FRAUD Act

This bill would require state governors, heads of state agencies that handle federal funds, and state inspectors general to report fraud warnings involving federal funds to the FBI Director within 180 days. A fraud warning is a written, documented allegation of misuse or theft of at least $250,000 in federal funds given to a state. To receive federal funds each year, a state's chief executive would have to certify that its officials substantially complied with this reporting rule the year before. Officials who knowingly fail to report, or who obstruct a fraud investigation, could be fined, imprisoned up to 10 years, or both, and could be barred by a federal agency from overseeing distribution of those funds.

Full text and official record on Congress.gov

Sponsors

• Pete Stauber Republican sponsor
• 4 cosponsors