HR 5334, the SEED Act of 2025, expands the existing educator expense deduction under federal tax law to explicitly include early childhood educators. It revises the Internal Revenue Code to cover expenses for "early childhood educators" and broadens the educational levels affected to include "pre-kindergarten through grade 12." This change allows early childhood educators (such as preschool teachers) to deduct work-related expenses like classroom supplies and professional development costs, which they previously could not claim under the existing deduction for "kindergarten through grade 12" teachers. The amendment applies to expenses incurred in taxable years beginning after December 31, 2024.
The PROOF Act requires state agencies to provide specific records to the Attorney General when requested for investigating fraud in major federal assistance programs, such as Medicaid, food stamps, unemployment benefits, and disaster relief funds. This information sharing covers data like identity verification records, payment logs, and provider billing statements directly related to active investigations. To protect privacy, the bill mandates that the Justice Department handle all transferred data under existing privacy laws, use encryption for security, and destroy the information once legal proceedings are complete. Additionally, federal agencies may only use this data for fraud-related law enforcement purposes and must submit an annual report to Congress detailing the number of requests made and resulting convictions.
The Tax Relief for Fraud Victims Act helps individuals who suffer financial losses due to theft involving fraud, deceit, or misrepresentation by changing how they can claim tax deductions. It allows taxpayers to treat these theft losses as occurring when they discover them rather than when the theft happens, giving them more time to file for refunds. The bill also extends the deadline for filing refund claims related to these losses and provides special rules for withdrawing retirement funds to cover such losses without immediate tax penalties. Additionally, the legislation includes specific provisions for victims of pyrrhotite-related home damage, allowing them to claim deductions and file refunds based on discovery dates rather than the standard future effective date.
HR 8800, titled the National Defense Authorization Act for Fiscal Year 2027, authorizes funding for the U.S. Department of Defense for the upcoming fiscal year. The bill allocates specific amounts for procuring equipment and supplies across all military branches, including the Army, Navy, Marine Corps, Air Force, and Space Force. It also provides funds for research, development, testing, and evaluation activities, as well as money for the day-to-day operation and maintenance of military forces. These financial authorizations are detailed in funding tables within the legislation and apply to the fiscal year 2027 budget cycle.
Continuing Appropriations Act, 2027 This bill provides continuing FY2027 appropriations for federal agencies and extends various expiring programs and authorities. Specifically, the bill provides continuing FY2027 appropriations to federal agencies through the earlier of December 4, 2026, or the enactment of the applicable appropriations act. It is known as a continuing resolution (CR) and prevents a government shutdown that would otherwise occur if the FY2027 appropriations bills have not been enacted when FY2027 begins on October 1, 2026. The CR funds most programs and activities at the FY2026 levels with several exceptions that provide funding flexibility or additional appropriations for various programs. For example, the bill includes exceptions for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC); Small Business Administration loan programs; the Federal Emergency Management Agency’s Disaster Relief Fund; the Indian Health Service; and wildfire suppression activities. In addition, the bill extends several expiring programs, authorities, and restrictions, including the Department of Agriculture’s livestock mandatory price reporting program, the National Flood Insurance Program, limits on pay increases for the Vice President and certain senior political appointees, the Temporary Assistance for Needy Families (TANF) program, the authority to waive certain pay limitations that apply to wildland firefighters and other wildland fire personnel, the authority for the District of Columbia to spend local funds, and the freeze on cost-of-living adjustments for Members of Congress. The bill also provides the customary payments to the beneficiaries of the late Representative David Scott and the late Senator Lindsey Graham.
The TRIA Program Reauthorization Act of 2026 extends the Terrorism Risk Insurance Act (TRIA) through 2034, replacing its previous 2027 expiration date. It raises the financial threshold requiring federal assistance for terrorism-related insurance losses from $5 million to $25 million per incident. The bill also mandates that the Treasury Secretary publish a Federal Register notice within 30 days of starting a terrorism certification review and requires certification to be completed within 90 days of that notice. Additionally, it updates the program's official name from "Terrorism Insurance Program" to "Terrorism Risk Insurance Program" and adjusts related expiration dates in the law.
The Stopping Fraudulent Payments Act directs federal agencies to temporarily delay, condition, or split payments when there is a high risk of fraud or if a recipient is flagged in the Do Not Pay system. Under this law, agencies must notify payees of any pauses, explain the specific risk indicators involved, and allow recipients to contest the decision within a set timeframe. The bill requires that payments be resolved within 45 days and protects government officials from personal liability if they act in good faith to stop suspicious transactions. Additionally, it allows for the exemption of routine, historically consistent payment amounts while investigating anomalous or unusually large portions of a transfer.
The Fraud Prevention and Accountability Act creates a new Office of the Inspector General for Fraud, Accountability, and Recovery within the Department of the Treasury to oversee federal spending and prevent fraud. This new office will have authority to conduct audits and investigations across multiple federal programs, including pandemic relief funds, and will coordinate with other agencies to share data and identify fraudulent activity. The bill also requires federal agencies to screen potential payees against a centralized fraud database and mandates that the Treasury establish a governmentwide data analysis program to detect improper payments. Additionally, the act transfers assets and personnel from the Pandemic Response Accountability Committee to the new office and requires annual reporting to Congress on fraud prevention efforts.
The TRUE Accountability Act requires federal agencies to create and maintain internal control plans specifically designed for emergency spending situations like disasters, pandemics, or economic relief efforts. These plans must identify senior officials responsible for implementation, assess risks of improper payments and fraud, and include data-driven monitoring techniques to detect issues before funds are spent. Agencies must submit their plans to the Office of Management and Budget within a year of enactment and report them to Congress annually, with the guidance and plans being reviewed and updated every three years. The bill does not authorize any new funding but instead establishes reporting and accountability procedures for existing emergency appropriations processes.
The Federal Fraud Prevention Workforce Training Act establishes a government-wide training program for federal employees to prevent fraud and improper payments in federal programs. This program mandates that federal employees in key oversight roles, such as program administrators, financial managers, and grants managers, complete the training within 180 days of their appointment and every two years thereafter. The curriculum will cover identifying fraud risks, using various antifraud resources and systems, and implementing internal controls to safeguard federal funds. Additionally, the training will be made available to State, local, and Tribal government employees who manage federally funded programs, with agencies having the option to require completion as a grant condition.
