COVID FRAUD TRANSPARENCY ACT OF 2026

On 2026-06-23, Representative Johnny Olszewski, Jr. (D-MD-2) delivered a floor speech titled "COVID FRAUD TRANSPARENCY ACT OF 2026" in the House.

COVID FRAUD TRANSPARENCY ACT OF 2026

Congressional Record, Volume 172 Issue 105 (Tuesday, June 23, 2026) [Congressional Record Volume 172, Number 105 (Tuesday, June 23, 2026)] [House] [Pages H4141-H4142] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] COVID FRAUD TRANSPARENCY ACT OF 2026 Mr. WILLIAMS of Texas. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 826) to require the Inspector General of the Small Business Administration to submit a quarterly report on fraud relating to certain COVID-19 loans, as amended. The Clerk read the title of the bill. The text of the bill is as follows: H.R. 826 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 ``COVID Fraud Transparency Act of 2026''. SEC. 2. REPORT ON FRAUD RELATING TO CERTAIN COVID-19 LOANS. (a) In General.--Not later than 60 days after the date of the enactment of this Act, and every 3 months thereafter, the Inspector General of the Small Business Administration shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report on the number of borrowers engaged in fraud with respect to a covered loan. (b) Elements.--The report required under subsection (a) shall include, with respect to the period covered by such report-- (1) the number and total dollar amount of all covered loans made; (2) the number of new cases of fraud and suspected fraud; (3) the number of fraud cases resolved; and (4) the types of fraud cases described in paragraphs (2) and (3). (c) Covered Loan Defined.--In this section, the term ``covered loan'' means-- (1) a loan made under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)); or (2) a loan made under section 7(b) of such Act (15 U.S.C. 636(b)) in response to COVID-19 during the covered period (as defined in section 1110(a) of the CARES Act (15 U.S.C. 9009)). (d) Termination.--This Act and the requirements of this Act shall terminate on the date that is two years after the date of the enactment of this Act. SEC. 3. COMPLIANCE WITH CUTGO. No such funds are authorized to be appropriated to carry out this Act. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Texas (Mr. Williams) and the gentleman from Maryland (Mr. Olszewski) each will control 20 minutes. The Chair recognizes the gentleman from Texas. General Leave Mr. WILLIAMS of Texas. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the bill. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Texas? There was no objection. Mr. WILLIAMS of Texas. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today in strong support of my bill, H.R. 826, the COVID Fraud Transparency Act of 2026. Earlier this year, I introduced this bill alongside my good friends the gentleman from New York (Mr. Latimer), the gentleman from Florida (Mr. Bean), and the gentleman from Maryland (Mr. Mfume). During the COVID-19 pandemic, we moved quickly to provide relief to families, workers, and small businesses facing unprecedented hardship. When the government acts at that scale and speed, we also have the responsibility to ensure that taxpayer dollars are spent as intended, especially for honest, hardworking Americans. Unfortunately, we fell short in addressing that challenge. The SBA Office of Inspector General estimates that roughly $200 billion in potentially fraudulent relief funds were disbursed through COVID-19 relief programs. Over 5 years after the pandemic began, the work of accountability is not finished. The American people deserve to know how the fraud occurred and what lessons can be learned to better protect public resources in the future. On March 16, President Trump announced the White House task force to eliminate fraud, to strengthen interagency coordination, and more to directly confront waste, fraud, and abuse. Since its formation, the task force has helped coordinate interagency efforts to identify improper payments, improve oversight, and advise in investigations into COVID-19-era-related fraud. That is what it means to be accountable to the American people. By improving reporting requirements and enhancing oversight, we can gain a clearer understanding of the schemes of these bad actors who exploited these relief programs. More importantly, we will be able to identify the weaknesses that made them possible. Mr. Speaker, I urge my colleagues to support H.R. 826, and I reserve the balance of my time. Mr. OLSZEWSKI. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of the COVID Fraud Transparency Act of 2026, as amended, and I applaud Chairman Williams and Representative Latimer for their efforts to increase reporting on COVID fraud. During the COVID-19 pandemic, the Small Business Administration stepped in and served as a critical lifeline to small businesses. The SBA distributed more than $1.2 trillion of economic aid and executed 14 years' worth of lending in 14 days, keeping millions of businesses afloat. I had the opportunity to see the impact of that lending firsthand, as I was serving as Baltimore County executive [[Page H4142]] prior to my time joining Congress. However, in an effort to disburse funds quickly, we know the SBA also weakened or eliminated internal controls, which allowed fraudsters to exploit those weaknesses and steal billions of dollars from the American taxpayers. Better oversight begins with better information, and the legislation we consider here today will provide the committee with the data it needs to conduct better oversight. Mr. Speaker, I urge my colleagues to support H.R. 826, and I reserve the balance of my time. Mr. WILLIAMS of Texas. Mr. Speaker, we must pass H.R. 826 to require the SBA inspector general to provide regular reports on fraud involving COVID-19 relief loans and improve oversight and transparency of pandemic-era programs. Mr. Speaker, I reserve the balance of my time. Mr. OLSZEWSKI. Mr. Speaker, I yield myself the balance of my time to close. Mr. Speaker, I close by underscoring that the single most effective tool for combating fraud is fully funding the SBA Office of Inspector General. I support this bill because it will enhance accountability, but we cannot overlook the fact that it is one part of a broader solution. We must continue to strengthen oversight, improve data quality, and ensure that the IG has the resources it needs to detect and prevent fraud before it occurs. I look forward to working with my colleagues to do exactly that. Mr. Speaker, I thank the chairman again for bringing this bill forward. I lend my support to H.R. 826, and I yield back the balance of my time. Mr. WILLIAMS of Texas. Mr. Speaker, I urge my colleagues to vote in favor of H.R. 826 because taxpayers deserve accountability, and Congress should have clear, ongoing information about efforts to combat COVID relief fraud. Mr. Speaker, I yield back the balance of my time. The SPEAKER pro tempore. The question is on the motion offered by the gentleman from Texas (Mr. Williams) that the House suspend the rules and pass the bill, H.R. 826, as amended. The question was taken; and (two-thirds being in the affirmative) the rules were suspended and the bill, as amended, was passed. A motion to reconsider was laid on the table. ____________________

Referenced legislation: HR826, HR826