arrow_back Civic Audit
Share share

Protection of Federal Funds: Recovery Rules and Penalties for Employment Law Violations

The act establishes rules for recovering federal funds from state authorities in the event of False Claims Act proceedings. It also introduces penalties for fund recipients who violate employment laws.
Key points
States must remit 100% of disputed federal funds to an escrow account within 180 days of notice of a civil action or qui tam action.
Recipients of federal funds found to have violated section 274A of the Immigration and Nationality Act are subject to immediate recoupment of all federal funds.
Funds held in escrow will be returned to the general fund for deficit reduction if the government prevails or settles the claim.
Federal agencies may withhold payments, suspend, or terminate federal awards if recipients fail to comply with regulations.
article Official text account_balance Process page notifications_active Track this Bill
gavel
Status:
Introduced
Record your position for audit.
Why does your vote on bills matter?
It creates raw, undeniable proof. Civic Will provides the permanent data to verify the Government's loyalty towards its citizens (explained here). Start recording it now.
Additional Information
Print number: 119_S_4024
Sponsor: Sen. Scott, Rick [R-FL]
Process start date: 2026-03-05
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-3.1-pro-preview
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Federal Taxpayer Funds Protection and Clawback Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_4024.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2026-03-05.

What are the main provisions?

Key points include:

  • States must remit 100% of disputed federal funds to an escrow account within 180 days of notice of a civil action or qui tam action.
  • Recipients of federal funds found to have violated section 274A of the Immigration and Nationality Act are subject to immediate recoupment of all federal funds.
  • Funds held in escrow will be returned to the general fund for deficit reduction if the government prevails or settles the claim.
  • Federal agencies may withhold payments, suspend, or terminate federal awards if recipients fail to comply with regulations.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Scott, Rick [R-FL].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-03-22.

What is the impact of this bill?

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Courts and Law Economy Labor