Federal Program Integrity and Fraud Prevention Act of 2026
What changed between versions
The prohibition now applies not only to convicted individuals but also to any entity of which such an individual is a beneficial owner, substantially broadening who can be excluded from receiving federal contracts and financial assistance.
The codification location moved from Chapter 47 of Title 41 (Public Contracts) to Subchapter II of Chapter 33 of Title 31 (Money and Finance), repositioning the provision within the financial assistance framework rather than the procurement framework.
A new 'beneficial owner' definition was added, covering individuals who exercise substantial control or own at least 25 percent of ownership interests in an entity, with exclusions for minor children, nominees, employees, inheritance-only interests, and creditors.
The list of covered felonies was expanded to include sections 508, 1002, and 1342 of Title 18 in addition to the previously listed offenses.
The prohibition mechanism changed from requiring the individual to be listed on the System for Award Management Exclusions list to a direct statutory bar: agency heads 'may not enter into, renew, or extend' contracts or provide financial assistance to covered individuals or entities.
A new requirement was added mandating that the Federal Acquisition Regulation be revised as necessary to implement the section's provisions.
Responsibility for issuing implementation guidance shifted from the Attorney General (in consultation with GSA) to the Director of the Office of Management and Budget.
The waiver standard was changed from 'warranted' to 'justifiable,' and agency heads must now include the specific justification for the waiver in their written notification to Congress.
The 'convicted' definition was modified to exclude individuals whose convictions have been reversed or vacated, and the deferred adjudication provision now requires that the individual admitted guilt or responsibility to the underlying offense.
A new provision clarifies that the prohibition applies only to individuals convicted after the date of enactment, making the application explicitly prospective.
