[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3652 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 3652
To enhance criminal penalties for welfare fraud, to provide adequate
immigration consequences for fraud convictions, to establish a welfare
fraud recovery task force, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 15, 2026
Mr. Cotton introduced the following bill; which was read twice and
referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To enhance criminal penalties for welfare fraud, to provide adequate
immigration consequences for fraud convictions, to establish a welfare
fraud recovery task force, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Welfare Fraud Deterrence and
Recovery Act of 2026''.
SEC. 2. ENHANCED CRIMINAL PENALTIES FOR WELFARE FRAUD.
Section 1001 of title 18, United States Code, is amended by adding
at the end the following:
``(d)(1) In this subsection, the terms `Federal welfare program'
and `noncitizen' have the meanings given such terms in section 4 of the
Welfare Fraud Deterrence and Recovery Act of 2026.
``(2) If a person violates subsection (a) with respect to a matter
that relates to a Federal welfare program--
``(A) the term of imprisonment imposed under this section
shall be not more than 15 years;
``(B) if the defendant is a noncitizen or a naturalized
citizen of the United States, the term of imprisonment imposed
under this section shall be not less than 2 years; and
``(C) if the defendant obtained not less than $100,000 as a
result of the conduct in violation of this section, the term of
imprisonment imposed under this section shall be not less than
5 years.''.
SEC. 3. IMMIGRATION CONSEQUENCES FOR FRAUD CONVICTION.
(a) Reentry Bar.--Section 212(a)(10) of the Immigration and
Nationality Act (8 U.S.C. 1182(a)(10)) is amended by adding at the end
the following:
``(F) Former naturalized citizens who were removed
due to a conviction for welfare fraud.--Any alien who
has been denaturalized under section 340(f) and seeks
readmission to the United States within 20 years of the
date of such denaturalization is inadmissible.''.
(b) Deportability.--Section 237(a)(2)(A) of the Immigration and
Nationality Act (8 U.S.C. 1227(a)(2)(A)) is amended--
(1) by redesignating clause (vi) as clause (vii); and
(2) by inserting after clause (v) the following:
``(vi) Fraud.--Any alien who is convicted
of an offense prohibited under chapter 47 of
title 18, United States Code, or of any offense
involving fraud by any court in the United
States is deportable.''.
(c) Expedited Removal.--Section 238 of the Immigration and
Nationality Act (8 U.S.C. 1228) is amended--
(1) by striking the section header and inserting the
following: ``expedited removal of any noncitizen convicted of
an aggravated felony or any offense involving fraud.''; and
(2) in subsection (a)--
(A) in paragraph (1), by striking ``any criminal
offense covered in section 241(a)(2)(A)(iii), (B), (C),
or (D), or any offense covered by section
241(a)(2)(A)(ii) for which both predicate offenses are,
without regard to the date of their commission,
otherwise covered by section 241(a)(2)(A)(i)'' and
inserting ``any criminal offense described in
subparagraph (A)(iii), (A)(vi), (B), (C), or (D), of
section 237(a)(2), or any offense described in section
237(a)(2)(A)(ii) for which both predicate offenses are,
without regard to the date on which they were
committed, otherwise described in section
237(a)(2)(A)(i)'';
(B) in paragraph (2)--
(i) by inserting ``or an offense described
in section 237(a)(2)(A)(vi)'' after ``an
aggravated felony''; and
(ii) by striking ``felon'' and inserting
``alien''; and
(C) in paragraph (3)(A), by striking ``an
aggravated felony before the alien's release from
incarceration for the underlying aggravated felony''
and inserting ``an aggravated felony or an offense
described in section 237(a)(2)(A)(vi) before the
alien's release from incarceration for the underlying
crime''.
(d) Denaturalization for Welfare Fraud.--Section 340 of the
Immigration and Nationality Act (8 U.S.C. 1451) is amended--
(1) by redesignating subsections (f), (g), and (h) as
subsections (g), (h), and (i), respectively; and
(2) by inserting after subsection (e) the following:
``(f) Welfare Fraud.--If a person who has been naturalized under
this chapter is convicted of defrauding the United States Government of
a Federal public benefit (as defined in section 401 of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1611(c))) or defrauding a State or local government of a State
or local public benefit (as defined in section 411(c) of such Act (8
U.S.C. 1621(c))), and any act or acts leading to such conviction or
admission began or occurred after the date of his or her
naturalization, the court in which such conviction occurs shall
immediately--
``(1) revoke, set aside, and declare void the final order
admitting such person to citizenship; and
``(2) declare certificate of naturalization of such person
to be canceled.''.
SEC. 4. WELFARE FRAUD RECOVERY TASK FORCE AND CIVIL ACTIONS FOR WELFARE
FRAUD.
(a) Definitions.--In this section--
(1) the term ``Federal welfare program''--
(A) means a program providing a Federal public
benefit (as defined in section 401 of the Personal
Responsibility and Work Opportunity Reconciliation Act
of 1996 (8 U.S.C. 1611(c))); and
(B) includes grants under the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9857 et
seq.) and the Child and Adult Care Food Program under
section 17 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1766);
(2) the term ``Fund'' means the Welfare Fraud Recovery Fund
established under subsection (d)(1);
(3) the term ``noncitizen'' has the meaning given the term
``alien'' in section 101(a) of the Immigration and Nationality
Act (8 U.S.C. 1101(a)); and
(4) the term ``Task Force'' means the Fraud Recovery Task
Force established under subsection (b).
(b) Establishment of Fraud Recovery Task Force.--The Attorney
General, in consultation with the Secretary of Health and Human
Services, shall establish within the Department of Justice a Welfare
Fraud Recovery Task Force to investigate, prosecute, and recover funds
lost to fraud in Federal welfare programs.
(c) Civil Suits Authorized.--
(1) In general.--The Task Force may bring a civil action in
the name of the United States against any person who
knowingly--
(A) submits or causes to be submitted a false or
fraudulent claim for payment or approval under a
Federal welfare program;
(B) uses or causes to be used a false record or
statement material to a false or fraudulent claim for
payment or approval under a Federal welfare program;
(C) conspires to commit a violation described in
subparagraph (A) or (B); or
(D) knowingly conceals or improperly avoids or
decreases an obligation to pay or transmit money or
property to the Government relating to such a claim.
(2) Damages and penalties.--
(A) In general.--Subject to subparagraph (B), a
person engaging in a violation described in paragraph
(1) is liable to the United States Government for--
(i) a civil penalty of not less than
$10,000 and not more than $20,000, which shall
be adjusted in accordance with the Federal
Civil Penalties Inflation Adjustment Act of
1990 (28 U.S.C. 2461 note);
(ii) 3 times the amount of damages
sustained by the United States Government
because of the violation by that person; and
(iii) the costs of the civil action,
including reasonable attorney fees.
(B) Enhanced penalties for noncitizens.--If the
person engaging in conduct described in paragraph (1)
is a noncitizen, in addition to the amount imposed
under subparagraph (A), the court shall impose a civil
penalty equal to 2 times the amount of damages
sustained by the United States Government because of
the violation by that person, plus interest at the rate
specified in section 3717 of title 31, United States
Code.
(3) Statute of limitations.--An action under this
subsection may be brought not later than the later of--
(A) 15 years after the date on which the conduct
described in paragraph (1) is committed; or
(B) 3 years after the date when facts material to
the cause of action are known or reasonably should have
been known by the official of the United States charged
with responsibility to act in the circumstances.
(4) Burden of proof.--In any action brought under this
subsection, the United States shall be required to prove all
essential elements of the cause of action, including damages,
by a preponderance of the evidence.
(5) Whistleblower protections and rewards.--Any individual
who provides information leading to a successful recovery under
this subsection shall be entitled to--
(A) the protections under section 3730(h) of title
31, United States Code, that apply with respect to
actions to stop a violation of chapter 37 of such
title; and
(B) a reward of not less than 15 percent and not
more than 30 percent of the amount recovered, as
determined by the Task Force.
(d) Use of Recovered Funds.--
(1) In general.--There is established in the Treasury of
the United States a fund, to be known as the Welfare Fraud
Recovery Fund.
(2) Crediting and use of amounts.--Amounts recovered under
this section--
(A) shall be deposited into the Fund;
(B) shall remain available until expended; and
(C) shall be available to the Secretary of Health
and Human Services without further appropriation--
(i) to reimburse a Federal welfare program
for losses due to fraud; and
(ii) for the cost of investigations and
prevention measures by the Task Force.
(e) Interstate and Cross-Border Cooperation for Fraud Schemes.--
(1) Interstate cooperation.--
(A) In general.--The Task Force shall facilitate
cooperation among States for the investigation,
prosecution, and recovery of funds related to fraud in
Federal welfare programs that involve activities
crossing State lines, including the submission of false
claims, the operation of fraudulent entities, or the
transfer of funds across State boundaries.
(B) Information sharing.--The Task Force may enter
into memoranda of understanding with State attorneys
general, State welfare agencies, and other relevant
State entities to share information, including
beneficiary records, audit findings, and financial
transaction data, subject to applicable privacy
protections under section 552a of title 5, United
States Code (commonly known as ``the Privacy Act of
1974''), and other Federal laws.
(C) Joint investigations and enforcement.--The Task
Force may coordinate joint investigations with States,
including the issuance of joint subpoenas, search
warrants, and asset freezes. A State participating in a
joint investigation shall be entitled to a share of
funds in connection with the joint investigation, not
to exceed 20 percent of the total amount recovered, as
determined by the Task Force based on the level of
cooperation provided.
(D) Compliance requirement.--
(i) In general.--A State receiving Federal
funds under a Federal welfare program shall
cooperate with a request for information or
assistance from the Task Force.
(ii) Failure to comply.--If a State fails
to comply with a request for information or
assistance from the Task Force, the head of
each agency administering a Federal welfare
program may withhold not more than 10 percent
of the amounts that would otherwise be provided
to the State under the Federal welfare program
until the State complies with the request.
(2) Cross-border cooperation.--
(A) In general.--The Task Force, in coordination
with the Attorney General and the Secretary of State,
shall pursue investigations and recoveries for fraud
schemes involving international elements, including the
transfer of funds to foreign jurisdictions,
participation by foreign nationals, or the use of
international financial networks.
(B) Use of international agreements.--The Task
Force may utilize mutual legal assistance treaties,
extradition treaties, and other international
agreements to request assistance from foreign
governments and international organizations, such as
the Financial Action Task Force and the International
Criminal Police Organization (commonly known as
``INTERPOL''), including the freezing and seizure of
assets, the extradition of individuals, and the sharing
of financial records.
(C) Asset recovery.--In cases where fraudulent
proceeds are transferred to foreign accounts or
entities, the Task Force may initiate civil forfeiture
proceedings under section 981 of title 18, United
States Code, or seek repatriation of assets through
diplomatic channels. Amounts recovered under this
subparagraph shall be deposited into the Fund.
(D) Reporting.--The Task Force shall submit to
Congress an annual report on investigations and
recoveries described in subparagraph (A), including the
number of requests made to foreign governments and the
amounts recovered.
(E) Incentives.--The Secretary of State, in
consultation with the Task Force, may incentivize
cooperation by foreign governments through conditions
on foreign assistance from the United States.
(3) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
subsection, including for personnel, technology, and
international liaison activities.
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