Welfare Fraud Deterrence and Recovery Act of 2026

S 3652 increases criminal penalties for welfare fraud to up to 15 years in prison, with steeper sentences for noncitizens and cases exceeding $100,000 in fraudulent benefits. It creates a Welfare Fraud Recovery Task Force to investigate fraud in federal welfare programs (like SNAP and child care grants), pursue civil penalties (including triple damages and fines up to $20,000), and recover funds for program reimbursement. Noncitizens convicted of welfare fraud face deportation, expedited removal, and potential loss of citizenship through denaturalization. Recovered funds would be deposited into a new Treasury fund managed by the Department of Health and Human Services to offset program losses and support fraud prevention.