[Congressional Record Volume 172, Number 96 (Monday, June 8, 2026)]
[House]
[Pages H3923-H3925]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FEDERAL PROGRAM INTEGRITY AND FRAUD PREVENTION ACT OF 2026
Mr. GILL of Texas. Mr. Speaker, I move to suspend the rules and pass
the bill (H.R. 6916) to amend title 41, United States Code, to identify
individuals who commit certain Federal felonies implicating Federal
programs as an excluded source on the System for Award Management
Exclusions list, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 6916
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
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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.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Texas (Mr. Gill) and the gentleman from Virginia (Mr. Subramanyam) each
will control 20 minutes.
The Chair recognizes the gentleman from Texas.
{time} 1440
General Leave
Mr. GILL of Texas. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks and include extraneous material on this measure.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. GILL of Texas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in support of H.R. 6916, the Federal Program
Integrity and Fraud Prevention Act.
The Federal Government pays a substantial amount of money to
contractors for services to help agencies fulfill their missions. It is
a privilege, not a right, to receive a contract, grant, loan, or other
form of Federal financial assistance.
Unfortunately, there are individuals who take advantage of these
resources and use it as an opportunity to defraud the government.
This bill closes a glaring loophole by prohibiting individuals that
are convicted of certain felonies, primarily defrauding the Federal
Government, from receiving Federal awards.
Under H.R. 6916, fraudsters will no longer be able to get rich from
taxpayers' hard-earned dollars. This bill requires these individuals to
be listed on the General Services Administration's System for Award
Management Exclusion list, thus ensuring that Federal agencies know who
these individuals are to ensure they, or any entity of which they have
a controlling interest, are not awarded a contract or grant.
Mr. Speaker, I thank the bill's sponsors, Congressman Keith Self and
Congresswoman Emily Randall, a colleague on the House Oversight
Committee, for bringing this commonsense bill to the Committee.
Mr. Speaker, I encourage my colleagues to support this necessary and
bipartisan bill, and I reserve the balance of my time.
Mr. SUBRAMANYAM. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today also in support of H.R. 6916, the Federal
Program Integrity and Fraud Prevention Act.
This bill would automatically ban individuals and companies convicted
of defrauding the government from receiving Federal contracts, grants,
and other Federal financial assistance for 3 years.
Mr. Speaker, I yield 5 minutes to the gentlewoman from Washington
(Ms. Randall)
Ms. RANDALL. Mr. Speaker, I rise today in support of the Federal
Program Integrity and Fraud Prevention Act, bipartisan legislation that
I am proud to lead with Representative Self.
This bill is rooted in a pretty basic idea: If someone is convicted
of defrauding a Federal program, they should not be able to turn around
and keep doing business with the Federal Government. This isn't about
politics. It is about protecting taxpayer dollars and making sure that
the Federal Government is worthy of the trust that the people place in
it.
In every community we represent, people work hard, pay their taxes,
and expect government programs to be run with honesty and
accountability.
Each year, the Federal Government awards more than $700 billion in
contracts to various agencies. Taxpayers expect those dollars to
support families, to strengthen communities, and to deliver the
services Congress intended, not go back to people who have already been
convicted of abusing public funds.
This issue was brought to us by the inspectors general, the public
servants who spend every day rooting out waste, fraud, and abuse across
the Federal Government. They identified a real gap in the current
system.
Too often, individuals convicted of fraud involving Federal programs
remain eligible to apply for and receive Federal contracts. Under
current law, agencies can suspend or debar these individuals, but the
process can be slow, staff intensive, and inconsistent.
We have been told that preparing one single suspension or debarment
package can take up to 20 hours.
For agencies already operating with limited staff and growing
backlogs,
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that means people who should be barred from Federal contracts can slip
through the cracks. That is exactly the kind of problem Congress should
be working together to fix.
According to a study by the inspectors general, of 550 felony fraud
convictions involving pandemic-related Federal program funds over a 3-
year period, more than 95 percent of those convicted were not suspended
or debarred from doing business with the government. That is
unacceptable.
Our bill creates a clear, commonsense standard: Individuals convicted
of fraud involving Federal programs would be automatically ineligible
for Federal contracts for at least 3 years. That means stronger
accountability, more consistent enforcement, and more time for the
inspectors general to focus on other cases of waste, fraud, and abuse.
The American people are owed more accountability and transparency
into what taxpayer-funded contracts are being approved.
The Federal Program Integrity and Fraud Prevention Act is a targeted,
bipartisan solution to a documented problem. It protects taxpayers. It
supports the work of the inspectors general, and it helps make sure
Federal dollars go where they are supposed to go. I am grateful to the
inspectors general who raised this issue and helped us develop this
legislation, and I thank Representative Self for his partnership.
Mr. Speaker, I urge all my colleagues to support the Federal Program
Integrity and Fraud Prevention Act.
Mr. GILL of Texas. Mr. Speaker, I yield 5 minutes to the gentleman
from Texas (Mr. Self).
Mr. SELF. Mr. Speaker, I rise in favor of H.R. 6916, the Federal
Program Integrity and Fraud Prevention Act of 2025.
The American people expect their hard-earned tax dollars to be used
responsibly. They should never have to worry that individuals convicted
of defrauding the Federal Government can turn around and receive
additional Federal contracts, grants, or loans.
Unfortunately, we have seen too many examples of individuals
exploiting Federal programs for personal gain. One repeat fraudster
submitted at least 22 fraudulent pandemic loan applications and
additional fraudulent unemployment benefit applications, resulting in
more than $250,000 in taxpayer losses. That is only one case.
It is common sense to expect that someone convicted of defrauding the
government should not return and apply for more money. This bill closes
that loophole.
H.R. 6916 requires individuals convicted of specific Federal fraud
offenses involving Federal programs to be placed on the System for
Award Management Exclusion list for 3 years. In simple terms: If
someone is convicted of stealing from, lying to, or defrauding the
Federal Government, they will not be eligible to receive more Federal
dollars.
This bill does not create new crimes. It does not expand Federal
spending. It simply ensures that individuals convicted of serious fraud
involving Federal programs are temporarily barred from receiving
additional taxpayer funds.
At a time when Americans are demanding greater accountability from
their government, Congress should send a clear message: Taxpayer
dollars are not an entitlement in the face of fraud.
Mr. Speaker, I thank the Office of Inspector General and the
professionals who worked with my team throughout the development of
this legislation. Their work investigating fraud and protecting
taxpayer dollars is indispensable.
Mr. Speaker, I also thank Representative Randall for her partnership
with this legislation, and I urge my colleagues to support H.R. 6916.
Mr. SUBRAMANYAM. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, as the sponsors of the bill mentioned, we have a
responsibility to ensure that Federal funds are spent wisely and go to
Americans who truly need them. I think it is pretty clear that if you
commit fraud to steal from the Federal Government, you should not be
rewarded with a Federal contract or grant.
Mr. Speaker, I urge my colleagues to support this bill, and I yield
back the balance of my time.
Mr. GILL of Texas. Mr. Speaker, I yield myself the balance of my
time.
Mr. Speaker, I urge my colleagues to support H.R. 6916, the Federal
Program Integrity and Fraud Prevention Act.
The House Oversight and Government Reform Committee's extensive
investigations and hearings on fraud in Federal programs have made one
thing clear: If fraudsters are successful, they will continue to find
new ways to steal taxpayer dollars.
Such egregious actions require proactive fraud mitigation to prevent
fraudsters and criminals from taking advantage of loopholes in our
government and continuing to enrich themselves with taxpayer dollars.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Texas (Mr. Gill) that the House suspend the rules and
pass the bill, H.R. 6916, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
The title of the bill was amended so as to read: ``A bill 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.''.
A motion to reconsider was laid on the table.
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