S 2544119th CongressIn Committee

GUARD Act

Introduced: Jul 30, 2025

Defense & National Security

Standard Summary

Comprehensive overview in 1-2 paragraphs

The GUARD Act would broaden how federal grant money can be used by state, local, and Tribal law enforcement (and their grant recipients) to fight financial crime, with a specific focus on elder financial fraud, pig butchering scams, and general financial fraud. It authorizes the use of eligible federal grant funds for personnel, specialized training (including cross-agency coordination, victim assistance, and the use of blockchain-related tools), and the procurement of software and tools to investigate these crimes. It also clarifies that federal law enforcement agencies may assist state, local, and Tribal agencies in using tracing tools for blockchain and related technology. The bill establishes ongoing reporting requirements to track spending, effectiveness, and the state of fraud, and it creates a framework for regular Congress-wide updates on scams and enforcement actions. Sponsors listed in the bill text include Senators Britt, Gillibrand, and Scott of Florida.

Key Points

1Expands eligible uses of federal grant funds to investigate elder financial fraud, pig butchering, and general financial fraud, including hiring staff, specialized training, data coordination, and investment in investigative tools.
2Training and capabilities emphasized include:
3- cross-agency coordination and victim assistance
4- use of blockchain intelligence tools and other emerging technologies listed in the Critical and Emerging Technology List
5- handling transnational investigations and other advanced fraud techniques
6Allows and facilitates the use of tracing tools for blockchain and related technology by federal, state, local, and Tribal law enforcement, including fusion centers.
7Requires reporting by agencies/grantees within 1 year of fund use, covering expenditures, fraud statistics, and deterrence assessments (section 3(b)).
8imposes additional reporting and oversight:
9- Treasury/FinCEN to deliver a joint report to Congress within 1 year on general financial fraud, pig butchering, elder financial fraud, and scams (section 4)
10- a broader “state of scams” report within 2 years, with detailed metrics on scam activity, enforcement actions, and agency funding/expenditures (section 5)
11- annual reports from each agency providing eligible grant funds to key committees (section 6)
12Definitions included to clarify activities and terms, such as elder financial fraud, pig butchering, general financial fraud, scam, eligible federal grant funds, and State (including DC and U.S. territories).

Impact Areas

Primary: Elderly and disabled adults who are potential victims of financial fraud; state/local/Tribal law enforcement agencies and fusion centers tasked with investigating financial crimes; financial institutions that cooperate with investigations.Secondary: Federal agencies providing grants (e.g., those supporting technology, information sharing, cybercrime enforcement), technology and cybersecurity vendors supplying blockchain tracing tools, and the broader public who may benefit from reduced fraud and scams.Additional impacts:- Increased interagency coordination and information sharing between law enforcement and financial institutions- Potential privacy and civil liberties considerations due to expanded data gathering and use of tracing tools- Budget and administrative implications for grant management, training, and reporting requirements- Possible influence on enforcement actions and penalties tied to proceeds of fraud and related scamsPig butchering: A crypto-based scam where victims are gradually drawn into investing more money before the scammer disappears with the funds.Blockchain tracing tools: Tech used to follow digital asset flows and detect illicit activity on blockchain networks; the bill envisions federal and non-federal agencies working together to use these tools.

Generated by gpt-5-nano on Oct 8, 2025