Comer: Stopping Fraudulent Payments is Common Sense

WASHINGTON-Today, House Committee on Oversight and Government Reform Chairman James Comer (R-Ky.) delivered remarks on the House floor to support his bill, H.R. 8464, the Stopping Fraudulent Payments Act. This bill gives the U.S. Treasury the authority to halt and return payments flagged for fraud risks and follows the House Oversight Committee's investigation into extensive fraud across multiple state social welfare programs, notably the State of Minnesota, and the subsequent release of a new staff report titled "The Cost of Doing Nothing: How Tim Walz and Keith Ellison Fueled Minnesota's Fraud Explosion." In his statement, Chairman Comer emphasized that the government loses hundreds of billions of dollars annually in fraudulent payments across all federal programs and operations, and that H.R. 8464 will save American taxpayers money and spur much needed reform in the federal payments process.

Below are Chairman Comer's remarks as prepared for delivery:

Thank you, Madam Speaker.

We are facing a national emergency of fraud in federal programs that is impacting all Americans.

According to the Government Accountability Office, the federal government is estimated to lose between $233 and $521 billion annually to fraud across all federal programs and operations.

Earlier this week, we exposed how criminals stole $9 billion in Minnesota's social services programs while senior state officials, including Governor Walz and Attorney General Ellison, did nothing to stop it.

This is just the tip of the iceberg.

Whether in Minnesota, California's hospice system, or Medicaid waiver programs in Ohio or New York, one thing is clear: fraudsters will keep stealing taxpayer dollars until they are stopped.

Taxpayers bear the burden, while vulnerable Americans-the very people these programs are meant to help-are harmed.

The Trump administration has taken decisive action to combat fraud, waste, and abuse by establishing the White House Task Force to Eliminate Fraud.

Just this week, Vice President Vance referred our findings on Minnesota's rampant fraud to the Department of Justice for investigation.

Congress must take further action to stop fraud before it happens.

The Stopping Fraudulent Payments Act adds critical safeguards to ensure federal payments go to the right recipient in the right amount before funds are awarded or disbursed.

Federal law currently lacks a government-wide requirement to verify payments and prevent fraud across federal financial assistance and public benefit programs.

Even when payments show elevated fraud risks, the Treasury Department cannot stop them.

It is required to process the payments agencies request.

Under current law, agencies can issue payments despite flags received from Treasury's Do Not Pay system or other tools that might indicate an elevated risk of fraud.

H.R. 8464 addresses the status quo by requiring agencies to conduct fraud prevention activities prior to issuing payment requests.

The bill gives Treasury the authority to halt and return payments flagged for fraud risks so agencies can review and correct them before issued.

Agencies would be required to quickly review and resolve payments flagged for elevated risk of fraud, unless otherwise mandated by law.

This provides additional assurance to the American taxpayer that money is being paid to the right recipient and for the right amount while preserving the ownership of a program's administration within the appropriate federal agency as authorized under law.

This bill also helps agencies and the American public understand when a legitimate recipient's identity is being stolen and used for fraudulent activities by criminals.

Lastly, to help Congress oversee progress made in addressing payments with elevated fraud risks, Treasury will summarize the number of returned payments, corrective outcomes, and associated cost savings achieved under the requirements of this bill.

This ensures Congress has regular oversight of these reforms.

The commonsense reforms outlined in this bill will protect taxpayer dollars from being stolen by fraudsters while maintaining the integrity of federal programs.

I call on each of my House colleagues to support H.R. 8464 to protect taxpayer dollars from falling into the hands of criminals and fraudsters.

I reserve the balance of my time.