Put America on Commission Act of 2026

Bill Number: H.R. 7412
Origin Chamber: House
Congress: 119th Congress, Session 2
Policy Area: Commerce
Status: Introduced
Latest Action: 2026-02-20: Placed on the Union Calendar, Calendar No. 425.
Last Updated: 2026-06-11T23:26:40Z

AI-Generated Summary

Purpose of the Legislation

The "Put America on Commission Act of 2026" (H.R. 7412) aims to encourage the reporting of fraud and financial misconduct related to COVID-19 relief loans provided by the Small Business Administration (SBA) by establishing a whistleblower award program. This program incentivizes individuals to submit original information about wrongdoing by loan recipients, helping the government recover misused funds and strengthen oversight of SBA programs.

Key Provisions

Establishment of the Office of Whistleblower Awards: Creates a new office within the SBA's Office of Performance, Planning, and the Chief Financial Officer, administered by a federal employee in the competitive service (a standard hiring category for non-political government roles).
Whistleblower Submissions and Awards:
The office evaluates information submitted by whistleblowers about financial misconduct or fraudulent misrepresentation by recipients of SBA financial assistance, focusing on COVID-19 loans (defined as actions under specific SBA and CARES Act provisions).
It determines if the information is "original" (new, independently derived, and not publicly known or from official sources).
Original information is shared with the SBA Inspector General (an internal watchdog for fraud detection) and tracked for use in convictions, settlements, or plea agreements.
Awards are paid from a dedicated Whistleblower Award Fund: 10% of recovered amounts for U.S. nationals or entities, and 15% for foreign nationals or entities.
For multiple whistleblowers, only the one making the "most substantial contribution" (based on significance of information, role in the case, and other factors) receives the award.
Award Restrictions and Protections:
Awards can be reduced or denied if the whistleblower participated in or initiated the misconduct; those convicted of related crimes must repay awards and are ineligible.
No contract with the SBA is required for eligibility.
Payments must be made within one year of funds being deposited into the award fund.
Whistleblowers receive status updates, including confirmation of receipt and determinations on originality and case impact.
Anti-retaliation rules prohibit discrimination or harmful actions against whistleblowers; violations allow remedies similar to those in federal whistleblower protection laws (e.g., back pay, reinstatement).
Whistleblower Award Fund:
A revolving fund in the U.S. Department of the Treasury, funded by all federal collections (e.g., fines, repayments) from COVID loan fraud cases based on whistleblower information.
Unused funds go to the general Treasury; covers awards and office operations without needing annual budget approval.
Civil Monetary Penalties:
Fraud perpetrators face an additional penalty of 30% of the loan principal amount, collected via court actions or deductions from owed federal payments; these funds feed into the award fund.
Appeals and Oversight:
Whistleblowers can appeal most decisions (except award amounts) to a U.S. Court of Appeals within 30 days, with review under standard administrative law standards (e.g., ensuring decisions are not arbitrary).
The SBA must issue rules within six months of enactment, including procedures for determining information's role in cases.
Annual reports to Congress on submissions, awards, and recommendations.
Sunset Clause: The program ends when all timely filed COVID loan actions are fully resolved (no appeals pending), but continues for ongoing award appeals.
Definitions: Key terms include "COVID loan action" (specific fraud charges or enforcement under SBA/CARES Act rules), "final conviction" (unappealable guilty verdict), and "original information" (independent, non-public tips provided after enactment or outside standard reporting channels).

Significant Changes to Existing Law

Amends the Small Business Act (15 U.S.C. 631 et seq.) by adding a new Section 49, introducing the first SBA-specific whistleblower award office and fund targeted at COVID-19 loan fraud.
Redesignates existing sections for numbering consistency.
Builds on but expands beyond general federal whistleblower protections (e.g., under 5 U.S.C. § 1213 for disclosures) by creating targeted incentives, penalties, and a self-sustaining fund—similar to programs in agencies like the Securities and Exchange Commission but tailored to SBA loans.
Requires the SBA Inspector General to indicate whether whistleblower information contributed to cases, with non-disclosure treated as non-contributory.

Potential Impacts

Government Agencies: The SBA gains a new office and tools to detect and prosecute fraud, potentially recovering billions in misused COVID funds through penalties and tips; increases workload for the Inspector General and requires rulemaking. The Treasury manages the fund, reducing reliance on annual appropriations.
Citizens: Encourages ordinary individuals (e.g., employees, contractors) to report fraud without fear of retaliation, with financial incentives and protections; may deter fraud in future SBA programs but could lead to disputes over award eligibility.
International Relations: Higher awards for foreign entities might boost reporting on international fraud rings involving U.S. loans, aiding cross-border enforcement but raising questions about extraterritorial application of penalties.
Overall, promotes accountability in pandemic relief spending, potentially recouping taxpayer dollars while minimizing administrative costs via the revolving fund.

Main Stakeholders Affected

Whistleblowers: Individuals submitting tips on fraud, gaining rewards and protections but facing eligibility hurdles.
SBA and Inspector General: Responsible for program administration, investigations, and enforcement; benefits from enhanced fraud detection.
Loan Recipients: Small businesses and nonprofits that received COVID aid (e.g., Paycheck Protection Program loans), facing heightened scrutiny, penalties, and repayment risks for fraud.
U.S. Treasury and Congress: Treasury handles fund operations; Congress receives oversight reports and may adjust the program based on recommendations.
Federal Courts: Handle appeals and penalty collections, increasing caseload for fraud-related disputes.

Notable Legal, Constitutional, or Political Implications

Legal: Strengthens fraud enforcement under existing SBA and CARES Act authorities without altering Inspector General independence; introduces civil penalties that complement criminal charges, potentially increasing recovery rates but requiring careful coordination to avoid double jeopardy (prohibited under the Fifth Amendment).
Constitutional: Aligns with First Amendment protections for disclosures and Fifth/Fourteenth Amendment due process via appeals and retaliation remedies; anti-retaliation provisions mirror established federal standards, reducing litigation risks.
Political: Addresses concerns over COVID relief waste by tying rewards to recoveries, appealing to fiscal conservatives; the sunset clause limits long-term costs, but annual reporting could spark debates on program effectiveness or expansion to non-COVID SBA loans. No direct impact on separation of powers, as it enhances executive agency tools without congressional overreach.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Williams, Roger [R-TX-25]

Cosponsors (1)

Rep. Olszewski, Johnny [D-MD-2]

Recent Actions

2026-02-20: Placed on the Union Calendar, Calendar No. 425.
2026-02-20: Reported by the Committee on Small Business. H. Rept. 119-499.
2026-02-20: Reported by the Committee on Small Business. H. Rept. 119-499.
2026-02-11: Ordered to be Reported by the Yeas and Nays: 24 - 0.
2026-02-11: Committee Consideration and Mark-up Session Held
2026-02-05: Referred to the House Committee on Small Business.
2026-02-05: Introduced in House
2026-02-05: Introduced in House

Bill Versions

Put America on Commission Act of 2026 — issued 2026-02-05 — PDF (18 pages)
Put America on Commission Act of 2026 — issued 2026-02-20 — PDF (20 pages)