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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3643 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 3643
To establish the Office of the Special Inspector General for Program
Fraud, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 14, 2026
Mr. Hawley introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To establish the Office of the Special Inspector General for Program
Fraud, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Special Inspector General for
Program Fraud Act''.
SEC. 2. SPECIAL INSPECTOR GENERAL FOR PROGRAM FRAUD.
(a) Purposes.--The purposes of this section are as follows:
(1) To provide for the independent and objective conduct
and supervision of audits and investigations relating to
programs funded with amounts appropriated or otherwise made
available for child assistance programs in the United States.
(2) To provide for the independent and objective leadership
and coordination of, and recommendations on, policies designed
to prevent and detect waste, fraud, and abuse in such programs
described in paragraph (1).
(3) To provide for an independent and objective means of
keeping the Secretary of Health and Human Services, the
Secretary of Agriculture, the heads of the other covered
Federal agencies, and Congress fully and currently informed
about problems and deficiencies relating to the administration
of such programs and the necessity for and progress on
corrective action.
(b) Office of Inspector General.--There is hereby established the
Office of the Special Inspector General for Program Fraud to carry out
the purposes set forth in subsection (a).
(c) Appointment of Inspector General; Removal.--
(1) Appointment.--The head of the Office of the Special
Inspector General for Program Fraud is the Special Inspector
General for Program Fraud (in this section referred to as the
``Inspector General''), who shall be appointed by the President
with the advice and consent of the Senate.
(2) Qualifications.--The appointment of the Inspector
General shall be made solely on the basis of integrity and
demonstrated ability in accounting, auditing, financial
analysis, law, management analysis, public administration, or
investigations.
(3) Deadline for appointment.--The appointment of an
individual as Inspector General shall be made not later than 30
days after the date of enactment of this Act.
(4) Compensation.--The annual rate of basic pay of the
Inspector General shall be the annual rate of basic pay
provided for positions at level IV of the Executive Schedule
under section 5315 of title 5, United States Code.
(5) Prohibition on political activities.--For purposes of
section 7324 of title 5, United States Code, the Inspector
General shall not be considered an employee who determines
policies to be pursued by the United States in the nationwide
administration of Federal law.
(6) Removal.--The Inspector General shall be removable from
office in accordance with the provisions of section 403(b) of
title 5, United States Code.
(d) Assistant Inspectors General.--The Inspector General shall, in
accordance with applicable laws and regulations governing the civil
service--
(1) appoint an Assistant Inspector General for Auditing who
shall have the responsibility for supervising the performance
of auditing activities relating to programs funded with amounts
appropriated or otherwise made available for child assistance
programs in the United States; and
(2) appoint an Assistant Inspector General for
Investigations who shall have the responsibility for
supervising the performance of investigative activities
relating to such programs.
(e) Supervision.--
(1) In general.--Except as provided in paragraph (2), the
Inspector General shall report directly to, and be under the
general supervision of, the Secretary of Health and Human
Services, the Secretary of Agriculture, and the heads of the
other covered Federal agencies.
(2) Independence to conduct investigations and audits.--No
officer of the Department of Health and Human Services, the
Department of Agriculture, or another covered Federal agency
shall prevent or prohibit the Inspector General from
initiating, carrying out, or completing any audit or
investigation related to amounts appropriated or otherwise made
available for child assistance programs in the United States or
from issuing any subpoena during the course of any such audit
or investigation.
(f) Duties.--
(1) Oversight of child assistance programs.--It shall be
the duty of the Inspector General to conduct, supervise, and
coordinate audits and investigations of the treatment,
handling, and expenditure of amounts appropriated or otherwise
made available for child assistance programs in the United
States, including--
(A) the oversight and accounting of the obligation
and expenditure of such funds;
(B) the monitoring and review of contracts funded
by such funds;
(C) the monitoring and review of the transfer of
such funds and associated information between and among
departments, agencies, and entities of the United
States and private and nongovernmental entities;
(D) the maintenance of records on the use of such
funds to facilitate future audits and investigations of
the use of such funds; and
(E) the investigation of overpayments, such as
duplicate payments or duplicate billing and any
potential unethical or illegal actions of Federal
employees, contractors, or affiliated entities and the
referral of such reports, as necessary, to the
Department of Justice to ensure further investigations,
prosecutions, recovery of further funds, or other
remedies.
(2) Other duties related to oversight.--The Inspector
General shall establish, maintain, and oversee such systems,
procedures, and controls as the Inspector General considers
appropriate to discharge the duties under paragraph (1).
(3) Duties and responsibilities under chapter 4 of title 5,
united states code.--In addition to the duties specified in
paragraphs (1) and (2), the Inspector General shall also have
the duties and responsibilities of inspectors general under
chapter 4 of title 5, United States Code.
(4) Coordination of efforts.--In carrying out the duties,
responsibilities, and authorities of the Inspector General
under this section, the Inspector General shall coordinate
with, and receive the cooperation of, the Inspector Generals of
the Department of Health and Human Services, the Department of
Agriculture, and the other covered Federal agencies.
(g) Powers and Authorities.--
(1) Authorities under chapter 4 of title 5, united states
code.--In carrying out the duties specified in subsection (f),
the Inspector General shall have the authorities provided in
section 406 of title 5, United States Code, including the
authorities under subsection (e) of such section.
(2) Audit standards.--The Inspector General shall carry out
the duties specified in subsection (f)(1) in accordance with
section 404(b)(1) of title 5, United States Code.
(h) Personnel, Facilities, and Other Resources.--
(1) Personnel.--
(A) In general.--The Inspector General may select,
appoint, and employ such officers and employees as may
be necessary for carrying out the duties of the
Inspector General, subject to the provisions of title
5, United States Code, governing appointments in the
competitive service, and the provisions of chapter 51
and subchapter III of chapter 53 of such title,
relating to classification and General Schedule pay
rates.
(B) Additional authorities.--
(i) In general.--Subject to clause (ii),
the Inspector General may exercise the
authorities of subsections (b) through (i) of
section 3161 of title 5, United States Code
(without regard to subsection (a) of that
section).
(ii) Periods of appointments.--In
exercising the employment authorities under
subsection (b) of section 3161 of title 5,
United States Code, as provided under clause
(i) of this subparagraph--
(I) paragraph (2) of that
subsection (relating to periods of
appointments) shall not apply; and
(II) no period of appointment may
exceed the date on which the Office of
the Special Inspector General for
Program Fraud terminates under
subsection (n).
(2) Employment of experts and consultants.--The Inspector
General may obtain services as authorized by section 3109 of
title 5, United States Code, at daily rates not to exceed the
equivalent rate prescribed for grade GS-15 of the General
Schedule by section 5332 of such title.
(3) Contracting authority.--To the extent and in such
amounts as may be provided in advance by appropriations Acts,
the Inspector General may enter into contracts and other
arrangements for audits, studies, analyses, and other services
with public agencies and with private persons, and make such
payments as may be necessary to carry out the duties of the
Inspector General.
(4) Resources.--The Secretary of Health and Human Services,
the Secretary of Agriculture, and the heads of the other
covered Federal agencies, as appropriate, shall provide the
Inspector General with--
(A) appropriate and adequate office space at
appropriate locations of the Department of Health and
Human Services, the Department of Agriculture, and the
other covered Federal agencies, together with such
equipment, office supplies, and communications
facilities and services as may be necessary for the
operation of such offices, and shall provide necessary
maintenance services for such offices and the equipment
and facilities located therein; and
(B) appropriate and adequate support for audits,
investigations, and related activities by the Inspector
General or assigned personnel.
(5) Assistance from federal agencies.--
(A) In general.--Upon request of the Inspector
General for information or assistance from any
department, agency, or other entity of the Federal
Government, the head of such entity shall, insofar as
is practicable and not in contravention of any existing
law, furnish such information or assistance to the
Inspector General, or an authorized designee.
(B) Reporting of refused assistance.--Whenever
information or assistance requested by the Inspector
General is, in the judgment of the Inspector General,
unreasonably refused or not provided, the Inspector
General shall report the circumstances to the Secretary
of Health and Human Services, the Secretary of
Agriculture, and the heads of the other covered Federal
agencies, as appropriate, and to the appropriate
congressional committees, without delay.
(i) Reports.--
(1) Quarterly reports.--Not later than 30 days after the
end of each fiscal-year quarter, the Inspector General shall
submit to the appropriate congressional committees a report
summarizing, for the period of that quarter and, to the extent
possible, the period from the end of such quarter to the time
of the submission of the report, the activities during such
period of the Inspector General and the activities under
programs funded with amounts appropriated or otherwise made
available for child assistance programs in the United States.
Each report shall include, for the period covered by such
report, a detailed statement of all obligations, expenditures,
and revenues associated with child assistance programs in the
United States, including each of the following:
(A) Obligations and expenditures of appropriated
funds.
(B) Operating expenses of agencies or entities
receiving amounts appropriated or otherwise made
available for child assistance programs in the United
States.
(C) In the case of any contract, grant, agreement,
or other funding mechanism described in paragraph (2)--
(i) the amount of the contract, grant,
agreement, or other funding mechanism;
(ii) a brief discussion of the scope of the
contract, grant, agreement, or other funding
mechanism;
(iii) a discussion of how the covered
Federal agency involved in the contract, grant,
agreement, or other funding mechanism
identified, and solicited offers from,
potential individuals or entities to perform
the contract, grant, agreement, or other
funding mechanism, together with a list of the
potential individuals or entities that were
issued solicitations for the offers; and
(iv) the justification and approval
documents on which was based the determination
to use procedures other than procedures that
provide for full and open competition.
(2) Covered contracts, grants, agreements, and funding
mechanisms.--A contract, grant, agreement, or other funding
mechanism described in this paragraph is any major contract,
grant, agreement, or other funding mechanism that is entered
into by any covered Federal agency, with any public or private
sector entity, that involves the use of amounts appropriated or
otherwise made available for child assistance programs in the
United States.
(3) Public availability.--The Inspector General shall
publish on a publicly available internet website each report
under paragraph (1) of this subsection.
(4) Rule of construction.--Nothing in this subsection shall
be construed to authorize the public disclosure of information
that is--
(A) specifically prohibited from disclosure by any
other provision of law; or
(B) a part of an ongoing criminal investigation.
(j) Report Coordination.--
(1) Submission to heads of covered federal agencies.--The
Inspector General shall also submit each report required under
subsection (i) to the Secretary of Health and Human Services,
the Secretary of Agriculture, and the heads of the other
covered Federal agencies.
(2) Submission to congress.--
(A) In general.--Not later than 30 days after
receipt of a report under paragraph (1), the Secretary
of Health and Human Services, the Secretary of
Agriculture, and the heads of the other covered Federal
agencies, as appropriate, shall submit to the
appropriate congressional committees any comments on
the matters covered by the report.
(B) Access.--On request, any Member of Congress may
view comments submitted under subparagraph (A).
(k) Transparency.--
(1) Report.--Not later than 60 days after submission to the
appropriate congressional committees of a report under
subsection (i), the Secretary of Health and Human Services, the
Secretary of Agriculture, and the head of each covered Federal
agency, shall make copies of the report available to the public
upon request, and at a reasonable cost.
(2) Comments on matters covered by report.--Not later than
60 days after the last submission to the appropriate
congressional committees under subsection (j)(2)(A) of comments
on a report under subsection (i), the Secretary of Health and
Human Services, the Secretary of Agriculture, and the head of
each covered Federal agency, shall make copies of the comments
available to the public upon request, and at a reasonable cost.
(l) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Appropriations, the Committee
on Agriculture, Nutrition, and Forestry, the Committee
on Health, Education, Labor, and Pensions, the
Committee on Finance, and the Committee on Homeland
Security and Governmental Affairs of the Senate; and
(B) the Committee on Appropriations, the Committee
on Agriculture, the Committee on Ways and Means, the
Committee on Energy and Commerce, and the Committee on
Oversight and Government Reform of the House of
Representatives.
(2) Child assistance.--The term ``child assistance'' means
Federal financial assistance for an activity such as child care
or child nutrition.
(3) Child assistance program.--The term ``child assistance
program'' means a Federal, State, Tribal, or local program
providing child assistance.
(4) Covered federal agency.--The term ``covered Federal
agency'' means a department or agency of the executive branch
of the Federal Government that, as determined by the President,
administers amounts appropriated or otherwise made available
for a child assistance program in the United States.
(m) Authorization of Appropriations.--There is authorized to be
appropriated $10,000,000 for each of fiscal years 2026 and 2027 to
carry out this section.
(n) Termination.--
(1) In general.--The Office of the Special Inspector
General for Program Fraud shall terminate on September 30,
2027.
(2) Final report.--The Inspector General shall, prior to
the termination of the Office of the Special Inspector General
for Program Fraud under paragraph (1), prepare and submit to
the appropriate congressional committees a final report on
programs funded with amounts appropriated or otherwise made
available for child assistance programs in the United States.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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