The bill
Closing the Provider Fraud Gap Act
HR. 7677, 119th Congress — read as touching For-Profit Education & Student Loans.
Sponsored by
Rep. Owens, Burgess [R-UT-4]
ID: O000086
Follow the money
The bill
HR. 7677, 119th Congress — read as touching For-Profit Education & Student Loans.
The sponsor
Every bill has someone who introduced it. That name is where the paper trail starts.
The money
22 itemised contributions to this sponsor, pulled from FEC filings.
The alignment
This bill's text tracks the "Department of Agriculture" section, p. 347-349 of the Mandate for Leadership.
Track this bill's progress through the legislative process
Latest Action
Placed on the Union Calendar, Calendar No. 513.
April 5, 2026
📍 Current Status
Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.
1. Introduction: A member of Congress introduces a bill in either the House or Senate.
2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.
3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.
4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.
5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.
6. Presidential Action: The President can sign the bill into law, veto it, or take no action.
7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!
Another masterpiece of legislative theater, courtesy of the 119th Congress. Let's dissect this farce, shall we?
**Main Purpose & Objectives:** The "Closing the Provider Fraud Gap Act" is a laughable attempt to feign concern about fraud in federal early childhood education, child care, and child nutrition programs. Its primary objective? To conduct a study – because, you know, that's all Congress is good for: commissioning studies and pretending to care.
**Key Provisions & Changes to Existing Law:** The bill requires the Comptroller General to analyze the effectiveness of fraud prevention measures in these programs, including data collection and reporting. Oh, wow, I bet this will be a real game-changer. It's not like they're just kicking the can down the road, delaying actual reform while pretending to address the issue.
**Affected Parties & Stakeholders:** The usual suspects: providers of services under these programs (who might actually have to follow some rules now), state and local governments (who'll have to pretend to care about program integrity), and the Comptroller General (who gets to waste more taxpayer dollars on a pointless study).
**Potential Impact & Implications:** Zilch. Zero. Nada. This bill is a placebo, designed to make voters think Congress is doing something about fraud while actually accomplishing nothing. It's a Band-Aid on a bullet wound – or rather, a participation trophy for politicians who want to claim they're "fighting fraud" without actually lifting a finger.
Diagnosis: This bill is suffering from a severe case of " Legislative Laryngitis" – an inability to speak truth to power or effect meaningful change. The underlying disease? Corruption, cowardice, and a healthy dose of stupidity. Prognosis: more of the same – empty promises, pointless studies, and a continued disregard for the well-being of those who actually need these programs.
In short, HR 7677 is a masterclass in political theater, designed to distract from the real issues while perpetuating the status quo. Bravo, Congress. You've managed to create another bill that's as useful as a chocolate teapot. Now, if you'll excuse me, I have better things to do – like watching paint dry.
Rep. Owens, Burgess [R-UT-4]
Congress 119 • 2024 Election Cycle
No PAC contributions found
No committee contributions found
This bill has 1 cosponsors. Below are their top campaign contributors.
ID: L000595
Top Contributors
10
Hub layout: Politicians in center, donors arranged by type in rings around them.
Showing 52 nodes and 25 connections (49 secondary connections hidden)
Total contributions: $135,306
Showing top 22 donors by contribution amount
Which industries are materially affected by specific provisions in this bill. 1 harmed.
Section 2(a)(1) implies increased scrutiny of fraud prevention measures in Federal early childhood education programs, which may lead to increased regulatory burdens on for-profit education providers.
This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.
AI Analysis:
"HR 7677 focuses on studying and improving fraud prevention in federal child nutrition programs administered by the USDA, which aligns with Project 2025's Department of Agriculture emphasis on enhancing program integrity and reducing improper payments in nutrition assistance programs."
— 314 — Mandate for Leadership: The Conservative Promise 55. U.S. Department of Agriculture, “SNAP Data Tables,” Food and Nutrition Service, December 9, 2022, https:// www.fns.usda.gov/pd/supplemental-nutrition-assistance-program-snap (accessed December 16, 2022). 56. Ibid. 57. U.S. Department of Agriculture, Food and Nutrition Service, “SNAP Work Requirements,” May 2019, https:// www.fns.usda.gov/snap/work-requirements#:~:text=Work%20at%20least%2080%20hours,least%2080%20 hours%20a%20month (accessed December 16, 2022). 58. 7 U.S. Code § 2015, https://www.law.cornell.edu/uscode/text/7/2015 (accessed December 16, 2022). 59. Ibid. 60. 7 U.S. Code § 2015(o)(4). The USDA has approved nearly all waivers under the “lack of sufficient jobs” option. 61. Federal Register, Vol. 84, No. 234 (December 5, 2019) p. 66782, https://www.govinfo.gov/content/pkg/FR- 2019-12-05/pdf/2019-26044.pdf (accessed December 14, 2022). 62. Ibid., p. 66795. 63. Ibid., pp. 66807–66810. 64. District of Columbia, et al. v. U.S. Department of Agriculture, 496 F. Supp. 3d 213 (2020), https://oag.dc.gov/ sites/default/files/2020-10/SNAP-ABAWD-Opinion.pdf (accessed December 16, 2022). 65. Ibid. On December 16, 2020, the Trump Administration appealed the District Court decision. See, for example, News release “Fudge Slams Administration for Appealing ABAWD Ruling,” House Committee on Agriculture, December 16, 2020, https://agriculture.house.gov/news/documentsingle.aspx?DocumentID=2069 (accessed December 16, 2022). 66. News release, “Statement by Agriculture Secretary Tom Vilsack on D.C. Circuit Court’s Decision Regarding ABAWDs Rule,” U.S. Department of Agriculture, March 24, 2021, https://www.usda.gov/media/ press-releases/2021/03/24/statement-agriculture-secretary-tom-vilsack-dc-circuit-courts (accessed December 16, 2022). 67. U.S. Department of Agriculture, “SNAP Employment and Training Screening and Referral Guidance,” July 13, 2022, https://www.fns.usda.gov/snap/et-screening-and-referral-guidance (accessed December 16, 2022). 68. U.S. Department of Agriculture, Food and Nutrition Service, “Regulatory Reform at a Glance: Proposed Rule; Revision of SNAP Categorical Eligibility,” July 2019, https://www.usda.gov/sites/default/files/documents/ BBCE_Fact_Sheet_%28FINAL%29_72219-PR.pdf (accessed December 14, 2022). 69. 7 Code of Federal Regulations § 273.8 (1978), https://www.law.cornell.edu/cfr/text/7/273.8 (accessed December 16, 2022). 70. Kristina Rasmussen, “How Millionaires Collect Food Stamps,” Wall Street Journal, January 15, 2018, https:// www.wsj.com/articles/how-millionaires-collect-food-stamps-1516044026 (accessed December 14, 2022). 71. Federal Register, Vol. 84, No. 142 (July 24, 2019), pp. 35570–55581, https://www.federalregister.gov/ documents/2019/07/24/2019-15670/revision-of-categorical-eligibility-in-the-supplemental-nutrition- assistance-program-snap (accessed December 14, 2022). 72. News release, “USDA Modernizes the Thrifty Food Plan, Updates SNAP Benefits,” U.S. Department of Agriculture, August 16, 2021, https://www.usda.gov/media/press-releases/2021/08/16/usda-modernizes- thrifty-food-plan-updates-snap- (accessed December 14, 2022). 73. Phillip L. Swagel, Director, Congressional Budget Office, letter to Congressman Jason Smith, June 23, 2022, p. 2, https://www.cbo.gov/system/files/2022-06/58231-Smith.pdf (accessed December 14, 2022). 74. Congressional Budget Office, “H.R. 2, as Passed by the House of Representatives and as Passed by the Senate,” July 24, 2018, https://www.cbo.gov/publication/54284 (accessed December 16, 2022). 75. News release, “Republican AG Committee Leadership Urge GAO Review of USDA Thrifty Food Plan Scheme,” U.S. House Committee on Agriculture, August 13, 2021, https://republicans-agriculture.house.gov/news/ documentsingle.aspx?DocumentID=7013 (accessed December 14, 2022). 76. “The 2014 Farm Bill: Changing the Tradition of LIHEAP Receipt in the Calculation of SNAP Benefits,” updated February 12, 2014, Congressional Research Service Report for Congress R42591, https://crsreports.congress. gov/product/pdf/R/R42591/24 (accessed March 18, 2023). 77. Federal Register, Vol. 84, No. 192 (October 3, 2019), pp. 52809–52815, https://www.govinfo.gov/content/pkg/ FR-2019-10-03/pdf/2019-21287.pdf (accessed December 16, 2022). 78. U.S. Department of Agriculture, “Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) Data Series, 2018 to 2022,” https://www.fns.usda.gov/pd/wic-program (accessed December 14, 2022). — 315 — Department of Agriculture 79. U.S. Department of Agriculture, Food and Nutrition Service, “WIC Data Tables,” December 9, 2022, https:// www.fns.usda.gov/pd/wic-program (accessed December 16, 2022). 80. U.S. Food and Drug Administration, “Regulations and Information on the Manufacture and Distribution of Infant Formula,” May 16, 2022, https://www.fda.gov/food/infant-formula-guidance-documents-regulatory- information/regulations-and-information-manufacture-and-distribution-infant-formula (accessed December 14, 2022). 81. U.S. Department of Agriculture, Food and Nutrition Service, “History of the National School Lunch Program,” January 17, 2008, https://www.fns.usda.gov/nslp/program-history (accessed December 14, 2022). 82. U.S. Department of Agriculture, Food and Nutrition Service, “School Breakfast Program History,” July 24, 2013, https://www.fns.usda.gov/sbp/program-history (accessed December 14, 2022), and U.S. Department of Agriculture, Food and Nutrition Service, “History of the National School Lunch Program.” 83. Crystal FitzSimons, “Free School Meals for All Is the Key to Supporting Education and Health Outcomes,” Journal of Policy Analysis and Management, Vol 41, No. 1 (2022), pp. 358–364, https://econpapers.repec.org/ article/wlyjpamgt/v_3a41_3ay_3a2022_3ai_3a1_3ap_3a358-364.htm (accessed December 14, 2022). 84. Jonathan Butcher and Vijay Menon, “Returning to the Intent of Government School Meals: Helping Students in Need,” Heritage Foundation Backgrounder No. 3399, March 22, 2019, https://www.heritage.org/sites/ default/files/2019-03/BG3399.pdf. 85. Daren Bakst and Jonathan Butcher, “A Critical Fix to the Federal Overreach on School Meals,” Heritage Foundation Issue Brief No. 4976, July 11, 2019, https://www.heritage.org/hunger-and-food-programs/report/ critical-fix-the-federal-overreach-school-meals. 86. Ibid., and U.S. Department of Agriculture, Food and Nutrition Service, “Community Eligibility Provision,” April 19, 2019, https://www.fns.usda.gov/cn/community-eligibility-provision (accessed December 16, 2022). 87. See Payment Accuracy, https://www.paymentaccuracy.gov/ (accessed December 16, 2022). 88. Payment Accuracy, “Payment Integrity Scorecard,” https://www.cfo.gov/wp-content/uploads/2022/Q3/ FNS%20National%20School%20Lunch%20Program%20(NSLP)%20Payments%20Integrity%20Scorecard%20 FY%202022%20Q3.pdf (accessed December 14, 2022). 89. U.S. Government Accountability Office, “School Meals Programs: USDA Has Reported Taking Some Steps to Reduce Improper Payments But Should Comprehensively Assess Fraud Risks,” GAO–19–389, May 21, 2022, https://www.gao.gov/products/gao-19-389 (accessed December 14, 2022). 90. Payment Accuracy, “Payment Integrity Scorecard.” 91. White House, “Fact Sheet: The American Families Plan,” April 28, 2021, https://www.whitehouse.gov/ briefing-room/statements-releases/2021/04/28/fact-sheet-the-american-families-plan/ (accessed December 14, 2022). 92. Universal School Meals Program Act of 2021, S. 1530, 117th Cong., 1st Sess., https://www.congress.gov/ bill/117th-congress/senate-bill/1530 (accessed December 14, 2022). 93. See, for example, U.S. Department of Agriculture, “Find Meals for Kids When Schools Are Closed,” Food and Nutrition Service, September 22, 2022, https://www.fns.usda.gov/meals4kids (accessed December 16, 2022), and U.S. Department of Agriculture, Food and Nutrition Service, “Seamless Summer and Other Options for School,” July 16, 2013, https://www.fns.usda.gov/sfsp/seamless-summer-and-other-options-schools (accessed December 16, 2022). 94. Tom Driscoll, “From the Field: Farmers Are the Original Conservationists,” National Farmers Union, August 30, 2017, https://nfu.org/2017/08/30/from-the-field-farmers-are-the-original-conservationists/ (accessed December 16, 2022). 95. U.S. Department of Agriculture, Farm Service Agency, “Conservation Programs,” https://www.fsa.usda.gov/ programs-and-services/conservation-programs/index (accessed December 16, 2022), and U.S. Department of Agriculture, Natural Resources Conservation Service, “Programs and Initiatives,” https://www.nrcs.usda.gov/ programs-initiatives (accessed December 16, 2022). 96. U.S. Department of Agriculture, Farm Service Agency, “Conservation Reserve Program: About the Conservation Reserve Program (CRP),” https://www.fsa.usda.gov/programs-and-services/conservation- programs/conservation-reserve-program/ (accessed December 16, 2022).
AI Analysis:
"Both the bill and the Project 2025 HHS section emphasize strengthening program integrity and reducing fraud, waste, and abuse in federal early childhood and nutrition programs through increased oversight and accountability."
— 500 — Mandate for Leadership: The Conservative Promise 32. Owcharenko Schaefer, “Medicaid at 55: Understanding the Design, Trends, and Reforms Needed to Improve the Health Care Safety Net.” 33. Brian Blase, “Managed Care in Medicaid: Need for Oversight, Accountability, and Reform,” Paragon Health Institute Policy Brief, October 13, 2022, https://paragoninstitute.org/wp-content/uploads/2022/10/20221012- Managed-Care-in-Medicaid-Need-for-Oversight-Accountability-and-Reform-FOR-DISTRIBUTION-V2.pdf (accessed February 13, 2023). 34. Owcharenko Schaefer, “Medicaid at 55: Understanding the Design, Trends, and Reforms Needed to Improve the Health Care Safety Net.” 35. 42 U.S. Code § 1315, https://www.law.cornell.edu/uscode/text/42/1315 (accessed March 17, 2023). 36. Chad D. Savage and Lee S. Gross, “Direct Primary Care: Update and Road Map for Patient-Centered Reforms,” Heritage Foundation Backgrounder No. 3635, June 28, 2021, https://www.heritage.org/sites/default/ files/2021-06/BG3635.pdf. 37. H.R. 133, Consolidated Appropriations Act, 2021, Public Law No. 116-260, 116th Congress, December 27, 2020, Division BB, Title I, https://www.congress.gov/116/plaws/publ260/PLAW-116publ260.pdf (accessed March 17, 2023). 38. Doug Badger, “On Surprise Medical Bills, Congress Should Side with Consumers, Not Special Interests,” Heritage Foundation Commentary, January 31, 2020, https://www.heritage.org/health-care-reform/ commentary/surprise-medical-bills-congress-should-side-consumers-not-special. 39. Edmund F. Haislmaier and Abigail Slagle, “Premiums, Choices, Deductibles, Care Access, and Government Dependence Under the Affordable Care Act: 2021 State-by-State Review,” Heritage Foundation Backgrounder No. 3668, November 2, 2021, https://www.heritage.org/sites/default/files/2021-11/BG3668.pdf. 40. U.S. Department of the Treasury, Internal Revenue Service; U.S. Department of Labor, Employee Benefits Security Administration; and U.S. Department of Health and Human Services, “Transparency in Coverage,” Final Rule, Federal Register, Vol. 85, No. 219 (November 12, 2020), pp. 72158–72310, https://www.govinfo.gov/ content/pkg/FR-2020-11-12/pdf/2020-24591.pdf (accessed March 17, 2023). 41. David N. Bernstein and Robert E. Moffit, “New Price Transparency Rule Will Help Transform America’s Health Care System,” Heritage Foundation Commentary, November 1, 2020, https://www.heritage.org/health-care- reform/commentary/new-price-transparency-rule-will-help-transform-americas-health-care. 42. Sluzala and Haislmaier, “Lessons from COVID-19: How Policymakers Should Reform the Regulation of Clinical Testing.” 43. Ibid. 44. Most recently enacted in H.R. 2471, Consolidated Appropriations Act, 2022, Public Law No. 117-103, 117th Congress, March 15, 2022, Division H, Title V, §§ 506–507, https://www.congress.gov/117/plaws/publ103/ PLAW-117publ103.pdf (accessed March 17, 2023). 45. President Joseph R. Biden Jr., Executive Order 14079, “Securing Access to Reproductive and Other Healthcare Services,” August 3, 2022, in Federal Register, Vol. 87, No. 154 (August 11, 2022), pp. 49505–49507, https:// www.govinfo.gov/content/pkg/FR-2022-08-11/pdf/2022-17420.pdf (accessed March 16, 2023). 46. Planned Parenthood, 2020–2021 Annual Report, p. 27, https://www.plannedparenthood.org/uploads/ filer_public/40/8f/408fc2ad-c8c2-48da-ad87-be5cc257d370/211214-ppfa-annualreport-20-21-c3-digital.pdf (accessed March 22, 2023). 47. Ibid., pp. 30 and 31. Total revenue of $1,714.4 million (p. 30) minus $1,580.7 million in total expenses (p. 31) yields $133,7 million. 48. Ibid., p. 28. 49. Ibid., p. 30. 50. H.R. 372, Protecting Life and Taxpayers Act of 2023, 118th Congress, introduced January 17, 2023, https://www. congress.gov/118/bills/hr372/BILLS-118hr372ih.pdf (accessed March 17, 2023). 51. 42 U.S. Code § 18023, https://www.law.cornell.edu/uscode/text/42/18023 (accessed March 17, 2023). 52. H.R. 3128, Consolidated Omnibus Budget Reconciliation Act of 1985, Public Law No. 99-272, 99th Congress, April 7, 1986, Title IX, Subtitle A, Part 1, Subpart B, § 9121, https://www.congress.gov/99/statute/STATUTE-100/ STATUTE-100-Pg82.pdf (accessed March 17, 2023). 53. H.R. 8070, Rehabilitation Act of 1973, Public Law No. 93-112, 93rd Congress, September 26, 1973, https://www. congress.gov/93/statute/STATUTE-87/STATUTE-87-Pg355.pdf (accessed March 17, 2023). — 501 — Department of Health and Human Services 54. U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services, Office of Civil Rights, and Office of the Secretary, “Special Responsibilities of Medicare Hospitals in Emergency Cases and Discrimination on the Basis of Disability in Critical Health and Human Service Programs or Activities,” draft of Proposed Rule, January 14, 2021, https://www.hhs.gov/sites/default/files/infants-nprm.pdf (accessed March 17, 2023). 55. H.R. 26, Born-Alive Abortion Survivors Protection Act, 118th Congress, introduced January 9, 2023, https:// www.congress.gov/118/bills/hr26/BILLS-118hr26pcs.pdf (accessed March 17, 2023). 56. H.R. 7, No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of 2023, 118th Congress, introduced January 9, 2023, https://www.congress.gov/118/bills/hr7/BILLS-118hr7ih.pdf (accessed March 17, 2023). 57. S. 401, Conscience Protection Act of 2021, 117th Congress, introduced February 24, 2021, https://www.congress. gov/117/bills/s401/BILLS-117s401is.pdf (accessed March 17, 2023). 58. U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services, and Office of the Secretary, “Nondiscrimination in Health Programs and Activities,” Notice of Proposed Rulemaking; Notice of Tribal Consultation, Federal Register, Vol. 87, No. 149 (August 4, 2022), pp. 47824–47920, https://www.govinfo. gov/content/pkg/FR-2022-08-04/pdf/2022-16217.pdf (accessed March 17, 2023). 59. Ibid., p. 47916. 60. The regulation was not finalized before the end of the Administration. U.S. Department of Agriculture, Food and Nutrition Services, “Revision of Categorical Eligibility in the Supplemental Nutrition Assistance Program (SNAP),” Proposed Rule, Federal Register, Vol. 84, No. 142 (July 24, 2019), pp. 35570–55581, https:// www.federalregister.gov/documents/2019/07/24/2019-15670/revision-of-categorical-eligibility-in-the- supplemental-nutrition-assistance-program-snap (accessed March 17, 2023). 61. 45 Code of Federal Regulations § 75.300(c) and (d), https://www.ecfr.gov/current/title-45/subtitle-A/ subchapter-A/part-75/subpart-D/subject-group-ECFR911e5e1a30bfbcb/section-75.300 (accessed March 17, 2023). 62. H.R. 1750, Child Welfare Provider Inclusion Act of 2021, 117th Congress, introduced March 10, 2021, https:// www.congress.gov/117/bills/hr1750/BILLS-117hr1750ih.pdf (accessed March 17, 2023), and S. 656, Child Welfare Provider Inclusion Act of 2021, 117th Congress, introduced March 10, 2021, https://www.congress.gov/117/bills/ s656/BILLS-117s656is.pdf (accessed March 17, 2023). 63. S. 3949, Trafficking Victims Protection Reauthorization Act of 2022, Public Law No. 117-348, 117th Congress, January 25, 2023, https://www.congress.gov/117/plaws/publ348/PLAW-117publ348.pdf (accessed March 17, 2023). 64. Kelsey Y. Santamaria, “Child Migrants at the Border: The Flores Settlement Agreement and Other Legal Developments,” Congressional Research Service In Focus No. IF11799, April 1, 2021, https://crsreports.congress. gov/product/pdf/IF/IF11799 (accessed March 17, 2023). 65. Report, Building a Happy Home: Marriage Education as a Tool to Strengthen Families, Social Capital Project Report No. 1-22, March 2022, p. 17, https://www.jec.senate.gov/public/_cache/files/3d102525-6f0d-48ed- 92f4-d71edd468ad6/building-a-happy-home.pdf (accessed March 17, 2023). The cover of the report reflects that the Social Capital Project is “[a] project of the Joint Economic Committee – Republicans.” 66. See, for example, Alan J. Hawkins, “Are Federally Supported Relationship Education Programs for Lower-Income Individuals and Couples Working? A Review of Evaluation Research,” American Enterprise Institute, September 2019, https://www. congress.gov/117/plaws/publ228/PLAW-117publ228.pdf (accessed March 17, 2023). 67. H.R. 8404, Respect for Marriage Act, Public Law No. 117-228, 117th Congress, December 13, 2022, https://www. congress.gov/117/plaws/publ228/PLAW-117publ228.pdf (accessed March 17, 2023). 68. Madison Marino, “Over 1,000 Safety Violations Mar Head Start. Children Deserve Better,” Heritage Foundation Commentary, November 10, 2022, https://www.heritage.org/education/commentary/over-1000-safety- violations-mar-head-start-children-deserve-better. 69. American Hospital Association v. Becerra, 596 U.S. ___ (2022), https://www.supremecourt.gov/ opinions/21pdf/20-1114_09m1.pdf (accessed March 17, 2023). 70. U.S. Department of the Treasury, Internal Revenue Service; U.S. Department of Labor, Employee Benefits Security Administration; and U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services, “Coverage of Certain Preventive Services Under the Affordable Care Act,” Notice of Proposed Rulemaking, Federal Register, Vol. 88, No. 22 (February 2, 2023), pp. 7236–7281, https://www. govinfo.gov/content/pkg/FR-2023-02-02/pdf/2023-01981.pdf (accessed March 17, 2023).
AI Analysis:
"Both the bill and the Project 2025 SBA section focus on identifying and addressing fraud in federal programs through oversight, studies, and recommendations for improved integrity, though they apply to different program areas (early childhood services vs. SBA lending)."
— 753 — Small Business Administration COVID-19 Lending Program Accountability and Cleanup. A major immediate priority for the next Administration should be a final accounting and accelerated cleanup of fraudulent COVID-19 loan and grant activity. As noted by the SBA IG, “managing COVID-19 stimulus lending is the greatest overall challenge facing SBA, and it may likely continue to be for many years as the agency grapples with fraud in the programs….”40 The next Administration should: l Consider bringing in private-sector support and expertise to close out these programs. Forgiveness and fraud must be dealt with as swiftly as possible, and law enforcement officials must pursue fraud vigorously. Entities receiving PPP loans that did not meet eligibility for forgiveness must be required to pay back the money. For example, under the CARES Act,41 PPP loan applicants generally were eligible only if, together with all their affiliates, they had no more than 500 employees. Numerous Planned Parenthood affiliates self-certified eligibility for PPP loans during the initial wave of loans that were governed by the CARES Act’s size requirement. Many Senators and Representatives asserted that these Planned Parenthood organizations were ineligible because— considered together with their affiliates—they exceeded the maximum eligible size.42 The Trump Administration SBA notified several Planned Parenthood PPP recipients of its preliminary determination of their ineligibility and of SBA’s authority to take various actions against applicants that falsely certified their eligibility.43 To date, despite continued oversight attempts by Members of Congress,44 the SBA has taken no action on the Planned Parenthood loans other than to forgive them, and in 2021, it approved new PPP loans to Planned Parenthood affiliates.45 l Cooperate with ongoing congressional oversight efforts and determine whether SBA has authority to reverse the forgiveness decisions. If it does have that authority, the SBA should reverse the forgiveness decisions for the subject loans, reiterate its preliminary determinations of ineligibility, investigate the matter more thoroughly, and take all appropriate action when its investigation concludes. Regardless of whether it reverses its forgiveness, if its investigation uncovers evidence that Planned Parenthood affiliates or any other loan recipients knowingly misrepresented their eligibility in their applications, the SBA should make appropriate referrals to the Department of Justice. — 754 — Mandate for Leadership: The Conservative Promise Disaster Loan Program and Direct Lending. The SBA’s disaster loan pro- gram provides low-interest loans to personal, business, and nonprofit borrowers following a federally declared disaster. The program suffers from problems of coordination with Federal Emergency Management Administration (FEMA) disas- ter assistance. For example, disaster relief applicants have an incentive to avoid being approved for SBA disaster loans in order to increase the amount of FEMA assistance for which they are eligible. Moreover, the availability of disaster loans reduces individuals’ incentives to purchase disaster-related insurance. More than 90 percent of SBA disaster loans are loans to individuals such as homeowners, not to small businesses. In view of the challenges the SBA has experienced in its administration of this program, as well as the fraud and abuse in the EIDL COVID-19–related program and the IG’s concern that the systemic problems within this lending program undermine the SBA’s work, the next Administration should: l Work with Congress to assess the extent to which disaster loans should be offered by another agency rather than the SBA and explore private-sector channels for administering the loans. l Specify clearly that no new direct lending programs will be developed at the SBA. Eligibility of Religious Entities for SBA Loans. Current SBA regulations46 and SBA Form 197147 make certain religious entities ineligible to participate in several SBA loan programs. The Trump Administration proposed a rule that would remove the provisions on the ground that they violate the First Amendment.48 Subsequent Supreme Court decisions have made their unconstitutionality clearer.49 In an April 3, 2020, letter to Congress pursuant to 28 U.S. Code § 530D,50 the Trump Administration SBA advised that two such provisions violate the Free Exer- cise Clause of the First Amendment and that it therefore would not enforce them. On January 19, 2021, the Trump Administration SBA proposed a rule to remove all of the unconstitutional religious exclusions from its regulations.51 The SBA has not acted on the proposed rule. A similar religious exclusion once appeared in the regulation governing eligibil- ity for SBA Business Loan Programs,52 but it was removed in a June 2022 final rule that noted tension with the First Amendment and Supreme Court precedent.53 That final rule announced that the SBA would nonetheless continue to make religious eligibility determinations for business loan applicants to comply with putative Establishment Clause requirements,54 but Supreme Court precedent and Office of Legal Counsel memoranda refute the notion that large government-backed loan programs raise any Establishment Clause concerns.55
Showing 3 of 5 policy matches
Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.