The Senate is divided over a proposal to extend the statute of limitations for fraud linked to roughly $43 billion in pandemic relief, focused on the $28.6 billion Restaurant Revitalization Fund and the $14.5 billion Shuttered Venue Operators Grant. Senator Joni Ernst says Democrats, led by Senator Ed Markey, are blocking her bill that would in some cases extend prosecution deadlines to 2031; Markey’s office did not respond. Supporters argue the extension is needed to build complex cases, while critics see the dispute as partisan. Some SVOG prosecutions could see deadlines lapse as soon as April 8.
Senate Clash Over Extending Fraud Deadlines For $43B In COVID Relief
Senator Joni ErnstAndrew Harnik/Getty Images
Senate Republicans say Democrats are blocking a bill that would extend the deadline for prosecutors to bring fraud charges tied to roughly $43 billion in pandemic relief — primarily the $28.6 billion Restaurant Revitalization Fund (RRF) and the $14.5 billion Shuttered Venue Operators Grant (SVOG) program.
What’s at Stake
The measure, championed by Senator Joni Ernst, would extend the statute of limitations for some pandemic-related fraud cases — in some instances pushing deadlines out to 2031 — giving investigators more time to build complex cases stemming from pandemic-era emergency spending. Ernst told Business Insider she believes Senator Ed Markey and other Senate Democrats are blocking the bill; Markey’s office did not respond to requests for comment.
Timing And Urgency
Lawmakers have under two weeks to pass the extension before the Senate must act for the bill to reach the president this session. Some SVOG-related prosecutions could see the statute of limitations expire as soon as April 8, making the timing particularly sensitive for active investigations.
Allegations And Oversight
Business Insider and other outlets previously reported that more than $200 million in SVOG awards went to high-profile recipients who used funds on private jets, parties, luxury clothing and other questionable expenses. Investigators have not charged those individuals with crimes, and the SBA has closed many of the grant files referenced in the reporting.
"We are not getting a lot of cooperation coming from our Ranking Member, Markey, and the Senate Democrats," Ernst said. "I'm not very optimistic that it's going to happen, and it's very, very frustrating."
Why Supporters Say More Time Is Needed
Former prosecutor Mike Galdo, who worked on pandemic-fraud cases, said the extension would give agents, analysts and prosecutors crucial time to sort through complicated records, resolve legal ambiguities in SVOG statute and regulations, and pursue cases that require detailed financial reconstruction.
Partisan Dispute And Broader Context
The disagreement is part of a broader partisan fight over pandemic-era programs. At a December 10 Small Business Committee hearing, Senator Markey accused Republicans of mounting "an all-out assault" on SBA initiatives that benefit underserved businesses; Republicans have accused Democrats of politicizing relief oversight. A similar statute-of-limitations extension already passed the House with bipartisan support.
Investigations And Estimates
Representative Gil Cisneros said the SBA inspector general has 31 open RRF investigations and six open SVOG investigations. Government auditors and watchdogs have criticized the SBA's internal controls and estimate that combined fraud and waste across pandemic programs could exceed $400 billion. While criminal prosecutions have addressed only a fraction of suspected abuse, some misspent funds may be recovered through administrative or civil actions.
As the Senate weighs the measure, the central question remains whether elected leaders will prioritize extending prosecutors’ timelines to pursue suspected pandemic fraud or allow existing deadlines to lapse while enforcement and oversight continue through other channels.
