HouseH.R. 10922119th Congress
Fraud Accountability and Mandatory Sentencing Act
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10922 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 10922
To impose liability on State officers and employees who fail to prevent
fraud, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 29, 2026
Mr. Cline introduced the following bill; which was referred to the
Committee on the Judiciary, and in addition to the Committees on
Agriculture, Ways and Means, Energy and Commerce, and Education and
Workforce, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To impose liability on State officers and employees who fail to prevent
fraud, and for other purposes.
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 ``Fraud Accountability and Mandatory
Sentencing Act''.
SEC. 2. PERSONAL LIABILITY FOR STATE OFFICERS AND EMPLOYEES.
(a) Prohibition.--It shall be unlawful for any officer or employee
of a State who has knowledge of fraud in the administration of or use
of a covered benefit within that State, and the power to prevent or aid
in preventing the continuing commission of the same, to fail or refuse
so to do.
(b) Enforcement.--The Attorney General may bring a civil action
against an officer or employee who violates subsection (a) in a United
States district court for appropriate relief, including--
(1) in the case of aggregate loss to a governmental entity
of $500,000 or less, damages in an amount not exceeding the
amount of aggregate loss resulting from such violation; and
(2) in the case of aggregate loss to a governmental entity
exceeding $500,000, damages in an amount not exceeding 3 times
the amount of aggregate loss resulting from such violation.
(c) Immunity.--No immunity that would otherwise be available as a
result of a defendant acting within the scope of their office or
employment at the time of the violation out of which the claim arose
shall apply in any action under this section.
(d) Definitions.--In this section:
(1) Covered benefit.--The term ``covered benefit'' means
any benefit under--
(A) the supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.);
(B) the old-age, survivors, and disability
insurance program under title II of the Social Security
Act (42 U.S.C. 401 et seq.);
(C) the State unemployment compensation programs
receiving funding under title III of the Social
Security Act (42 U.S.C. 501 et seq.);
(D) the income assistance program under title XVI
of the Social Security Act (42 U.S.C. 1381 et seq.);
(E) the health insurance program under title XVIII
of the Social Security Act (42 U.S.C. 1395 et seq.);
(F) a State plan under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.) (or waiver of
such plan);
(G) the program under the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9857 et
seq.); or
(H) any other program pursuant to which funds are
made available to States.
(2) Loss.--
(A) In general.--The term ``loss'' means the
greater of actual loss, intended loss, or the gain that
resulted from the fraudulent conduct.
(B) Actual loss.--The term ``actual loss'' means
the reasonably foreseeable pecuniary harm that resulted
from the fraudulent conduct.
(C) Intended loss.--The term ``intended loss''
means the pecuniary harm that the fraudulent actor
purposely sought to inflict, including intended
pecuniary harm that would have been impossible or
unlikely to occur.
(D) Pecuniary harm.--The term ``pecuniary harm''
means harm that is monetary or that otherwise is
readily measurable in money.
(E) Reasonably foreseeable pecuniary harm.--The
term ``reasonably foreseeable pecuniary harm'' means
pecuniary harm that the fraudulent actor knew or, under
the circumstances, reasonably should have known, was a
potential result of the offense.
SEC. 3. MANDATORY MINIMUM SENTENCES.
(a) In General.--Subchapter A of chapter 227 of title 18, United
States Code, is amended by inserting after section 3559 the following:
``Sec. 3559A. Mandatory minimum sentences for certain fraud offenses
``(a) Mandatory Minimum.--Notwithstanding any other provision of
law, a defendant who has been found guilty of a covered fraud offense
that involves a covered benefit shall be sentenced as follows with
respect to criminal conduct that occurred after the date of enactment
of this section:
``(1) For any violation involving loss of less than
$40,000, not less than 1 year in prison, and not more than
life.
``(2) For any violation involving loss of $40,000 or more
but less than $250,000, not less than 2 years in prison, and
not more than life.
``(3) For any violation involving loss of $250,000 or more
but less than $5 million, not less than 5 years in prison, and
not more than life.
``(4) For violations involving loss of $5,000,000 or more
but less than $50 million, not less than 10 years in prison,
and not more than life.
``(5) For violations involving loss of $50,000,000 or more
but less than $100 million, not less than 15 years in prison,
and not more than life.
``(6) For violations involving loss of $100,000,000 or
more, not less than 20 years in prison, and not more than life.
``(b) Successive Violation.--A defendant who commits a covered
fraud offense after the date on which a prior conviction for a covered
fraud offence becomes final shall be sentenced to a term of
imprisonment of not less than twice the applicable term under
subsection (a).
``(c) No Prohibition.--Notwithstanding any other provision of law,
a court may not place on probation or suspend the sentence of any
person sentenced under this section.
``(d) Definitions.--In this section:
``(1) Covered benefit.--The term `covered benefit' means
any benefit under--
``(A) the supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.);
``(B) the old-age, survivors, and disability
insurance program under title II of the Social Security
Act (42 U.S.C. 401 et seq.);
``(C) the State unemployment compensation programs
receiving funding under title III of the Social
Security Act (42 U.S.C. 501 et seq.);
``(D) the income assistance program under title XVI
of the Social Security Act (42 U.S.C. 1381 et seq.);
``(E) the health insurance program under title
XVIII of the Social Security Act (42 U.S.C. 1395 et
seq.);
``(F) a State plan under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.) (or waiver of
such plan);
``(G) the program under the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9857 et
seq.); or
``(H) any other program pursuant to which funds are
made available to States.
``(2) Covered fraud offense.--The term `covered fraud
offense' means an offense under--
``(A) section 201, 287, 371, 513, 641,
666(a)(1)(A), 1001, 1028, 1029, 1030, 1031, 1040, 1341,
1343, 1344, 1347, 1348, or 1349 of this title;
``(B) section 208 or 1632 of the Social Security
Act (42 U.S.C. 408 or 1383a);
``(C) section 15 of the Food and Nutrition Act of
2008 (7 U.S.C. 2024); or
``(D) section 6102 of title 38.
``(3) Loss.--
``(A) In general.--The term `loss' means the
greater of actual loss, intended loss, or the gain that
resulted from the fraudulent conduct.
``(B) Actual loss.--The term `actual loss' means
the reasonably foreseeable pecuniary harm that resulted
from the fraudulent conduct.
``(C) Intended loss.--The term `intended loss'
means the pecuniary harm that the fraudulent actor
purposely sought to inflict, including intended
pecuniary harm that would have been impossible or
unlikely to occur.
``(D) Pecuniary harm.--The term `pecuniary harm'
means harm that is monetary or that otherwise is
readily measurable in money.
``(E) Reasonably foreseeable pecuniary harm.--The
term `reasonably foreseeable pecuniary harm' means
pecuniary harm that the fraudulent actor knew or, under
the circumstances, reasonably should have known, was a
potential result of the offense.''.
(b) Clerical Amendment.--The table of sections for chapter 227 of
title 18, United States Code, is amended by inserting after section
3559 the following:
``3559A. Mandatory minimum sentences for certain fraud offenses.''.
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