S. 3643

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3643 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 3643

To establish the Office of the Special Inspector General for Program 
Fraud, and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

January 14, 2026

Mr. Hawley introduced the following bill; which was read twice and 
referred to the Committee on Finance

_______________________________________________________________________

A BILL

To establish the Office of the Special Inspector General for Program 
Fraud, 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 ``Special Inspector General for 
Program Fraud Act''.

SEC. 2. SPECIAL INSPECTOR GENERAL FOR PROGRAM FRAUD.

(a) Purposes.--The purposes of this section are as follows:
(1) To provide for the independent and objective conduct 
and supervision of audits and investigations relating to 
programs funded with amounts appropriated or otherwise made 
available for child assistance programs in the United States.
(2) To provide for the independent and objective leadership 
and coordination of, and recommendations on, policies designed 
to prevent and detect waste, fraud, and abuse in such programs 
described in paragraph (1).
(3) To provide for an independent and objective means of 
keeping the Secretary of Health and Human Services, the 
Secretary of Agriculture, the heads of the other covered 
Federal agencies, and Congress fully and currently informed 
about problems and deficiencies relating to the administration 
of such programs and the necessity for and progress on 
corrective action.
(b) Office of Inspector General.--There is hereby established the 
Office of the Special Inspector General for Program Fraud to carry out 
the purposes set forth in subsection (a).
(c) Appointment of Inspector General; Removal.--
(1) Appointment.--The head of the Office of the Special 
Inspector General for Program Fraud is the Special Inspector 
General for Program Fraud (in this section referred to as the 
``Inspector General''), who shall be appointed by the President 
with the advice and consent of the Senate.
(2) Qualifications.--The appointment of the Inspector 
General shall be made solely on the basis of integrity and 
demonstrated ability in accounting, auditing, financial 
analysis, law, management analysis, public administration, or 
investigations.
(3) Deadline for appointment.--The appointment of an 
individual as Inspector General shall be made not later than 30 
days after the date of enactment of this Act.
(4) Compensation.--The annual rate of basic pay of the 
Inspector General shall be the annual rate of basic pay 
provided for positions at level IV of the Executive Schedule 
under section 5315 of title 5, United States Code.
(5) Prohibition on political activities.--For purposes of 
section 7324 of title 5, United States Code, the Inspector 
General shall not be considered an employee who determines 
policies to be pursued by the United States in the nationwide 
administration of Federal law.
(6) Removal.--The Inspector General shall be removable from 
office in accordance with the provisions of section 403(b) of 
title 5, United States Code.
(d) Assistant Inspectors General.--The Inspector General shall, in 
accordance with applicable laws and regulations governing the civil 
service--
(1) appoint an Assistant Inspector General for Auditing who 
shall have the responsibility for supervising the performance 
of auditing activities relating to programs funded with amounts 
appropriated or otherwise made available for child assistance 
programs in the United States; and
(2) appoint an Assistant Inspector General for 
Investigations who shall have the responsibility for 
supervising the performance of investigative activities 
relating to such programs.
(e) Supervision.--
(1) In general.--Except as provided in paragraph (2), the 
Inspector General shall report directly to, and be under the 
general supervision of, the Secretary of Health and Human 
Services, the Secretary of Agriculture, and the heads of the 
other covered Federal agencies.
(2) Independence to conduct investigations and audits.--No 
officer of the Department of Health and Human Services, the 
Department of Agriculture, or another covered Federal agency 
shall prevent or prohibit the Inspector General from 
initiating, carrying out, or completing any audit or 
investigation related to amounts appropriated or otherwise made 
available for child assistance programs in the United States or 
from issuing any subpoena during the course of any such audit 
or investigation.
(f) Duties.--
(1) Oversight of child assistance programs.--It shall be 
the duty of the Inspector General to conduct, supervise, and 
coordinate audits and investigations of the treatment, 
handling, and expenditure of amounts appropriated or otherwise 
made available for child assistance programs in the United 
States, including--
(A) the oversight and accounting of the obligation 
and expenditure of such funds;
(B) the monitoring and review of contracts funded 
by such funds;
(C) the monitoring and review of the transfer of 
such funds and associated information between and among 
departments, agencies, and entities of the United 
States and private and nongovernmental entities;
(D) the maintenance of records on the use of such 
funds to facilitate future audits and investigations of 
the use of such funds; and
(E) the investigation of overpayments, such as 
duplicate payments or duplicate billing and any 
potential unethical or illegal actions of Federal 
employees, contractors, or affiliated entities and the 
referral of such reports, as necessary, to the 
Department of Justice to ensure further investigations, 
prosecutions, recovery of further funds, or other 
remedies.
(2) Other duties related to oversight.--The Inspector 
General shall establish, maintain, and oversee such systems, 
procedures, and controls as the Inspector General considers 
appropriate to discharge the duties under paragraph (1).
(3) Duties and responsibilities under chapter 4 of title 5, 
united states code.--In addition to the duties specified in 
paragraphs (1) and (2), the Inspector General shall also have 
the duties and responsibilities of inspectors general under 
chapter 4 of title 5, United States Code.
(4) Coordination of efforts.--In carrying out the duties, 
responsibilities, and authorities of the Inspector General 
under this section, the Inspector General shall coordinate 
with, and receive the cooperation of, the Inspector Generals of 
the Department of Health and Human Services, the Department of 
Agriculture, and the other covered Federal agencies.
(g) Powers and Authorities.--
(1) Authorities under chapter 4 of title 5, united states 
code.--In carrying out the duties specified in subsection (f), 
the Inspector General shall have the authorities provided in 
section 406 of title 5, United States Code, including the 
authorities under subsection (e) of such section.
(2) Audit standards.--The Inspector General shall carry out 
the duties specified in subsection (f)(1) in accordance with 
section 404(b)(1) of title 5, United States Code.
(h) Personnel, Facilities, and Other Resources.--
(1) Personnel.--
(A) In general.--The Inspector General may select, 
appoint, and employ such officers and employees as may 
be necessary for carrying out the duties of the 
Inspector General, subject to the provisions of title 
5, United States Code, governing appointments in the 
competitive service, and the provisions of chapter 51 
and subchapter III of chapter 53 of such title, 
relating to classification and General Schedule pay 
rates.
(B) Additional authorities.--
(i) In general.--Subject to clause (ii), 
the Inspector General may exercise the 
authorities of subsections (b) through (i) of 
section 3161 of title 5, United States Code 
(without regard to subsection (a) of that 
section).
(ii) Periods of appointments.--In 
exercising the employment authorities under 
subsection (b) of section 3161 of title 5, 
United States Code, as provided under clause 
(i) of this subparagraph--
(I) paragraph (2) of that 
subsection (relating to periods of 
appointments) shall not apply; and
(II) no period of appointment may 
exceed the date on which the Office of 
the Special Inspector General for 
Program Fraud terminates under 
subsection (n).
(2) Employment of experts and consultants.--The Inspector 
General may obtain services as authorized by section 3109 of 
title 5, United States Code, at daily rates not to exceed the 
equivalent rate prescribed for grade GS-15 of the General 
Schedule by section 5332 of such title.
(3) Contracting authority.--To the extent and in such 
amounts as may be provided in advance by appropriations Acts, 
the Inspector General may enter into contracts and other 
arrangements for audits, studies, analyses, and other services 
with public agencies and with private persons, and make such 
payments as may be necessary to carry out the duties of the 
Inspector General.
(4) Resources.--The Secretary of Health and Human Services, 
the Secretary of Agriculture, and the heads of the other 
covered Federal agencies, as appropriate, shall provide the 
Inspector General with--
(A) appropriate and adequate office space at 
appropriate locations of the Department of Health and 
Human Services, the Department of Agriculture, and the 
other covered Federal agencies, together with such 
equipment, office supplies, and communications 
facilities and services as may be necessary for the 
operation of such offices, and shall provide necessary 
maintenance services for such offices and the equipment 
and facilities located therein; and
(B) appropriate and adequate support for audits, 
investigations, and related activities by the Inspector 
General or assigned personnel.
(5) Assistance from federal agencies.--
(A) In general.--Upon request of the Inspector 
General for information or assistance from any 
department, agency, or other entity of the Federal 
Government, the head of such entity shall, insofar as 
is practicable and not in contravention of any existing 
law, furnish such information or assistance to the 
Inspector General, or an authorized designee.
(B) Reporting of refused assistance.--Whenever 
information or assistance requested by the Inspector 
General is, in the judgment of the Inspector General, 
unreasonably refused or not provided, the Inspector 
General shall report the circumstances to the Secretary 
of Health and Human Services, the Secretary of 
Agriculture, and the heads of the other covered Federal 
agencies, as appropriate, and to the appropriate 
congressional committees, without delay.
(i) Reports.--
(1) Quarterly reports.--Not later than 30 days after the 
end of each fiscal-year quarter, the Inspector General shall 
submit to the appropriate congressional committees a report 
summarizing, for the period of that quarter and, to the extent 
possible, the period from the end of such quarter to the time 
of the submission of the report, the activities during such 
period of the Inspector General and the activities under 
programs funded with amounts appropriated or otherwise made 
available for child assistance programs in the United States. 
Each report shall include, for the period covered by such 
report, a detailed statement of all obligations, expenditures, 
and revenues associated with child assistance programs in the 
United States, including each of the following:
(A) Obligations and expenditures of appropriated 
funds.
(B) Operating expenses of agencies or entities 
receiving amounts appropriated or otherwise made 
available for child assistance programs in the United 
States.
(C) In the case of any contract, grant, agreement, 
or other funding mechanism described in paragraph (2)--
(i) the amount of the contract, grant, 
agreement, or other funding mechanism;
(ii) a brief discussion of the scope of the 
contract, grant, agreement, or other funding 
mechanism;
(iii) a discussion of how the covered 
Federal agency involved in the contract, grant, 
agreement, or other funding mechanism 
identified, and solicited offers from, 
potential individuals or entities to perform 
the contract, grant, agreement, or other 
funding mechanism, together with a list of the 
potential individuals or entities that were 
issued solicitations for the offers; and
(iv) the justification and approval 
documents on which was based the determination 
to use procedures other than procedures that 
provide for full and open competition.
(2) Covered contracts, grants, agreements, and funding 
mechanisms.--A contract, grant, agreement, or other funding 
mechanism described in this paragraph is any major contract, 
grant, agreement, or other funding mechanism that is entered 
into by any covered Federal agency, with any public or private 
sector entity, that involves the use of amounts appropriated or 
otherwise made available for child assistance programs in the 
United States.
(3) Public availability.--The Inspector General shall 
publish on a publicly available internet website each report 
under paragraph (1) of this subsection.
(4) Rule of construction.--Nothing in this subsection shall 
be construed to authorize the public disclosure of information 
that is--
(A) specifically prohibited from disclosure by any 
other provision of law; or
(B) a part of an ongoing criminal investigation.
(j) Report Coordination.--
(1) Submission to heads of covered federal agencies.--The 
Inspector General shall also submit each report required under 
subsection (i) to the Secretary of Health and Human Services, 
the Secretary of Agriculture, and the heads of the other 
covered Federal agencies.
(2) Submission to congress.--
(A) In general.--Not later than 30 days after 
receipt of a report under paragraph (1), the Secretary 
of Health and Human Services, the Secretary of 
Agriculture, and the heads of the other covered Federal 
agencies, as appropriate, shall submit to the 
appropriate congressional committees any comments on 
the matters covered by the report.
(B) Access.--On request, any Member of Congress may 
view comments submitted under subparagraph (A).
(k) Transparency.--
(1) Report.--Not later than 60 days after submission to the 
appropriate congressional committees of a report under 
subsection (i), the Secretary of Health and Human Services, the 
Secretary of Agriculture, and the head of each covered Federal 
agency, shall make copies of the report available to the public 
upon request, and at a reasonable cost.
(2) Comments on matters covered by report.--Not later than 
60 days after the last submission to the appropriate 
congressional committees under subsection (j)(2)(A) of comments 
on a report under subsection (i), the Secretary of Health and 
Human Services, the Secretary of Agriculture, and the head of 
each covered Federal agency, shall make copies of the comments 
available to the public upon request, and at a reasonable cost.
(l) Definitions.--In this section:
(1) Appropriate congressional committees.--The term 
``appropriate congressional committees'' means--
(A) the Committee on Appropriations, the Committee 
on Agriculture, Nutrition, and Forestry, the Committee 
on Health, Education, Labor, and Pensions, the 
Committee on Finance, and the Committee on Homeland 
Security and Governmental Affairs of the Senate; and
(B) the Committee on Appropriations, the Committee 
on Agriculture, the Committee on Ways and Means, the 
Committee on Energy and Commerce, and the Committee on 
Oversight and Government Reform of the House of 
Representatives.
(2) Child assistance.--The term ``child assistance'' means 
Federal financial assistance for an activity such as child care 
or child nutrition.
(3) Child assistance program.--The term ``child assistance 
program'' means a Federal, State, Tribal, or local program 
providing child assistance.
(4) Covered federal agency.--The term ``covered Federal 
agency'' means a department or agency of the executive branch 
of the Federal Government that, as determined by the President, 
administers amounts appropriated or otherwise made available 
for a child assistance program in the United States.
(m) Authorization of Appropriations.--There is authorized to be 
appropriated $10,000,000 for each of fiscal years 2026 and 2027 to 
carry out this section.
(n) Termination.--
(1) In general.--The Office of the Special Inspector 
General for Program Fraud shall terminate on September 30, 
2027.
(2) Final report.--The Inspector General shall, prior to 
the termination of the Office of the Special Inspector General 
for Program Fraud under paragraph (1), prepare and submit to 
the appropriate congressional committees a final report on 
programs funded with amounts appropriated or otherwise made 
available for child assistance programs in the United States.
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