Two Anti-Fraud Bills Could Save Taxpayers Billions Lost Annually to Government Fraud

The National Taxpayers Union is urging Congress to pass two anti-fraud bills that could help stem losses of up to $521 billion per year to fraudulent activity. In a vote alert issued June 22, 2026, the nation's oldest taxpayer advocacy organization called for "YES" votes on H.R. 7401, the Small Business Lending Fraud Prevention Act, and H.R. 826, the COVID Fraud Transparency Act of 2025. The measures target systemic weaknesses in federal loan programs that have allowed billions in taxpayer money to be stolen through fraud.

According to the Government Accountability Office, the federal government loses between $233 billion and $521 billion annually to fraud. Interest on the national debt already consumes about 13% of the entire U.S. federal budget. Both bills would cost less than $500,000 each to implement over the 2026–2031 period, making them among the most cost-efficient reforms available to Congress.

H.R. 7401, introduced by Rep. Dan Meuser (R-PA), strengthens the Small Business Administration's conflict of interest rules by requiring employees to certify they don't have conflicts when handling loan applications. The National Taxpayers Union says the legislation builds on existing federal laws regarding conflicts of interest. H.R. 826, sponsored by Rep. Roger Williams (R-TX), requires the Small Business Administration's Office of Inspector General to provide quarterly updates to lawmakers on fraud-related activity and enforcement actions in COVID-19 relief loan programs. The organization notes that scandals involving fraudulent government payments and widespread misuse of taxpayer dollars have made headlines around the country in recent months.

The bills address a problem that's grown increasingly urgent as federal spending has ballooned. With annual fraud losses potentially reaching half a trillion dollars, the government is essentially operating a system where fraudsters can routinely pocket billions while honest taxpayers foot the bill. The conflict of interest provisions in H.R. 7401 aim to close loopholes where insiders could approve fraudulent loans, while H.R. 826's quarterly reporting requirements would give Congress real-time visibility into fraud patterns that previously went undetected for months or years. The National Taxpayers Union argues these transparency and prevention measures represent the kind of practical, good-government reforms needed to restore public trust in government.

The organization will include roll call votes on both bills in its annual rating of Congress, with "YES" votes considered the pro-taxpayer position. For a total investment of less than $1 million over five years, the two bills could help recover or prevent losses that currently dwarf nearly every other line item in the federal budget. The message is simple: when fraud is bleeding the treasury of hundreds of billions annually, even modest reforms that cost almost nothing are worth passing immediately.