HR 6916: Federal Program Integrity and Fraud Prevention Act of 2026

HR 6916 in plain English: This bill would bar individuals convicted of fraud-related felonies connected to federal financial assistance from receiving federal contracts, grants, loans, or other assistance for three years. Convicted individuals would be added to the federal System for Award Management exclusion list, and agencies that grant exemptions must notify Congress.

Stated purpose

This bill aims to prevent individuals convicted of fraud-related felonies connected to federal funds from receiving new federal contracts, grants, or other financial assistance for three years after their conviction.

Key points

• Bans individuals convicted of federal fraud-related felonies from receiving federal contracts, grants, or loans for three years
• Requires convicted individuals to be added to the System for Award Management exclusion list
• Covers fraud offenses such as aggravated identity theft, mail fraud, computer fraud, and embezzlement
• DOJ must promptly notify GSA of convictions so exclusions can be recorded
• Agencies may exempt individuals from the ban but must report those exemptions to Congress

Arguments supporters make

• People who have already defrauded federal programs should not be trusted with more taxpayer money, and a clear three-year bar helps enforce that basic accountability.
• Automatically adding convicted fraudsters to a government-wide exclusion list closes gaps that currently allow bad actors to receive funds from one agency after defrauding another.
• Requiring agencies to notify Congress whenever they grant an exemption adds transparency and discourages agencies from quietly overlooking convictions.

Arguments opponents make

• The bill's definition of 'convicted' includes guilty pleas and deferred adjudications, which may sweep in individuals who accepted deals without a full trial and whose culpability may not be fully established.
• A blanket three-year ban applied to entire companies because of one owner's conviction could harm innocent employees, partners, and subcontractors who had no role in the fraud.
• Agency heads retain broad waiver authority, which critics may argue undermines the bill's enforcement by allowing the same political or bureaucratic pressures that permitted past fraud to continue shaping outcomes.

Tradeoffs

The bill trades flexibility and case-by-case judgment for a uniform rule that protects taxpayers from repeat fraud, but that uniformity may impose costs on businesses and individuals connected to a convicted person who were not themselves responsible for wrongdoing.

Current status in Congress: Passed House.

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