Federal Program Integrity and Fraud Prevention Act of 2025

#6916 | HR Congress #119

Subjects:

Last Action: Ordered to be Reported (Amended) by the Yeas and Nays: 38 - 2. (3/18/2026)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Federal Program Integrity and Fraud Prevention Act of 2025" seeks to enhance the integrity of federal programs by prohibiting individuals convicted of certain federal felonies from participating in federal contracts and funding opportunities. Specifically, the legislation amends Title 41 of the United States Code to create a new section that establishes a System for Award Management Exclusions list, which will identify these individuals as "excluded sources."

Key components of the legislation include:

1. **Exclusion Criteria**: Individuals convicted of specific felonies related to federal contracts, grants, or financial assistance will be barred from receiving such funds for three years following their conviction.

2. **Notification Process**: The Attorney General is tasked with notifying the General Services Administrator of any convictions, ensuring timely updates to the exclusion list.

3. **Waiver Provision**: Agency heads can grant waivers to individuals under certain circumstances, provided they document the reasoning and inform Congress.

4. **Guidance Issuance**: The Attorney General, in collaboration with the General Services Administrator, must provide guidance on the implementation and compliance with these new requirements within one year of enactment.

The overall goal of the Act is to protect federal funds and ensure that individuals with a history of fraud or related felonies do not exploit federal programs.

Possible Impacts

The "Federal Program Integrity and Fraud Prevention Act of 2025" could affect people in several ways:

1. **Employment Opportunities for Individuals with Felony Convictions**: The legislation prohibits individuals convicted of certain federal felonies related to federal programs from participating in federal contracting and grant opportunities. This can significantly limit job opportunities for those individuals, making it more challenging for them to find employment in sectors that rely on federal funding, thereby impacting their economic stability and reintegration into society.

2. **Increased Scrutiny of Federal Contracts**: The act introduces a system where individuals convicted of specified felonies will be automatically listed as excluded sources from federal contracts. This may lead to heightened scrutiny on contractors and organizations that work with federal funds, as they will need to ensure compliance with the new regulations. This could result in increased administrative costs and the potential for delays in contracting processes.

3. **Judicial and Administrative Implications**: The requirement for the Attorney General to notify the Administrator of General Services about felony convictions could lead to a more efficient tracking system for individuals disqualified from federal programs. This might improve accountability and integrity within federal spending, but it could also raise concerns about privacy and the long-term impact on individuals' lives who are trying to move past their convictions. Additionally, the provision for waivers by agency heads could lead to inconsistent applications of the law, potentially leaving some individuals without recourse.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6916 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 6916

  To amend title 41, United States Code, to identify individuals who 
  commit certain Federal felonies implicating Federal programs as an 
excluded source on the System for Award Management Exclusions list, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 19, 2025

 Mr. Self (for himself and Ms. Randall) introduced the following bill; 
 which was referred to the Committee on Oversight and Government Reform

_______________________________________________________________________

                                 A BILL


 
  To amend title 41, United States Code, to identify individuals who 
  commit certain Federal felonies implicating Federal programs as an 
excluded source on the System for Award Management Exclusions list, 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 Program Integrity and Fraud 
Prevention Act of 2025''.

SEC. 2. EXCLUSION OF FELONY FRAUD CONVICTS TO PROTECT FEDERAL FUNDS.

    (a) Procurement Integrity.--Chapter 47 of title 41, United States 
Code, is amended by adding at the end the following new section:
``Sec. 4715. Protecting Federal funds from individuals convicted of 
              certain Federal felonies
    ``(a) Prohibition.--
            ``(1) In general.--Except as provided in subsection (b), an 
        individual who is convicted of a covered felony arising out of 
        any agency contract, grant, cooperative agreement, loan, or 
        other financial assistance shall be identified as an excluded 
        source on the System for Award Management Exclusions list 
        described in part 9 of title 48, Code of Federal Regulations, 
        and part 180 of title 2 of such Code, or successor regulations.
            ``(2) Notification of conviction.--For each individual 
        convicted of a covered felony, the Attorney General shall 
        notify the Administrator of General Services in a timely manner 
        of such conviction and the Administrator shall promptly enter 
        the 3-year prohibition for such person into the System for 
        Award Management, or any successor system.
    ``(b) Waiver.--Notwithstanding subsection (a), the agency head may 
exempt an individual described in subsection (a)(1) from the 
prohibition under such subsection for a case in which the agency head 
determines in writing that the exemption is warranted. The agency head 
shall transmit a copy of each such written exemption to Congress 
immediately after making such determination.
    ``(c) Definitions.--In this section:
            ``(1) Agency.--The term `agency' means an Executive 
        department (as defined under section 101 of title 5), a 
        military department (as defined under section 102 of title 5), 
        a Government corporation (as defined under section 103 of title 
        5), and an independent establishment (as defined under section 
        104(1) of title 5).
            ``(2) Convicted.--The term `convicted' means--
                    ``(A) a judgment of conviction has been entered 
                against the individual by a Federal court;
                    ``(B) there has been a finding of guilt against the 
                individual by a Federal court;
                    ``(C) a plea of guilty or nolo contendere by the 
                individual has been accepted by a Federal court; or
                    ``(D) the individual has entered into a first 
                offender, deferred adjudication, deferred prosecution, 
                or other arrangement or program in which judgment or 
                conviction has been withheld.
            ``(3) Covered felony.--The term `covered felony' means a 
        felony described under section 286, 287, 371, 641, 666, 1001, 
        1014, 1017, 1028, 1028A, 1030, 1031, 1040(a)(2), 1341, 1343, 
        1344, 1345, 1349, 1956, and 1957 of title 18 and section 16 of 
        the Small Business Act (15 U.S.C. 645).
    ``(d) Rules of Construction.--
            ``(1) Federal interests.--Nothing in this section may be 
        construed to prohibit an agency from seeking or taking any 
        other available criminal, civil, or administrative action to 
        protect Federal Government interests, including the proposal or 
        implementation of suspension or debarment actions pursuant to 
        subpart 9.4 of title 48, Code of Federal Regulations, and part 
        180 of title 2 of such Code.
            ``(2) Exclusion.--Nothing in subsection (b) may be 
        construed to affect any other statutory or regulatory waiver 
        authority related to an exclusion.''.
    (b) Clerical Amendment.--The table of sections for chapter 47 of 
title 41, United States Code, is amended by adding at the end the 
following:

``4715. Protecting Federal funds from individuals convicted of certain 
                            Federal felonies.''.

SEC. 3. GUIDANCE.

    Not later than 1 year after the date of the enactment of this Act, 
the Attorney General, in consultation with the Administrator of General 
Services, shall issue guidance for the implementation of, and 
compliance with, the requirements of section 4715 of title 41, United 
States Code, as added by section 2.
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