Why It Matters

The House passed H.R. 2978, the Guarding Unprotected Aging Retirees from Deception Act, also known as the GUARD Act, on Sept. 15 in a 414-7 vote. The legislation would expand the ways state, local and tribal law enforcement agencies can use certain federal grant funds to investigate general financial fraud, elder financial fraud and "pig-butchering" schemes.

The bill would also clarify that federal law enforcement agencies may assist state, local and tribal authorities and fusion centers in using blockchain and related technology tracing tools. It would require the Financial Crimes Enforcement Network to report to Congress on federal efforts to combat financial fraud and scams, including trends and potential legislative recommendations.

The legislation defines pig butchering as a confidence and investment fraud in which a victim is gradually induced to transfer increasing amounts of money into a fake virtual investment, generally using cryptocurrency.

The Big Picture

Rep. Zach Nunn (R-IA) introduced H.R. 2978, with Reps. Josh Gottheimer (D-NJ) and Scott Fitzgerald (R-WI) serving as original cosponsors. The measure was referred to the House Judiciary and Financial Services committees.

The Financial Services Committee approved the bill, as amended, on May 13 by a 52-0 recorded vote. The committee reported the measure on June 24.

The House considered H.R. 2978 under suspension of the rules and passed the amended bill by a two-thirds yea-and-nay vote. The 414-7 vote sends the House-passed legislation to the Senate.

The Senate has already advanced separate legislation addressing the same issue. S. 2544, also titled the Guarding Unprotected Aging Retirees from Deception Act, was introduced by Sen. Katie Britt (R-AL) and reported by the Senate Judiciary Committee on Feb. 9. The Congressional Budget Office described H.R. 2978 and S. 2544 as similar and estimated that implementing either measure would cost $128 million over the fiscal 2026-2031 period, assuming appropriation of the necessary amounts.

Partisan Perspectives

The House vote showed broad bipartisan support. Democrats cast 210 yea votes and no nay votes. Republicans cast 203 yea votes and seven nay votes. The chamber's independent member also voted yea.

Rep. Monica De La Cruz described financial fraud as one of the fastest-growing threats facing Americans, particularly seniors and retirees.

Nunn said the legislation was developed in response to concerns from law enforcement about the resources available to investigate sophisticated financial scams. Gottheimer said scammers increasingly use overseas networks and fake investment schemes to target seniors, while Fitzgerald highlighted the bill's provisions allowing investigators to use blockchain tracing technology.

Political Stakes

The House approved the GUARD Act with support from members of both major parties after the Financial Services Committee advanced it unanimously.

The legislation would expand permissible uses of existing federal law enforcement grants rather than establish an entirely separate investigative system. CBO estimates that implementing H.R. 2978 would require $128 million in discretionary outlays through fiscal 2031, assuming Congress provides the necessary appropriations.

The Senate's consideration of S. 2544 means both chambers have now taken action on legislation aimed at expanding law enforcement resources for investigating elder financial fraud, pig-butchering schemes and other financial scams.

The Bottom Line

The House passed H.R. 2978 by a 414-7 vote, advancing legislation that would give state, local and tribal law enforcement agencies greater flexibility to use federal grants to investigate financial fraud and clarify federal assistance for blockchain tracing.

The measure would also require FinCEN to provide Congress with information on fraud trends, federal enforcement efforts and potential legislative changes. With the House bill now approved and a similar Senate measure already reported by the Senate Judiciary Committee, further congressional action will determine whether the chambers ultimately agree on legislation to send to the president.

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