H.R. 7824

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7824 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7824

To extend whistleblower protections to individuals who disclose misuse 
of Federal funds administered by State and local officials, and for 
other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

March 5, 2026

Mrs. Fischbach (for herself and Mr. Finstad) introduced the following 
bill; which was referred to the Committee on Oversight and Government 
Reform

_______________________________________________________________________

A BILL

To extend whistleblower protections to individuals who disclose misuse 
of Federal funds administered by State and local officials, 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 Funds Whistleblower 
Protection Extension Act''.

SEC. 2. EXTENSION OF WHISTLEBLOWER PROTECTIONS TO STATE-ADMINISTERED 
FEDERAL FUNDS.

Subpart F of part III of title 5, United States Code, is amended by 
inserting after chapter 75 the following new chapter:

``CHAPTER 76--PROTECTION OF WHISTLEBLOWERS IN FEDERALLY FUNDED STATE 
PROGRAMS

``Sec.
``7601. Definitions.
``7602. Prohibited personnel practices.
``7603. Criminal penalties for retaliation.
``7604. Referral for criminal prosecution.
``7605. Federal funding condition.
``Sec. 7601. Definitions
``In this chapter:
``(1) Covered individual.--The term `covered individual' 
means any employee, contractor, subgrantee, or agent of a State 
or local government, or of a non-Federal entity, administering 
or receiving Federal financial assistance.
``(2) Covered official.--The term `covered official' means 
any officer, employee, or agent of a State or local government 
acting in connection with the administration, distribution, or 
oversight of Federal financial assistance.
``(3) Protected disclosure.--The term `protected 
disclosure' means any lawful disclosure of information that the 
covered individual reasonably believes evidences--
``(A) misuse, waste, fraud, or abuse of Federal 
funds;
``(B) a violation of Federal law relating to a 
federally funded program; or
``(C) gross mismanagement of a program receiving 
Federal financial assistance.
``Sec. 7602. Prohibited personnel practices
``(a) A covered official may not take or fail to take a personnel 
action against a covered individual because of a protected disclosure.
``(b) For purposes of this section, `personnel action' includes--
``(1) termination, suspension, demotion, or reassignment;
``(2) reduction in pay or benefits;
``(3) significant change in duties or responsibilities;
``(4) intimidation, threats, or harassment; or
``(5) any other materially adverse action.
``Sec. 7603. Criminal penalties for retaliation
``(a) Offense.--Any covered official who knowingly retaliates 
against a covered individual for making a protected disclosure under 
this chapter shall be subject to criminal penalties under this section.
``(b) Penalty Structure.--Penalties shall be imposed according to 
the level of culpability:
``(1) Negligent retaliation.--A covered official who 
engages in retaliation due to negligence shall be fined not 
more than $50,000.
``(2) Knowing retaliation.--A covered official who 
knowingly engages in retaliation shall be fined not more than 
$100,000, imprisoned not more than 1 year, or both.
``(3) Intentional retaliation for personal gain or 
concealment.--A covered official who retaliates with the intent 
to conceal misuse of Federal funds or to obtain personal 
benefit shall be fined not more than $250,000, imprisoned not 
more than 5 years, or both.
``Sec. 7604. Referral for criminal prosecution
``If a Federal agency or Inspector General determines that there is 
reasonable cause to believe that retaliation prohibited under this 
chapter has occurred, the agency may refer the matter to the Attorney 
General for investigation and criminal prosecution.
``Sec. 7605. Federal funding condition
``(a) As a condition of receiving Federal financial assistance, 
each State or local government shall certify compliance with this 
chapter.
``(b) Failure to comply may result in--
``(1) corrective action requirements;
``(2) suspension of Federal funds;
``(3) termination of Federal funding for the affected 
program.''.

SEC. 3. CONFORMING AMENDMENT.

The table of chapters for part III of title 5, United States Code, 
is amended by inserting after the item relating to chapter 75 the 
following new item:

``76. Protection of Whistleblowers in Federally Funded State 
Programs 7601''..
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