Bill would require court orders before federal agencies can permanently seize property

What does this do?

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.

Who does it affect?

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.

Why does it matter?

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.

What does it cost, and who pays?

• Forfeiture funds redirected to U.S. Treasury
• DEA and FBI lose dedicated forfeiture revenue
• Court-appointed counsel added as new protection

Where does it stand?