State insurance departments could soon compete for federal grants worth up to $1 million a year to fight fraud aimed at older policyholders.
A bill introduced in the House on August 17, 2026 by Rep. Josh Gottheimer and Rep. Zachary Nunn would channel that money through the Securities and Exchange Commission (SEC). It has been referred to the House Committee on Financial Services and has not yet advanced. The Empowering States to Protect Seniors from Bad Actors Act would amend the Investor Protection and Securities Reform Act of 2010 to fund state regulators pursuing senior financial fraud.
The SEC would award competitive grants to two kinds of state agencies: securities commissions and insurance departments. Recipients could hire investigators, buy technology and training, run education programs for seniors, and toughen state fraud law.
The caps are the headline. One agency could receive up to $500,000 a year. A state office that runs both securities and insurance functions could receive up to $1 million. The bill authorizes $10 million a year for fiscal years 2025 through 2030.
It defines a "senior" as anyone 62 or older, and "senior financial fraud" broadly - covering a "fraudulent or otherwise illegal, unauthorized, or improper act" by anyone, including a caregiver or fiduciary, that drains a senior's resources or blocks access to their own assets.
The money would come with limits. It could not cover rent, utilities, or overhead. Agencies would file detailed spending reports, and the SEC would audit the program yearly and report to Congress at two and five years.
The bill backs its case with numbers. It cites Federal Trade Commission data that consumers reported losing more than $10 billion to fraud in 2023 - the first time losses topped that mark, up 14 percent from 2022 - with investment scams alone accounting for more than $4.6 billion. It also cites AARP findings that 9 out of 10 US adults faced a fraud attempt in the past year, and that servicemembers are nearly 40 percent more likely than civilians to lose money to scams.
For insurance regulators, the offer is plain: federal money to build anti-fraud teams around the policyholders most often targeted.
