No Gratuities for Governing Act of 2026
- Sponsor
- Sen. Kim, Andy [D-NJ]
- Committees
- Judiciary Committee (primary)
- Last action
- Sep 24, 2026
Bottom line
The bill expands federal criminal law to explicitly cover illegal gratuities involving entities receiving federal funds, aiming to deter influence peddling and corruption, while also increasing penalties for existing federal program fraud.
What it actually does
This bill creates a new federal offense for illegal gratuities, specifically targeting agents of organizations or state, local, or Indian Tribal governments that receive federal funds. It criminalizes both giving and receiving anything of value of $1,000 or more for or because of an official act, where the underlying business transaction is $5,000 or more. Additionally, it increases the maximum prison sentence for the existing federal program fraud offense under 18 U.S.C. 666(a) from 10 to 15 years and expands forfeiture provisions to cover the new gratuities offense.
Proponents argue
Supporters argue this bill closes a loophole in federal anti-corruption law by explicitly criminalizing illegal gratuities, which are payments made for past official acts without a prior agreement, distinct from bribery. They contend it strengthens accountability for public officials and those dealing with entities receiving federal funds, promoting integrity and trust in government operations. The increased penalty for federal program fraud also signals a stronger stance against misuse of public funds.
Opponents contend
Critics might argue that the bill could lead to over-criminalization, potentially ensnaring individuals in minor transactions or creating ambiguity regarding what constitutes 'for or because of any official act.' They might also raise concerns about the broad scope of 'agents' and 'organizations' covered, potentially extending federal reach into state, local, and tribal government affairs in ways that could be seen as an overreach. The increased prison sentence for existing fraud could also be viewed as unnecessarily harsh.
The bill is short and relatively straightforward, allowing a reader to grasp its core changes quickly.
Section 2(a)(3), inserting new subsection (b) into 18 U.S.C. 666.
Establishes Federal Offense for Illegal Gratuities
This provision creates a new federal crime for both giving and receiving an 'illegal gratuity.' An illegal gratuity is defined as knowingly and purposefully giving or receiving anything of value worth $1,000 or more to or by an agent of an organization or government that receives federal funds, for an official act performed in connection with a business transaction worth $5,000 or more. Unlike bribery, a gratuity doesn't require a prior agreement to influence an act, only that it's given 'for or because of' an act.
Supporters argue
Supporters argue this closes a gap in anti-corruption law, as existing bribery statutes require proof of a quid pro quo (an agreement to influence an act), which can be difficult to prove. Gratuities, while not direct bribery, still erode public trust and create an appearance of impropriety. This provision provides a tool to prosecute such conduct.
Critics contend
Critics might contend that the distinction between a legitimate gift and an illegal gratuity can be blurry, potentially leading to overzealous prosecution or chilling legitimate interactions between public officials and the public. They may also argue that existing state and local ethics laws are sufficient to address such conduct.
Tradeoffs
The bill balances the desire to strengthen anti-corruption measures and deter undue influence with concerns about potentially criminalizing actions that may not involve explicit corrupt intent, and the potential for federal overreach into local governance.
Section 2(a)(2)(B), amending 18 U.S.C. 666(a).
Enhances Penalties for Federal Program Fraud
This provision increases the maximum prison sentence for the existing federal program fraud offense under 18 U.S.C. 666(a) from 10 years to 15 years. This offense covers embezzlement, theft, bribery, or other fraudulent acts by agents of organizations or governments receiving federal funds, where the value involved is $5,000 or more.
Section 2(b), amending sections 981(a)(1)(D) and 982(a)(3) of title 18.
Includes New Gratuities Offense in Federal Forfeiture Statutes
This provision amends federal forfeiture laws to ensure that assets derived from or involved in the new illegal gratuities offense (18 U.S.C. 666(b)) are subject to civil and criminal forfeiture. This means that any money or property gained through or used to facilitate the commission of this new crime can be seized by the government.
This amendment ensures that the 'circumstance' requiring the organization or government to receive federal funds (specifically, $10,000 or more in federal assistance in a 1-year period) applies not only to the existing federal program fraud offense (subsection (a)) but also to the newly created illegal gratuities offense (subsection (b)).
Section 2(a)(4), amending subsection (c) of 18 U.S.C. 666.
Why it matters:This is standard legislative practice to ensure consistency in statutory language when adding new provisions.
Case for: Supporters would argue this ensures the new gratuities offense is properly scoped to federal interest, applying only where federal funds are involved, consistent with the original intent of 18 U.S.C. 666.
Case against: No specific case against this technical amendment, as it clarifies the scope rather than expanding it beyond the federal nexus.
Estimated impact: Ensures the federal jurisdiction for the new gratuities offense is tied to the receipt of federal funds, limiting its application to entities receiving at least $10,000 in federal assistance annually.