Federal Crackdown on Retail Theft: New Bill Sets $5,000 Threshold for Interstate Stolen Goods and Creates New DHS Center

The newly introduced Combating Organized Retail Crime Act aims to put a serious dent in the sophisticated criminal rings that are hitting stores and supply chains across the country. Essentially, this bill recognizes that the shoplifting problem has moved far past individual opportunists; it’s now a multi-state, multi-million dollar enterprise that requires a coordinated federal response.

Why Your Grocery Bill Might Be a Policy Issue

This legislation starts by stating the obvious: organized retail crime (ORC) is skyrocketing. We’re talking about gangs that steal everything from electronics to baby formula, then resell it online or overseas. The bill highlights that this isn't just about lost profits for big box stores; it drives up prices for consumers—that’s you and me—and creates dangerous working conditions for retail employees. The National Retail Federation reported shoplifting incidents jumped 93% between 2019 and 2023, and the average value stolen in a single cargo theft incident is now over $202,000. When criminals mess with the supply chain—stealing goods off trucks and trains—it messes up the entire system, leading to shortages and higher costs.

Lowering the Bar for Federal Prosecution

One of the most significant changes is buried in Section 3, which updates federal criminal law (Title 18). Currently, it’s tough for federal law enforcement to step in unless the theft is massive. This bill changes that by setting a new, lower threshold for prosecuting the interstate transport and receipt of stolen goods. Under the new rules for Sections 2314 and 2315, if a criminal organization steals goods valued at an aggregate of $5,000 or more during any 12-month period and moves them across state lines, it becomes a federal offense. This is a game-changer because it allows the Feds to pursue the entire criminal enterprise, even if individual thefts are smaller than the previous high threshold. Think of it this way: instead of local police chasing a crew for stealing $500 worth of goods one day, the FBI can now build a case against the organization that stole $500 every week for a year, totaling $26,000.

Furthermore, the bill expands money laundering definitions to explicitly include general-use prepaid cards, gift certificates, and store gift cards as 'property.' Since gift cards are often the currency of choice for fencing stolen goods, this closes a major loophole and gives prosecutors a powerful tool to follow the money and seize assets from these groups.

The New Federal Hub: A Coordination Center

The second major component (Section 4) establishes the Organized Retail and Supply Chain Crime Coordination Center within Homeland Security (DHS), specifically under Homeland Security Investigations (HSI). This isn't just another task force; it’s designed to be the central brain for fighting these cross-border crimes. The Center will coordinate efforts between federal agencies (like the FBI, Secret Service, and Postal Inspection Service), state and local police, and even the private sector (retailers and transportation companies).

For local law enforcement, this means a direct line to federal resources and intelligence about criminal groups operating across their state borders. For a retailer whose goods were stolen in California and sold in New York, the Center provides a coordinated response. The Center is also mandated to share threat information and provide training and technical assistance to state and local police, ensuring everyone is using the same playbook against these sophisticated organizations. While this centralization of power might raise an eyebrow—the Center will draw personnel from nearly every major federal law enforcement agency—it’s designed to solve the problem of organized crime simply hopping the state line to avoid detection.

This Center is not permanent; it has a seven-year sunset provision, meaning Congress will have to reauthorize it after that period, giving them a chance to evaluate its effectiveness.