Crime Victims Fund Stabilization Act of 2025
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The bill would temporarily add False Claims Act settlement and judgment penalties as a funding source for the Crime Victims Fund, which pays for victim compensation and assistance programs nationwide, through fiscal year 2029.
It would also require a Justice Department Inspector General audit of the Fund's long-term stability, addressing concerns that the Fund's traditional revenue sources have become unpredictable in recent years.
What this bill would do
What it would do
The bill would amend the Victims of Crime Act of 1984 to allow civil monetary penalties collected under the False Claims Act — from fraud and false-claims settlements and judgments against the federal government — to be deposited into the Crime Victims Fund, beginning on enactment through the end of fiscal year 2029. It excludes amounts owed to whistleblower (qui tam) plaintiffs and amounts needed to reimburse the government for actual damages from the fraud. The bill also requires the Justice Department's Inspector General to deliver, by September 30, 2028, an audit of the Fund's sustainability, including the effects of both this Act and a 2021 law on the Fund's balance and long-term stability, plus recommendations for improving it. It does not change how the Fund's money is spent or who receives victim assistance grants.
Key provisions
- 1Would allow civil monetary penalties collected under the False Claims Act to be deposited into the Crime Victims Fund through fiscal year 2029
- 2Would exclude amounts needed to pay whistleblower plaintiffs from the newly deposited funds
- 3Would exclude amounts needed to reimburse the government for actual fraud damages from the newly deposited funds
- 4Would require the Justice Department Inspector General to submit an audit of the Crime Victims Fund's sustainability and long-term stability by September 30, 2028
Who would be affected
State and local victim compensation and assistance programs that draw on the Crime Victims Fund, crime victims who rely on those services, the Department of Justice and its Inspector General, and defendants in False Claims Act cases whose settlement or judgment penalties would now be redirected to the Fund.
Why it matters
The Crime Victims Fund has faced declining and unpredictable deposits in recent years because its main revenue source, federal criminal fines and penalties, fluctuates with prosecution activity. Adding False Claims Act penalties as a temporary revenue stream could stabilize funding for victim services, while the required audit would inform whether further changes are needed.
What would change
Changes to existing law
Amends Victims of Crime Act of 1984 (34 U.S.C. 20101(b)(6)) (Sec. 2)
Adds False Claims Act civil penalties as a temporary allowable deposit source for the Crime Victims Fund through FY2029, with exclusions for qui tam and damages amounts.
Agencies directed to act
Effective dates
- New False Claims Act deposit authority for the Crime Victims Fund
- New False Claims Act deposit authority expires
- Inspector General audit report due to Congress
How implementation would work
Once enacted, the Justice Department would begin routing eligible False Claims Act civil penalty collections into the Crime Victims Fund rather than elsewhere, applying the carve-outs for whistleblower payments and government damages reimbursement. The authority to make these deposits runs through the end of fiscal year 2029. Separately, the department's Inspector General must compile an audit examining fund sustainability, the effects of this law and the 2021 VOCA Fix Act, and recommendations, delivering it to four congressional committees by September 30, 2028.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on the Judiciary.
Official CRS summary
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This bill adds a new source of revenue for the Crime Victims Fund (CVF). Specifically, the bill requires certain civil monetary penalties collected from settlements and judgments in cases involving fraud and false claims against the federal government to be deposited into the CVF through FY2029.
The CVF supports federal, state, and local programs and activities to compensate and assist victims of crimes. Currently, the CVF is funded by deposits from a variety of sources, including federal criminal fines, penalties, and assessments; forfeited bail bonds; and certain other gifts, donations, and bequests.
Legislative subjects
Crime and Law Enforcement; Crime victims; Government trust funds