No More SCAMS Act
- Bill Number
- H.R. 7312
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-02-02: Referred to the House Committee on Oversight and Government Reform.
- Last Updated
- 2026-04-22T08:07:33Z
AI-Generated Summary
Purpose of the Legislation
The "No More SCAMS Act" (H.R. 7312) aims to create a coordinated federal effort to detect, investigate, and prevent fraud in the use of federal funds. It focuses on improving how government agencies work together to protect taxpayer money from misuse, such as scams or corruption in programs involving grants, contracts, or payments.
Key Provisions
- Establishment of the Task Force: Within 90 days of the bill becoming law, the President must create the Federal Fraud Interagency Task Force (Task Force). This group will investigate fraud cases, improve coordination between agencies, and help recover stolen or misused federal funds.
- Leadership and Membership:
- A Director must be appointed within 180 days to a 4-year term; the Director needs at least 10 years of experience in fraud investigations or federal law enforcement.
- Members will be appointed from "covered agencies" (major federal departments like Defense, Justice, Health and Human Services, and others) within 180 days; these members must be experts in areas like financial management, auditing, or fraud detection methods.
- Vacancies are filled in the same way as initial appointments.
- Duties of the Task Force:
- Investigate reports of fraud involving federal money.
- Work with state and local law enforcement on investigations.
- Create best practices and training programs to help agencies spot and stop fraud early.
- Share data and resources between agencies to speed up fraud probes.
- Build on existing federal anti-fraud tools and programs.
- Reporting and Oversight:
- The Director must submit an annual report (starting one year after enactment) to the President and key congressional committees (House Oversight and Government Reform; Senate Homeland Security and Governmental Affairs). Reports will cover investigation numbers, funds recovered, agency activities, fraud trends, and suggestions for better prevention.
- The Government Accountability Office (GAO, an independent watchdog agency) must audit the Task Force's operations and spending annually, starting one year after enactment.
- Definitions:
- "Fraud" is defined as intentionally lying or misleading someone to get money or rights they wouldn't otherwise give.
- "Covered agencies" include 13 major departments (e.g., State, Treasury, Defense, Justice) plus any others the President designates.
Significant Changes to Existing Law
This bill introduces a new centralized Task Force, which does not exist under current law. It mandates interagency coordination and annual reporting on fraud, filling gaps in how federal agencies currently handle fraud separately. While it builds on existing anti-fraud efforts (like audits or investigations), it requires formal data-sharing and expert appointments, potentially streamlining processes that are now fragmented across agencies.
Potential Impacts
- On Government Agencies: Covered agencies will need to contribute experts, share resources, and implement new training and best practices, which could reduce fraud losses but increase administrative workload. It may lead to faster recovery of funds (e.g., billions in potential savings from programs like grants or contracts).
- On Citizens: Taxpayers could benefit from less waste in federal spending, ensuring more money goes to intended public services like healthcare, education, or infrastructure. Individuals or businesses involved in federal programs might face stricter scrutiny to prevent scams.
- On International Relations: No direct impacts are outlined, though agencies like the Department of State could apply Task Force tools to international aid or grants, indirectly improving oversight of foreign spending.
Main Stakeholders Affected
- Federal Agencies: The 13 listed departments (and any added by the President) must provide members and cooperate, directly affecting their fraud detection and financial operations.
- Executive Branch: The President appoints the Director and members; the Task Force operates under presidential authority.
- Congress: Oversight committees receive reports and can influence recommendations; GAO provides independent audits.
- State and Local Law Enforcement: They partner on investigations, gaining access to federal resources.
- Taxpayers and Program Beneficiaries: Indirectly affected through reduced fraud in public spending on areas like veterans' services, housing, or transportation.
- Fraud Investigators and Experts: Professionals in law enforcement or accounting may see new roles or training opportunities.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens federal anti-fraud enforcement by formalizing investigations and recoveries, potentially leading to more prosecutions under existing laws like those against wire fraud or false claims. The fraud definition aligns with standard legal terms but applies it broadly to federal funds.
- Constitutional: The bill respects separation of powers by having the executive (President) establish and run the Task Force while requiring congressional reporting and GAO audits for oversight, avoiding any overreach into legislative or judicial roles.
- Political: Enhances accountability for federal spending, which could appeal to efforts to curb waste amid public concerns over government efficiency. It may spark debates on resource allocation or agency burdens, but the bill itself is neutral, focusing on coordination rather than new penalties.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (4)
Rep. Stauber, Pete [R-MN-8], Rep. Timmons, William R. [R-SC-4], Rep. Langworthy, Nicholas A. [R-NY-23], Rep. Sessions, Pete [R-TX-17]
Recent Actions
- 2026-02-02: Referred to the House Committee on Oversight and Government Reform.
- 2026-02-02: Introduced in House
- 2026-02-02: Introduced in House
Bill Versions
- No More SCAMS Act — issued 2026-02-02 — PDF (5 pages)