House Passes Bill Redirecting Fraud Fines to Bolster Crime Victims Fund

The bill redirects a portion of False Claims Act penalties—after the government is reimbursed for its losses and whistleblowers are paid—into the Crime Victims Fund through September 2030. Companies that defraud the government and pay penalties under the False Claims Act would see those penalty payments go to victim services rather than the general treasury. This doesn't change what businesses owe, but it does redirect where the money goes.

The Crime Victims Fund pays for mental health counseling and trauma services for people who have experienced crimes like sexual assault, domestic violence, and child abuse. By adding new funding sources—money from prosecution declinations and False Claims Act recoveries—this bill would help stabilize the fund and protect these critical mental health services from budget cuts that have been threatening local programs nationwide.

Many crime victims also have criminal records and rely on victim services programs funded by the Crime Victims Fund for reentry support, counseling, and assistance. Stabilizing the fund helps ensure these programs remain available for this population, which is disproportionately likely to also be victimized by crime.

Pregnant victims of domestic violence and sexual assault are among the most vulnerable populations served by Crime Victims Fund-supported programs. Stabilizing the fund helps ensure that shelters, medical assistance, and counseling services remain available for pregnant crime victims who often need immediate and specialized support.

LGBTQ individuals face disproportionately high rates of hate crimes and domestic violence, and many victim service organizations specifically serving LGBTQ communities receive funding through the Crime Victims Fund. Stabilizing the fund helps protect these specialized services from the budget shortfalls that have forced program cuts in recent years.

Tribal communities receive dedicated funding from the Crime Victims Fund for victim assistance programs on reservations, where crime rates are often high but services are limited. The Victims of Crime Act set aside specific tribal allocations, so stabilizing the fund directly protects these crucial programs that serve some of the most underserved crime victim populations in the country.