Summary of H.R. 7312 – No More SCAMS Act (119th Congress)

Purpose

The No More SCAMS Act establishes a centralized, government-wide response to fraud involving federal funds. Its core goal is to create a structured, interagency effort to investigate, coordinate, prevent, and recover losses from fraud targeting federal dollars.

Key Provisions

• Creation of the Federal Fraud Interagency Task Force (the Task Force)

  • Must be established within 90 days of enactment.
    
  • Aimed at investigating fraud involving federal dollars, improving interagency anti-fraud coordination, and recovering misused funds.

• Leadership and Membership

  • Director: Appointed within 180 days after enactment, serving a 4-year term. Must have 10 years of fraud investigation or federal law enforcement experience.
    
  • Task Force Members: Appointed within 180 days from each “covered agency.” Members must be subject-matter experts in areas such as federal financial management, grants and procurement administration, auditing/compliance, forensic accounting, payment integrity, fraud risk management, or deep knowledge of fraud schemes in federal programs.
    
  • Vacancies: Fillings follow the same appointment process as initial appointments.

• Duties of the Task Force

  • Investigate fraud allegations involving federal dollars.
    
  • Coordinate with state and local law enforcement for fraud investigations.
    
  • Develop best practices for fraud prevention and detection, including training programs for federal agencies.
    
  • Facilitate interagency cooperation through data and resource sharing to expedite investigations.
    
  • Integrate and leverage existing federal initiatives and resources for detecting and combating federal fraud.

• Reporting and Oversight

  • Annual Reports: Beginning one year after enactment, the Director must report to the President, the House Committee on Oversight and Government Reform, and the Senate Committee on Homeland Security and Governmental Affairs. Reports must include: number of investigations initiated, cases referred for prosecution, funds recovered, agency contributions/activities related to fraud, fraud trend analyses by sector and agency, and recommendations to improve prevention and detection.
    
  • GAO Audit: The Comptroller General must conduct a biennial audit (initially within one year after enactment) of the Task Force’s operations and spending, with annual follow-ups.

• Definitions

  • Fraud: Intentional misrepresentation or deceit to induce another to part with something of value or surrender a legal right.
    
  • Covered Agencies: A broad list including the Department of State, Treasury, Defense, Justice, Interior, Labor, Health and Human Services, HUD, Transportation, Energy, Education, Veterans Affairs, Homeland Security, and other agencies designated by the President.

Potential Impact

• Creates a formal, cross-agency mechanism to deter, detect, and prosecute fraud involving federal funds.
• Enhances data sharing and coordination between federal agencies and with state/local law enforcement.
• Establishes standardized practices and training to prevent fraud in federal programs.
• Increases transparency and accountability through annual reporting and independent GAO auditing.
• Could lead to higher prioritization of fraud investigations across major federal programs and reduced losses from fraud.

Practical Considerations

• Implementation timelines are explicit (90-day task force establishment, 180-day director and initial appointments).
• The scope covers a wide array of federal programs via “covered agencies,” potentially affecting numerous federal grants, contracts, and funding streams.
• The bill does not specify funding levels for the Task Force; funding would be determined during appropriations.

Sponsor and support: Introduced by Rep. Kim, with co-sponsors including Young Kim, Pete Sessions, Pete Stauber, and Nick Langworthy. Referred to the House Committee on Oversight and Government Reform.