H.R. 5344, Kleptocracy Asset Recovery Rewards Program Act

H.R. 5344 would amend federal law to reestablish within the Department of the Treasury the Kleptocracy Asset Recovery Rewards Program for seven years. Under current law, the pilot program expired in 2024. The bill would affect governments with corrupt leaders that use their power to exploit their people and natural resources to extend their personal wealth and political power. H.R. 5344 would authorize the appropriation of whatever amounts are necessary to run the program for rewards to individuals providing information to the government about such assets of a corrupt foreign government that are on deposit with a U.S. financial institution. That appropriation would need to come from the amounts seized by the Treasury under this program. The bill also would require the Department of Treasury to annually report to the Congress on the implementation of the program.

CBO estimates that the administrative costs to implement H.R. 5344 would be less than $500,000; any related spending would be subject to the availability of appropriated funds. To the extent that rewards are provided under the bill, CBO does not expect there would be any budgetary effect from those awards.

Under the bill, any funds recovered by the Treasury from such corrupt governments in future years would be available for such rewards. Generally, when the federal government takes control of assets that it does not own, those amounts are considered nonbudgetary and their collection and disbursement do not affect the deficit.

The CBO staff contact for this estimate is Matthew Pickford. The estimate was reviewed by H. Samuel Papenfuss, Deputy Director of Budget Analysis.