Federal Program Integrity and Fraud Prevention Act of 2026
Key claim: The bill would bar individuals convicted of specified fraud-related felonies involving federal financial assistance from receiving federal contracts, grants, cooperative agreements, or other awards for three years via mandatory System for Award Management exclusion, with DOJ-to-GSA notification and limited agency exemptions reported to Congress.
Abstract
(HR6916 · 119th Congress) Federal Program Integrity and Fraud Prevention Act of 2025 This bill prohibits federal agencies, including the military, from awarding contracts, grants, cooperative agreements, or other types of financial assistance for three years to individuals who are convicted of specified fraud-related felonies related to the use of federal financial assistance. Specifically, the bill requires individuals who are convicted of specified felonies arising out of agency contracts, grants, cooperative agreements, loans, or other financial assistance to be included on the exclusion list for the government’s e-procurement and data and award management system (i.e., the System for Award Management). Federal agencies, including the Departments of the Army, Navy, and Air Force, may not award any form of financial assistance to these individuals for three years. The prohibition generally applies to fraud-related felonies, such as aggravated identity theft, mail or computer fraud, and embezzlement of funds. The Department of Justice (DOJ) must notify the General Services Administration (GSA) in a timely manner when individuals are convicted of such felonies so that GSA may add these individuals to the exclusion list. Agencies may exempt individuals from the prohibition but must notify Congress of any such exemptions. DOJ must issue guidance on the bill’s implementation. Latest action (2026-06-09): Received in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Why this matters
The bill codifies a mandatory, time-limited debarment pathway for individuals convicted of federal-assistance fraud, moving a slice of suspension-and-debarment discretion from agency SDOs into a statutory SAM exclusion triggered by DOJ notification. If enacted, it would expand the population of individuals categorically ineligible for federal contracts, grants, and cooperative agreements, with fiscal impact concentrated in reduced fraud losses and administrative costs for DOJ/GSA coordination and the exemption-reporting regime.