This Act mandates the Small Business Administration's Inspector General to regularly report on fraud within specific COVID-19 relief loans for two years following enactment.
Roger Williams
Representative
TX-25
The COVID Fraud Transparency Act of 2026 mandates the Small Business Administration’s Inspector General to regularly report on fraud related to specific COVID-19 relief loans. These reports must detail the scope, identification, and resolution of fraudulent activity in programs like PPP and EIDL. This reporting requirement will automatically expire two years after the Act's enactment.
COVID Fraud Transparency Act Mandates Quarterly Reports on Pandemic Loan Abuse Through 2028
The COVID Fraud Transparency Act of 2026 requires the Small Business Administration’s (SBA) Inspector General to pull back the curtain on exactly how much pandemic relief money ended up in the wrong hands. Starting 60 days after the bill becomes law, the SBA must deliver a detailed report to Congress every three months tracking fraud within the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. These reports aren't just vague summaries; they must include the total dollar amounts of loans issued, the number of new fraud cases identified, how many cases were actually resolved, and the specific methods scammers used to game the system (Section 2).
Tracking the Receipts
Think of this as a recurring audit for the largest emergency lending spree in modern history. If you’re a taxpayer or a small business owner who played by the rules while watching others cut corners, this bill aims to show you the score. By requiring updates every 90 days, the legislation prevents fraud data from being buried in once-a-year bureaucratic filings. It specifically targets the 'EIDL Advance' grants and disaster loans made during the CARES Act period, ensuring that both the forgivable loans and the direct emergency cash infusions are under the same microscope. For a local shop owner who struggled to get a loan while headlines reported on fraudulent luxury car purchases, these reports provide a factual ledger of how the government is cleaning up the mess.
A Sunset on Oversight
This isn't a permanent new branch of government. The bill includes a built-in 'sunset' provision, meaning the entire reporting requirement automatically expires two years after enactment (Section 2). It’s a targeted, short-term push to wrap up pandemic-era oversight without creating a forever-cycle of paperwork. Additionally, the bill is 'CUTGO' compliant, meaning it doesn't authorize any new taxpayer funding to produce these reports (Section 3). The SBA Inspector General will have to handle this increased workload using their existing budget, which keeps the focus on efficiency rather than expanding the agency’s overhead. It’s a straightforward 'show your work' mandate designed to provide clarity on where the money went before the trail goes cold.