Members of the House are advancing a series of bipartisan measures aimed at curbing wasteful and deceptive spending across federal programs.
The House Oversight and Government Reform Committee pushed forward multiple anti-fraud proposals during a session on Wednesday. A majority of these bills enjoy wide backing from both sides of the aisle as well as support from various government transparency advocacy organizations.
According to estimates from the Government Accountability Office, somewhere between $233 billion and $521 billion is funneled to fraudsters annually through federal government payments.
Committee Chairman James Comer (R-Ky.) stated that this legislative package would eliminate the existing “pay-and-chase” approach, where fraudulent payments are reclaimed after the fact, by mandating that agencies perform anti-fraud screenings before any funds are disbursed.
“These measures we’re reviewing today will strengthen current fraud prevention tools, enabling federal agencies and states to more effectively prevent and tackle fraud within the programs they oversee,” Comer stated.
Should these bills become law, they would further several key fraud-prevention priorities of the Trump administration. During his State of the Union address, President Donald Trump declared a “war on fraud” and subsequently issued an executive order creating a multi-agency fraud task force.
Pre-Payment Fraud Prevention and Treasury Data Access Act
This legislation would mandate that the Treasury Department cross-check payment and recipient details with relevant agencies before any money is released.
Comer noted that his bill would expand the adoption of Treasury’s Do Not Pay system, which, he pointed out, is currently utilized by only 4% of qualifying programs throughout the government.
“It’s evident that the intent behind Congress’s creation of the Do Not Pay system is not being fulfilled. This legislation will resolve the procedural obstacles agencies encounter when trying to use the system, and bring agencies into alignment with the mandated Do Not Pay anti-fraud screening,” he explained.
The bill also authorizes Treasury to incorporate additional critical data sets into the Do Not Pay platform.
Rep. James Walkinshaw (D-Va.) noted that the legislation would “help stop improper payments before they ever leave the door.”
“It would compel agencies to confirm payment details with Treasury before those payments are processed, helping to ensure funds reach the proper individuals and organizations from the outset, rather than depending on after-the-fact investigations to recover dollars that were misdirected.”
The Data Foundation expressed its support for the bill, noting that it “combines operational upgrades to the Treasury Department’s Do Not Pay system with robust privacy safeguards and thorough oversight mechanisms.”
“American taxpayers lose billions of dollars each year to improper payments that better data systems could have prevented,” said Nick Hart, President of the Data Foundation, in a statement. “This bill tackles the operational roadblock that prevented Do Not Pay from fulfilling its purpose, while maintaining the privacy protections that make the system credible.”
Fraud Prevention and Accountability Act
This bill would create a permanent inspector general focused on fraud, accountability, and recovery within the Treasury Department. This newly established IG office would become the permanent repository for data analytics capabilities originally developed by the Pandemic Recovery Accountability Committee.
Government Operations Subcommittee Chairman Pete Sessions (R-Texas) explained that his measure would ensure the PRAC’s fraud-fighting tools “don’t simply disappear.”
Sessions highlighted that the PRAC has earned bipartisan recognition for its success in uncovering fraud and responsibly managing confidential data.
“For too long, we’ve argued over who should have access to sensitive personal information, who should be able to see Social Security numbers, and who should carry the authority and responsibility,” he said. “The PRAC has done its job gathering data and intelligence that we believe points to, and should guide other agencies toward, potential fraud.”
The PRAC’s mandate was extended through 2034 under the One Big Beautiful Bill Act and was granted additional oversight authority over expenditures in the budget reconciliation package.
Walkinshaw argued that the Fraud Prevention and Accountability Act would depart from the very factors that made the PRAC effective.
“Its placement within CIGIE has enabled cross-agency forensic analysis once money flows out, along with the capacity to coordinate across numerous inspectors general throughout the government,” he stated. “I’m concerned that placing it within Treasury will diminish its ability to require cooperation from other IGs nationwide.”
Stopping Fraudulent Payments Act
This legislation would grant Treasury new power to return contested payments to agencies if, after cross-referencing with its Do Not Pay system, the payments appear to carry a risk of fraud.
The bill would also prevent agencies from issuing payments when an agency has identified a heightened risk of fraud.
Comer stated that Treasury “does not currently have complete authority to halt payments” suspected of being fraudulent, and that this legislation would remedy that shortfall.
“Under existing law, agencies can proceed with payments despite warnings raised by Treasury’s Do Not Pay system or other tools that may signal fraud,” he explained.
Walkinshaw voiced his opposition to the measure, cautioning that it relies on ambiguous criteria that could be leveraged to delay many legitimate payments.
“The American public expects the programs they fund to function smoothly. They don’t want unnecessary bureaucratic delays, held-up legitimate payments, or even more dysfunction,” he stated.
Federal Fraud Prevention Workforce Training Act
This bill would direct Treasury to develop and maintain a government-wide anti-fraud training initiative for federal agencies, and to offer the same training to state and local organizations that manage federally funded programs at no expense.
The measure’s sponsor, Rep. Glenn Grothman (R-Wis.), stated that blocking fraudulent payments “begins with a properly trained workforce.”
“When staff lack the skills to identify warning signs, the likelihood of taxpayer dollars being wasted increases,” Grothman remarked.
Zeroing Out Monetary Benefits Improperly Expended (ZOMBIE) Act
This bill would replace the GAO’s yearly improper payment estimate with continuous risk assessments conducted on a rolling basis. These assessments would evaluate how effectively agencies are applying fraud prevention best practices, including the GAO’s fraud risk framework.
The bill would also enhance collaboration between agency inspectors general and the Treasury Department through annual coordination meetings.
Rep. Gary Palmer (R-Ala.) stated that if his measure is enacted, “agencies willbe able to shift their attention from compliance tasks to reducing improper payments.”
Committee Ranking Member Robert Garcia (D-Calif) stated that the bill includes “sensible steps to help stop improper payments and ensure accountability when such payments occur.”
Taxpayer Resources Used in Emergencies (TRUE) Accountability Act
This legislation would mandate the Office of Management and Budget to create guidelines for preventing fraudulent payments during emergencies or crises. It would also require agencies to develop plans to combat emergency-related fraud, based on the GAO’s fraud prevention framework.
Taxpayer Funds Oversight and Accountability Act
The bill would define the responsibilities of agency chief financial officers by clearly assigning them accountability for financial performance, internal controls, and financial reporting. Additionally, it would allow the deputy CFO to act as the interim CFO in the absence of a permanent one.
“When no senior official is clearly tasked with managing financial risk, fraud exploits the loopholes,” said Rep. William Timmons (R-Ohio), the bill’s sponsor, during the markup session.
Timely and Accurate Benefits Act
The bill would grant states access to the Treasury’s Do Not Pay system, enabling them to verify eligibility and prevent taxpayer funds from reaching fraudulent individuals. Each year, state and local governments manage over a trillion dollars in federal funds, yet they currently lack access to the Do Not Pay system.
Government Audit and Accountability of Federally Funded State-Administered Programs Act
The bill would direct the GAO to issue an annual report on federally funded programs run by states that face the highest risk of fraud. The report would analyze trends across states and highlight programs and practices most prone to waste, fraud, and abuse.
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