The bill tightens safeguards against fraud in federal awards by imposing a three-year bar and centralizing exclusions to protect taxpayer funds, but it risks excluding people who avoided convictions, reducing the available qualified workforce and adding administrative and political burdens on agencies.
Taxpayers will face reduced risk of fraud and waste because contractors and grant recipients convicted of covered fraud offenses are automatically barred from federal awards for three years.
Federal agencies will be able to more reliably identify and avoid disqualified individuals because the Attorney General must notify and GSA must record exclusions in SAM, creating a prompt centralized record.
Agency heads retain waiver authority to restore eligibility when an exclusion would be unduly harmful or contrary to the public interest, preserving case-by-case flexibility.
People who received deferred prosecution or had judgment withheld could still be barred from federal awards for three years, meaning individuals who avoided formal convictions may lose access to federal contracting and grant opportunities.
The three-year ban may shrink the pool of qualified personnel for federal awards—particularly in specialized fields—and harm individuals' employment prospects even after completing diversion or rehabilitation.
The new notification, SAM listing, exclusion processing, waiver oversight, and required guidance will increase administrative workload and compliance costs for DOJ, GSA, and agency procurement offices.
Based on analysis of 3 sections of legislative text.
Mandates 3-year SAM Exclusions and a bar from federal awards for individuals convicted of specified federal felonies tied to federal contracts or financial assistance, subject to written agency waiver.
Introduced December 19, 2025 by Keith Self · Last progress December 19, 2025
Requires people convicted of certain federal felonies tied to any federal contract, grant, loan, or other federal financial assistance to be listed on the federal exclusions list (SAM Exclusions) and barred from receiving federal awards for three years, unless an agency head gives a written waiver and notifies Congress. The Attorney General must notify the General Services Administration (GSA) of qualifying convictions, GSA must place the person on the exclusions list, and the Attorney General and GSA must issue guidance within one year on how to implement the rule.