GOP Targets COVID Fraud with New 10-Year Enforcement Bill

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Senator Joni Ernst (R-IA) and Congressman Roger Williams (R-TX) unveiled new legislation Wednesday aimed at holding pandemic-era fraudsters accountable — potentially for years to come.

The proposed SBA Fraud Enforcement Extension Act would extend the statute of limitations to ten years for fraud committed under two key COVID-19 relief programs: the Shuttered Venue Operators Grant (SVOG) and the Restaurant Revitalization Fund (RRF). This mirrors a 2022 measure that did the same for the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).

Ernst, who chairs the Senate Small Business and Entrepreneurship Committee, said extending the window to prosecute is critical for justice. “We’re talking about millions in stolen taxpayer dollars,” she said, “while small businesses across Iowa, Texas, and the rest of the country were left behind.”

The bill comes on the heels of a shocking Government Accountability Office (GAO) report revealing that Biden’s Small Business Administration Inspector General failed to investigate up to three million fraud referrals — largely due to poor data collection or faulty referral information.

In one of her previous reports, Small Business COVID-19 Fraud: Three Years Later, Ernst accused the Biden administration of downplaying the scale of abuse and pointed to wild examples of fraud, including applicants using Barbie doll photos as IDs — and still getting approved.

She added that while law-abiding entrepreneurs were denied help, known criminals, gang members, and traffickers were “raking in cash.”

Some cases were particularly egregious. One alleged scammer reportedly walked away with $8 million, while nearly 2,000 struggling Iowa restaurants were left empty-handed due to depleted RRF funds. Meanwhile, celebrities and elite event planners have been outed for using SVOG funds for luxuries like private jets and designer clothes.

Recent audits by Elon Musk’s Department of Government Efficiency (DOGE) have exposed more layers of waste and fraud, including $312 million in COVID aid sent to children under the age of 11. Ernst said that discovery was “just the tip of the iceberg.”

Williams echoed that sentiment, saying in a statement that “too many crooks made off with taxpayer money under Biden’s SBA, and they need to be brought to justice — even if it takes years to track them down.”

While Democrats have expressed support for some enforcement measures, critics accuse the Biden administration of being slow to act, prioritizing ideological programs over accountability.

Ernst’s office said the bill is likely to attract bipartisan support, given the growing public anger over how COVID funds were distributed — and the large number of unresolved fraud cases still sitting untouched.

With this new bill, Republicans hope to make it clear that pandemic relief fraud won’t be swept under the rug — and that those who scammed the system will eventually pay the price.