Bills · S 4024
IN COMMITTEE· 119TH CONGRESS
Senate BillS 4024Government Operations and Politics
Federal Taxpayer Funds Protection and Clawback Act
INTRO MAR 5· LAST ACTION MAR 5
READING
5MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it aims to protect taxpayer money by strengthening the government's ability to recover funds that have been misspent or obtained fraudulently. If this bill becomes law, it could lead to quicker recovery of misused federal funds and greater accountability for how states and other entities spend taxpayer dollars.
However, it could also create significant financial challenges for state and local governments, as they might have to return large sums of money to the federal government early in a legal dispute, before a final decision on wrongdoing has been made. This could affect state budgets and the services they provide. It also signals a tougher stance on entities violating immigration employment laws, linking federal funding directly to compliance in that area.
KEY PROVISIONS
4AI-extractedPROVISION 01
Requires states or state agencies to return 100% of disputed federal funds to an escrow account within 180 days if the Attorney General initiates a civil action under the False Claims Act.
This provision dramatically changes how alleged fraud cases involving federal funds are handled, potentially forcing states to remit large sums of money before guilt is proven.
PROVISION 02
Expands the definition of 'claim' and 'person' under the False Claims Act to clearly include federal funds passed through states or local governments, and to allow state and local governments to be held liable when the Attorney General brings an action.
This closes potential loopholes, making it clearer that federal fraud laws apply to all federal money, regardless of how it's distributed, and allows states to be directly sued under these laws.
PROVISION 03
Mandates immediate recoupment of all federal funds from any recipient or subrecipient found to have violated immigration employment laws, and allows for permanent ineligibility for future federal funds.
This creates a direct and severe financial consequence for non-compliance with immigration employment laws, linking such violations directly to the loss of federal funding.
PROVISION 04
Strengthens default remedies, allowing federal agencies to withhold payments, disallow costs, suspend or terminate awards, or initiate debarment proceedings for noncompliance with federal laws or grant conditions.
This provides federal agencies with more robust tools to enforce compliance and address mismanagement or misuse of federal funds by recipients.
SPONSORSHIP
1 + 0
R· Florida
YRS IN OFFICE
7
BILLS LED
184
ACTION TIMELINE
2 EVENTSMAR 5
Introduced in Senate
MAR 5
Read twice and referred to the Committee on the Judiciary.
BILL INFO
TypeSenate Bill
NumberS 4024
Congress119th
StatusIn Committee
IntroducedMar 5, 2026
Last actionMar 5, 2026
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IN COMMITTEE· 119TH CONGRESS · JUDICIARY COMMITTEE · INTRODUCED MAR 5, 2026
Senate BillS 4024Government Operations and Politics
Federal Taxpayer Funds Protection and Clawback Act
INTRODUCED MAR 5, 2026· LAST ACTION MAR 5, 2026
PASSAGE CHANCES
—%
READING
5 min
COSPONSORS
0
COMPLEXITY
Moderate
