H.R. 6916 — Federal Program Integrity and Fraud Prevention Act of 2025, as amended
Executive Summary
H.R. 6916, the 'Federal Program Integrity and Fraud Prevention Act of 2026,' aims to protect taxpayer dollars by barring individuals convicted of specific federal fraud or embezzlement felonies from receiving federal contracts, grants, or financial assistance for three years. Crucially, the bill extends this prohibition to any entity where the convicted individual is a 'beneficial owner' (owning 25%+ or exercising substantial control), closing a loophole that allows bad actors to hide behind corporate structures. It mandates the Attorney General to report these convictions to the GSA to promptly update the System for Award Management (SAM) Exclusions list.
Arguments For
- Good Government / Anti-Fraud Win: Provides members with a straightforward, bipartisan-friendly talking point about protecting taxpayer dollars and cracking down on white-collar crime.
- Closes Corporate Loopholes: By targeting 'beneficial owners,' the bill prevents convicted fraudsters from simply setting up shell companies or using existing corporate entities to bypass SAM exclusions.
Likely Supporters
Arguments Against
- Administrative Burden: Requires constant coordination between the DOJ and GSA, and places the onus on agencies to accurately track beneficial ownership, which has historically been difficult and resource-intensive.
- Waiver Loophole: The case-by-case waiver authority granted to agency heads could be exploited to bypass the ban for politically connected contractors or 'too-big-to-fail' defense firms, despite the congressional notification requirement.
Likely Opponents
📋 Key Provisions
- Imposes a mandatory 3-year ban on federal contracts, grants, and financial assistance for individuals convicted of covered federal felonies related to federal funds.
- Extends the funding ban to any entity where the convicted individual is a 'beneficial owner,' defined as exercising substantial control or owning at least 25% of the entity.
- Requires the Attorney General to notify the GSA Administrator of such convictions to ensure the individual is added to the SAM Exclusions list.
- Permits agency heads to issue case-by-case waivers to the prohibition, provided they immediately submit a written justification to Congress.
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Verification Guide
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Prohibits federal contracts or grants for three years following a conviction.
"during the three year period following"
Defines a beneficial owner as someone owning at least 25 percent of the entity.
"percent of the ownership interests"
Requires the Attorney General to notify the GSA Administrator of convictions.
"the Attorney General shall notify"
Agency heads can waive the prohibition but must notify Congress.
"head of an agency shall provide to Congress"