House Passes Bill to Combat Supply Chain Theft as Industry Urges DOJ Action

WASHINGTON — The U.S. House of Representatives on May 12, 2026, passed the Combating Organized Retail Crime Act (CORCA), a bipartisan bill aimed at creating a coordinated federal response to the growing problem of large-scale supply chain and retail theft. The passage was lauded by railroad and logistics industry groups, who are simultaneously pressuring the Department of Justice to dedicate more resources to prosecuting these complex criminal operations. For small and mid-sized businesses, this legislative progress is a welcome, if overdue, development. The financial and operational strain from supply chain theft can be devastating for companies without the vast resources of a global conglomerate, making federal coordination a critical backstop against crippling losses. The bill, H.R. 2853, addresses what industry leaders describe as a dramatic escalation in sophisticated, multi-jurisdictional crime. According to the Association of American Railroads (AAR), its members experienced a 40% increase in cargo theft in 2024 alone. In an April 28 letter to Acting Attorney General Todd Blanche, a coalition of 24 industry stakeholders including the AAR, American Trucking Associations, and the U.S. Chamber of Commerce, stated that these crimes are not isolated incidents but are “increasingly carried out by organized, sophisticated criminal networks operating across state and national borders.” The coalition’s letter emphasized that these criminal enterprises are often linked to broader illicit activities, including drug trafficking, money laundering, and terrorism. The groups also highlighted the growing danger to frontline workers, noting that the schemes “increasingly involve violence, threats, and intimidation that endanger frontline workers and create unsafe conditions in stores, warehouses, transportation hubs, and communities across the country.” To combat this, CORCA would establish a new Organized Retail and Supply Chain Coordination Center. This central hub is designed to bring together federal law enforcement agencies like the FBI and Homeland Security Investigations with state and local partners, including railroad police, to share intelligence and coordinate enforcement actions. The goal is to provide a unified strategic framework to disrupt and dismantle the complex criminal networks responsible for the surge in theft. “Organized criminal operations continue to evolve and escalate their targeted attacks against our nation’s supply chain and retailers,” said AAR President and CEO Ian Jefferies in a statement. “Disrupting these organized crime networks requires a unified, federally led response.” While the passage of CORCA is a significant step, industry groups are also pushing for more immediate action from the Department of Justice. The coalition’s letter to the DOJ urged the department to fully implement funding approved by Congress in the FY2026 Commerce, Justice, Science, and Related Agencies Appropriations Act. The funding is specifically intended to support the creation of dedicated special prosecutors focused on supply chain fraud and organized retail crime. The letter noted that local prosecutors often “struggle to pursue complex, multijurisdictional theft cases,” making specialized federal expertise essential. While this federal action is a crucial step forward, enforcement remains the key variable, and businesses cannot afford to be passive. In our experience, the direct cost of stolen goods is often just the beginning. The ripple effects for a mid-sized company can include soaring insurance premiums, the cost of expedited replacement inventory, damaged client relationships from unfulfilled orders, and significant administrative overhead. These hidden costs can erode profitability far more than the initial loss. Proactive defense is therefore not an option but a necessity. At C&S Finance Group LLC, we assist clients with exactly this type of financial risk management, helping them identify vulnerabilities and implement controls to build operational resilience against these pervasive threats. To learn more about securing your supply chain, contact C&S Finance Group LLC at csfinancegroup.com. According to Representative David Joyce, one of the bill’s sponsors, organized retail crime extends far beyond simple shoplifting. His office explained that these sophisticated networks steal large volumes of goods through cargo theft and other means, then launder the proceeds through complex financial schemes, including gift card fraud. The legislation aims to equip law enforcement with the modern tools and legal frameworks needed to pursue these multifaceted criminal enterprises. Ultimately, the effectiveness of this new federal framework will be measured by its ability to reduce the tangible losses felt by businesses on the ground. The bill’s passage in the House is a victory for its proponents, but the fight against organized supply chain crime requires sustained effort on multiple fronts. With the bill’s passage in the House, attention now turns to the Senate, where the legislation will be taken up for consideration. Meanwhile, the logistics and retail industries will be closely watching the Department of Justice for any response to their call for the appointment of specialized prosecutors to begin tackling the backlog of complex theft cases nationwide.