Table of Contents
Why Did the House Pass New Federal Fraud Enforcement Bills?
The House moved to make federal fraud enforcement permanent and to compel every state, including Minnesota and California, to produce any information the Attorney General demands to investigate fraud in Medicaid, SNAP, TANF, unemployment insurance, COVID-era funds, broadband grants, disaster assistance, and related programs.
National Fraud Enforcement Division Act Strengthens DOJ Authority
The U.S. House approved H.R. 9576, the National Fraud Enforcement Division Act of 2026, by a 352-72 vote. The bill permanently establishes a dedicated Department of Justice National Fraud Enforcement Division to investigate, prosecute, and remedy fraud against the Federal Government, federally funded programs, and U.S. citizens. An Assistant Attorney General appointed by the President and confirmed by the Senate will lead multi-district and multi-agency cases targeting scams in healthcare, taxes, and public benefits. Codification converts the division created administratively in 2026 into standing law so a future administration cannot abolish it by directive.
PROOF Act Requires State Data Sharing on Medicaid and SNAP Fraud
A second House vote of 217-207 passed H.R. 10326, the Preventing Rip-offs and Obtaining Oversight of Funds Act. Upon written request from the Attorney General, a state administering a covered program must provide the information required to investigate or prosecute alleged fraud. Covered programs include Medicaid, SNAP, TANF, unemployment compensation, coronavirus-response grants, broadband grants, disaster assistance, and other state-administered federal programs identified as vulnerable to fraud. States must turn over identity verification records, benefit disbursement logs, provider billing statements, and relevant demographic data.
Privacy safeguards are explicit. Data may be used only for law enforcement purposes related to fraud and may not be disclosed for unrelated administrative or commercial use. The bill requires encryption, restricted access, and destruction of transferred records when the investigation ends. The Attorney General must report annually to Congress on requests, programs targeted, investigations, and convictions.
Protecting Public Funds From Improper Payments
Republicans described the two measures as key protections for public funds. They pair a permanent DOJ investigative division with compulsory state cooperation so cases involving healthcare, nutrition, unemployment, pandemic-era funds, and related grants rest on complete records amid concerns over improper payments.
What the Senate Must Decide Next
Both measures now await Senate action. Until then, the National Fraud Enforcement Division remains an administrative creation, and state data-sharing remains cooperation rather than statute. House action sends a clear framework: make fraud enforcement a permanent DOJ duty, and require states to deliver the information the Attorney General demands.
Read More: https://morsereport.com/a/news/federal-agents-arrest-non-citizens-for-illegal-voting-in-key-states
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FAQs
Why Did the House Pass New Federal Fraud Enforcement Bills?
The House moved to make federal fraud enforcement permanent and to compel every state, including Minnesota and California, to produce any information the Attorney General demands to investigate fraud in Medicaid, SNAP, TANF, unemployment insurance, COVID-era funds, broadband grants, disaster assistance, and related programs.
