H.R. 6916: Federal Program Integrity and Fraud Prevention Act of 2026

The Federal Program Integrity and Fraud Prevention Act of 2026 proposes to change the way federal funding is administered concerning individuals who have been convicted of certain federal felonies. Here’s a breakdown of the key features of the bill:

Prohibition on Federal Funds

The bill establishes that:

• Federal agencies are prohibited from entering into, renewing, or extending contracts, or providing grants or other forms of federal financial assistance to individuals who have been convicted of specific felonies that relate to federal contracts or assistance.
• This prohibition lasts for three years following a felony conviction.
• The restriction applies to individuals convicted after the enactment of the bill.

Waiver Provision

It allows for certain waivers from this prohibition:

• The head of a federal agency can waive the restrictions on a case-by-case basis if they find the waiver justifiable.
• If a waiver is granted, the agency head must notify Congress in writing, detailing the justification for the waiver.

Notification Requirements

The bill includes notification processes regarding felony convictions:

• The Attorney General is required to inform the Administrator of General Services promptly about any felony convictions related to federal assistance.
• The Administrator must then update the System for Award Management Exclusions list to reflect the individual's conviction.

Implementation Guidance

The bill stipulates that the Director of the Office of Management and Budget must issue guidance on how to implement and comply with the new requirements within one year after the law is enacted.

Federal Acquisition Regulation

It requires necessary revisions to the Federal Acquisition Regulation to ensure alignment with the new provisions of the bill.

Definitions

The bill defines several terms to clarify its scope:

• Agency: Refers to executive departments, military departments, government corporations, and independent establishments.
• Beneficial Owner: An individual who exercises substantial control over or owns at least 25% of an entity.
• Convicted: Includes anyone who has a judgment of conviction, accepted a plea, or entered into certain programs acknowledging responsibility for a felony.
• Covered Felony: Specific felonies outlined in various sections of Title 18, which mainly pertain to fraud, theft, and other federal offenses.

Enforcement and Compliance

The bill allows federal agencies to pursue additional criminal, civil, or administrative actions to safeguard federal interests, which may include suspending or debarring individuals or entities as necessary.

Implications

This legislation aims to ensure that individuals with specific felony convictions are not able to benefit from federal funding and support, thereby promoting integrity in federal procurement and funding processes.

Relevant Companies

None found.