GUARD Act
- Bill Number
- H.R. 2978
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Crime and Law Enforcement
- Status
- Introduced
- Latest Action
- 2026-06-24: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-709, Part I.
- Last Updated
- 2026-07-07T17:06:15Z
AI-Generated Summary
Purpose of the Legislation
The GUARD Act (Guarding Unprotected Aging Retirees from Deception Act) aims to strengthen efforts to combat financial fraud, particularly scams targeting older adults and involving emerging technologies like cryptocurrency. It expands how federal grant money can be used by local law enforcement and clarifies federal support for tracking fraud through blockchain (a digital ledger technology used in cryptocurrencies).
Key Provisions
- Use of Federal Grants for Investigations: State, local, and Tribal law enforcement agencies can use specific federal grants (from Department of Justice programs focused on economic crimes, cybercrimes, and technology) to investigate elder financial fraud (misuse of an older or disabled person's assets for gain), "pig butchering" scams (gradual investment frauds often using cryptocurrency), and general financial fraud (deceptive acts to steal money or information via cards, emails, or other means). Allowed uses include:
- Hiring analysts, agents, and experts.
- Providing specialized training on financial investigations, victim support, blockchain tools, and coordination with other agencies.
- Acquiring software and tools for fraud probes.
- Improving data collection and reporting.
- Conducting exercises to boost communication with banks and other financial institutions.
- Appointing liaisons to share fraud-related information with financial entities.
- Reporting Requirements for Law Enforcement: Agencies using these grants must report to the funding federal agency within one year, detailing fund usage, local fraud statistics, and how the funds helped deter crimes.
- Federal Reports on Fraud and Scams:
- Within one year of enactment, the Treasury Secretary and Financial Crimes Enforcement Network (FinCEN, a bureau tracking money laundering) must submit a joint report to Congress (consulting the Attorney General, Homeland Security Secretary, and banking regulators) on current efforts and recommendations to fight these frauds.
- Within two years, a broader report on the "state of scams" in the U.S., including estimates of scam numbers, victim losses, overseas/organized crime involvement, enforcement actions, and federal spending by agencies like the DOJ, FBI, FTC, and SEC. This report will include public input from consumers, social media firms, banks, and telecom companies.
- Annual Federal Reporting: Grant-providing agencies must send yearly updates to House and Senate committees on financial services, based on local law enforcement reports.
- Federal Assistance with Technology: Federal law enforcement can help state, local, Tribal agencies, and "fusion centers" (information-sharing hubs for threats) use blockchain tracing tools to follow fraud trails.
Significant Changes to Existing Law
- Expanded Grant Flexibility: Previously, these federal grants (e.g., for cybercrime training or equipment) may not have explicitly allowed funding for elder-specific or cryptocurrency-related fraud investigations. The bill now permits their use for these purposes, including training on emerging tech like blockchain.
- Clarification on Federal Support: It explicitly authorizes federal agencies to assist locals with blockchain tools, removing any prior ambiguity about sharing such technical expertise.
- New Reporting Mandates: Introduces required reports on fraud trends, enforcement effectiveness, and resource use, which were not previously mandated in this detail.
Potential Impacts
- On Government Agencies: Enhances coordination between federal (e.g., DOJ, Treasury, FBI) and local/Tribal law enforcement, potentially improving fraud detection and prosecution. Increases administrative burden through new reporting but provides data to refine anti-fraud strategies.
- On Citizens: Could reduce financial losses from scams, especially for vulnerable groups like seniors, by enabling faster investigations and better victim support. May lead to more recovered assets and deter scammers through heightened enforcement.
- On International Relations: Addresses transnational fraud (e.g., overseas actors in pig butchering scams), potentially fostering better U.S. cooperation with foreign partners on cyber-financial crimes, though it focuses domestically.
Main Stakeholders Affected
- Law Enforcement Agencies: State, local, Tribal, and federal entities (e.g., DOJ, FBI, FinCEN) gain tools and funding flexibility but face reporting duties.
- Victims and Citizens: Older adults, disabled individuals, and general consumers targeted by scams benefit from improved protections and investigations.
- Financial Institutions: Banks, non-bank lenders, and payment processors are encouraged to collaborate via liaisons and exercises, aiding fraud prevention.
- Congress and Regulators: Receives detailed reports to inform future policies; agencies like the FTC and SEC must report spending.
- Tech and Telecom Sectors: Social media, email, and phone providers contribute to reports and may face indirect pressure to curb scam platforms.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens existing anti-fraud laws (e.g., under the Violence Against Women Act reauthorization for cybercrimes) without creating new crimes or penalties, focusing instead on resource allocation and inter-agency aid. Ensures accountability via reports, aligning with federal grant oversight rules.
- Constitutional: Supports law enforcement's role in protecting property and public safety under the Commerce Clause (for interstate fraud) and no major privacy concerns, as blockchain tools target criminal traces rather than broad surveillance.
- Political: Responds to rising scam reports (e.g., via social media and crypto), appealing to bipartisan concerns over elder protection and economic security. Could influence future budgets for cybercrime units but may spark debates on federal overreach in local policing or tech regulation.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (51)
Rep. Gottheimer, Josh [D-NJ-5], Rep. Fitzgerald, Scott [R-WI-5], Rep. Nehls, Troy E. [R-TX-22], Rep. Shreve, Jefferson [R-IN-6], Rep. McBride, Sarah [D-DE-At Large], Rep. Meuser, Daniel [R-PA-9], Rep. Williams, Roger [R-TX-25], Rep. Moore, Barry [R-AL-1], Rep. Gillen, Laura [D-NY-4], Rep. Harder, Josh [D-CA-9], Rep. Sorensen, Eric [D-IL-17], Rep. Brownley, Julia [D-CA-26], Rep. Barr, Andy [R-KY-6], Rep. Grothman, Glenn [R-WI-6], Rep. Salazar, Maria Elvira [R-FL-27], Rep. Mannion, John W. [D-NY-22], Rep. Suozzi, Thomas R. [D-NY-3], Rep. Whitesides, George [D-CA-27], Rep. Tran, Derek [D-CA-45], Rep. Vasquez, Gabe [D-NM-2], Rep. Wittman, Robert J. [R-VA-1], Rep. Valadao, David G. [R-CA-22], Rep. Van Drew, Jefferson [R-NJ-2], Rep. Downing, Troy [R-MT-2], Rep. Lee, Susie [D-NV-3], Rep. Hayes, Jahana [D-CT-5], Rep. Moore, Tim [R-NC-14], Rep. Tiffany, Thomas P. [R-WI-7], Rep. Stutzman, Marlin A. [R-IN-3], Rep. Lawler, Michael [R-NY-17], Rep. Smith, Adam [D-WA-9], Rep. Kiggans, Jennifer A. [R-VA-2], Rep. Mann, Tracey [R-KS-1], Rep. Craig, Angie [D-MN-2], Rep. Johnson, Julie [D-TX-32], Rep. De La Cruz, Monica [R-TX-15], Rep. Subramanyam, Suhas [D-VA-10], Rep. Hinson, Ashley [R-IA-2], Rep. Fedorchak, Julie [R-ND-At Large], Rep. Casten, Sean [D-IL-6], Rep. Latimer, George [D-NY-16], Rep. Kim, Young [R-CA-40], Rep. Calvert, Ken [R-CA-41], Rep. Kennedy, Timothy M. [D-NY-26], Rep. Pfluger, August [R-TX-11], Rep. Schmidt, Derek [R-KS-2], Rep. Ivey, Glenn [D-MD-4], Rep. Evans, Gabe [R-CO-8], Rep. Palmer, Gary J. [R-AL-6], Rep. Amo, Gabe [D-RI-1] and 1 more
Recent Actions
- 2026-06-24: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-709, Part I.
- 2026-06-24: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-709, Part I.
- 2026-05-13: Ordered to be Reported (Amended) by the Yeas and Nays: 52 - 0.
- 2026-05-13: Committee Consideration and Mark-up Session Held
- 2025-04-21: Referred to the Committee on the Judiciary, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-04-21: Referred to the Committee on the Judiciary, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-04-21: Introduced in House
- 2025-04-21: Introduced in House
Bill Versions
- Guarding Unprotected Aging Retirees from Deception Act — issued 2025-04-21 — PDF (11 pages)