What does Preamble of Federal Taxpayer Funds Protection and Clawback Act do?

This bill aims to strengthen oversight, accountability, and recovery of Federal funds. The bill addresses Federal funds administered through State block grants and other pass-through mechanisms.

What does SHORT TITLE. of Federal Taxpayer Funds Protection and Clawback Act do?

This bill is formally titled the Federal Taxpayer Funds Protection and Clawback Act.

What does FALSE CLAIMS ACT AMENDMENTS. of Federal Taxpayer Funds Protection and Clawback Act do?

This section amends the False Claims Act to clarify the definition of a 'claim' to include requests for money or property originating from U.S. funds, including those distributed through intermediaries. It modifies provisions related to state financial liability involving federal pass-through funds, expanding the definition of 'person' to include states and local governments in actions initiated by the Attorney General. It establishes a mandatory interim recovery of federal funds, requiring states or state agencies to remit 100% of federal funds at issue in a civil action or qui tam action within 180 days of notice. Funds remitted to escrow will be returned to the general fund for deficit reduction if the government prevails or returned to the state if the action is dismissed or results in a favorable judgment. The remittance obligation is mandatory and cannot be waived except by Act of Congress, and is not considered an admission of liability.

What does CERTIFICATION OF INSPECTION AND ACCESS AUTHORITY. of Federal Taxpayer Funds Protection and Clawback Act do?

This section establishes a condition for states to receive federal funds. The condition requires states to certify their agreement to abide by applicable requirements. These requirements pertain to inspections, audits, record keeping, and data sharing for federal awards. The requirements are governed by federal laws, regulations, and part 200 of title 2, Code of Federal Regulations.

What does DEFAULT REMEDIES FOR NONCOMPLIANCE. of Federal Taxpayer Funds Protection and Clawback Act do?

This section outlines default remedies for noncompliance with U.S. federal laws, regulations, or the terms and conditions of a federal award. Federal agencies or pass-through entities can implement specific conditions if a recipient or subrecipient fails to comply. If noncompliance cannot be remedied through specific conditions, agencies may temporarily withhold payments. Agencies may disallow costs associated with the noncompliance. Agencies may suspend or terminate the federal award. Agencies can initiate or recommend suspension or debarment proceedings. Agencies may withhold further federal funds. Agencies may pursue other legally available remedies.

What does EMPLOYMENT LAW VIOLATIONS. of Federal Taxpayer Funds Protection and Clawback Act do?

This section addresses employment law violations related to the Immigration and Nationality Act. If a recipient or subrecipient of Federal funds violates section 274A of the Immigration and Nationality Act, the United States must recoup all Federal funds provided to them. Recoupment is to be carried out under section 3702 of title 31, United States Code. Following notice and a hearing, an entity subject to recoupment may become permanently ineligible to receive Federal funds.

What does RULE OF CONSTRUCTION. of Federal Taxpayer Funds Protection and Clawback Act do?

This section establishes a rule of construction for the Act. The Act does not intend to limit criminal prosecution under federal or state law. The United States retains the authority to pursue additional civil or administrative remedies.

What does EFFECTIVE DATE. of Federal Taxpayer Funds Protection and Clawback Act do?

This Act will become effective 180 days after its enactment.

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Federal Taxpayer Funds Protection and Clawback Act

Last updated: 3/5/2026 · Introduced: 3/5/2026

Author: Rick Scott (R-FL)

TL;DR (AI)

This bill amends the False Claims Act to expand the definition of 'claim' to include requests for U.S. federal funds distributed through states and local governments, and mandates the interim recovery of those funds in related legal actions.
States must certify their agreement to inspection, audit, and data-sharing requirements related to federal awards to continue receiving federal funds.
Federal agencies can impose various remedies, including withholding funds and initiating debarment proceedings, if recipients of federal funds violate employment laws related to immigration or other federal regulations.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 6 more.

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