Bill · S. 3652· Senate(119-S-3652)
Welfare Fraud Deterrence and Recovery Act of 2026
- Introduced
- 1/15/2026
- Last activity
- 1/15/2026 — Read twice and referred to the Committee on the Judiciary.
- Sponsored by
- Tom Cotton
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Welfare Fraud Deterrence and Recovery Act of 2026 aims to increase criminal penalties for those committing welfare fraud. It establishes specific imprisonment terms for noncitizens and those obtaining large sums through fraud. The bill also implements stricter immigration consequences, including potential deportation and denaturalization for fraud convictions. To combat these crimes, it creates a Welfare Fraud Recovery Task Force within the Department of Justice. This Task Force is authorized to bring civil actions to recover lost funds through penalties and damages. Finally, it establishes a Welfare Fraud Recovery Fund to reimburse programs and cover investigation costs.
Yes
Does this reduce what the federal government spends?+5
The bill establishes a recovery fund to reimburse federal programs for losses caused by fraud.
Does this tighten control of the border?+3
The bill enhances immigration consequences for noncitizens convicted of fraud.
Does this strengthen ties with allied countries?+2
The bill encourages cooperation with foreign governments for asset recovery and extradition.
The opposite· 3 of 6
Would immigrants be better off under this?-9
The bill significantly increases the risk of deportation and denaturalization for noncitizens and naturalized citizens.
Does this make it easier for immigrants already here to become citizens?-8
The bill allows for the denaturalization of citizens who commit welfare fraud.
Would Hispanic Americans be better off under this?-5
The bill imposes stricter immigration consequences and potential deportation for noncitizens, a demographic that includes many Hispanic Americans.
Who it would affect, and how
Potential Positive Impacts for People
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Enhanced Penalties for Large-Scale Fraud: The bill mandates a minimum of 5 years of imprisonment if a defendant obtains at least $100,000 through fraud, which acts as a deterrent for major theft (Section 2).
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Increased Accountability for Noncitizens: It establishes a minimum of 2 years of imprisonment for noncitizens who violate welfare fraud laws (Section 2).
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Protection for Whistleblowers: Individuals who provide information leading to successful fund recovery are entitled to legal protections and a reward of between 15 and 30 percent of the amount recovered (Section 4(c)(5)).
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Recovery of Public Funds: The creation of the Welfare Fraud Recovery Fund allows for the reimbursement of Federal welfare programs for losses caused by fraud (Section 4(d)(2)).
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Interstate Cooperation: The Task Force is authorized to facilitate cooperation among States to investigate and prosecute fraud that crosses state lines (Section 4(e)(1)).
Potential Negative Impacts for People
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Strict Immigration Consequences for Naturalized Citizens: Naturalized citizens convicted of defrauding the government of a public benefit face the immediate revocation of their citizenship and cancellation of their certificate of naturalization (Section 3(d)).
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Bar on Reentry: Former naturalized citizens who are denaturalized due to welfare fraud convictions are considered inadmissible to the United States for 20 years (Section 3(a)).
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Deportability for Fraud Convictions: Any alien convicted of an offense involving fraud by any court in the United States is considered deportable (Section 3(b)).
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Heavy Civil Penalties: Persons found liable for fraudulent claims may be required to pay civil penalties of $10,000 to $20,000, plus three times the amount of damages sustained by the government (Section 4(c)(2)).
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Enhanced Penalties for Noncitizens: Noncitizens face additional civil penalties equal to two times the damages sustained, plus interest (Section 4(c)(2)).
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Financial Pressure on States: If a State fails to comply with a Task Force request for information, the head of a federal welfare agency may withhold up to 10 percent of the funds otherwise provided to that State (Section 4(e)(1)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Immigrants-9Good For Hispanic Americans-5Good For Low Income Households-3
- Social Issues And Justice
- Improves Border Security+3Improves Pathway To Citizenship-8Improves Poverty Reduction-2
- Economy And Finance
- Reduces Government Spending+5
- Healthcare
- Improves Healthcare Access-2
- National Security And Foreign Policy
- Improves International Alliances+2
- 1/15/2026
- Read twice and referred to the Committee on the Judiciary.
- Introduced in Senate