FRAUD Act

Pete Stauber

Republican · MN · Representative

Source: Congress.gov · FEC

• Brad Finstad (R-MN-1)Original· 2026-07-02
• Michelle Fischbach (R-MN-7)Original· 2026-07-02
• Tom Emmer (R-MN-6)Original· 2026-07-02
• Abraham J. Hamadeh (R-AZ-8)· 2026-07-14

Referred to the House Committee on Oversight and Government Reform.

2026-07-02

Source: Congress.gov

State officials would be required to report cases of fraud involving federal money to the appropriate federal authorities, ensuring that misuse of taxpayer funds is properly investigated and addressed. This would apply to situations where state employees or contractors misuse federal grants, Medicare/Medicaid funds, or other federal assistance programs. The requirement aims to improve oversight and accountability for how federal dollars are spent at the state level.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 9588 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 9588 To require certain State officials to report fraud involving Federal funds, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES July 2, 2026 Mr. Stauber (for himself, Mr. Emmer, Mr. Finstad, and Mrs. Fischbach) introduced the following bill; which was referred to the Committee on Oversight and Government Reform _______________________________________________________________________ A BILL To require certain State officials to report fraud involving Federal funds, 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 ``Federal Responsibility and Accountability for Unchecked Dereliction Act'' or the ``FRAUD Act''. SEC. 2. DUTY TO REPORT FRAUD INVOLVING FEDERAL FUNDS. (a) Reporting Requirement.--Not later than 180 days after receiving a fraud warning involving covered Federal funds, a covered official shall report such warning to the Director of the Federal Bureau of Investigation. (b) Condition of Receipt of Federal Funds.--In order to be eligible to receive Federal funds for a fiscal year, the chief executive of a State shall certify to the head of the Federal agency providing such funds that during the previous fiscal year the covered officials of the State have substantially complied with the requirement under subsection (a). (c) Offense.--Whoever, being a covered official, knowingly-- (1) violates the requirement under subsection (a); or (2) obstructs, interferes with, or impedes a Federal, State, or Inspector General investigation involving fraud involving covered Federal funds, shall be fined under title 18, United States Code, imprisoned for not more than 10 years, or both. (d) Debarment.--The head of an agency that oversees the distribution of Federal funds, with respect to which a covered official has been convicted of an offense under subsection (c), may prohibit such covered official from overseeing the distribution of such funds. SEC. 3. RULE OF CONSTRUCTION. Nothing in this Act shall be construed to-- (1) authorize the Federal Government to remove a State official from elected office; or (2) violate principles of federalism under the Tenth Amendment to the Constitution of the United States. SEC. 4. DEFINITIONS. In this Act: (1) Covered official.--The term ``covered official'' means-- (A) the Governor of a State; (B) the head of a State agency that administers, oversees, distributes, or certifies expenditures of covered Federal funds; and (C) any State Inspector General, or equivalent State official established by law, with statutory responsibility for investigating, auditing, or overseeing covered Federal funds. (2) Fraud warning.--The term ``fraud warning'' means a written allegation of a specific instance of fraud involving covered Federal funds, supported by documentary evidence, which may include a written finding, a referral, an audit, an investigative report, or a whistleblower complaint, alleging the misuse, theft, diversion, or improper expenditure of not less than $250,000 in covered Federal funds. (3) Covered federal funds.--The term ``covered Federal funds'' means any Federal funds provided to a State or State agency through a grant, cooperative agreement, reimbursement program, direct appropriation, or other Federal funding mechanism. <all>

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