Congress Just Entered the Unclaimed Property Arena.Here's What It Means for Your Company.

Three mid-2026 developments that could reshape compliance—and what finance teams should be doing about them right now.

For decades, unclaimed property has largely been a state-by-state affair, with each jurisdiction maintaining its own reporting rules, dormancy periods, and enforcement priorities. While that framework remains in place, recent federal activity signals growing congressional interest in how certain categories of unclaimed property are administered.

Within a 48-hour period this April, Senator Elizabeth Warren requested extensive information from state unclaimed property administrators regarding escheatment practices, and bipartisan legislation—the SAFER Act (H.R. 8338)—was introduced in the House. Although the legislation focuses primarily on investment accounts, securities, and digital assets, it reflects broader scrutiny of state escheatment practices that could influence future policy discussions. At the same time, California continues an aggressive compliance initiative, while Ohio has enacted legislation allowing certain unclaimed property proceeds to help finance a new NFL stadium.

If your company holds aged liabilities—including outstanding checks, customer credits, gift cards, payroll items, or similar obligations—these developments are worth monitoring.

1. The SAFER Act: Federal Attention on Investment-Related Escheatment

Congress has begun paying unprecedented attention to state treatment of unclaimed investment assets.

On April 16, 2026, the SAFER Act (H.R. 8338) was introduced in the House, one day after Senator Elizabeth Warren requested state-by-state information regarding dormancy standards, escheatment volumes, reunification rates, and the use of contingency-fee audit firms.

The concern centers on states that use 'inactivity' standards—such as a lack of account logins—to trigger escheatment of certain investment assets.

If enacted, the SAFER Act would:

• Significantly restrict when covered investment assets may be remitted to states.

• Establish federal standards governing certain securities, investment accounts, and digital assets.

• Strengthen owner protections and notification requirements before escheatment.

The bill remains in the early stages of the legislative process. Even if it does not become law this Congress, it reflects increasing federal scrutiny of state escheatment practices and could influence future legislative and regulatory discussions.

2. California Is Scaling Up—Fast

California has publicly stated that only a small percentage of businesses appear to be reporting unclaimed property. The State Controller's Office continues mailing compliance notices to thousands of businesses, while the Franchise Tax Board cross-references tax filings to identify potential non-filers.

California's Voluntary Compliance Program (VCP) continues to offer:

• Waiver of the 12% annual interest assessment.

• Year-round enrollment with structured milestones.

• An opportunity to resolve historical exposure before an audit begins, although participants who fail to complete the program may be referred for examination.

Companies doing business in California or filing California tax returns should evaluate their reporting obligations proactively.

3. States Are Finding New Uses for Escheated Funds

Ohio enacted legislation allowing certain unclaimed property proceeds to help finance the Cleveland Browns' new stadium. While unique, the legislation illustrates how unclaimed property has become an increasingly important source of state revenue.

Whether or not the SAFER Act advances, the broader trend is clear: increased public scrutiny, evolving enforcement initiatives, and ongoing litigation are reshaping the unclaimed property landscape.

What Companies Should Do Right Now

• Audit aged liabilities across AP, AR, payroll, gift cards, customer credits, and suspense accounts.

• Evaluate California exposure and consider the VCP before receiving a compliance notice.

• Maintain thorough documentation to support compliance positions during audits.

• Address potential issues proactively rather than waiting for an audit notice or VDA invitation.

How Advisely Can Help

The unclaimed property landscape is evolving more rapidly than it has in years. Advisely helps organizations assess exposure, navigate voluntary disclosure programs, defend audits, and build sustainable compliance processes.

Whether or not H.R. 8338 ultimately becomes law, companies that proactively evaluate their unclaimed property programs today will be better positioned regardless of how federal policy evolves.

This article is provided for general informational purposes only and does not constitute legal, tax, or accounting advice. Unclaimed property laws vary by jurisdiction and change frequently.