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H.R. 7638119th CongressIn committeeLatest action Feb 20, 2026Decoded by AI · checked against the record
The plain-language version leads. The official text is always the reference.
HR 7638 requires court approval and clearer evidence before the government can permanently take property linked to a crime.
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HR 7638 changes federal civil asset forfeiture rules by requiring a court order before the government can permanently take property. The bill raises the legal standard from "more likely than not" to "clear and convincing evidence" and requires the government to prove the owner knowingly allowed their property to be used in a crime. It also tightens rules around bank transaction structuring penalties by requiring proof the person acted knowingly and that the money came from an illegitimate source.
The bill affects property owners, small business owners, and anyone who handles cash transactions, including those who previously could not afford legal representation. Federal law enforcement agencies such as the DEA and FBI, which currently use forfeiture proceeds to fund their own budgets, are also directly affected.
Forfeiture proceeds currently flow into special law enforcement funds rather than the general Treasury, a practice critics say creates a financial incentive to seize property. Redirecting those funds to the U.S. Treasury and raising legal standards would alter how federal agencies pursue and benefit from forfeiture cases.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
Latest action: — Referred to the Committee on the Judiciary, and in addition to the Committees on Energy and Commerce, Ways and Means, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.