H.R. 8030

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8030 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 8030

To amend the Defense Production Act of 1950 to limit eligibility for 
assistance, increase monetary penalties, establish fraud risk 
management processes, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

March 20, 2026

Ms. Waters introduced the following bill; which was referred to the 
Committee on Financial Services

_______________________________________________________________________

A BILL

To amend the Defense Production Act of 1950 to limit eligibility for 
assistance, increase monetary penalties, establish fraud risk 
management processes, 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 ``DPA Transparency Act of 2026''.

SEC. 2. LIMITATION ON ELIGIBILITY FOR ASSISTANCE.

Title III of the Defense Production Act of 1950 (50 U.S.C. 4531 et 
seq.) is amended by adding at the end the following:

``SEC. 306. LIMITATION ON ELIGIBILITY FOR ASSISTANCE.

``(a) In General.--A covered entity is not eligible for assistance 
authorized under this title.
``(b) Definitions.--In this section:
``(1) Covered entity.--The term `covered entity' means an 
entity in which a covered individual directly or indirectly 
holds a significant interest. For the purpose of determining 
whether an entity is a covered entity, if securities of the 
entity are owned, controlled, or held by 2 or more individuals 
who are related as described in paragraph (2), such securities 
shall be aggregated.
``(2) Covered individual.--The term `covered individual' 
means--
``(A) the President, the Vice President, or a 
member of the Defense Production Act Committee; and
``(B) the spouse, child, son-in-law, or daughter-
in-law of an individual described in subparagraph (A).
``(3) Equity interest.--The term `equity interest' means--
``(A) a share in an entity, without regard to 
whether the share is--
``(i) transferable; or
``(ii) classified as stock or a similar 
classification;
``(B) a capital or profit interest in a limited 
liability company or partnership; and
``(C) a warrant or right (other than a right to 
convert) to purchase, sell, or subscribe to a share or 
interest described in subparagraph (A) or (B), 
respectively.
``(4) Significant interest.--The term `significant 
interest' means owning, controlling, or holding not less than 
20 percent, by vote or value, of the outstanding amount of any 
class of equity interest in an entity.''.

SEC. 3. ENHANCED MONETARY PENALTIES.

The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is 
amended--
(1) in section 103, by striking ``$10,000'' and inserting 
``$100,000'';
(2) in section 705, by striking ``$10,000'' each place it 
appears and inserting ``$100,000''; and
(3) in section 710(f), by striking ``$10,000'' and 
inserting ``$100,000''.

SEC. 4. FRAUD RISK MANAGEMENT.

Section 722 of the Defense Production Act of 1950 (50 U.S.C. 4567) 
is amended--
(1) in subsection (d)--
(A) in paragraph (5), by striking ``and'' at the 
end;
(B) in paragraph (6), by striking the period at the 
end and inserting ``; and''; and
(C) by adding at the end the following new 
paragraph:
``(7) a summary of any steps taken to reduce fraud in 
transactions under this Act and a fraud risk assessment for all 
activities under undertaken under this Act.'';
(2) by redesignating subsection (e) as subsection (f); and
(3) by inserting after subsection (d) the following new 
subsection:
``(e) Fraud Risk Management.--Not later than 1 year after the date 
of the enactment of this subsection, the Committee shall--
``(1) establish and implement processes and procedures 
consistent with leading practices included in the publication 
of the Comptroller General of the United States titled `A 
Framework for Managing Fraud Risks in Federal Programs' (GAO-
15-593SP; published July 28, 2015) to combat fraud in 
transactions undertaken under this Act;
``(2) train personnel about the standards and practices 
established and implemented under paragraph (1); and
``(3) designate a point of contact within the Committee to 
be responsible for managing issues relating to fraud, including 
coordinating with agencies to review fraud-related issues.''.

SEC. 5. SHORT TITLE CORRECTION.

The first undesignated section of the the Defense Production Act of 
1950 is amended, effective on the date of enactment of such Act, by 
striking ``cited as ``the Defense'' and inserting ``cited as the 
``Defense''.
<all>