SBA Fraud Enforcement Extension Act
Summary
The SBA Fraud Enforcement Extension Act extends the statute of limitations for prosecuting fraud related to the Shuttered Venue Operators Grant (SVOG) and Restaurant Revitalization Fund (RRF) programs. Specifically, it amends the Consolidated Appropriations Act, 2021, and the American Rescue Plan Act of 2021 to allow criminal prosecutions or civil enforcement actions to be filed up to 10 years after the violation or conspiracy. This extension applies to violations of specific sections of Title 18 and Title 31 of the United States Code related to fraud and conspiracy.
Expected Effects
The primary effect of this act is to provide the government with more time to investigate and prosecute fraud associated with pandemic relief programs. This could lead to increased enforcement actions and potentially recover funds obtained fraudulently. It aims to deter future fraudulent activities related to government assistance programs.
Potential Benefits
- Increased accountability for fraudulent activities related to pandemic relief funds.
- Potential recovery of misappropriated funds, which can be reinvested in other programs.
- Deters future fraud by increasing the risk of prosecution.
- Strengthens public trust in government programs by demonstrating a commitment to combating fraud.
- Provides law enforcement with more time to build complex fraud cases.
Potential Disadvantages
- Increased burden on the justice system due to potentially more investigations and prosecutions.
- Potential for pursuing cases based on stale evidence after a long period.
- Could disproportionately affect individuals or businesses who made unintentional errors in their applications.
- May lead to increased compliance costs for businesses to avoid potential scrutiny.
- The extended statute of limitations may create uncertainty for businesses that received grants.
Constitutional Alignment
The act appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to enact laws necessary and proper for carrying out its enumerated powers, including providing for the general welfare. The extension of the statute of limitations is intended to protect government funds and ensure accountability, which falls within Congress's authority. There are no apparent violations of individual rights or liberties.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).