PolicyBrief
H.R. 7312
119th CongressFeb 2nd 2026
No More SCAMS Act
IN COMMITTEE

This Act establishes a Federal Fraud Interagency Task Force to investigate fraud involving federal money, enhance interagency coordination, and recover misused funds.

Young Kim
R

Young Kim

Representative

CA-40

LEGISLATION

No More SCAMS Act Creates Federal Fraud Task Force to Claw Back Misused Taxpayer Dollars

The No More SCAMS Act—officially the No More Shielding Corruption and Misuse in Spending Act—is moving to put a dedicated watchdog on the trail of federal fraud. Within 90 days of this bill becoming law, the President must establish a Federal Fraud Interagency Task Force specifically designed to investigate the misuse of federal funds and, more importantly, recover that money. This isn't just a casual committee; the bill requires a Director with at least a decade of heavy-hitting experience in fraud investigation or law enforcement to lead the charge for a four-year term. For anyone who has ever looked at their tax bill and wondered where the money actually goes, this legislation aims to ensure that when those dollars are stolen or mismanaged, there is a specialized team tasked with getting them back.

A Specialized Squad for Taxpayer Cash

The task force isn't just made up of general office workers. Under Section 2, every 'covered agency'—which includes heavyweights like the Department of Defense, Treasury, and Health and Human Services—must appoint subject matter experts. We’re talking about people who live and breathe forensic accounting, auditing, and payment integrity. Think of it like an elite team of investigators who know exactly how people try to game the system, whether it’s through complex procurement schemes or grant fraud. By putting these experts in one room (or at least on one shared data network), the bill aims to break down the silos that often let fraudsters slip through the cracks between different government departments.

Real-World Recovery and Accountability

What does this mean for you? If a contractor overcharges for a local infrastructure project or a fraudulent entity siphons off small business relief funds, this Task Force is mandated to coordinate with state and local law enforcement to track them down. Beyond just playing detective, the group is required to develop better training and 'best practices' to stop fraud before it starts. To keep the investigators themselves accountable, the bill requires an annual report detailing exactly how many cases they sent for prosecution and how many dollars they actually recovered. Plus, the Comptroller General will perform an annual audit of the Task Force’s own spending, ensuring that a group meant to stop waste isn't wasting money itself.