Sec. 10505. Program compliance and integrity | Impact
Legislative and Policy Analysis
Section titled “Legislative and Policy Analysis”Section 10505: Program compliance and integrity
Section titled “Section 10505: Program compliance and integrity”Executive Summary
Section titled “Executive Summary”Section 10505 is a narrow crop-insurance oversight funding provision. It amends Section 515(l)(2) of the Federal Crop Insurance Act, which funds data mining and related information-technology tools used to administer and enforce the Federal crop insurance program.[1]
The section raises the statutory annual cap for data-mining funding from $4 million per fiscal year for fiscal years 2009 through 2025 to $6 million for fiscal year 2026 and each later fiscal year.[2] The practical effect is an additional $2 million per year in available Federal Crop Insurance Corporation funding authority for program-integrity analytics, fraud detection, improper-payment review support, and compliance targeting.
This section does not directly change producer eligibility, crop insurance premium subsidy rates, indemnity formulas, approved insurance provider reimbursement formulas, or consumer food prices. Its impact is administrative: USDA’s Risk Management Agency and the Federal Crop Insurance Corporation receive more room under the statutory cap to use crop-insurance insurance-fund resources for data mining and compliance analytics.
What Section 10505 Actually Does
Section titled “What Section 10505 Actually Does”Section 10505 changes only one funding limit in the Federal Crop Insurance Act. Before the amendment, Section 515(l)(2) allowed the Federal Crop Insurance Corporation to use up to $4 million per year from the crop insurance insurance fund for data mining. After the amendment, the law preserves the $4 million cap for fiscal years 2009 through 2025 and sets a new $6 million cap for fiscal year 2026 and every subsequent fiscal year.[3]
| Program or activity | Amount | What the money supports |
|---|---|---|
| Federal crop insurance data mining, fiscal years 2009 through 2025 | $4 million per fiscal year | Data mining and related information technologies used to administer and enforce the Federal crop insurance program |
| Federal crop insurance data mining, fiscal year 2026 and each subsequent fiscal year | $6 million per fiscal year | Expanded statutory room for RMA and FCIC compliance analytics, data warehousing, improper-payment targeting, and program-integrity work |
| Incremental annual increase beginning in fiscal year 2026 | $2 million per fiscal year | Additional available authority compared with the prior annual cap |
Over the standard fiscal year 2026 through fiscal year 2034 budget window, the increase equals up to $18 million in additional available authority if the full annual increase is used each year. That figure is a mechanical comparison between the old $4 million cap and the new $6 million cap; it is not a separate appropriation line and may not appear in public budget materials as a stand-alone Section 10505 account.[4]
The underlying statute says the purpose of Section 515 is to improve compliance with, and the integrity of, the Federal crop insurance program. It also directs the Federal Crop Insurance Corporation to work with approved insurance providers on compliance and integrity issues as they arise.[5] Section 515 separately directs USDA to use data mining, data warehousing, and other information technologies to administer and enforce the crop insurance program.[6]
Legislative Mechanism
Section titled “Legislative Mechanism”Section 10505 is a text-substitution amendment. It does not create a new program. It amends Section 515(l)(2) of the Federal Crop Insurance Act, codified at 7 U.S.C. 1515(l)(2), by replacing the old single cap with a two-period structure:
- $4 million for each of fiscal years 2009 through 2025; and
- $6 million for fiscal year 2026 and each subsequent fiscal year.[7]
The administering entity is the Federal Crop Insurance Corporation, operating through USDA’s Risk Management Agency. The funding source is the insurance fund established under 7 U.S.C. 1516(c), because Section 515(l)(2) authorizes FCIC to use amounts made available from that fund for data mining.[8]
The policy mechanism is therefore not a new entitlement to producers or insurers. It is an increase in the ceiling on how much FCIC may use for a specific administrative enforcement purpose.
Expenditure Tracking and Reporting Protocol
Section titled “Expenditure Tracking and Reporting Protocol”Section 10505 involves federal financial flows because it increases the annual amount that FCIC may use from the crop insurance insurance fund for data mining and program-integrity enforcement. Public tracking is likely to be partially visible but not cleanly isolable as “Section 10505 spending.”
The most likely tracking sources are USDA Risk Management Agency budget execution records, FCIC financial statements, Treasury account reporting, USDA improper-payment materials, OMB payment-integrity reporting, and congressional oversight. RMA’s compliance materials show that the agency conducts improper-payment reviews using statistically valid samples and requires approved insurance providers to submit documentation through the Compliance Activities Results System.[9] RMA’s fiscal year 2025 financial statement materials also describe the crop insurance program as a public-private partnership and identify program integrity and taxpayer-fund safeguarding as core RMA responsibilities.[10]
flowchart TD
A[Section 10505 authority] --> B[FCIC insurance fund]
B --> C[RMA compliance work]
C --> D[Data mining]
C --> E[Improper payment reviews]
C --> F[AIP documentation]
D --> G[Compliance actions]
E --> G
F --> G
G --> H[Agency budget records]
G --> I[Treasury reporting]
G --> J[OMB payment integrity]
G --> K[USDA OIG and GAO oversight]
H --> L[Public visibility limited]
I --> L
J --> L
K --> L
The reporting protocol is likely to work this way: RMA and FCIC execute funds internally; approved insurance providers submit policy and claim documentation when selected for review; RMA compiles improper-payment and compliance results; USDA and OMB use those results in payment-integrity and financial reporting; and USDA OIG, GAO, and Congress may review the program through audits, financial statements, hearings, or oversight letters.
Public visibility is likely to be aggregated. The $6 million cap is specific in statute, but actual spending may be embedded in broader RMA or FCIC administrative, compliance, information-technology, or insurance-fund reporting. USAspending.gov may show some related contracts if RMA uses outside vendors for data or technology services, but section-specific outlays may be difficult to isolate unless USDA, CBO, OMB, or congressional materials break them out.
Day-to-Day Government Process Changes
Section titled “Day-to-Day Government Process Changes”For USDA, the day-to-day change is more budget room for compliance analytics. RMA can support more or better data-mining work without hitting the previous $4 million annual ceiling as quickly. This may affect how RMA prioritizes anomaly detection, policy sampling, acreage and production cross-checks, improper-payment estimation, and investigations of suspected waste, fraud, or abuse.
For approved insurance providers, the section may lead to more data requests, more targeted reviews, and more documentation submissions when RMA identifies policies for compliance review. RMA’s 2026 improper-payment review memorandum shows that AIPs can be required to provide policyholder and provider documentation through CARS for selected policies.[11]
For producers, the provision may not change ordinary enrollment or claim-filing steps. However, producers whose policies are flagged through data mining, random sampling, or targeted compliance review may face more documentation review, follow-up questions, or verification of acreage, production history, claim information, or eligibility.
For Congress and oversight bodies, the provision modestly increases the resources available for detecting improper payments in a program with very large insured value. RMA reported more than $198 billion in total insurance in force on more than 563 million acres for crop year 2025.[12] Against that scale, a $2 million annual increase is small, but it is targeted at oversight and integrity rather than benefit expansion.
Effects on Consumers
Section titled “Effects on Consumers”Section 10505 has no direct consumer benefit, price support, nutrition benefit, or retail food-price mechanism. Consumers do not receive payments, tax credits, subsidies, or new rights under this section.
The indirect consumer effect is institutional. If stronger data mining reduces improper payments or deters fraud, federal crop insurance may operate with better stewardship of taxpayer funds. That could marginally improve public confidence in the farm safety net. However, the provision is too narrow to expect measurable changes in grocery prices, food availability, or consumer choice.
Effects on Businesses
Section titled “Effects on Businesses”The most affected businesses are approved insurance providers, crop insurance agents, loss adjusters, data contractors, and agricultural producers that buy federally supported crop insurance.
Approved insurance providers may experience additional compliance workload if RMA uses the higher cap to expand data-mining-driven reviews. This could mean more requests for documentation, more policy file checks, and more interaction with RMA compliance offices. Agents and loss adjusters may also face greater scrutiny of training, records, and claim handling because the underlying statute ties program integrity to the elimination of waste, fraud, and abuse and to continuing education for agents and adjusters.[13]
Technology and analytics vendors could see limited opportunities if USDA contracts for private-sector expertise or technological resources. The underlying statute authorizes USDA to use private-sector expertise and technological resources for these information-technology functions, subject to periodic competition as determined by the Secretary.[14]
For producers, the business impact is mixed but limited. Honest producers may benefit if better compliance reduces abusive claims and protects the long-term credibility of subsidized crop insurance. Producers subject to review may face higher recordkeeping burdens, especially if their acreage, production, or claim patterns trigger data-mining flags.
Environmental and Climate Impact
Section titled “Environmental and Climate Impact”Section 10505 has no direct environmental or climate mandate. It does not change conservation compliance, crop insurance premium subsidies for conservation practices, climate-smart agriculture programs, disaster eligibility, acreage use, irrigation rules, pesticide rules, or greenhouse-gas reporting.
The indirect environmental impact is likely minimal. Stronger data mining could theoretically improve enforcement of eligibility and reporting rules that intersect with acreage, cropping practices, or conservation-related compliance, but Section 10505 does not itself create a new environmental standard. Any environmental effect would depend on how RMA uses compliance analytics in practice.
Impact Summary
Section titled “Impact Summary”Section 10505 is best understood as a small but meaningful administrative integrity increase inside the federal crop insurance system. It raises the annual data-mining cap from $4 million to $6 million beginning in fiscal year 2026, giving RMA and FCIC additional room to fund analytics and enforcement tools.
The provision does not expand crop insurance coverage, increase premium subsidies, or alter producer payment formulas. Its main effect is to strengthen the government’s capacity to identify improper payments, fraud risks, inconsistent data, and compliance problems in a large public-private crop insurance program.
The main implementation concern is transparency. The statutory cap is clear, but actual Section 10505 spending may be hard for the public to isolate because the money flows through FCIC insurance-fund and RMA compliance structures rather than through a new stand-alone grant, contract, or benefit account.
Key References and Sourcing
Section titled “Key References and Sourcing”| Source | Relevance |
|---|---|
| Public Law 119-21 | Primary statutory text for Section 10505 and the new $6 million annual cap. |
| 7 U.S.C. 1515, Program compliance and integrity | Codified Federal Crop Insurance Act provision showing the purpose, data-mining authority, funding source, and amended cap. |
| USDA Risk Management Agency, Compliance Information | RMA compliance portal showing current compliance memoranda, handbooks, data-mining materials, and provider-facing tools. |
| USDA Risk Management Agency, 4-RM FSA RMA Handbook | RMA handbook page describing procedures for FSA, RMA, and insurance providers to improve Federal Crop Insurance Program compliance and integrity. |
| USDA Risk Management Agency, COM-26-005: Risk Management Agency Improper Payment Reviews | Current RMA improper-payment review memorandum showing review sampling, AIP documentation requirements, and CARS reporting. |
| USDA Office of Inspector General, FCIC/RMA Financial Statements for Fiscal Year 2025 | Financial statement materials describing crop insurance scale, public-private delivery, improper-payment focus, and taxpayer-fund safeguarding. |
[1] 7 U.S.C. 1515, “Program compliance and integrity,” purpose and data-mining provisions, https://www.law.cornell.edu/uscode/text/7/1515. ([Legal Information Institute][1])
[2] Public Law 119-21, “Sec. 10505. Program compliance and integrity,” statutory amendment to 7 U.S.C. 1515(l)(2), https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm. ([GovInfo][2])
[3] 7 U.S.C. 1515(l)(2), amended data-mining funding cap, https://www.law.cornell.edu/uscode/text/7/1515. ([Legal Information Institute][1])
[4] Calculation by comparison of the prior $4 million annual cap and the amended $6 million annual cap for fiscal years 2026 through 2034; statutory cap from Public Law 119-21 and 7 U.S.C. 1515(l)(2), https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm.
[5] 7 U.S.C. 1515(a), “Purpose,” https://www.law.cornell.edu/uscode/text/7/1515. ([Legal Information Institute][1])
[6] 7 U.S.C. 1515(j)(2), “Use of available information technologies,” https://www.law.cornell.edu/uscode/text/7/1515. ([Legal Information Institute][1])
[7] Public Law 119-21, Section 10505 text, https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm. ([GovInfo][2])
[8] 7 U.S.C. 1515(l)(2), funding from the insurance fund established under 7 U.S.C. 1516(c), https://www.law.cornell.edu/uscode/text/7/1515. ([Legal Information Institute][1])
[9] USDA Risk Management Agency, “COM-26-005: Risk Management Agency Improper Payment Reviews,” April 22, 2026, https://www.rma.usda.gov/policy-procedure/bulletins-memos/informational-memorandum/com-26-005-risk-management-agency. ([Risk Management Agency][3])
[10] USDA Office of Inspector General, “Federal Crop Insurance Corporation/Risk Management Agency’s Financial Statements for Fiscal Year 2025,” January 2026, https://usdaoig.oversight.gov/sites/default/files/reports/2026-01/05403-0002-11%20FR%20508%20-%20signed_0.pdf. ([U.S. Department of Agriculture OIG][4])
[11] USDA Risk Management Agency, “COM-26-005: Risk Management Agency Improper Payment Reviews,” AIP documentation and CARS submission process, https://www.rma.usda.gov/policy-procedure/bulletins-memos/informational-memorandum/com-26-005-risk-management-agency. ([Risk Management Agency][3])
[12] USDA Office of Inspector General, “Federal Crop Insurance Corporation/Risk Management Agency’s Financial Statements for Fiscal Year 2025,” crop year 2025 insurance in force and acreage figures, https://usdaoig.oversight.gov/sites/default/files/reports/2026-01/05403-0002-11%20FR%20508%20-%20signed_0.pdf. ([U.S. Department of Agriculture OIG][4])
[13] 7 U.S.C. 1515(k), continuing education for loss adjusters and agents, https://www.law.cornell.edu/uscode/text/7/1515. ([Legal Information Institute][1])
[14] 7 U.S.C. 1515(j)(3), private-sector expertise and technological resources, https://www.law.cornell.edu/uscode/text/7/1515. ([Legal Information Institute][1])