HR-10112-119
Referred to the House Committee on Financial Services.
Sponsored by Josh Gottheimer (D-NJ)
What it does
This bill would amend the Investor Protection and Securities Reform Act of 2010 to authorize the SEC to award competitive grants (up to $500,000, or $1,000,000 for combined securities-insurance agencies) to state securities regulators and insurance departments. States could use the funds to hire staff, buy technology, train regulators, educate seniors, and strengthen state laws addressing financial fraud against people 62 and older. It authorizes $10 million per year for fiscal years 2025-2030 and requires reporting, audits, and public disclosure of grant activity.
Who benefits
State securities and insurance regulators who receive grant funding; seniors (62+) who may be protected from fraud through better-funded enforcement and education; law enforcement and prosecutors handling elder fraud cases; veterans and servicemembers, who the bill notes face disproportionate fraud risk; companies providing fraud-detection technology and training services to states.
Who is hurt
Federal taxpayers who fund the $10 million annual authorization; states or agencies that apply but do not receive competitive grants may see no benefit while competitors gain resources; individuals or entities under increased scrutiny from expanded state enforcement capacity, including caregivers, fiduciaries, and financial professionals who could face more investigations, some of which may be unfounded.
Supporters argue
Supporters argue that fraud losses have surpassed $10 billion annually, with investment scams alone accounting for $4.6 billion in 2023, and that state regulators have historically led effective efforts to protect vulnerable seniors and veterans. They contend that modest federal grants leverage existing state expertise and infrastructure rather than creating a new federal bureaucracy, giving states the resources to hire staff, train investigators, and educate seniors directly.
Opponents argue
Opponents argue that a $10 million annual authorization is too small relative to the $10 billion in reported fraud losses to meaningfully change outcomes, and that competitive grants may favor states with more sophisticated grant-writing capacity rather than those with the greatest need. They contend that federal funding tied to state enforcement priorities could create inconsistent, patchwork protections across states and impose reporting and audit burdens that divert resources from direct fraud-fighting work.
Constitutional context
This bill raises no significant constitutional questions; it establishes a voluntary federal grant program to states, which Congress may fund and condition under its spending power without commandeering state governments, consistent with the cooperative federalism model used in many similar programs.
Checks and balances
The SEC gains authority to design and administer the grant program, with congressional oversight through required reports to House Financial Services and Senate Banking Committees and annual audits.
Historical precedent
This bill amends an existing grant program originally created under Section 989A of the Dodd-Frank Act (2010), which already authorized SEC grants for senior investor protection.