Sponsors (2)
The bill strengthens accountability and reduces fraud risk in federal benefit and meal programs through higher penalties and mandatory audits, but it does so by imposing much tougher criminal and financial penalties and added administrative costs that could disproportionately burden small providers and occasionally disrupt services for vulnerable participants.
Taxpayers and recipients of federal benefits will face stronger deterrence against theft or misuse of public funds because criminal penalties (longer prison terms) and fines are increased and explicitly tied to the value of the loss.
Federal, state, and local agencies and taxpayers will get greater accountability and transparency for federal meal and grant spending through required independent audits and direct reporting to the Secretary, which should reduce fraud and improve oversight.
Children and low-income youth served by the Summer Food Service Program (SFSP) will benefit from stronger financial oversight that reduces the risk of fraud or misuse of meal funds, improving the reliability of meal services.
Government contractors, small-business owners, and defendants face substantially harsher criminal penalties (longer prison terms) and much larger statutory fines, which raises proportionality and fairness concerns and increases the personal and fiscal consequences of conviction.
Individuals and small contractors convicted of misconduct could face large financial burdens because fines have a high minimum (at least $250,000) or are set at twice the loss, risking bankruptcy or severe economic harm for smaller actors.
Nonprofit sponsors, schools, and local service providers — especially small or rural organizations — will incur added costs to hire independent auditors and may struggle to find qualified auditors, reducing funds available for meals and risking lower participation in SFSP.
Based on analysis of 3 sections of legislative text.
Introduced January 20, 2026 by Angela Craig · Last progress January 20, 2026
Raises the criminal penalty for theft or bribery involving programs that receive federal funds by increasing the maximum prison term from 10 to 20 years and tying the monetary cap to a defined “covered amount” equal to the greater of $250,000 or twice the value of the property or benefit involved. Requires each Summer Food Service Program service institution to obtain an annual third-party audit of accounts and records, with the auditor submitting results directly to the Secretary of Agriculture.