Sponsors (2)
The bill strengthens penalties and audit oversight to deter fraud and recover federal meal-program funds, improving program integrity, but it raises costs, administrative burdens, and harsher criminal and financial penalties that could reduce small-sponsor participation and shift costs onto taxpayers, defendants, and local program operators.
Taxpayers and other victims of federal-program fraud face stronger deterrence because offenders can receive longer prison terms (up to 20 years) and higher mandatory fines, increasing penalties for corruption of federal funds.
Federal coffers (and thus taxpayers) can recover larger monetary penalties from convicted defendants, potentially offsetting losses from corruption or theft of government funds.
Low-income children in the Summer Food Service Program and program integrity benefit from mandatory independent annual audits: sponsors face clearer accountability, USDA receives timely reports, and misuse of meal funds can be detected and corrected faster.
Smaller sponsors and community organizations may be unable to afford or find independent auditors, risking reduced participation in the Summer Food Service Program and fewer meals for low‑income children.
Service institutions and sponsors will incur additional audit costs and administrative burdens that could reduce funds available for meals or force local budget increases.
Persons convicted under the expanded §666 liability face substantially higher financial penalties (including a 'twice the value' formula), increasing risks of bankruptcy and severe financial hardship for defendants and their families.
Based on analysis of 3 sections of legislative text.
Raises criminal penalties and fines for fraud under 18 U.S.C. § 666 and requires annual independent audits for Summer Food Service Program service institutions.
Official title: To amend the title 18, United States Code, to increase the penalties for theft or bribery concerning programs receiving Federal funds and to amend the Richard B. Russell National School Lunch Act to require audits under the summer food service program.
Introduced January 20, 2026 by Angela Craig · Last progress January 20, 2026
Raises criminal penalties for theft, fraud, or bribery involving organizations that receive federal funds by increasing maximum prison time to 20 years and making fines equal to a new "covered amount" (the greater of $250,000 or twice the value involved). Requires each service institution that runs the Summer Food Service Program to obtain an annual independent third-party audit, have the auditor submit results directly to the Secretary, and prohibits the auditor from being the institution or its sponsor.