S. 659Senate118th Congress (2023-2025)Passed Senate

Administrative False Claims Act of 2023

AI-Generated Summary

Updated January 20, 2026 at 4:22 AM UTC

The Administrative False Claims Act of 2023 renames the Program Fraud Civil Remedies Act and updates the federal false‑claims framework. It expands the types of false claims covered, raises the monetary thresholds for claims, and adds new reporting and procedural rules. The changes affect federal agencies, contractors, and the Department of Justice by tightening enforcement and improving cost recovery and transparency.

Key Provisions

Renames the Program Fraud Civil Remedies Act to the Administrative False Claims Act and treats all prior references as referring to the new name
Expands the definition of a false claim to include actions that conceal or improperly avoid an obligation to pay the government
Increases the maximum claim amount from $150,000 to $1,000,000 and ties the limit to inflation adjustments
Limits assessments for reverse false‑claims to no more than double the value wrongfully withheld
Requires that any money collected first reimburse the agency that incurred investigation costs before any remaining funds go to the Treasury
Adds semiannual reporting requirements on case numbers, resolutions, settlements, and penalties
Mandates that reviewing officials notify the Attorney General at least 30 days before any settlement or compromise
Revises the definition of hearing officials to include members of the Board of Contract Appeals and sets procedures for referrals and hearings
Extends the statute of limitations to the later of 6 years after the violation or 3 years after discovery, but not more than 10 years total
Requires each agency head and relevant boards to issue implementing regulations within 180 days

Legislative Activity

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6 earlier actions

HouseFloor Latest Action

Held at the desk.

April 6, 2023 • 11:17 AM

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SenateIntro Referral

Introduced in Senate

March 6, 2023

SenateIntro Referral

Read twice and referred to the Committee on the Judiciary.

Judiciary Committee

March 6, 2023

SenateCommittee

Senate Committee on the Judiciary discharged by Unanimous Consent.

Judiciary Committee

March 30, 2023

SenateFloor

Passed Senate without amendment by Unanimous Consent. (consideration: CR S1081-1082; text: CR S1081-1082)

March 30, 2023

SenateFloor

Message on Senate action sent to the House.

April 5, 2023

HouseFloor

Received in the House.

April 6, 2023 • 11:02 AM

HouseFloor

Held at the desk.

April 6, 2023 • 11:17 AM

Floor Debate

1 member

What members said about S. 659 on the floor

1 Democrat

Sen. Charles E. SchumerD-NY · Mar 30, 2023

Mr. President, I ask unanimous consent that the Committee on the Judiciary be discharged from further consideration of S. 659 and the Senate proceed to its immediate consideration. I ask unanimous…

Bill Text

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Engrossed in SenateIssued March 30, 2023

118th CONGRESS

1st Session

S. 659

AN ACT

To amend chapter 38 of title 31, United States Code, relating to civil remedies, and for other purposes.

Short title

This Act may be cited as the Administrative False Claims Act of 2023.

Administrative false claims

(a)

Change in short title

(1)

In general

Subtitle B of title VI of the Omnibus Budget Reconciliation Act of 1986 (Public Law 99–509; 100 Stat. 1934) is amended—

(A)

in the subtitle heading, by striking Program Fraud Civil Remedies and inserting Administrative False Claims; and

(B)

in section 6101 (31 U.S.C. 3801 note), by striking Program Fraud Civil Remedies Act of 1986 and inserting Administrative False Claims Act.

(2)

References

Any reference to the Program Fraud Civil Remedies Act of 1986 in any provision of law, regulation, map, document, record, or other paper of the United States shall be deemed a reference to the Administrative False Claims Act.

(b)

Reverse false claims

Chapter 38 of title 31, United States Code, is amended—

(1)

in section 3801(a)(3), by amending subparagraph (C) to read as follows:

(C)

made to an authority which has the effect of concealing or improperly avoiding or decreasing an obligation to pay or transmit property, services, or money to the authority,

; and

(2)

in section 3802(a)(3)—

(A)

by striking An assessment and inserting (A) Except as provided in subparagraph (B), an assessment; and

(B)

by adding at the end the following:

(B)

In the case of a claim described in section 3801(a)(3)(C), an assessment shall not be made under the second sentence of paragraph (1) in an amount that is more than double the value of the property, services, or money that was wrongfully withheld from the authority.

(c)

Increasing dollar amount of claims

Section 3803(c) of title 31, United States Code, is amended—

(1)

in paragraph (1), by striking $150,000 each place that term appears and inserting $1,000,000; and

(2)

by adding at the end the following:

(3)

Adjustment for inflation

The maximum amount in paragraph (1) shall be adjusted for inflation in the same manner and to the same extent as civil monetary penalties under the Federal Civil Penalties Inflation Adjustment Act (28 U.S.C. 2461 note).

(d)

Recovery of costs

Section 3806(g)(1) of title 31, United States Code, is amended to read as follows:

(1)

(A)

Except as provided in paragraph (2)—

(i)

any amount collected under this chapter shall be credited first to reimburse the authority or other Federal entity that expended costs in support of the investigation or prosecution of the action, including any court or hearing costs; and

(ii)

amounts reimbursed under clause (i) shall—

(I)

be deposited in—

(aa)

the appropriations account of the authority or other Federal entity from which the costs described in subparagraph (A) were obligated;

(bb)

a similar appropriations account of the authority or other Federal entity; or

(cc)

if the authority or other Federal entity expended nonappropriated funds, another appropriate account; and

(II)

remain available until expended.

(B)

Any amount remaining after reimbursements described in subparagraph (A) shall be deposited as miscellaneous receipts in the Treasury of the United States.

(e)

Semiannual reporting

Section 405(c) of title 5, United States Code, is amended—

(1)

in paragraph (4), by striking and at the end;

(2)

by redesignating paragraph (5) as paragraph (6); and

(3)

by inserting after paragraph (4) the following:

(5)

information relating to cases under chapter 38 of title 31, including—

(A)

the number of reports submitted by investigating officials to reviewing officials under section 3803(a)(1) of such title;

(B)

actions taken in response to reports described in subparagraph (A), which shall include statistical tables showing—

(i)

pending cases;

(ii)

resolved cases;

(iii)

the average length of time to resolve each case;

(iv)

the number of final agency decisions that were appealed to a district court of the United States or a higher court; and

(v)

if the total number of cases in a report is greater than 2—

(I)

the number of cases that were settled; and

(II)

the total penalty or assessment amount recovered in each case, including through a settlement or compromise; and

(C)

instances in which the reviewing official declined to proceed on a case reported by an investigating official; and

(f)

Increasing efficiency of DOJ processing

Section 3803(j) of title 31, United States Code, is amended—

(1)

by inserting (1) before The reviewing; and

(2)

by adding at the end the following:

(2)

A reviewing official shall notify the Attorney General in writing not later than 30 days before entering into any agreement to compromise or settle allegations of liability under section 3802 and before the date on which the reviewing official is permitted to refer allegations of liability to a presiding officer under subsection (b).

(g)

Revision of definition of hearing officials

(1)

In general

Chapter 38 of title 31, United States Code, is amended—

(A)

in section 3801(a)(7)—

(i)

in subparagraph (A), by striking or at the end;

(ii)

in subparagraph (B)(vii), by adding or at the end; and

(iii)

by adding at the end the following:

(C)

a member of the board of contract appeals pursuant to section 7105 of title 41, if the authority does not employ an available presiding officer under subparagraph (A);

; and

(B)

in section 3803(d)(2)—

(i)

in subparagraph (A), by striking and at the end;

(ii)

in subparagraph (B)—

(I)

by striking the presiding and inserting (i) in the case of a referral to a presiding officer described in subparagraph (A) or (B) of section 3801(a)(7), the presiding;

(II)

in clause (i), as so designated, by striking the period at the end and inserting ; or; and

(III)

by adding at the end the following:

(ii)

in the case of a referral to a presiding officer described in subparagraph (C) of section 3801(a)(7)—

(I)

the reviewing official shall submit a copy of the notice required by under paragraph (1) and of the response of the person receiving such notice requesting a hearing—

(aa)

to the board of contract appeals that has jurisdiction over matters arising from the agency of the reviewing official pursuant to section 7105(e)(1) of title 41; or

(bb)

if the Chair of the board of contract appeals declines to accept the referral, to any other board of contract appeals; and

(II)

the reviewing official shall simultaneously mail, by registered or certified mail, or shall deliver, notice to the person alleged to be liable under section 3802 that the referral has been made to an agency board of contract appeals with an explanation as to where the person may obtain the relevant rules of procedure promulgated by the board; and

; and

(iii)

by adding at the end the following:

(C)

in the case of a hearing conducted by a presiding officer described in subparagraph (C) of section 3801(a)(7)—

(i)

the presiding officer shall conduct the hearing according to the rules and procedures promulgated by the board of contract appeals; and

(ii)

the hearing shall not be subject to the provisions in subsection (g)(2), (h), or (i).

(2)

Agency boards

Section 7105(e) of title 41, United States Code, is amended—

(A)

in paragraph (1), by adding at the end the following:

(E)

Administrative False Claims Act

(i)

In general

The boards described in subparagraphs (B), (C), and (D) shall have jurisdiction to hear any case referred to a board of contract appeals under section 3803(d) of title 31.

(ii)

Declining referral

If the Chair of a board described in subparagraph (B), (C), or (D) determines that accepting a case under clause (i) would prevent adequate consideration of other cases being handled by the board, the Chair may decline to accept the referral.

; and

(B)

in paragraph (2), by inserting or, in the event that a case is filed under chapter 38 of title 31, any relief that would be available to a litigant under that chapter before the period at the end.

(3)

Regulations

Not later than 180 days after the date of enactment of this Act, each authority head, as defined in section 3801 of title 31, United States Code, and each board of contract appeals of a board described in subparagraph (B), (C), or (D) of section 7105(e) of title 41, United States Code, shall amend procedures regarding proceedings as necessary to implement the amendments made by this subsection.

(h)

Revision of limitations

Section 3808 of title 31, United States Code, is amended by striking subsection (a) and inserting the following:

(a)

A notice to the person alleged to be liable with respect to a claim or statement shall be mailed or delivered in accordance with section 3803(d)(1) not later than the later of—

(1)

6 years after the date on which the violation of section 3802 is committed; or

(2)

3 years after the date on which facts material to the action are known or reasonably should have been known by the authority head, but in no event more than 10 years after the date on which the violation is committed.

(i)

Definitions

Section 3801 of title 31, United States Code, is amended—

(1)

in subsection (a)—

(A)

in paragraph (8), by striking and at the end;

(B)

in paragraph (9), by striking the period at the end and inserting a semicolon; and

(C)

by adding at the end the following:

(10)

material has the meaning given the term in section 3729(b) of this title; and

(11)

obligation has the meaning given the term in section 3729(b) of this title.

; and

(2)

by adding at the end the following:

(d)

For purposes of subsection (a)(10), materiality shall be determined in the same manner as under section 3729 of this title.

(j)

Promulgation of regulations

Not later than 180 days after the date of enactment of this Act, each authority head, as defined in section 3801 of title 31, United States Code, shall—

(1)

promulgate regulations and procedures to carry out this Act and the amendments made by this Act; and

(2)

review and update existing regulations and procedures of the authority to ensure compliance with this Act and the amendments made by this Act.

Passed the Senate March 30, 2023.

Secretary