H.R.826 - COVID Fraud Transparency Act of 2025 (119th Congress)
Summary
H.R. 826, the COVID Fraud Transparency Act of 2025, mandates the Inspector General of the Small Business Administration (SBA) to submit quarterly reports on fraud related to COVID-19 loans. These reports are to be provided to the House and Senate Small Business Committees. The act defines covered loans as those made under specific sections of the Small Business Act and the CARES Act in response to COVID-19. The Act terminates two years after enactment and does not authorize additional appropriations.
Expected Effects
The Act aims to increase transparency and accountability regarding the use of COVID-19 relief funds distributed through the SBA. It will provide Congress with regular updates on the extent of fraud associated with these loans. This increased oversight may lead to improved fraud detection and prevention in future emergency relief programs.
Potential Benefits
- Enhanced transparency in the use of COVID-19 relief funds.
- Improved accountability of the SBA in managing loan programs.
- Better understanding of the types and extent of fraud related to COVID-19 loans.
- Potential for recovering fraudulently obtained funds.
- Informing future policy decisions related to emergency economic relief.
Potential Disadvantages
- Limited scope, focusing solely on SBA loans and not other COVID-19 relief programs.
- The Act terminates after two years, potentially missing long-term fraud detection.
- No additional funding is provided, potentially straining the SBA Inspector General's resources.
- Reporting may create additional administrative burden for the SBA.
- The Act does not directly address the prevention of fraud, only the reporting of it.
Constitutional Alignment
The Act aligns with the constitutional principle of congressional oversight, enabling Congress to monitor the executive branch's implementation of laws and spending of public funds, as outlined in Article I, Section 8, which grants Congress the power to collect taxes and appropriate funds. The requirement for regular reporting ensures transparency and accountability, supporting the principle of responsible governance. There is no apparent conflict with any specific constitutional provision.
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).