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To require certain State officials to report fraud involving Federal funds, and for other purposes.
Summary
- Requires State governors and certain other officials to report fraud allegations involving federal funds to the FBI within 180 days of receiving such warnings.
- Makes compliance with the reporting requirement a condition for States to receive Federal funds in each fiscal year.
- Establishes criminal penalties including fines and imprisonment for up to 10 years for covered officials who knowingly fail to report fraud or obstruct fraud investigations.
- Authorizes Federal agencies to prohibit officials convicted of violating the reporting requirement from overseeing the distribution of Federal funds.
- Applies the reporting requirement to fraud allegations involving at least $250,000 in Federal funds supported by documentary evidence.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
- Rep. Stauber, Pete [R-MN-8] (R-MN)
4 cosponsors
Actions (2)
- Jul 2, 2026 Referred to the House Committee on Oversight and Government Reform. · house
- Jul 2, 2026 Introduced in House
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Full text
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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