Federal Program Integrity and Fraud Prevention Act of 2026
Officially: “Federal Program Integrity and Fraud Prevention Act of 2026” Read the full text
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1Short title
This section would let the Act be called the Federal Program Integrity and Fraud Prevention Act of 2025.
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1. Short title This Act may be cited as the Federal Program Integrity and Fraud Prevention Act of 2025 .
2Exclusion of Felony Fraud Convicts to Protect Federal Funds
This section would add a new section 4715 to chapter 47 of title 41, United States Code, and would add a matching entry to that chapter's table of sections. Under the new section 4715, unless an agency head grants a waiver, an individual convicted of a covered felony arising out of any agency contract, grant, cooperative agreement, loan, or other financial assistance would have to be identified as an excluded source on the System for Award Management (SAM) Exclusions list described in part 9 of title 48 of the Code of Federal Regulations and part 180 of title 2 of that code, or any successor regulations. For each individual convicted of a covered felony, the Attorney General would have to notify the Administrator of General Services in a timely manner of the conviction, and the Administrator would then have to promptly enter a 3-year prohibition for that individual into the System for Award Management or any successor system. Despite that prohibition, an agency head could exempt an individual from it in a specific case if the agency head determines in writing that the exemption is warranted, and the agency head would have to send a copy of each such written exemption to Congress immediately after making the determination. The new section would define 'agency' as an Executive department (as defined in section 101 of title 5), a military department (as defined in section 102 of title 5), a Government corporation (as defined in section 103 of title 5), or an independent establishment (as defined in section 104(1) of title 5). It would define 'convicted' to mean that a Federal court has entered a judgment of conviction against the individual, a Federal court has made a finding of guilt against the individual, a Federal court has accepted the individual's plea of guilty or nolo contendere, or the individual has entered into a first offender, deferred adjudication, deferred prosecution, or other arrangement or program in which judgment or conviction has been withheld. It would define 'covered felony' as a felony under sections 286, 287, 371, 641, 666, 1001, 1014, 1017, 1028, 1028A, 1030, 1031, 1040(a)(2), 1341, 1343, 1344, 1345, 1349, 1956, and 1957 of title 18, United States Code, and under section 16 of the Small Business Act. The new section would also state that nothing in it may be read to stop an agency from seeking or taking any other available criminal, civil, or administrative action to protect Federal Government interests, including proposing or carrying out suspension or debarment actions under subpart 9.4 of title 48 of the Code of Federal Regulations and part 180 of title 2 of that code, and that nothing in the waiver provision may be read to affect any other statutory or regulatory waiver authority related to an exclusion.
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2. Exclusion of Felony Fraud Convicts to Protect Federal Funds (a) Procurement integrity Chapter 47 of title 41, United States Code, is amended by adding at the end the following new section: 4715. Protecting Federal funds from individuals convicted of certain Federal felonies (a) Prohibition (1) In general Except as provided in subsection (b), an individual who is convicted of a covered felony arising out of any agency contract, grant, cooperative agreement, loan, or other financial assistance shall be identified as an excluded source on 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 successor regulations. (2) Notification of conviction For each individual convicted of a covered felony, the Attorney General shall notify the Administrator of General Services in a timely manner of such conviction and the Administrator shall promptly enter the 3-year prohibition for such person into the System for Award Management, or any successor system. (b) Waiver Notwithstanding subsection (a), the agency head may exempt an individual described in subsection (a)(1) from the prohibition under such subsection for a case in which the agency head determines in writing that the exemption is warranted. The agency head shall transmit a copy of each such written exemption to Congress immediately after making such determination. (c) Definitions In this section: (1) Agency The term agency means an Executive department (as defined under section 101 of title 5), a military department (as defined under section 102 of title 5), a Government corporation (as defined under section 103 of title 5), and an independent establishment (as defined under section 104(1) of title 5). (2) Convicted The term convicted means— (A) a judgment of conviction has been entered against the individual by a Federal court; (B) there has been a finding of guilt against the individual by a Federal court; (C) a plea of guilty or nolo contendere by the individual has been accepted by a Federal court; or (D) the individual has entered into a first offender, deferred adjudication, deferred prosecution, or other arrangement or program in which judgment or conviction has been withheld. (3) Covered felony The term covered felony means a felony described under section 286, 287, 371, 641, 666, 1001, 1014, 1017, 1028, 1028A, 1030, 1031, 1040(a)(2), 1341, 1343, 1344, 1345, 1349, 1956, and 1957 of title 18 and section 16 of the Small Business Act ( 15 U.S.C. 645 ). (d) 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. . (b) Clerical amendment The table of sections for chapter 47 of title 41, United States Code, is amended by adding at the end the following: 4715. Protecting Federal funds from individuals convicted of certain Federal felonies. .
3Guidance
This section would require the Attorney General, in consultation with the Administrator of General Services, to issue guidance for implementing and complying with the requirements of the new section 4715 of title 41, United States Code, no later than 1 year after the Act's enactment date.
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3. Guidance Not later than 1 year after the date of the enactment of this Act, the Attorney General, in consultation with the Administrator of General Services, shall issue guidance for the implementation of, and compliance with, the requirements of section 4715 of title 41, United States Code, as added by section 2.
Where it is
In the House.