S-2544-119
Placed on Senate Legislative Calendar under General Orders. Calendar No. 317.
Sponsored by Katie Britt (R-AL)
What it does
The GUARD Act would allow state, local, and Tribal law enforcement agencies that already receive certain federal grants to use those funds for investigating elder financial fraud, "pig butchering" cryptocurrency scams, and general financial fraud. It would also explicitly authorize federal law enforcement agencies to assist state, local, and Tribal agencies in using blockchain tracing tools. The bill requires grantees to report on how they used the funds and directs the Treasury Department and FinCEN to produce two reports to Congress — one on enforcement efforts and one on the overall scope of scams in the United States.
Who benefits
Elderly Americans and adults with disabilities who are disproportionately targeted by financial fraud. Victims of cryptocurrency "pig butchering" scams, which the FBI reported caused over $3.5 billion in losses in 2023. State, local, and Tribal law enforcement agencies that gain new flexibility to use existing federal grant dollars for financial fraud investigations. Financial institutions that would gain a designated law enforcement liaison for sharing fraud-related information. Consumers broadly who may benefit from improved scam data collection and enforcement coordination.
Who is hurt
Cryptocurrency scammers and transnational fraud networks that would face expanded law enforcement scrutiny and blockchain tracing. Law enforcement agencies that may face new administrative reporting burdens without additional funding to cover compliance costs. Federal agencies tasked with producing the required reports — including Treasury, FinCEN, DOJ, DHS, and multiple banking regulators — who would absorb staff time and resources. Taxpayers who indirectly bear the cost of redirected grant funds if those funds were previously used for other law enforcement priorities.
Supporters argue
Supporters argue that financial fraud targeting elderly Americans has reached crisis levels — the FTC reported consumers lost over $10 billion to fraud in 2023, with older adults losing the most per incident — and that existing federal grant programs were not clearly authorized for this use, leaving a gap in enforcement capacity. They contend the bill costs nothing new, simply unlocking flexibility in already-appropriated funds, while the blockchain tracing clarification gives local agencies access to federal expertise they currently lack for investigating cryptocurrency-based crimes.
Opponents argue
Opponents argue that redirecting existing grant funds toward financial fraud investigations may reduce resources available for the violent crime, cybercrime, and community policing purposes those grants were originally designed to fund, without any new appropriation to fill the gap. They contend that the reporting mandates placed on grantees and multiple federal agencies create unfunded administrative burdens, and that the bill's broad definition of "general financial fraud" — covering nearly any deceptive transaction — could dilute focus away from the most vulnerable victims, such as the elderly, toward lower-priority cases.
Constitutional context
The bill operates under Congress's Spending Clause authority (Art. I, §8) to attach conditions to federal grants to state and local governments. The authorization for federal agencies to assist with blockchain tracing tools could implicate the Fourth Amendment's warrant requirements for digital surveillance, as Carpenter v. United States (2018) established that comprehensive digital records — potentially including detailed blockchain transaction histories tied to individuals — may require a warrant.
Checks and balances
Congress expands permissible uses of executive-branch grant programs; grantee agencies must report back to the federal grant provider, and federal agencies must report to four congressional committees, preserving legislative oversight of how funds are used.
Historical precedent
The Elder Abuse Prevention and Prosecution Act of 2017 similarly directed federal resources and reporting requirements toward financial crimes targeting elderly Americans, establishing a precedent for federal coordination on this issue.