The Senate GOP has packaged a sweeping anti-fraud bill centered on the new WALZ Act, naming it after Minnesota’s governor to drive a point about lax oversight and taxpayer waste. The plan bundles measures to claw back unspent COVID money, tighten federal reimbursements, reward whistleblowers, curb remittance abuse, and block repeat fraudsters from federal programs. Lawmakers say the package will close loopholes, push accountability down to states, and restore basic checks on federal dollars. Expect a floor fight soon as leadership weighs procedural moves to advance the package.
Sen. Joni Ernst is rolling this up into a broader 12-figure anti-fraud push aimed at Minnesota-style scams and pandemic-era abuses. The centerpiece, called the Welfare Abuse and Laundering Zillions Act, carries a name meant to symbolize a failure of state oversight and federal passivity. Republicans argue the label is blunt but necessary to spotlight how unchecked programs can drain taxpayer dollars. The framing is political, but the fixes they propose are technical and tough-minded.
The WALZ Act would force federal reimbursements to be paid only after a service is proven delivered, flipping the current presumptive-pay approach on its head. Senators say Minnesota’s problems showed how up-front payments can be gamed when verification is weak. By turning payments into reimbursements, the policy makes fraud more costly and slows the cash flow to bad actors. It’s a blunt tool, but proponents say blunt tools are what’s needed to stop systemic loss.
Another provision would trigger an HHS inspector general probe when a state program’s federal disbursements jump more than 10 percent over six months. That automatic alarm is designed to catch sudden surges that often signal abuse or administrative breakdowns. The goal is quicker oversight, not political theater. If the money spikes, auditors show up — and that’s the point.
Ernst’s package includes the Returning Unspent COVID Funds Act, a move aimed at clawing back more than $65 billion still sitting from pandemic-era programs. Republicans argue those funds have become a sitting target for opportunistic fraud schemes years after the emergency passed. The proposal tries to force closure of old pots of cash so they can’t be reappropriated or stolen. It’s accountability, plain and simple.
“While hardworking Americans are struggling to make ends meet, fraudsters are getting away with ripping off $1.4 billion of taxpayer money every single day,” Ernst told Fox News Digital on Wednesday.
“Government grift and graft is endless, but the public’s patience isn’t and neither is mine. The Senate will have an opportunity to bring this crime spree to an end by passing my Protecting American Taxpayers Act. This bill stops fraud before it happens and takes back the loot that’s already been stolen. As for the scammers, they’re going to the slammer.”
The package stretches beyond welfare and pandemic relief to tackle remittance abuse, a longtime conservative concern when foreign transfers mask fraud or divert welfare dollars overseas. Sen. Bernie Moreno’s proposal would force those sending wire transfers abroad to certify they are not on public assistance. The idea is straightforward: if you can afford to send cash overseas, you shouldn’t be drawing down U.S. welfare programs at the same time.
“For decades, Washington’s failed welfare program rewarded dependency while enabling fraudsters and criminals to exploit the system to take advantage of American taxpayers,” Moreno said in a January statement after initially drafting the legislation. “If an individual has enough cash to send money overseas, they have no business taking welfare benefits from hardworking Americans. The abuse ends now.”
Other bills in the package take aim at repeat offenders and institutional incentives that protect waste. Sen. Todd Young’s Assisting Small Businesses Not Fraudsters Act would bar previously convicted fraudsters from tapping Small Business Administration funds. Sen. Rand Paul’s Bonuses for Cost-Cutters Act would reward federal employees who uncover waste, giving auditors a financial stake in finding fraud.
Sen. James Lankford is adding language to extend the statute of limitations for prosecuting COVID fraud, a change aimed at giving prosecutors more time to build complex cases. Republicans say stretching timelines makes sense where wide-ranging scams and cross-border schemes are involved. That provision is pitched as practical, not punitive, for investigators trying to hold big fraud networks accountable.
On the foreign policy and assistance side, Sen. Tim Sheehy’s No Tax Dollars for Terrorists Act would tighten State Department oversight to prevent U.S. aid from inadvertently supporting hostile actors. Part of the GOP pitch is that taxpayer dollars should not subsidize regimes or groups that undermine American interests. The proposal is framed as a defensive measure to protect taxpayers and national security at once.
Procedurally, Senate Republican leadership could move quickly by filing cloture to force a vote, a maneuver that would limit debate and put senators on record. Sponsors are lobbying their colleagues to sign on and to vote for a tougher stance on fraud and waste. Co-sponsors already include a cross-section of GOP senators who want to show voters they are acting on fiscal responsibility. The coming days may decide whether this package becomes law or just another talking point.
