House Votes to Block Convicted Fraudsters from Contracts, Grants

The House passed a bill Monday to prohibit individuals convicted of certain felony offenses from receiving federal grants or contracts.

The measure (H.R. 6916), passed by voice vote, would apply to individuals convicted of embezzlement, overvaluation of securities, making false statements, and other specified criminal offenses under the Small Business Act.

The bill would also cover entities that the felon is a beneficial owner of—exercising substantial control, or at least 25% ownership. Agency heads could waive the restrictions case by case.

Rep. Keith Self (R-Texas) introduced the bill with Rep. Emily Randall (D-Wash.) on Dec. 19.

The House ...