H.R. 6916

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6916 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
2d Session
H. R. 6916

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

June 9, 2026

Received; read twice and referred to the Committee on Homeland Security 
and Governmental Affairs

_______________________________________________________________________

AN ACT

To amend title 31, United States Code, to prohibit Federal Funds from 
being provided to individuals convicted of certain Federal felonies, 
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 2026''.

SEC. 2. PROHIBITING FEDERAL FUNDS FROM BEING PROVIDED TO INDIVIDUALS 
CONVICTED OF CERTAIN FEDERAL FELONIES.

(a) Prohibition.--Subchapter II of chapter 33 of title 31, United 
States Code, is amended by adding at the end the following:
``Sec. 3337. Prohibiting Federal Funds from being provided to 
individuals convicted of certain Federal felonies.
``(a) Prohibition.--
``(1) In general.--The head of an agency may not enter 
into, renew, or extend a Federal contract, or provide a grant 
or other Federal financial assistance to, an individual 
convicted of a covered felony arising out of any Federal 
contract, grant, cooperative agreement, loan, or other 
financial assistance, or to an entity of which such individual 
is a beneficial owner, during the three year period following 
the date of the conviction.
``(2) Application.--The prohibition under paragraph (1) 
shall apply with respect to an individual convicted after the 
date of the enactment of this section.
``(b) Waiver.--
``(1) Authority.--The head of an agency may waive on a 
case-by-case basis the prohibition under subsection (a) with 
respect to an individual or entity described under such 
subsection if the head of the agency determines such waiver is 
justifiable.
``(2) Written congressional notification of waiver.--
Immediately after making a determination to issue a waiver 
under paragraph (1), the head of an agency shall provide to 
Congress a written notification of such determination that 
includes the justification for the waiver.
``(c) Notice Requirements.--For each individual convicted of a 
covered felony arising out of any Federal contract, grant, cooperative 
agreement, loan, or other financial assistance--
``(1) the Attorney General shall notify the Administrator 
of General Services in a timely manner of such conviction; and
``(2) the Administrator shall promptly update 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 any successor regulation, to include such 
individual.
``(d) Guidance.--Not later than 1 year after the date of the 
enactment of this Act, the Director of the Office of Management and 
Budget shall issue guidance for the implementation of, and compliance 
with, the requirements of this section.
``(e) Federal Acquisition Regulation.--The Federal Acquisition 
Regulation shall be revised as necessary to implement the provisions of 
this section.
``(f) 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.
``(g) Definitions.--In this section:
``(1) Agency.--The term `agency' means--
``(A) an Executive department (as defined under 
section 101 of title 5);
``(B) a military department (as defined under 
section 102 of title 5);
``(C) a Government corporation (as defined under 
section 103 of title 5); and
``(D) an independent establishment (as defined 
under section 104(1) of title 5).
``(2) Beneficial owner.--The term `beneficial owner'--
``(A) means, with respect to an entity, an 
individual who, directly or indirectly, through any 
contract, arrangement, understanding, relationship, or 
otherwise--
``(i) exercises substantial control over 
the entity; or
``(ii) owns or controls not less than 25 
percent of the ownership interests of the 
entity; and
``(B) does not include--
``(i) a minor child, as defined in the 
jurisdiction in which the entity is formed, if 
the information of the parent or guardian of 
the minor child is reported in accordance with 
this section;
``(ii) an individual acting as a nominee, 
intermediary, custodian, or agent on behalf of 
another individual;
``(iii) an individual acting solely as an 
employee of a corporation, limited liability 
company, or other similar entity and whose 
control over or economic benefits from such 
entity is derived solely from the employment 
status of the person;
``(iv) an individual whose only interest in 
a corporation, limited liability company, or 
other similar entity is through a right of 
inheritance; or
``(v) a creditor of a corporation, limited 
liability company, or other similar entity, 
unless the creditor meets the requirements of 
subparagraph (A).
``(3) Convicted.--The term `convicted' means any of the 
following:
``(A) A judgment of conviction has been entered 
against the individual by a Federal court, except for 
any individual whose conviction has been reversed or 
vacated.
``(B) A plea of guilty or nolo contendere by the 
individual has been accepted by a Federal court, except 
for any case in which the conviction entered as result 
of such plea has been reversed or vacated.
``(C) The individual has entered into a first 
offender, deferred adjudication, deferred prosecution, 
or other arrangement or program in which the individual 
admitted guilt or responsibility to the underlying 
offense.
``(4) Covered felony.--The term `covered felony' means a 
felony described under section 286, 287, 371, 508, 641, 666, 
1001, 1002, 1014, 1017, 1028, 1028A, 1030, 1031, 1040(a)(2), 
1341, 1342, 1343, 1344, 1345, 1349, 1956, or 1957 of title 18 
or section 16 of the Small Business Act (15 U.S.C. 645).''.
(b) Table of Contents.--The table of contents for subchapter II of 
chapter 33 of title 31, United States Code, is amended by adding at the 
end the following:

``3337. Prohibiting Federal funds from being provided to individuals 
convicted of certain Federal felonies.''.

Passed the House of Representatives June 8, 2026.

Attest:

KEVIN F. MCCUMBER,

Clerk.