Combating Organized Retail Crime Act of 2025
Floor Speech
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Mr. KNOTT. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2853) to combat organized crime involving the illegal acquisition of retail goods and cargo for the purpose of selling those illegally obtained goods through physical and online retail marketplaces, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows: H.R. 2853
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.
This Act may be cited as the ``Combating Organized Retail Crime Act of 2025''. SEC. 2. FINDINGS.
It is the sense of Congress that--
(1) organized theft groups, involving sophisticated and structured groups of individuals, continue to increase criminal activities carried out by the groups against the retail industry and the supply chain of the Nation, and these activities, at unprecedented levels, involve theft and fraud of both physical and digital goods, leading to escalating financial losses and violence in the workplace--all impacting the national economy and security of the United States;
(2) retailers face mounting thefts and fraud because of organized retail crime in and around stores, online, and throughout the retail ecosystem, and, according to the National Retail Federation, larceny incidents increased by 93 percent in 2023 compared to 2019, with a 90 percent rise in average dollar loss;
(3) these thefts are often orchestrated by organized theft groups reselling and redistributing the stolen goods back into the economy of the United States or overseas to gain illicit profit and to finance other criminal activity, and more than 84 percent of retailers report that violence and aggression from these criminal activities has become more of a concern since 2022, resulting in injuries and deaths among employees, customers, security officers, and law enforcement personnel;
(4) product manufacturers and the supply chain of the Nation are victims of alarming increases in cargo theft across rails, roads, and the various distribution points across the Nation;
(5) CargoNet, a database of reported incidents in the United States, reported a 27 percent increase in cargo theft incidents in 2024 compared to the previous year, while during the same period, the average value per theft rose to over $202,000;
(6) these thefts range from large-scale physical theft of goods from containers and storage to sophisticated cybercriminal methods that divert shipments to illicit receivers, causing significant financial losses and operational supply chain disruptions;
(7) since 2022, more than 30 State laws have been enacted to address organized theft, allow for aggregation of thefts, and adjust penalties and enhancements, includin in 2024, California voters overwhelmingly approving a constitutional reform to allow aggregation of multiple or repeated thefts;
(8) although larceny and organized retail crime are sometimes prosecuted at State and local levels, States face resource and investigative challenges from groups operating beyond local, State, and regional law enforcement capabilities, and more needs to be done to address the cross- jurisdictional, interstate, and international aspects of these crimes;
(9) organized theft groups vary in scope and scale, operating across State jurisdictions to avoid or disrupt local, State, and Tribal law enforcement response, and these organized theft groups build hierarchies to easily redistribute stolen goods and illicit profits back into the economy of the United States or overseas with disregard for product and consumer safety;
(10) the groups exist and operate at the local, regional, and transnational level, targeting goods that include raw and finished materials, various branded retail products across all consumer categories, operational assets in retail commerce such as reusable transport packaging products, and consumable goods including agriculture, food products, and medicines;
(11) these groups are often polycriminal organizations, using profit from the reselling of stolen goods to support crimes involving drugs and weapons trafficking;
(12) the organized theft groups engage in human smuggling and have been known to use migrants to commit crimes to support the organizations;
(13) the groups move products and illicit proceeds beyond the borders of the United States, funding nefarious groups and activities and threatening the integrity of the international economy;
(14) organized theft groups--
(A) threaten the safety and liberty of individuals in the United States when those individuals engage in commerce;
(B) impact the ability of the Nation to distribute goods to consumers, undermine consumer confidence in the supply chain, and threaten the integrity of agricultural and consumable goods;
(C) erode the national economy by increasing the cost of goods, resulting in higher prices for consumers, reducing tax revenues, and impacting employees, customers, and businesses alike; and
(D) impact the national security of the United States through financing transnational criminal activity and providing profit and proceeds supporting larger criminal goals of the criminal organizations; and
(15) it has become necessary for Congress to--
(A) amend title 18, United States Code, to ensure that law enforcement has the legal tools necessary to combat organized retail crime in the same capacity that law enforcement is able to combat theft and diversion from other portions of the supply chain; and
(B) direct the executive branch to create a central coordination center to align Federal, State, local, territorial, and Tribal efforts to combat organized retail crime and organized supply chain crime. SEC. 3. AMENDMENTS TO TITLE 18, UNITED STATES CODE.
Part I of title 18, United States Code, is amended--
(1) in section 982(a)(5)--
(A) by redesignating subparagraphs (C), (D), and (E) as subparagraphs (D), (E), and (F), respectively;
(B) by inserting after subparagraph (B) the following:
``(C) section 659 (interstate or foreign shipments by carrier; State prosecutions);'';
(C) in subparagraph (E), as so redesignated, by striking ``; or'' and inserting a semicolon; and
(D) by inserting after subparagraph (F), as so redesignated, the following:
``(G) section 2314 (transportation of stolen goods, securities, moneys, fraudulent State tax stamps, or articles used in counterfeiting); or
``(H) section 2315 (sale or receipt of stolen goods, securities, moneys, or fraudulent State tax stamps);'';
(2) in section 1956(c)--
(A) in paragraph (5), by striking ``and money orders'' and inserting ``money orders, general-use prepaid cards, gift certificates, and store gift cards''; and
(B) in paragraph (7)(D)--
(i) by inserting ``section 659 (interstate or foreign shipments by carrier; State prosecutions),'' after ``section 658 (relating to property mortgaged or pledged to farm credit agencies),''; and
(ii) by inserting ``section 2314 (transportation of stolen goods, securities, moneys, fraudulent State tax stamps, or articles used in counterfeiting), section 2315 (sale or receipt of stolen goods, securities, moneys, or fraudulent State tax stamps),'' after ``section 2281 (relating to violence against maritime fixed platforms),'';
(3) in section 2314, in the first paragraph--
(A) by inserting ``or of an aggregate value of $5,000 or more during any 12-month period,'' after ``more,'';
(B) by inserting ``embezzled,'' after ``stolen,''; and
(C) by inserting ``, false pretense, or other illegal means'' after ``fraud''; and
(4) in section 2315, in the first paragraph, by inserting ``or of an aggregate value of $5,000 or more during any 12- month period,'' after ``$5,000 or more,''. SEC. 4. ESTABLISHMENT OF A CENTER TO COMBAT ORGANIZED RETAIL AND SUPPLY CHAIN CRIME.
(a) In General.--Title III of the Trade Facilitation and Trade Enforcement Act of 2015 (19 U.S.C. 4341 et seq.) is amended by inserting after section 305 the following: ``SEC. 305A. ORGANIZED RETAIL AND SUPPLY CHAIN CRIME COORDINATION CENTER.
``(a) Definitions.--In this section:
``(1) Center.--The term `Center' means the Organized Retail and Supply Chain Crime Coordination Center established pursuant to subsection (b)(1).
``(2) Organized retail and supply chain crime.--The term `organized retail and supply chain crime' includes--
``(A) any crime described in section 659, 2117, 2314, or 2315 of title 18, United States Code that is committed by, in coordination with, or at the instruction of an organization;
``(B) aiding or abetting the commission of, or conspiring to commit, any act that is in furtherance of a violation of a crime referred to in subparagraph (A); and
``(C) other crimes related to those described in subparagraphs (A) and (B).
``(3) Secretary.--The term `Secretary' means the Secretary of Homeland Security.
``(4) Executive associate director.--The term `Executive Associate Director' means the Executive Associate Director of Homeland Security Investigations.
``(b) Organized Retail and Supply Chain Crime Coordination Center.--
``(1) Establishment.--Not later than 90 days after the date of enactment of the Combating Organized Retail Crime Act of 2025, the Secretary shall direct the Executive Associate Director to establish the Organized Retail and Supply Chain Crime Coordination Center.
``(2) Duties.--The duties of the Center shall include--
``(A) coordinating Federal law enforcement activities related to organized retail and supply chain crime, including investigations of national and transnational criminal organizations that are engaged in organized retail and supply chain crime;
``(B) establishing relationships with State and local law enforcement agencies and organizations, including organized retail crime associations and cargo theft associations, and sharing information regarding organized retail and supply chain crime threats with such agencies and organizations;
``(C) assisting State and local law enforcement agencies with State and local investigations of organized retail and supply chain crime groups;
``(D) establishing relationships with retail, transportation, and other companies determined by the Executive Associate Director to have significant interests relating to organized retail and supply chain crime threats, sharing information with those companies regarding such threats, collaborating on investigations and loss prevention activities as appropriate, and providing a mechanism for the receipt of investigative information on such threats;
``(E) establishing a secure system for sharing information regarding organized retail and supply chain crime threats by leveraging existing information systems at the Department of Homeland Security and the Department of Justice;
``(F) tracking trends with respect to organized retail and supply chain crime and releasing annual public reports on such trends; and
``(G) supporting the provision of training and technical assistance in accordance with subsection (c).
``(3) Leadership; staffing.--
``(A) Director.--The Center shall be headed by a Director, who shall be--
``(i) an experienced law enforcement officer;
``(ii) appointed by the Director of U.S. Immigration and Customs Enforcement; and
``(iii) in a Senior Executive Service position as defined in section 3132 of title 5, United States Code.
``(B) Deputy director.--The Director of the Center shall be assisted by a Deputy Director, who shall be appointed, on a 2-year rotational basis, upon request from the Executive Associate Director, by--
``(i) the Director of the Federal Bureau of Investigation;
``(ii) the Director of the United States Secret Service; or
``(iii) the Chief Postal Inspector.
``(C) Federal staff.--The staff of the Center shall include--
``(i) special agents and analysts from Homeland Security Investigations; and
``(ii) detailed criminal investigators, analysts, and liaisons from other Federal agencies who have responsibilities related to organized retail and supply chain crime, including detailees from--
``(I) U.S. Customs and Border Protection;
``(II) the United States Secret Service;
``(III) the United States Postal Inspection Service;
``(IV) the Bureau of Alcohol, Tobacco, Firearms and Explosives;
``(V) the Drug Enforcement Administration;
``(VI) the Federal Bureau of Investigation; and
``(VII) the Federal Motor Carrier Safety Administration.
``(D) State and local staff.--The staff of the Center may include detailees from State and local law enforcement agencies, who shall serve at the Center on a nonreimbursable basis.
``(4) Coordination.--
``(A) In general.--The Center shall coordinate its activities, as appropriate, with other Federal agencies and centers responsible for countering transnational organized crime threats.
``(B) Shared resources.--In establishing the Center, the Executive Associate Director may co-locate or otherwise share resources and personnel, including detailees and agency liaisons, with--
``(i) the National Intellectual Property Rights Coordination Center established pursuant to section 305(a)(1); or
``(ii) other existing interagency centers within the Department of Homeland Security.
``(C) Agreements.--The Director of the Center, or his or her designee, may enter into agreements with Federal, State, local, and Tribal agencies and private sector entities to facilitate carrying out the duties described in paragraph (2).
``(D) Information sharing.--
``(i) In general.--Subject to the approval of the Director of the Center, information that would otherwise be subject to the limitation on the disclosure of confidential information set forth in section 1905 of title 18, United States Code, may be shared if such disclosure is operationally necessary.
``(ii) Non-delegable authority.--The Director may not delegate his or her authority under this subparagraph.
``(5) Reporting requirements.--
``(A) Initial report.--
``(i) In general.--Not later than 1 year after the date of enactment of the Combating Organized Retail Crime Act of 2025, the Secretary shall submit a report regarding the establishment of the Center to--
``(I) the Committee on the Judiciary of the Senate;
``(II) the Committee on Homeland Security and Governmental Affairs of the Senate;
``(III) the Committee on the Judiciary of the House of Representatives; and
``(IV) the Committee on Homeland Security of the House of Representatives.
``(ii) Contents.--The report required under clause (i) shall include a description of--
``(I) the organizational structure of the Center;
``(II) the agencies and partner organizations that are represented within the Center;
``(III) any challenges required to be addressed while establishing the Center;
``(IV) any lessons learned from establishing the Center, including successful prosecutions resulting from the activities of the Center;
``(V) recommendations for ways to strengthen the enforcement of laws involving organized retail and supply chain crime;
``(VI) the intersections and commonalities between organized retail crime organizations and other organized theft groups, including supply chain diversion and theft; and
``(VII) the impact of organized theft groups on the scarcity of vital products, including medicines, personal protective equipment, and infant formula.
``(B) Annual report.--Beginning on the date that is 1 year after the submission of the report required under subparagraph (A), and each year thereafter, the Secretary shall submit an annual report that describes the activities of the Center during the previous year to the congressional committees listed in subparagraph (A)(i).
``(6) Sunset.--
``(A) In general.--The authority of the Center shall terminate on the date that is 7 years after the date on which the Center is established under paragraph (1).
``(B) Wind down.--The Secretary shall take such actions as may be necessary to wind down the Center in accordance with subparagraph (A).
``(c) Training and Technical Assistance.--
``(1) Evaluation.--Not later than 180 days after the date of enactment of the Combating Organized Retail Crime Act of 2025, the Secretary and the Attorney General shall conduct an evaluation of existing Federal programs that provide grants, training, and technical support to State, local, and Tribal law enforcement to assist in countering organized retail and supply chain crime.
``(2) Evaluation scope.--The evaluation required under paragraph (1) shall evaluate, at a minimum--
``(A) the Homeland Security Grant Program at the Federal Emergency Management Agency;
``(B) grant programs at the Office of Justice Programs within the Department of Justice; and
``(C) relevant training programs at the Federal Law Enforcement Training Center.
``(3) Report.--Not later than 45 days after the completion of the evaluation required under paragraph (1), the Secretary and the Attorney General shall jointly submit a report to the congressional committees listed in subsection (b)(5)(A)(i) that--
``(A) describes the results of such evaluation; and
``(B) includes recommendations on ways to expand grants, training, and technical assistance for combating organized retail and supply chain crime.
``(4) Enhancing or modifying training and technical assistance.--Not later than 45 days after submitting the report required under paragraph (3), the Secretary and the Attorney General shall jointly issue formal guidance to relevant agencies and offices within the Department of Homeland Security and the Department of Justice for modifying or expanding, as appropriate, the prioritization of training and technical assistance designed to counter organized retail and supply chain crime.''.
(b) Clerical Amendment.--The table of contents for the Trade Facilitation and Trade Enforcement Act of 2015 (Public Law 114-125; 130 Stat. 122) is amended by inserting after the item relating to section 305 the following: ``Sec. 305A. Organized Retail and Supply Chain Crime Coordination Center.''.
Mr. Speaker, I first would like to begin by commending my good friend and colleague from Ohio (Mr. Joyce), for the hard work that he has put into not only drafting but ushering this legislation to where we are today.
The Combating Organized Retail Crime Act, colloquially known as CORCA, was the biproduct of collaboration of Members on both sides of the aisle, law enforcement, industry leaders, shipping and transportation companies, and small business owners throughout this country. I was proud to be an original cosponsor of this effort.
H.R. 2853 is an answer to the significant and persistent increase in organized retail crime that we have seen ballooning in recent years across the United States.
Often misunderstood, organized retail crime is a broad category, including everything from theft offenses such as stealing items from convenience stores to cargo theft, gift card theft, and stolen or cloned credit cards. While this may seem isolated or even miniscule when looked at alone, this problem has been escalating across the country at a vast scale.
While precise data on the losses to businesses from organized retail crime is hard to specify and difficult to quantify, it is estimated conservatively that up to $100 billion annually is the direct cost to businesses across the country.
Organized crime is forcing businesses to close. It is endangering the public. It contributes to the rise in prices for consumers wherever it is. Many organized retail crime rings operate across State and, of course, international lines.
While preventing local retail crime is properly left to the State and local governments, the cross-border nature of organized retail crime makes it difficult for State and local law enforcement agencies to fight these crimes, even if just on a resource level alone.
To be clear, this bill is not about going after the occasional shoplifter who steals an item of food or some small item that is of little consequence. Rather, this bill is going after the professional thieves, those who are repeat offenders who steal for profit and do so on a large scale.
H.R. 2853 provides Federal prosecutors with additional tools to prosecute these and other instances of organized retail crime.
For example, the bill amends title 18 to allow Federal prosecutors to charge receipt of stolen goods or transportation of stolen goods when the stolen property reaches an aggregate value of $5,000 or more over a 12-month period. It also expands the definition of monetary instrument in the Federal money laundering statute to include general-use prepaid cards, gift certificates, and store gift cards.
Over the past several years, organized retail crime groups have been increasingly utilizing gift card schemes to defraud stores and consumers. These groups record the gift card data in the store, receive notifications when the funds are loaded onto the same card, and then drain the balance before the consumer has the opportunity to use those funds.
This bill further expands the ability of Federal judges to order criminal forfeiture of assets from convictions related to the interstate shipment, transportation, or sale of stolen goods.
Finally, Mr. Speaker, it establishes a center to combat organized retail and supply chain crime within the Department of Homeland Security Investigations. The center will be tasked with coordinating Federal law enforcement activities related to organized retail and supply chain crime, including investigations of transnational criminal organizations.
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Mr. KNOTT. Mr. Speaker, I have no further speakers, and I reserve the balance of my time.
Again, Mr. Speaker, I commend my friend and colleague (Mr. Raskin) from Maryland for his considerable scholarship and efforts in getting this bill to the floor. We certainly wouldn't be here without his assistance, and I am grateful for it.
Mr. Speaker, as a Federal prosecutor in my previous career, I worked many years in the organized crime space. I investigated crimes like these. I spoke with the criminals. There is, as we have already discussed, a very deep need for this bill that the general public does not often see. I am not talking about shoplifters. I am not talking about the individual acts of random crime. I am talking about the more proficient domestic and international actors that have a real effect on every business and every customer in this country.
This bill is highly targeted in its scope. It addresses an important issue that is ongoing within our country, and it does not usurp local authority.
I urge my colleagues to support this bill. It is an important measure that will protect consumers. It will protect businesses, and it will protect employees all over the United States.
Mr. Speaker, I include in the Record the CBO cost estimate for H.R. 2853. H.R. 2853, COMBATTING ORGANIZED RETAIL CRIME ACT OF 2025, AS REPORTED BY THE HOUSE COMMITTEE ON THE JUDICIARY ON JANUARY 30, 2026 ------------------------------------------------------------------------ By fiscal year, millions of dollars-- ----------------------------------- 2026 2026-2031 2026-2036 ------------------------------------------------------------------------ Direct Spending (Outlays)........... * * * Revenues............................ * * * Increase or Decrease (-) in the * * * Deficit............................ Spending Subject to Appropriation 8 114 ** (Outlays).......................... ------------------------------------------------------------------------ * = between -$500,000 and $500,000. ** = not estimated.
Increases net direct spending in any of the four consecutive 10-year periods beginning in 2037? *
Increases on-budget deficits in any of the four consecutive 10-year periods beginning in 2037? No.
Statutory pay-as-you-go procedures apply? Yes.
Mandate Effects:
Contains intergovernmental mandate? No.
Contains private-sector mandate? No.
H.R. 2853 would establish a center within Immigration and Customs Enforcement (ICE) to coordinate federal law enforcement activities related to the organized theft of cargo, shipments, and goods, or the transport of counterfeit goods. Under the bill, the center would assist state and local law enforcement agencies with investigations, share information with relevant parties, and track trends related to those crimes. The authority for the center would terminate seven years after its creation.
The bill would require ICE to report annually to the Congress on the center's activities. The bill also would require the Department of Homeland Security and the Department of Justice to evaluate federal programs that provide grants, training, and technical support to state and local governments to assist in countering such crimes, and report to the Congress on their findings.
H.R. 2853 would create new criminal penalties for laundering money from the proceeds of selling or transporting stolen or counterfeit goods, or for using prepaid cards, gift certificates, and store gift cards to launder money. The bill also would create new criminal penalties for transporting, receiving, or selling stolen or counterfeit goods whose aggregate value is $5,000 or more in any 12-month period. Lastly, the bill would require federal courts to impose criminal forfeiture for the transportation or sale of stolen goods.
The estimated budgetary effects of the legislation are shown in Table 1. The costs of the legislation fall within budget function 750 (administration of justice). TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 2853 ---------------------------------------------------------------------------------------------------------------- By fiscal year, millions of dollars-- ---------------------------------------------------------------------- 2026 2027 2028 2029 2030 2031 2026-2031 ---------------------------------------------------------------------------------------------------------------- Increases in Spending Subject to Appropriation Estimated Authorization.................. 10 21 21 22 22 23 119 Estimated Outlays........................ 8 18 21 22 22 23 114 ---------------------------------------------------------------------------------------------------------------- CBO estimates that enacting H.R. 2853 would increase direct spending and revenues by less than $500,000 over the
2026-2036 period.
Based on the costs of similar programs within ICE, such as the Intellectual Property Rights Center and the Center for Countering Human Trafficking, CBO estimates that the new center would cost about $20 million annually, primarily for personnel. Further, we expect that the bill's reporting requirements would cost less than $500,000. On that basis, CBO estimates that implementing H.R. 2853 would cost $114 million over the 2026-2031 period, assuming appropriation of the necessary amounts.
CBO estimates that enacting H.R. 2853 would increase the receipt of both criminal penalties and forfeitures. Criminal penalties and forfeitures are recorded as revenues, deposited into the Crime Victims Fund and the government's forfeiture funds, respectively, and later spent without further appropriation. Using data from the U.S. Sentencing Commission for similar offenses, CBO expects that only a small number of people would be subject to penalties or forfeiture under the bill. On that basis, CBO estimates that enacting H.R. 2853 would increase revenues and the consequent direct spending by less than $500,000 over the 2026-2036 period. The effect on the deficit would be negligible.
The CBO staff contact for this estimate is Jeremy Crimm. The estimate was reviewed by H. Samuel Papenfuss, Deputy Director of Budget Analysis. Phillip L. Swagel, Director, Congressional Budget Office.
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Mr. KNOTT. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
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