H.R. 7155: Stop Fraud in Federal Programs Act of 2026

This legislation, titled the Stop Fraud in Federal Programs Act of 2026, aims to combat fraud within federal programs by implementing stricter penalties for theft or bribery. It seeks to enhance existing laws regarding federal funds and establish mandatory audits for specific food service programs.

Increased Penalties for Fraud

The bill proposes amendments to Section 666 of Title 18 of the United States Code, which currently addresses theft and bribery regarding programs that receive federal financial assistance. The main changes include:

• Increased Maximum Prison Sentence: The maximum imprisonment for individuals convicted under this section would be raised from 10 years to 20 years.
• Increased Financial Penalties: The fines for those convicted would be adjusted to a specified covered amount, defined as the greater of $250,000 or double the value of the property or services involved, assessed per the relevant paragraphs in the existing law.

Mandatory Audits for Food Service Programs

The bill also introduces a requirement for audits within the summer food service program outlined in the Richard B. Russell National School Lunch Act. The new stipulation includes:

• Annual Third-Party Audits: Each institution involved in the summer food service program must undergo annual audits performed by a qualified third-party auditor. It is specified that the auditor cannot be associated with the service institution or sponsor organization.
• Direct Reporting: The results of these audits must be submitted directly to the Secretary of the appropriate federal department.

Overall Objectives

The overarching purpose of this bill is to reduce fraudulent activities involving federal funds and to ensure accountability within programs that provide food services, thereby safeguarding public resources.

Relevant Companies

None found