January 14, 2026
Mr. Hawley introduced the following bill; which was read twice and referred to the Committee on Finance
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.