Congress bars federal funds to fraud convicts—with agency escape hatches
H.R. 6916 — Federal Program Integrity and Fraud Prevention Act of 2025 · Filed by Keith Self (R-TX) · 1 cosponsor · Introduced Dec 19, 2025 · Passed chamber
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What it does
This bill bars individuals convicted of specific federal fraud, theft, and corruption crimes from receiving federal contracts, grants, or other financial assistance for three years after conviction. It requires the Attorney General to notify the General Services Administration of such convictions, which must then be added to the federal exclusions database (SAM). Agency heads may waive the ban on a case-by-case basis if they notify Congress in writing with justification.
Why we flagged it
The bill's core function is to prevent federal funds from reaching individuals convicted of specific fraud and corruption crimes, strengthening procurement integrity and reducing taxpayer exposure to fraud.
What the text implies
- The three-year bar applies only to convictions after enactment, leaving individuals convicted before the law takes effect unaffected by this mechanism (though existing debarment rules may still apply).
- The 'beneficial owner' definition (25% ownership threshold) may allow convicted individuals to retain indirect control of entities through lower-ownership structures or nominee arrangements, potentially circumventing the intent.
The full analysis lists 4 implications of this text.
Who stands to gain
federal agencies (reduced fraud losses); taxpayers (protection of federal funds)