119th Congress (2025-2026)

HR 9588

FRAUD Act

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US Congress

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119th Congress (2025-2026)

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House

Session

119th Congress (2025-2026)

Jurisdiction

US Congress

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Legislative history

2026-07-02House

Referred to the House Committee on Oversight and Government Reform.

2026-07-02

Introduced in House

2026-07-02

Introduced in House

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Jul 2, 2026XMLView source

119th CONGRESS — 2d Session

H. R. 9588

IN THE HOUSE OF REPRESENTATIVES

A BILL

To require certain State officials to report fraud involving Federal funds, and for other purposes.

1.Short title

This Act may be cited as the

Federal Responsibility and Accountability for Unchecked Dereliction Act

or the

FRAUD Act

2.Duty to report fraud involving Federal funds

(a)Reporting requirementNot 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 fundsIn 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)DebarmentThe 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.

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.

4.Definitions

In this Act:

(1)Covered officialThe 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 warningThe 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 fundsThe 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.

HR 9588

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