Values for America · Brief for congressional offices

To the office of U.S. Representative Keith Self

Re: HR 6916 (119th Congress), Federal Program Integrity and Fraud Prevention Act of 2026 · Latest action (2026-06-09): Received in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
VFA SI Solution #98 · published 2026-06-10 · https://www.valuesforamerica.com/solutions/98
Office of record (Congress.gov): 1030 Longworth House Office Building, Washington, DC · (202) 225-4201

Federal Program Integrity and Fraud Prevention Act of 2025 (Constitutional Revision)

The measure, as described from the official record: To reduce waste, fraud, and abuse in federal spending by strengthening oversight, data analytics, and coordination among federal agencies.

The proposal

This Act applies only to federal executive agencies and their direct contractors. It does not impose any new requirements on state, local, or tribal governments unless they voluntarily accept federal funds under existing grant programs. Section 1. The Director of the Office of Management and Budget shall establish a centralized fraud analytics unit within the Executive Office of the President. This unit shall use existing federal data sets (e.g., from the Treasury, OPM, and GSA) to identify patterns of improper payments and fraud. No new data collection from individuals or non-federal entities is authorized. Section 2. Each federal agency with annual outlays exceeding $500 million shall designate a Senior Accountable Official for Fraud Prevention, who shall report quarterly to the agency head and the OMB Director on fraud risk assessments and corrective actions. The OMB Director shall submit an annual report to Congress summarizing agency efforts and recommending legislative changes. Section 3. The Government Accountability Office shall conduct a biennial audit of the fraud analytics unit and report to Congress on its effectiveness and any privacy or civil liberties impacts. The unit shall be subject to the Privacy Act of 1974 and the E-Government Act of 2002. Section 4. This Act shall be funded by reallocating 0.5% of unobligated balances from each agency's administrative accounts, not to exceed $50 million total per fiscal year. The authority to operate the unit shall sunset after five years unless reauthorized by Congress.

Operative provisions (VFA proposal)

funding source: Reallocation of 0.5% of unobligated balances from agency administrative accounts
funding amount: Up to $50 million per fiscal year
sunset years: 5 years
oversight body: Government Accountability Office (biennial audit)
enforcement mechanism: OMB Director reports to Congress; GAO audit; Privacy Act compliance; sunset triggers reauthorization
effective date: 180 days after enactment

Constitutional basis

Article I, Section 8, Clause 1 (General Welfare and Spending Clause)
Article I, Section 8, Clause 18 (Necessary and Proper Clause)
Fourth Amendment (protection against unreasonable searches and seizures)
Tenth Amendment (powers not delegated to the United States reserved to the states)

Concerns with the measure as written:

The original bill may have created new federal mandates on state and local governments without clear constitutional authority under Article I, Section 8, potentially violating the Tenth Amendment.
Some provisions may have authorized warrantless data collection or sharing of personal information, raising Fourth Amendment concerns.

Why both sides can back it (VFA’s assessment)

Democratic priorities honored: protects privacy and civil liberties by limiting data collection to existing federal data sets, subjects unit to Privacy Act, and includes GAO oversight. Republican priorities honored: reduces fraud and waste in federal spending without new taxes, uses existing funds, and includes a sunset clause to prevent permanent bureaucracy.

Values for America is a nonpartisan, constitution-first SI think tank. This brief is informational. It is a policy proposal, not law, and it does not support or oppose any candidate or party. Full analysis and sources: https://www.valuesforamerica.com/solutions/98 · Methodology: https://www.valuesforamerica.com/methodology