A new federal bill called the SAFER Act of 2026, along with recent state-level changes, is reshaping how unclaimed property laws work across the United States. These proposals and updates affect both businesses holding unclaimed funds and people trying to recover money owed to them. The changes address long-standing gaps in how states report, hold, and return unclaimed property—money, securities, and other assets that businesses or institutions have lost contact with owners about. Federal action through the SAFER Act and state legislative efforts aim to make the process faster and more transparent, though they also create new compliance obligations.
Table of Contents
- What the SAFER Act Proposes
- State-Level Legislative Changes
- How Dormancy Periods Are Changing
- Reporting and Compliance Requirements
- What This Means When Searching for Your Money
- Frequently Asked Questions
What the SAFER Act Proposes
The SAFER Act of 2026 (H.R. 8338) is the first significant federal framework to govern unclaimed property reporting and custody. Under the bill, holders of unclaimed property must report and return funds on shorter timelines than most states currently require.
The act establishes uniform reporting standards across states, reducing fragmentation where businesses had to comply with different rules in each state. The law prioritizes "direct return" of unclaimed funds—sending money directly to the last known address or account before property enters state custody. This is a shift from the traditional model where holders turn unclaimed funds over to the state as a custodian. The goal is to return money to owners faster and reduce the burden on state unclaimed property programs.
State-Level Legislative Changes
Several states have already moved ahead of federal action with their own reforms. pennsylvania adopted a direct return law in 2025, requiring businesses to attempt to return unclaimed funds directly to owners before turning them over to the state.
Colorado made legislative changes in 2025 to align with modern data practices and reduce dormancy periods for certain property types. Delaware has proposed major legislative changes to streamline reporting and potentially reduce the holding periods for unclaimed funds. These state-level shifts show momentum toward faster recovery timelines nationally, though each state's rules still vary in important ways.
How Dormancy Periods Are Changing
Dormancy periods—the time a business must hold unclaimed property before turning it over to the state—are shortening under new proposals. Dormancy periods historically ranged from 2 to 10 years depending on property type and state. The SAFER Act and state reforms push toward shorter periods of 3 to 5 years for most property types, meaning funds reach state programs—and become searchable by owners—sooner.
Some states are experimenting with even faster triggers for direct return. Under Pennsylvania's model, businesses must attempt direct return within 60 to 90 days of identifying unclaimed property, rather than holding it for years. This change benefits owners but requires businesses to invest in better address verification and contact attempts.
Reporting and Compliance Requirements
The new rules create stricter reporting obligations. Businesses must report unclaimed property to the state annually, with details specified by NAUPA (National Association of Unclaimed Property Administrators) guidelines. The SAFER Act tightens these requirements: more detailed ownership information, electronic filing mandates, and penalties for late or incomplete reports.
Businesses now face higher expectations for locating owners before turning property over to the state. This means investing in skip-tracing services, email searches, and contact databases. Noncompliance can result in interest penalties and state audits, making accurate reporting critical for corporations and financial institutions.
What This Means When Searching for Your Money
These changes improve your chances of recovery if money is owed to you. Faster direct return means businesses may contact you directly before the state becomes involved, reducing the time your money sits in limbo.
Use NAUPA's state-by-state reporting directory to search your state's unclaimed property database, and note that results are updated more frequently as states adopt faster timelines. If you believe a business owes you unclaimed funds, the shorter dormancy periods mean you have a narrower window to contact them directly before the money goes to the state. Once it reaches the state, recovery is still possible through your state's unclaimed property program, but direct contact with the holder is often faster if you act within the dormancy window.
Frequently Asked Questions
Will the SAFER Act apply immediately, or are there transition rules?
The SAFER Act is proposed federal legislation; it must pass Congress and be signed into law before implementation. States are moving ahead independently with their own reforms, which vary in effective dates. Check your state's unclaimed property office for current timelines.
What should I do if I've been searching for unclaimed money?
Search your state's database using NAUPA's directory and consider contacting businesses where you held accounts directly. Shorter dormancy periods mean unclaimed funds reach state custody faster, so delays in searching may cost you time.
Will these changes affect money already held by the state?
Generally, new reporting rules apply to property becoming unclaimed after the law's effective date. Money already in state custody continues to be held under previous rules, though states may offer voluntary return programs for certain assets.