This bill, titled the "Improving Reporting to Prevent Hate Act of 2026," mandates significant changes to hate crime data collection and reporting. It requires the Attorney General to establish a method for evaluating whether local governments, specifically those with populations over 100,000 that request certain federal grants, are credibly reporting hate crimes to the Federal Bureau of Investigation. This evaluation will assess if jurisdictions are failing to report any hate crime data or are reporting zero incidents annually. Jurisdictions found not to be credibly reporting hate crimes will become ineligible for federal grants under the Omnibus Crime Control and Safe Streets Act of 1968. However, an exception applies if the Attorney General certifies that the jurisdiction has conducted significant community public education and awareness initiatives on hate crimes, which includes actions like adopting reporting policies, developing standardized collection systems, or establishing specialized units. The Attorney General must also publish an annual report detailing these certified jurisdictions.