The Fraud Prevention and Recovery Act is a comprehensive bill that authorizes approximately $1.3 billion to combat fraud, recover improper payments, and protect identity fraud victims across the federal government. The legislation has three main components: first, it funds federal investigators and prosecutors to pursue COVID-19 relief fraud cases and establishes special task forces within the Department of Justice to recover stolen pandemic funds; second, it strengthens fraud prevention systems by enhancing the government's "Do Not Pay" database, which screens applicants for federal benefits to catch duplicate or fraudulent payments, and gives labor inspectors access to unemployment claims data; and third, it creates a new Identity Verification, Payment Integrity, and Victims of Identity Fraud Fund with $600 million to develop identity verification tools, improve payment integrity systems, enhance the IdentityTheft.gov website for fraud victims, and provide grants to organizations serving identity theft victims. The bill also increases penalties and streamlines legal processes for false claims cases. These funds are available through fiscal year 2028 or until expended, and the legislation designates spending as emergency appropriations exempt from budget constraints.
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