the SBA's Office of Native American
Affairs, an office which has been appropriated funds but not
yet to be codified. Finally, we will consider my bill to
establish the Office of Whistleblower Rewards. The office will
support the SBA OIG in its efforts to combat fraud. The bill
will increase efficiency to fraud recovery by incentivizing
public participation.
With this additional resource, SBA is strategically
positioned to stop bad actors and recover funds. Correcting and
mitigating systematic failures is inherently complex and
requires a strong bipartisan effort, and I am proud of the
collaborative effort that has resulted in today's markup. These
three bills lay the foundation for a better tomorrow.
I look forward to continuing to work with my colleagues to
make strides in addressing waste, fraud, and abuse by improving
internal mechanisms and processes. The SBA is better positioned
to serve American small businesses.
With that, I yield to my friend and the distinguished
Ranking Member from New York, Ms. Velazquez, for her opening
remarks.
Ms. VELAZQUEZ. Thank you, Mr. Chairman, for convening this
markup today. I plan to lend my support to the three bipartisan
bills under consideration.
Let me begin by expressing my strong support for H.R. 7396,
legislation to codify the Office of Native American Affairs. It
is important for our committee to remain focused on its
mission, reviewing, evaluating, and improving SBA's programs so
they work for our nation's 36 million small businesses. I look
forward to future markups that will deliver meaningful
improvements to SBA core programs.
The other two bills under consideration will give SBA
additional tools to combat fraud. One will put important
processes in place to help prevent fraud, and the other will
provide a mechanism for SBA to recover fraudulent pandemic
monies. I am pleased to lend my support to these two bills.
With that said, and I have mentioned this before, SBA needs
to be more responsive to the committee. The administration--the
administrator has egregiously ignored Congressional oversight
letters and requests for meetings, obstructing our ability to
conduct meaningful oversight. I hope you will support efforts
to hold the agency accountable.
Thank you, Mr. Williams, and I look forward to a productive
markup. I yield back.
Chairman WILLIAMS. The gentlelady yields back. Does any
other Member seek recognition for the purpose of making an
opening statement?
Seeing none, we will now move to consideration of the first
bill.
The committee now moves to consideration of H.R. 7401, the
Small Business Lending Fraud Prevention Act, introduced by
Reverend Meuser and Goodlander.
The Clerk will report the bill.
H.R. 7401
The CLERK. H.R. 7401, a bill to require employees of the
small business----
Chairman WILLIAMS. Without objection, H.R. 7401 is
considered as read and open for amendment.
I now recognize the bill's sponsor, Representative Meuser
from the great state of Pennsylvania, for his remarks.
Mr. MEUSER. Thank you, Mr. Chairman. Our bipartisan
legislation, H.R. 7401, the Small Business Lending Fraud
Prevention Act, will strengthen the SBA's conflict of interest
rule, adding an important safeguard within the loan process.
The bill requires SBA employees involved in the origination,
review, or approval of its loans to certify that they have no
conflicts of interest in the transaction. It also requires
employees to promptly disclose and recuse themselves if a
conflict arises and to acknowledge their obligations under
federal ethics laws.
Though the 7(a) program operates at zero subsidy cost to
the taxpayer, there have been instances of SBA employees
processing loans to family members or others barred under
federal conflict of interest rules, and have increased in
recent years. Just last August, Rena Barrett, a former SBA loan
officer, pled guilty to submitting and approving fraudulent
COVID-19 EIDL applications, abusing her position to seek more
than $550,000 in pandemic relief funds for herself and family.
In addition, Attallah Williams, another former SBA loan
officer, was charged in January for approving fraudulently
submitted EIDL applications in exchange for a share of the
proceeds. Congress must root out waste, abuse, and fraud,
especially when it is perpetrated by government employees.
I would like to thank Congresswoman Goodlander for co-
leading this legislation. I would also like to thank Chairman
Williams for bringing this bill forward for consideration
today, and I certainly encourage my colleagues to support this
legislation.
Thank you, Mr. Chairman. I yield back.
Chairman WILLIAMS. The gentleman yields back, and I now
recognize the bill's co-sponsor, Representative Goodlander from
the great state of New Hampshire, for her remarks.
Ms. GOODLANDER. Thank you, Mr. Chairman. Small businesses
aren't just part of our economy. They are the lifeblood of the
economy of my state and our nation, and the loans administered
by the Small Business Administration are the lifeblood for so
many small businesses in every corner of our country.
Conflicts of interest, especially conflicts of interest in
people serving in positions of public trust, they are a cancer
that undermines public trust, that leads to abuses of taxpayer
dollars. And ultimately, it is our small businesses and
entrepreneurs, good people, hardworking people who are playing
by the rules, who pay the price for these conflicts of
interest. So that is why I am really proud to be working
alongside Congressman Meuser with this common sense,
straightforward, bipartisan bill that is going to allow us to
crack down on conflicts of interest on the front end so that
red flags are raised before problems arise and so that we don't
see any more unnecessary red tape or costs for our small
businesses in the administration of Small Business
Administration loans.
This is really about strengthening the prevention,
detection, and enforcement of the most basic principles of good
governance and our democracy. They have always defined us as
Americans, and that is why I am proud that we are coming
together as Americans to pass this straightforward, practical,
bipartisan bill.
So with that, Mr. Chairman, I yield back.
Chairman WILLIAMS. The gentlelady yields back.
Are there any other Members who wish to be recognized for a
statement on this bill?
I now recognize the Ranking Member to speak on the bill.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. I want to express
my support for H.R. 7401, the Small Business Lending Fraud
Prevention Act. I applaud Mr. Meuser and Ms. Goodlander for
their leadership on this issue.
Let me begin by saying this committee has played an
integral role in conducting oversight of the pandemic relief
programs. Approximately $1.2 trillion dollars of economic aid
was disbursed through the SBA pandemic relief programs over the
course of the pandemic, providing economic relief to small
businesses all over the country. Unfortunately, bad actors took
advantage of the programs, and it has become clear we need to
work together to recover fraudulent dollars.
The previous administration took strong steps to root out
fraud and put internal controls in place to prevent it, and the
OIG, which has a team of auditors, investigators, attorneys,
and state-of-the-art data analytics technology, has been
working diligently to uncover fraudulent schemes. And because
of their work, an SBA loan officer recently pled guilty to
making a false statement in connection to applications for more
than $550,000 in fraudulent COVID-19 pandemic loans to herself
and family members.
While I firmly believe the single most important action we
can take to combat fraud is to fully fund the IG's budget
request, I support this legislation.
The bottom line is this. The camp (phonetic) process
worked. The bad actor at SBA was identified, investigated, and
prosecuted. But moving forward, requiring SBA employees to
certify there is no conflict of interest before approving a
loan will add an extra layer of security and help deter fraud.
I urge my colleagues to support the bill. I yield back.
Chairman WILLIAMS. Gentlelady yields back.
I now recognize myself for remarks.
Last year, the SBA uncovered a disturbing case of fraud. In
2021, a former SBA loan officer used her authority to secure a
$170,000 Economic Injury Disaster Loan for one of her family
members, and the loan officer submitted a false statement to
the SBA as part of a loan application. When it was initially
denied, she approved it herself. Before she was caught, the
loan officer tried to approve over $500,000 in loans to herself
and her relatives while still working at the SBA. Fortunately,
in this case, the fraudster was caught. However, it was
critical to take serious steps to avoid such cases in the
future, and it should not be possible for fraud like this to
occur again.
H.R. 7401, the Small Business Lending Fraud Prevention Act,
moves us in the right direction. This bill requires SBA
employees involved in the loan process to certify there are no
ties to the loan applicant or recipient for any of the loans
they are responsible for processing. The bill requires any
employee who has a conflict of interest to inform their
supervisor and recuse themselves from the loan review and
approval process. There are necessary steps to future fraud at
the SBA, and it will provide a clear standard against which
future fraudsters can be held accountable.
I urge my colleagues to vote yes on H.R. 7401, and I yield
back.
Does anyone wish to offer an amendment?
Seeing none, the question now occurs in order in H.R. 7401,
reported favorably to the House. All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it. H.R. 7401 is
agreed to.
Mr. MEUSER. Mr. Chairman, I would like to request a
recorded vote.
Chairman WILLIAMS. A recorded vote has been requested, and
a roll call vote is ordered. Pursuant to Committee Rule 13 and
House Rule 11, further proceedings on the bill are postponed.
The Committee now moves to consideration of H.R. 7396, the
Native American Entrepreneurial Opportunity Act, introduced by
Representative Davids, Ellzey, Morrison, and Crane.
The Clerk will report the bill.
H.R. 7396
The CLERK. H.R. 7396, a bill to establish the Office of
Native American----
Chairman WILLIAMS. Without objection, H.R. 7396 is
considered as read and open for amendment.
I now recognize Representative Morrison from the great
state of Minnesota for a statement on the bill.
Ms. MORRISON. Thank you, Mr. Chairman, and thanks to my
colleagues, Representatives Davids, Ellzey, and Crane, for
joining me in introducing this important bipartisan
legislation.
Native-owned businesses employ over 300,000 people across
the country and contribute over $33 billion to the U.S. economy
every year. In tribal communities, they are often the backbone
of the local economy. That is why it is critical that there is
continuity in the Small Business Administration's engagement
with Native American entrepreneurs.
Codifying the Office of Native American Affairs and
establishing an assistant administrator role to oversee its
operations will create better government-to-government working
relationships with tribes and Native Hawaiian organizations and
better address the entrepreneurial, capital, and contracting
needs of tribes and Native businesses.
There are nearly 4,000 Native-owned businesses in
Minnesota, ranging from independent bookstores to construction
companies to local restaurants. I look forward to seeing the
Small Business Administration continue to work with Native
entrepreneurs in Minnesota and across the country to ensure
these businesses have the resources they need to grow and
succeed.
Thank you, Mr. Chair. I yield back.
Chairman WILLIAMS. The gentlelady yields back. Are there
any other Members who wish to be recognized for a statement on
this bill?
Okay, seeing none, I would like to recognize the Ranking
Member to speak on the bill.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. I strongly support
the Native American Entrepreneurial Opportunity Act.
Let me begin by commending Ms. Davids, Dr. Morrison, Mr.
Ellzey, and Mr. Crane for their and bipartisanship commitment
to codifying the Office of Native American Affairs at SBA.
Small businesses on tribal reservations oftentimes face a
mix of challenges, ranging from lack of access to capital to
inadequate business training. SBA's office has proved to be a
valuable resource to Native American Indians, Alaskan Natives,
and Native Hawaiians, supporting approximately 2,000 small
businesses every day. Codifying the office will ensure that
tribal small businesses have access to SBA's full range of
business development tools, regardless of the administration.
Importantly, the legislation requires that the assistant
administrator report directly to the administrator, making sure
that the voices of the tribal communities will be heard at SBA.
Native American-owned businesses are economic engines,
generating $86 billion in sales, shipments, and revenues every
year, and employing nearly 364,000 people in their communities.
This bill will go a long way to increase access to federal
programs and services and promote economic development.
I would also like to thank Chairman Williams for adding
this bill to the markup today.
With that, I yield back.
Chairman WILLIAMS. The gentlelady yields back.
I now recognize myself to speak in support of this
legislation.
H.R. 7396, the Native American Entrepreneurial Opportunity
Act, established the Office of Native American Affairs within
the Small Business Administration. Economic development
programs aim to help small businesses start, grow, and compete
in global markets by providing qualifying training, counseling,
and access to resources. The SBA's Office of Native American
Affairs has been providing these services and tribal
consultations for many years.
However, the office has yet to be codified into law. This
legislation will codify this office and provide Congress with
an annual report that includes the number of individuals
served, consultations provided, and the trainings held by the
office. This report will improve transparency and increase
oversight of the office.
I urge my colleagues to vote yes on H.R. 7396, and I yield
back.
Does anyone wish to offer an amendment?
Seeing none, the question now occurs on ordering H.R. 7396
reported in favor to the House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it.
H.R. 7396 is agreed to.
Mr. MEUSER. Mr. Chairman?
Chairman WILLIAMS. For what purpose does the gentleman from
Pennsylvania seek recognition?
Mr. MEUSER. I would like to request a recorded vote.
Chairman WILLIAMS. So moved. The recorded vote has been
requested. A roll call vote is ordered.
Persuaded to Committee Rule 13 and House Rule 11, further
proceedings on the bill are postponed.
Committee now moves to consideration of H.R. 7412, the Put
America on Commission Act of 2026. Introduced by myself and
Representative Olszewski from the great state of Maryland.
The Clerk will report the bill.
H.R. 7412
The CLERK. H.R.7412, a bill to amend the small----
Chairman WILLIAMS. Without objection, H.R. 7412 is
considered as read and open for amendment.
I now recognize myself to speak in support of this
legislation.
H.R. 7412, the Put America on Commission Act of 2026, will
maximize the SBA's efforts to recover fraudulent pandemic loan
funds by incentivizing everyday Americans to submit credible
information on fraudulent loans in exchange for a commission.
This bill will establish the Office of Whistleblower Rewards
within the SBA to receive whistleblower tips from the public
and forward credible evidence to the Office of Inspector
General. If the information received from a whistleblower
results in a final conviction, the office will disperse a
monetary award to the whistleblower.
The SBA's Office of Inspector General estimates that over
$200 billion in taxpayer dollars were given out to bad actors
through the SBA's PPP, EIDL, and other COVID-19 relief
programs. This accounts for nearly 20 percent of all pandemic
funding or lending, and this legislation opens up a new avenue
for tracking down the fraudsters. Whistleblowers can serve as a
key tool in recovering the unprecedented amount of fraud and
ensuring fraudsters are brought to justice.
The newly established Office of Whistleblower Rewards would
be led by one staff member who coordinates tips with the SBA
Inspector General for investigation. Notably, the office's
operations and whistleblower awards are fully funded by
recovered fraudulent loan accounts, which are deposited into
the whistleblower award fund. Under the bill, the SBA may also
seek a separate civil monetary penalty against convicted
fraudsters, and the income from the penalties will be deposited
into the whistleblower award fund. In the private sector of a
commission's work, the bill utilizes the common practice to
help bring more fraudsters to justice. No one should be able to
defraud the American taxpayers without consequence.
I greatly appreciate the work that the Office of the
Inspector General has done to date to uncover the extent of the
fraud. This bill will help the Office of the Inspector General
obtain the information needed to catch fraudsters and do right
by American businesses.
I am proud to introduce legislation to help introduce
fraudsters accountable and recover billions of dollars stolen
from American taxpayers. Even the infamous CBO determined the
same legislation from last Congress would reduce the deficit by
$108 million over 10 years.
So I urge my colleagues to vote yes on H.R. 7412, and I
yield back.
I now recognize the bill's co-sponsor, Representative
Olszewski, from the great state of Maryland, for a statement on
the bill.
Mr. OLSZEWSKI. Thank you very much, Mr. Chairman. I do want
to begin by thanking you, Chairman Williams, for your
partnership and your leadership on this important effort.
Likewise, I want to echo your sentiments and lift up the
important work of the Inspector General. I am very proud to
lead this bipartisan bill because I believe that we can and
should always work harder to ensure tax dollars are being spent
as intended and as efficiently as possible.
Before coming to Congress, I had the privilege of serving
in both state and local elected office, including 6 years as
Baltimore County Executive. In that role, I authored our
county's first comprehensive and enterprise-wide efficiency
review. In that work, we came up with over 150 recommendations
with the potential savings of $771 million for taxpayers, many
of which my team and I implemented and are still being used
today to save residents millions annually. It is the kind of
work government should be leading all the time, and it is why I
am proud to join the Chairman to lead this innovative
bipartisan legislation that would incentivize Americans to
report the potential misuse of federal dollars.
My work in Baltimore County made sure we were being
efficient in our use of taxpayer funding. This bill aims to
save tax dollars by holding people and organizations who commit
fraud accountable.
During the COVID-19 pandemic, emergency funds were rushed
out to keep workers employed, small businesses afloat, and
families stable. I was proud to help administer many of these
programs as county executive. That money was meant to be a
lifeline, and for many, it was. But when individuals abused
those programs for personal gain, they didn't just break the
law and steal from the federal government. They stole from
others who were already under tremendous strain.
An office dedicated to reporting COVID-19 fraud protects
the integrity of all public programs, and it sends a clear
message: help is there for those who need it, but exploitation
will not be tolerated. This bill will hold criminals
accountable and offer multiple pathways for patriotic Americans
to report potential fraud and abuse. In turn, it will help us
recover funds and restore public trust.
I urge a yes vote from my colleagues. Thank you very much,
and I yield back.
Chairman WILLIAMS. Gentleman yields back.
I now recognize Representative Alford from the great state
of Missouri for a statement on the bill.
Mr. ALFORD. Thank you, Chairman Williams and Ranking Member
Velazquez, for bringing forward this important legislation.
You know, relief funds were meant to help small businesses
survive an unprecedented crisis, not to line the pockets of
criminals. Every dollar stolen is a dollar taken from an honest
entrepreneur who played by the rules and needed that support to
keep their doors open and their employees on payroll.
Unfortunately, we don't have to look too far from my
district. In Kansas City, Missouri, three men were recently
indicted for allegedly fraudulently obtaining more than
$447,000 in the Paycheck Protection Program Loans using false
payroll records. Authorities allege that those loans were later
forgiven, even though the funds were not used for authorized
purposes. Folks, that is half a million dollars. It is nearly
half a million dollars diverted away from the small businesses
these programs were created to help. Cases like this undermine
public trust and disadvantage the very people that these
programs were designed to support.
And that is just one example. Nationwide, hundreds of
billions of dollars in suspected pandemic loan fraud remains
outstanding. The American people deserve confidence that
Congress is doing everything possible to recover those funds
and hold bad actors accountable.
I am encouraged that under Administrator Kelly Loeffler,
the SBA is taking this issue seriously. We are seeing a renewed
focus on oversight, enforcement, and restoring integrity to
these programs so that taxpayer dollars are protected. And that
is why I fully support Chairman Williams' Put America on
Commission Act. This bill establishes an Office of
Whistleblowers Rewards with the Small Business Administration
to incentivize individuals to come forward with credible
information about pandemic loan fraud.
Pandemic relief programs like PPP and EIDL were lifelines
for millions of small businesses. And if we fail to pursue
fraud aggressively, we risk undermining confidence in future
emergency programs when Americans need them most. I urge my
colleagues to support this common-sense, bipartisan bill so
that we can continue recovering stolen funds and send a clear
message to the American people that if you defraud the American
taxpayer, you will be held accountable.
And with that, I yield back.
Chairman WILLIAMS. The gentleman yields back.
I now recognize Representative Stauber from the great state
of Minnesota for a statement on the bill.
Mr. STAUBER. Thank you, Mr. Chairman. I want to start by
being very clear. What happened during the pandemic with
federal relief dollars, and what has happened in states like my
home state of Minnesota, was not just unfortunate. It was a
gross failure of oversight and a betrayal of the American
taxpayer.
In my home state, we have uncovered billions of dollars in
fraud, federal dollars provided by the good people and law-
abiding taxpayers in my great state of Minnesota and across
this great nation. They were taken by organized fraud rings.
This wasn't just small oversights or mix-ups. This was a
systemic abuse, abuse made possible by our failing governor and
his administration in my state, and by other programs with weak
controls and no oversight.
We have seen case after case where taxpayer dollars meant
to help struggling families and small businesses instead lie in
the pockets of criminals. And once the money was gone, the
government was left without the tools or information needed to
recover it. This is unacceptable. Every dollar stolen is a
dollar taken away from a legitimate mom-and-pop shop trying to
stay open or a family just trying to put food on the table.
It is also deeply offensive to the millions of Americans
who followed the rules while fraudsters got rich. That is why
H.R. 7412, the Put America on Commission Act, is so critical.
This bill recognizes a simple truth. The government cannot
catch fraud alone. Often, the people who know fraud is
happening are the insiders, neighbors, or employees who see it
firsthand. But too often, they have no incentive or even a
clearer way to come forward.
By creating an Office of Whistleblower Rewards within the
SBA, this legislation puts real teeth behind fraud enforcement.
It incentivizes credible tips, helps uncover hidden fraud
schemes, and provides the SBA with the information it needs to
recover stolen taxpayer dollars. This is about accountability.
It is about deterrence. And it is about sending a message. If
you stole from the American people, you will be found, and you
will be held responsible.
I commend Chairman Williams and Congressman Olszewski for
bringing forward this bipartisan, common-sense solution. If we
are serious about stopping fraud, protecting honest businesses,
and restoring trust in federal programs, this bill is exactly
the kind of action Congress should be taking. I strongly urge
H.R. 7412--I strongly support, rather, H.R. 7412 and urge its
adoption.
And I yield back, Mr. Chair.
Chairman WILLIAMS. The gentleman yields back. Are there any
other Members who wish to be recognized for a statement?
All right, seeing none, I would like to recognize the
Ranking Member to speak on this bill.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. I share your
commitment to recovering fraudulent obtained COVID-19 pandemic
relief funds.
As you may recall, I led efforts to extend the statute of
limitations for fraud in the EIDL and PPP programs. This bill,
which became law, sent a strong message that unscrupulous
behavior will not be tolerated and that those who commit fraud
will be held accountable in the years to come. And in this
Congress, we came together to extend the statute of limitations
in two more pandemic relief programs.
While we may never know the exact amount of fraud, there is
no doubt that the vast majority of the fraud occurred in the
first 9 months of the pandemic, during President Trump's first
term, when the guardrails were lowered to get the money out the
door quickly during the crisis. We also know with certainty
that the SBA took a number of steps to curtail that fraud,
including reinstituting longstanding controls, establishing a
Fraud Risk Management Board, and creating a Special Counsel for
Enterprise Risk.
Currently, the OIG has more than 130,000 actionable leads
that have been submitted to their hotline. The issue before us
is not a failure to identify fraud. The OIG has enough credible
leads to remain active for decades. The real challenge is
ensuring our law enforcement community has the resources it
needs to thoroughly investigate and prosecute fraud.
I appreciate the efforts of the Chairman to come up with a
creative solution to help recover fraudulent funds, and I
commend Representative Olszewski for leading this bill along
with Mr. Williams.
Thank you, and I yield back.
Chairman WILLIAMS. Thank you, and the gentlelady does yield
back. And does anyone wish to offer an amendment?
Seeing none, the question now occurs in order in H.R. 7412,
reported favorably to the House.
All those in favor say aye.
All those opposed say no.
And depending on the Chair, the ayes have it, and H.R.
7412----
Mr. STAUBER. Mr. Chair?
Chairman WILLIAMS. Yes, sir.
Mr. MEUSER. I request a recorded vote, please.
Chairman WILLIAMS. A recorded vote has been requested, and
a roll call vote is ordered. So, pursuant to Committee Rule 13
and House Rule 11, further proceedings on this bill are
postponed.
Okay, now the Committee will stand in recess, subject to
the call of the Chair. Members, please remain in your seats
while we set up the voting software. This will be very brief.
[Recess.]
Chairman WILLIAMS. The Committee will now come to order. We
will resume consideration of the bills on which roll call votes
were requested and postponed.
We will start with H.R. 7401. The question now occurs in
order in H.R. 7401, reported favorably to the House. The Clerk
will open the vote.
[The vote was taken.]
Chairman WILLIAMS. Are there any other Members who have not
voted or wish to change their vote? If not, the Clerk will
close the vote.
The Clerk will report.
The CLERK. Mr. Chairman, on this vote, the ayes are 24, and
the noes are zero.
Chairman WILLIAMS. H.R. 7401 is ordered, reported to the
House with a favorable recommendation.
The question now occurs in order in H.R. 7396, reported
favorably to the House.
The Clerk will open the vote.
[The vote was taken.]
Chairman WILLIAMS. Okay, are there any other Members who
have not voted or wish to change their vote? If not, the Clerk
will close the vote.
The Clerk will report.
The CLERK. Mr. Chairman, on this vote, the ayes are 24, and
the noes are zero.
Chairman WILLIAMS. H.R. 7396 is ordered, reported to the
House with a favorable recommendation.
The question now occurs in order in H.R. 7412, reported
favorably to the House. The Clerk will open the vote.
[The vote was taken.]
Chairman WILLIAMS. Are there any other Members who have not
voted or wish to change their vote? If not, the Clerk will
close the vote.
The Clerk will report.
The CLERK. Mr. Chairman, on this vote, the ayes are 24, and
the noes are zero.
Chairman WILLIAMS. H.R. 7412 is ordered, reported to the
House with a favorable recommendation.
And if there is no further business, this concludes today's
markup. I want to thank all of you for this.
Without objection, the Committee staff is authorized to
make technical and conforming changes, and Members have 2
business days to file additional supplemental dissenting and
minority views.
I want to thank all of you for being here today. Again,
without objection, the Committee stands adjourned. Thank you.
[Whereupon, at 9:43 a.m., the committee was adjourned.]
A P P E N D I X
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