Stop Fraud by SOMALIA Act
- Bill Number
- H.R. 7923
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Families
- Status
- Introduced
- Latest Action
- 2026-03-12: Referred to the Committee on the Judiciary, and in addition to the Committee on Education and Workforce, 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.
- Last Updated
- 2026-04-01T16:38:13Z
AI-Generated Summary
Purpose
This bill, titled the "Stop Fraud by Strengthening Oversight and More Accountability for Lying and Illegal Activity Act" (or "Stop Fraud by SOMALIA Act"), aims to prevent fraud in federal child care funding by imposing strict penalties on fraudulent providers, including permanent debarment from federal programs. It also adds severe immigration consequences for alien (non-U.S. citizen) child care providers involved in fraud or linked to terrorism, to protect public funds and national security.
Key Provisions
- Fraud in Child Care Funding (Amendments to Child Care and Development Block Grant Act):
- Defines "final determination of fraud" as a court decision or administrative order (after appeals are exhausted) for actions like submitting false statements, misrepresenting enrollment/services/eligibility, operating without required state licensing, improper spending, or other fraud related to federal child care funds.
- Requires the Secretary of Health and Human Services (HHS) to notify states and demand reimbursement of defrauded funds, or deduct from the state's next-year allotment.
- Allows additional penalties like recouping improper funds.
- Mandates permanent debarment of the provider from all federal child care programs funded by HHS; no waivers, reversals, or reinstatement allowed (even via name changes, reorganization, or repayment). States must block debarred providers from participation.
- Requires referral to the Attorney General for federal criminal prosecution if based on an administrative order.
- Immigration Consequences for Alien Child Care Providers (Amendments to Immigration and Nationality Act):
- Makes aliens permanently debarred for child care fraud inadmissible to the U.S.
- Bars entry for debarred providers whose funds supported terrorists (e.g., al-Shabaab) or those associated with the Palestine Liberation Organization (PLO) or al-Shabaab.
- Deems such aliens deportable, ineligible for asylum, adjustment of status (changing to legal permanent resident), or "good moral character" findings.
- Mandates detention and enables expedited removal without full hearings for suspected inadmissible providers; allows limited review by high-level officials.
- Applies expedited processes to incarcerated aliens debarred for fraud.
- Implementation Exemptions:
- Waives the Paperwork Reduction Act (rules on collecting public information) and Administrative Procedure Act (rules requiring public notice and comment for regulations) if they would delay enforcement.
- General:
- Severability clause: Invalid parts do not affect the rest.
- Effective immediately upon enactment; immigration changes apply retroactively to fraud since September 30, 1996, if not yet prosecuted.
Significant Changes to Existing Law
- New Fraud Penalty in Child Care Law: Introduces "noncompliance due to fraud" category with mandatory permanent debarment—previously, penalties were less severe and not always permanent.
- Immigration Overhaul: Creates specific grounds for inadmissibility, deportability, and ineligibility tied to child care fraud debarment (e.g., new INA sections 212(a)(2)(F), 237(a)(2)(A)(vi)). Expands terrorism-related bars to include debarred providers funding groups like al-Shabaab. Adds expedited removal and mandatory detention for these cases.
- Retroactivity and Bypasses: Applies to old fraud (post-1996) and skips standard regulatory processes for faster rollout.
Potential Impacts
- Government Agencies: HHS gains enforcement tools (reimbursement, debarment lists); states face financial deductions and compliance mandates. DHS, DOJ, and State Department handle faster immigration processing, referrals, and removals—increasing workload but reducing hearings.
- Citizens: Protects taxpayer-funded child care subsidies (serving low-income families) from fraud, potentially improving program integrity and access to trustworthy providers.
- International Relations: May strain ties with countries like Somalia (due to al-Shabaab focus), complicating immigration/visa processes for their nationals in child care roles.
- Child Care Sector: Deters fraud but could reduce provider pool if debarments are widespread.
Main Stakeholders Affected
- Child care providers: Especially those committing fraud—face permanent loss of federal funding eligibility.
- States: Administer child care grants; must reimburse fraud, enforce debarments, and monitor providers.
- Federal agencies: HHS (oversight/debarment), DHS (detention/removal), DOJ (prosecutions), State Department (inadmissibility).
- Alien (non-citizen) providers: Harsh immigration bars, deportation risks—particularly those linked to fraud or terrorism.
- Families and taxpayers: Benefit from safeguarded child care subsidies.
Notable Legal, Constitutional, or Political Implications
- Legal: Retroactive application to 1996 fraud could face challenges under ex post facto principles (banning retroactive criminalization). Waivers of APA/PRA enable quick action but risk lawsuits over lack of public input.
- Constitutional: Permanent debarment without waiver and expedited removal may raise due process concerns (e.g., limited hearings). Mandatory referrals for prosecution could pressure administrative decisions.
- Political: Emphasizes anti-fraud and anti-terrorism in child care (naming hints at Somalia/al-Shabaab), potentially advancing child welfare and security agendas while targeting immigrant providers. Severability protects core provisions if parts are struck down.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-03-12: Referred to the Committee on the Judiciary, and in addition to the Committee on Education and Workforce, 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.
- 2026-03-12: Referred to the Committee on the Judiciary, and in addition to the Committee on Education and Workforce, 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.
- 2026-03-12: Introduced in House
- 2026-03-12: Introduced in House
Bill Versions
- Stop Fraud by Strengthening Oversight and More Accountability for Lying and Illegal Activity Act — issued 2026-03-12 — PDF (16 pages)