[House Report 119-709]
[From the U.S. Government Publishing Office]
119th Congress } { Rept. 119-709
HOUSE OF REPRESENTATIVES
2d Session } { Part 1
=======================================================================
GUARDING UNPROTECTED AGING RETIREES FROM DECEPTION ACT OF 2026
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June 24, 2026.--Ordered to be printed
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Mr. Hill of Arkansas, from the Committee on Financial Services,
submitted the following
R E P O R T
[To accompany H.R. 2978]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 2978) to permit State, local, and Tribal law
enforcement agencies that receive eligible Federal grant funds
to use such funds for investigating elder financial fraud, pig
butchering, and general financial fraud, and to clarify that
Federal law enforcement agencies may assist State, local, and
Tribal law enforcement agencies in the use of tracing tools for
blockchain and related technology, and for other purposes,
having considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 4
Background and Need for Legislation.............................. 4
Committee Consideration.......................................... 4
Related Hearings................................................. 5
Committee Votes.................................................. 5
Committee Oversight Findings..................................... 9
Performance Goals and Objectives................................. 9
Committee Cost Estimate.......................................... 9
New Budget Authority and CBO Cost Estimate....................... 9
Unfunded Mandates Statement...................................... 11
Earmark Statement................................................ 11
Federal Advisory Committee Act Statement......................... 12
Applicability to the Legislative Branch.......................... 12
Duplication of Federal Programs.................................. 12
Section-by-Section Analysis of the Legislation................... 12
Changes in Existing Law Made by the Bill, as Reported............ 13
Documents Included by Unanimous Consent.......................... 14
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Guarding Unprotected Aging Retirees
from Deception Act of 2026'' or the ``GUARD Act of 2026''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Elder financial fraud.--The term ``elder financial
fraud'' means the illegal or improper use of the money,
property, or other resources of an elderly individual or adult
with a disability for monetary or personal benefit, profit, or
gain.
(2) Eligible federal grant funds.--The term ``eligible
Federal grant funds'' means funds received under any of the
following:
(A) Title IV of the Prioritizing Resources and
Organization for Intellectual Property Act of 2008 (34
U.S.C. 30103 et seq.) (commonly known as the
``Economic, High-Technology, White Collar, and Internet
Crime Prevention National Training and Technical
Assistance Program''), including relating to the use of
technology to solve crimes and to facilitate
prosecutions (commonly known as the ``Internet of
Things (IoT) National Training and Technical Assistance
Program'').
(B) Title 28, Code of Federal Regulations, part 23
(commonly known as ``Justice Information Sharing
Training and Technical Assistance Program'').
(C) Section 1401 of the Violence Against Women Act
Reauthorization Act of 2022 (34 U.S.C. 30107) to a
local law enforcement agency for enforcement of
cybercrimes against individuals.
(D) Section 1701 title I of the Omnibus Crime Control
and Safe Streets Act of 1968 (34 U.S.C. 10381),
relating to developing and acquiring effective
equipment, technologies, and interoperable
communications that assist in responding to and
preventing crime (commonly known as the ``COPS
Technology and Equipment Program'').
(3) General financial fraud.--The term ``general financial
fraud'' means, in order to obtain money or other things of
value--
(A) intentional misrepresentation of information or
identity to deceive an individual;
(B) unlawful use of a credit card, debit card, or
automated teller machine; or
(C) use of electronic means to transmit deceptive
information.
(4) Pig butchering.--The term ``pig butchering'' means a
confidence and investment fraud in which the victim is
gradually lured into making increasing monetary contributions,
generally in the form of cryptocurrency, to a seemingly sound
investment before the scammer disappears with the contributed
monies.
(5) Scam.--The term ``scam'' means a financial crime
undertaken through the use of social engineering that uses
deceptive inducement to acquire--
(A) authorized access to funds; or
(B) personal or sensitive information that can
facilitate the theft of financial assets.
(6) State.--The term ``State'' means each of the several
States, the District of Columbia, and each territory of the
United States.
SEC. 3. FEDERAL GRANTS USED FOR INVESTIGATING ELDER FINANCIAL FRAUD,
PIG BUTCHERING, AND GENERAL FINANCIAL FRAUD.
(a) In General.--State, local, and Tribal law enforcement agencies
and grantees that receive eligible Federal grant funds may use such
funds for investigating elder financial fraud, pig butchering, and
general financial fraud, including by--
(1) hiring and retaining analysts, agents, experts, and other
personnel;
(2) providing training specific to complex financial
investigations, including training on--
(A) coordination and collaboration between State,
local, Tribal, and Federal law enforcement agencies;
(B) assisting victims of financial fraud and
exploitation;
(C) the use of blockchain intelligence tools and
related capabilities relating to emerging technologies
identified in the February 2024 ``Critical and Emerging
Technology List Update'' of the Fast Track Action
Subcommittee on Critical and Emerging Technologies of
the National Science and Technology Council (the
``Critical and Emerging Technology List''); and
(D) unique aspects of fraud investigations, including
transnational financial investigations and emerging
technologies identified in the Critical and Emerging
Technology List;
(3) obtaining software and technical tools to conduct
financial fraud and exploitation investigations;
(4) encouraging improved data collection and reporting;
(5) supporting training and tabletop exercises to enhance
coordination and communication between financial institutions
and State, local, Tribal, and Federal law enforcement agencies
for the purpose of stopping fraud and scams; and
(6) designating a financial sector liaison to serve as a
point of contact for financial institutions to share and
exchange with State, local, Tribal, and Federal law enforcement
agencies information relevant to the investigation of fraud and
scams.
(b) Report to Grant Provider.--Each law enforcement agency and
grantee that makes use of eligible Federal grant funds for a purpose
specified under subsection (a) shall, not later than 1 year after
making such use of the funds, submit to the Federal agency that
provided the eligible Federal grant funds, a report containing--
(1) an explanation of the amount of funds so used, and the
specific purpose for which the funds were used;
(2) statistics with respect to elder financial fraud, pig
butchering, and general financial fraud in the jurisdiction of
the law enforcement agency, along with an analysis of how the
use of the funds for a purpose specified under subsection (a)
affected such statistics; and
(3) an assessment of the ability of the law enforcement
agency to deter elder financial fraud, pig butchering, and
general financial fraud.
SEC. 4. REPORT ON GENERAL FINANCIAL FRAUD, PIG BUTCHERING, AND ELDER
FINANCIAL FRAUD.
No later than a year after the date of the enactment of this Act, the
Secretary of the Treasury, acting through the Director of the Financial
Crimes Enforcement Network, and in consultation with the Attorney
General, the Secretary of Homeland Security, and the appropriate
Federal banking agencies and Federal functional regulators, shall
submit to Congress a report on efforts to combat general financial
fraud, pig butchering, elder financial fraud, and scams, including an
evaluation of, and any legislative recommendations to improve, the
efficacy of the efforts.
SEC. 5. REPORT ON THE STATE OF SCAMS IN THE UNITED STATES.
Not later than 2 years after the date of enactment of this Act, and
two years thereafter, the Secretary of the Treasury, acting through the
Director of the Financial Crimes Enforcement Network, shall submit a
report to Congress on the state of financial fraud, pig butchering,
elder financial fraud, and scams, based on information available to the
Financial Crimes Enforcement Network, that--
(1) relies on information reported to or otherwise available
to the Financial Crimes Enforcement Network;
(2) analyzes trends in suspected financial fraud, pig
butchering, elder financial fraud, and scams, as reflected in
reports filed under subchapter II of chapter 53 of title 31,
United States Code (commonly referred to as the ``Bank Secrecy
Act''), including--
(A) the volume of relevant reports;
(B) the aggregate dollar amount associated with the
reports;
(C) typologies and methods identified through the
reports; and
(D) the role of digital assets in the reports; and
(3) summarizes activities conducted in cooperation with law
enforcement, including the Rapid Response Program, during the
period covered by the report, including--
(A) the number of referrals received from law
enforcement;
(B) the aggregate dollar amount of funds for which
interdiction was sought;
(C) the aggregate dollar amount of funds successfully
interdicted or recovered; and
(D) any limitations affecting the activities,
including limitations arising from reliance on law
enforcement referrals.
SEC. 6. REPORT TO CONGRESS.
Each Federal agency that provides eligible Federal grant funds that
are used for a purpose specified under section 3(a) shall issue an
annual report to the Committee on Banking, Housing, and Urban Affairs
of the Senate, the Committee on Financial Services of the House of
Representatives, the Committee on the Judiciary of the Senate, and the
Committee on the Judiciary of the House of Representatives containing
the information received from law enforcement agencies under section
3(b).
SEC. 7. FEDERAL LAW ENFORCEMENT AGENCIES ASSISTING STATE, LOCAL, AND
TRIBAL LAW ENFORCEMENT AND FUSION CENTERS.
Federal law enforcement agencies may assist State, local, and Tribal
law enforcement agencies and fusion centers in the use of tracing tools
for blockchain and related technology tools.
PURPOSE AND SUMMARY
H.R. 2978, the Guarding Unprotected Aging Retirees from
Deception (GUARD) Act, was introduced on April 21, 2025, by
Republican Representative Zach Nunn (IA-03).
H.R. 2978 allows state and local law enforcement to utilize
funding from certain existing federal law enforcement grant
programs to facilitate the retention and training of personnel,
and other enforcement activities associated with the countering
of general financial fraud, elder fraud, and pig butchering.
These entities would be required to report on their use of
funds, and the federal agencies administering these grant
programs would have to report annually to the House Committee
on Financial Services and Senate Committee on Banking, Housing,
and Urban Affairs on the contents of these reports. The bill
also permits federal law enforcement to assist state and local
law enforcement agencies in the use of blockchain tracing tools
and related technology. The bill additionally requires the
Treasury Department to produce a comprehensive study on the
state of fraud and scams within two years of enactment, as well
as to report separately on efforts and recommendations related
to fraud and scams within one year of enactment.
BACKGROUND AND NEED FOR LEGISLATION
Investment scams targeting Americans, particularly pig
butchering schemes, have seen a significant rise in the last
several years. Pig butchering takes many forms from fraudulent
investment offers, to romance confidence schemes, phishing
scams, and other false claims of high returns with minimal
risk, all designed to deceive and exploit investors for
financial gain. Elderly Americans have been a major target of
this deception.
H.R. 2978 helps state and local law enforcement address
this growing challenge by providing additional flexibility to
combat financial fraud, particularly elder fraud and pig
butchering, under several existing law enforcement grant
programs. It would also require the Treasury Department to
produce a comprehensive report to help Congress better
understand and tackle the issue.
COMMITTEE CONSIDERATION
119TH CONGRESS
On April 21, 2025, Representative Nunn introduced H.R.
2978, the Guarding Unprotected Aging Retirees from Deception
(GUARD) Act, with Representatives Josh Gottheimer (D-NJ) and
Scott Fitzgerald (R-WI) as original cosponsors. Representatives
Troy Nehls (R-TX), Jefferson Shreve (R-IN), Sarah McBride (D-
DE), Daniel Meuser (R-PA), Roger Williams (R-TX), Barry Moore
(R-AL), Laura Gillen (D-NY), Josh Harder (D-CA), Eric Sorensen
(D-IL), Julia Brownley (D-CA), Andy Barr (R-KY), Glenn Grothman
(R-WI), Maria Salazar (R-FL), John Mannion (D-NY), Thomas
Suozzi (D-NY), George Whitesides (D-CA), Derek Tran (D-CA),
Gabe Vasquez (D-NM), Rob Wittman (R-VA), David Valadao (R-CA),
Jeff Van Drew (R-NJ), Troy Downing (R-MT), Susie Lee (D-NV),
Jahana Hayes (D-CT), Tim Moore (R-NC), Tom Tiffany (R-WI),
Marlin Stutzman (R-IN), Mike Lawler (R-NY), Adam Smith (D-WA),
Jennifer Kiggans (R-VA), Tracey Mann (R-KS), Angie Craig (D-
MN), Julie Johnson (D-TX), Monica De La Cruz (R-TX), Suhas
Subramanyam (D-VA), Ashley Hinson (R-IA), Julie Fedorchak (R-
ND), Sean Casten (D-IL), George Latimer (D-NY), Young Kim (R-
CA), Ken Calvert (R-CA), Timothy Kennedy (D-NY), August Pfluger
(R-TX), Derek Schmidt (R-KS), Glenn Ivey (D-MD), Gabe Evans (R-
CO), Gary Palmer (R-AL), Gabe Amo (D-RI), and Burgess Owens (R-
UT) were added subsequently as cosponsors.
The bill was referred to the Committee on the Judiciary,
and, in addition, to the Committee on Financial Services.
A discussion draft version of the bill was attached to the
April 1, 2025, National Security, Illicit Finance, and
International Financial Institutions Subcommittee hearing
titled, ``Following the Money: Tools and Techniques to Combat
Fraud.''
On May 13, 2026, the Committee on Financial Services met in
open session to consider, among others, H.R. 2978. The
Committee ordered H.R. 2978, as amended, to be reported with a
favorable recommendation to the House of Representatives.
On July 20, 2025, Senator Katie Boyd Britt (R-AL)
introduced S. 2544, the GUARD Act, a Senate companion to H.R.
2978. S. 2544 was reported by the Senate Committee on the
Judiciary without amendment on February 5, 2026.
RELATED HEARINGS
Pursuant to clause 3(c)(6) of rule XIII of the Rules of the
House of Representatives, the following hearing was used to
develop H.R. 2978:
On April 1, 2025, the Subcommittee on National Security,
Illicit Finance, and International Financial Institutions held
a hearing titled, ``Following the Money: Tools and Techniques
to Combat Fraud.'' A discussion draft version of H.R. 2978 was
noticed for consideration at this hearing.
This hearing explored the growing threat of investment
fraud in the U.S.; analyzed tools and practices used to
``follow the money'' when it comes to investment scams; and
assessed the effectiveness of Suspicious Activity Reports
(SARs) and Currency Transaction Reports (CTRs) in the U.S.
financial system. The Subcommittee heard testimony from: Mr.
Darrin McLaughlin, Executive Vice President-Chief BSA/AML &
Sanctions Officer, Flagstar Bank on behalf of the American
Bankers Association (ABA); Ms. Jacqueline Burns Koven, Head of
Cyber Threat Intelligence, Chainalysis; Mr. Jeff Brabant, Vice
President, Federal Government Relations, National Federation of
Independent Business (NFIB); and Ms. Kathy Stokes, Director,
Fraud Prevention Programs, AARP.
COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee Report to include record
votes on the motion to report legislation and amendments
thereto.
On May 13, 2026, the Committee ordered H.R. 2978, as
amended, to be reported favorably to the House by a recorded
vote of 52 yeas and 0 nays, a quorum being present. (Record
Vote No. FC-276).
The Committee considered the following amendments to H.R.
2978:
Representative Zach Nunn (R-IA) offered an
amendment in the nature of a substitute, which revised
reporting requirements and made minor edits and
technical changes. This amendment was adopted by a
voice vote.
Representative Maxine Waters (D-CA) offered
an amendment (No. 6), designated GUARD_AMEND2. This
amendment defines meme coins and specifies meme coin
scams as a special category among the types of fraud
listed in the bill. This amendment failed by a recorded
vote of 22 yeas and 30 nays, a quorum being present.
(Record Vote No. FC-275).
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COMMITTEE OVERSIGHT FINDINGS
Pursuant to clause 3(c) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee, based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives
are incorporated in the descriptive portions of this report.
PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the goal of H.R. 2978 is to counter
financial fraud, elder fraud, and other financial scams by
permitting state and local law enforcement agencies to utilize
funding from certain existing federal law enforcement grant
programs to train and retain personnel, and conduct other
enforcement activities, with results reported to Congress
annually. The bill permits the use of federal assistance to
state and local law enforcement for blockchain tracing
technology, and additionally requires the Treasury Department
to study and report separately on efforts and recommendations
to counter fraud and scams.
COMMITTEE COST ESTIMATE
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 2978. Clause
3(d)(2)(B) of that Rule provides that this requirement does not
apply when, as with the present report, the Committee adopts as
its own the cost estimate for the bill prepared by the Director
of the Congressional Budget Office (CBO).
NEW BUDGET AUTHORITY AND CBO COST ESTIMATE
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee adopts as its
own the cost estimate for the bill prepared by the Director of
the CBO.
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H.R. 2978 would expand existing grant programs and allow
state, local, and tribal law enforcement agencies to use grants
from the Department of Justice (DOJ) to investigate financial
fraud and scams. Under the bill, agencies could use grants to
hire and train analysts and agents, obtain software and other
analytical tools, and provide training on best practices
related to fraud investigation. H.R. 2978 would require DOJ to
report to the Congress annually on the activities supported by
the new grants authorized by the bill. The bill also would
require the Financial Crimes Enforcement Network (FinCEN), in
consultation with DOJ and federal banking regulators, to report
to the Congress on the government's efforts to combat financial
fraud. Finally, H.R. 2978 would require FinCEN to report to the
Congress regarding trends in those crimes.
The estimated budgetary effects of the legislation are
shown in Table 1. The costs of the legislation fall within
budget functions 370 (commerce and housing credit) and 750
(administration of justice).
Using information from DOJ about awards in recent years,
CBO expects that about 210 law enforcement agencies would
receive grants under the bill and that each grant would cost
about $225,000, on average. Based on the historical spending
pattern for similar programs, and accounting for anticipated
inflation, CBO estimates that implementing H.R. 2978 would cost
$128 million over the 2026-2031 period, assuming appropriation
of the necessary amounts. Based on the costs of similar
activities, CBO estimates that the bill's reporting
requirements would cost FinCEN and DOJ less than $500,000 over
that same period.
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 2978
----------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
----------------------------------------------------------------
2026 2027 2028 2029 2030 2031 2026-2031
----------------------------------------------------------------------------------------------------------------
Increases in Spending Subject to Appropriation
Estimated Authorization........................ 24 49 50 51 52 53 279
Estimated Outlays.............................. * 6 15 26 37 44 128
----------------------------------------------------------------------------------------------------------------
CBO also estimates that enacting H.R. 2978 would increase direct spending and reduce revenues by less than
$500,000 in every year and over the 2026-2036 period. The effect on the deficit would not be significant.
* = between zero and $500,000.
Enacting H.R. 2978 would require several financial
regulators whose operating costs are classified as direct
spending to report to the Congress. Because some of those
regulators collect fees from financial institutions to offset
their operating costs, CBO estimates that the bill's reporting
requirements would, on net, increase direct spending by less
than $500,000 over the 2026-2036 period.
Additionally, CBO expects that the Federal Reserve would
incur costs to comply with the bill's reporting requirements;
those costs reduce remittances to the Treasury, which are
recorded in the budget as revenues. Thus, CBO estimates that
enacting the bill would decrease revenues by less than $500,000
over the 2026-2036 period.
If federal financial regulators were to increase annual
fees to offset the costs of implementing the provisions in H.R.
2978, the cost of an existing private-sector mandate on
entities required to pay those fees would increase as well. CBO
estimates that the incremental cost of the mandate would be
small and would fall well below the annual threshold
established in the Unfunded Mandates Reform Act (UMRA) for
private-sector mandates ($214 million in 2026, adjusted
annually for inflation).
H.R. 2978 contains no intergovernmental mandates as defined
in UMRA.
Previous CBO estimate: On March 27, 2026, CBO transmitted a
cost estimate for S. 2544, the GUARD Act, as reported by the
Senate Committee on the Judiciary on February 9, 2026. The two
bills are similar, and CBO's estimate of their budgetary
effects are the same.
The CBO staff contacts for this estimate are Jeremy Crimm
(for federal costs) and Erich Dvorak (for mandates). The
estimate was reviewed by H. Samuel Papenfuss, Deputy Director
of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
UNFUNDED MANDATES STATEMENT
Pursuant to Section 423 of the Congressional Budget and
Impoundment Control Act of 1974, Pub. L. No. 93-344 (as amended
by Section 101(a)(2) of the Unfunded Mandates Reform Act of
1995, Pub. L. No. 104-4), the Committee adopts as its own the
cost estimate prepared by the Director of the CBO pursuant to
section 402 of the Congressional Budget and Impoundment Control
Act of 1974.
EARMARK STATEMENT
In compliance with clause 9 of rule XXI of the Rules of the
House of Representatives, this bill, as reported, contains no
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI.
FEDERAL ADVISORY COMMITTEE ACT STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
APPLICABILITY TO THE LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
Federal program, including any program that was included in a
report to Congress pursuant to section 21 of the Public Law
111-139 or the most recent Catalog of Federal Domestic
Assistance.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
Section 1 provides the short title is the ``Guarding
Unprotected Aging Retirees from Deception Act'' or the ``GUARD
Act''.
Section 2. Definitions
Section 2 defines key terms.
Section 3. Federal Grants used for investigating elder financial fraud,
pig butchering, and general financial fraud
Section 3 permits state, local, and Tribal law enforcement
agencies and grantees that receive eligible Federal grant funds
to use such funds for investigating elder financial fraud, pig
butchering, and general financial fraud.
Section 4. Report on general financial fraud, pig butchering, and elder
financial fraud
Section 4 requires the Secretary of the Treasury, in
coordination with relevant federal agencies, to submit a report
to Congress on efforts to combat fraud, including an evaluation
of the efficacy of such efforts and legislative recommendations
to improve them.
Section 5. Report on the state of scams in the United States
Section 5 requires the Secretary of the Treasury to issue a
report on the state of scams, drawing on information available
to the Financial Crimes Enforcement Network.
Section 6. Report to Congress
Section 6 requires federal agencies providing funds
described under section 3 to report annually to Congress on
information submitted to them by law enforcement agencies
regarding the use of funds, fraud statistics, and fraud
deterrence.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
H.R. 2978 does not repeal or amend any section of a
statute. Therefore, the Office of Legislative Counsel did not
prepare the report required under clause 3(e) of rule XIII of
the House of Representatives.
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