FRAUD Act

The FRAUD Act requires state governors and officials who manage federal funds to report specific fraud warnings to the FBI within 180 days. To receive federal funding in the future, state leaders must certify that their officials have complied with this reporting requirement. Officials who knowingly fail to report these warnings or obstruct fraud investigations face criminal penalties, including fines and up to 10 years in prison. Additionally, agencies overseeing federal funds can ban convicted officials from managing those funds, though the law explicitly states it does not allow for the removal of elected state officials.