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Crime Victims Fund Stabilization Act of 2025

H.R. 909 – Crime Victims Fund Stabilization Act of 2025 to boost deposits into the Crime Victims Fund

119th Congress

H.R. 909 would change how money flows into the federal Crime Victims Fund for a limited time. It lets certain payments from False Claims Act cases be deposited into the Fund from enactment through fiscal year 2029. It does not touch money owed to whistleblowers or the government’s repayment of its own losses.

Bill Number
H.R.909
Chamber
house
Introduced
2/4/2025

What This Bill Does

This bill changes the rules for what money can go into the federal Crime Victims Fund, which helps pay for services for crime victims. It amends an existing law, the Victims of Crime Act of 1984. For the period starting on the date the bill becomes law through the end of fiscal year 2029, the bill allows certain money collected under the federal False Claims Act (sections 3729–3731 of title 31, U.S. Code) to be deposited into the Crime Victims Fund. The False Claims Act is used when people or companies defraud the federal government, such as by overbilling or making false payment claims. The bill sets two clear limits on what can be deposited. First, money that must be paid to qui tam plaintiffs (whistleblowers who bring False Claims Act cases and share in the recovery) cannot go into the Fund. Second, money that is needed to reimburse the U.S. government for the damages it suffered from the fraud cannot go into the Fund. Only the remaining amounts, such as certain fines or penalties, would be eligible for deposit into the Crime Victims Fund during this temporary period.

Why It Matters

The Crime Victims Fund is a major source of money for programs that support crime victims, such as counseling, shelters, and victim compensation. If deposits into the Fund are low, those programs may receive less support. By allowing certain False Claims Act payments to flow into the Fund for several years, the bill seeks to increase and stabilize the Fund’s resources. This change may affect how federal money from fraud cases is divided among different uses: paying whistleblowers, reimbursing the government, and supporting victims through the Fund. The bill keeps the existing shares for whistleblowers and for repaying the government’s losses, and only redirects the remaining eligible amounts. The exact financial impact on the Fund and on other government accounts is not specified in the bill text and would depend on the outcomes of future False Claims Act cases.

External Categories and Tags

Categories

economycivil-rights

Tags

crime-victims-fund (100%)false-claims-act (90%)federal-fund (80%)deposit-rule-change (70%)restitution (60%)fraud-penalties (55%)victim-compensation (50%)temporary-provision (45%)

Arguments

Arguments in support

  • May provide a significant, time-limited increase in funding for victim services without raising taxes, by using a portion of money collected from fraud cases.
  • Keeps financial incentives for whistleblowers unchanged, since their share of False Claims Act recoveries is protected from being diverted to the Fund.
  • Ensures the federal government is fully repaid for its losses from fraud before any remaining money is sent to the Crime Victims Fund.
  • A temporary measure through fiscal year 2029 allows Congress to reevaluate later based on actual results and needs of the Fund.
  • Uses money from wrongdoing (fraud against the government) to support people who have been harmed by crimes, which some view as an appropriate use of penalty funds.

Arguments against

  • Redirecting part of False Claims Act recoveries to the Crime Victims Fund could reduce the money available for other federal priorities that those penalties might otherwise support.
  • Depending on how it is implemented, the change might create complexity in tracking what portion of each recovery is eligible for the Fund versus what must reimburse the government or pay whistleblowers.
  • Tying the Crime Victims Fund to False Claims Act recoveries, even temporarily, could add uncertainty, since the size and timing of those recoveries can vary from year to year.
  • Some may prefer long-term structural reforms or direct appropriations to support the Crime Victims Fund instead of a temporary, case-based funding stream.
  • Critics might worry that relying more on penalty funds could indirectly pressure agencies or prosecutors to seek higher penalties to support the Fund, even though the bill does not change enforcement standards.

Key Facts

  • Temporarily adds a new source of deposits to the Crime Victims Fund: certain amounts collected under sections 3729–3731 of title 31, U.S. Code (the False Claims Act).
  • The new deposit authority applies only from the date the act is enacted through the end of fiscal year 2029.
  • Payments owed to qui tam plaintiffs (whistleblowers) under 31 U.S.C. 3730(d) are expressly excluded from deposit into the Fund.
  • Amounts needed to reimburse the U.S. government for its damages from False Claims Act violations under 31 U.S.C. 3729(a) are also excluded from deposit into the Fund.
  • Only remaining eligible amounts from False Claims Act recoveries (such as certain penalties) can be directed into the Crime Victims Fund under this bill.
  • The bill accomplishes these changes by amending section 1402(b)(6) of the Victims of Crime Act of 1984 (34 U.S.C. 20101).

Gotchas

  • The bill does not change how much whistleblowers receive under the False Claims Act; it only affects how the remaining funds are handled.
  • The authority to deposit False Claims Act recoveries into the Crime Victims Fund ends after fiscal year 2029 unless Congress extends or changes it later.
  • The bill does not set any minimum or maximum amount that must go into the Crime Victims Fund from these cases; deposits will depend entirely on the size and number of False Claims Act recoveries during the covered years.
  • The amendments operate by adding a new clause to an existing list of Crime Victims Fund deposit sources, so earlier funding sources and rules remain in place and are not repealed.

Full Bill Text

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