Markup Wrap Up: Oversight Committee Passes Sweeping Legislation to Stop Fraud in Federal Programs

WASHINGTON-Today, the House Committee on Oversight and Government Reform held a markup and advanced nine bills aimed at protecting taxpayer funds and combating rampant fraud and improper payments in federal programs. The Government Accountability Office (GAO) estimates that between $233 billion and $521 billion is lost annually due to fraud. The legislation passed today comes after the Committee exposed widespread fraud in federally funded, state-administered programs in Minnesota and California.

"The House Oversight Committee is delivering on its mission to root out waste and fraud by advancing real solutions to protect hardworking American taxpayers. These sweeping legislative reforms will stop fraudulent payments before they go out the door and ensure critical taxpayer-funded programs work as intended. Alongside the Trump Administration, the Oversight Committee will continue to fulfill its responsibility to crack down on fraud and hold those who steal taxpayer dollars accountable," said Chairman James Comer (R-Ky.).The following bills were reported favorably by the House Oversight Committee:

H.R. 8463, Pre-Payment Fraud Prevention and Treasury Data Access Act: Introduced by Chairman James Comer, the bill strengthens the federal government's financial oversight and controls by directing the U.S. Treasury to work with agencies to verify payment and payee information before payments go out the door. It also expands tools like the U.S. Treasury's Do Not Pay system and ensures federal agencies have better access to accurate data to identify improper and fraudulent payments within the programs they administer.

"The Government Accountability Office estimates that the federal government has lost over $2.8 trillion dollars since 2003 to payments that should not have been made or were made incorrectly. Taxpayers are footing the bill for fraud while criminals get rich. Fraud at these levels cost each tax filer between $1,000 and $3,000 a year. This should alarm all of our constituents and call us to action here today. This bill enhances and expands government financial integrity controls by requiring anti-fraud risk evaluations to identify suspicious payments before agencies request a payment is issued by the U.S. Treasury. These reforms are centered around increasing the use and effectiveness of Treasury's existing Do Not Pay system. I am confident that ensuring more agencies use the Do Not Pay system is one of the most effective policy reforms Congress can pursue to meaningfully curb fraudulent payments before such funds go out the door and are lost forever," said Chairman Comer.

H.R. 8464, Stopping Fraudulent Payments Act: Introduced by Chairman James Comer, the bill tackles the widespread "pay and chase" problem by preventing federal agencies from requesting payments when they have determined there is an elevated risk of fraud or the payment is likely to be improper. The bill also gives the U.S. Treasury new authority to return payment requests to agencies if they are flagged as at risk for fraud. These reforms shift agency actions from recovery to prevention which truly protects taxpayer dollars and strengthens program integrity.

"The House Oversight and Government Reform Committee's investigation into Minnesota's social services programs uncovered a whopping $9 billion potentially stolen by fraudsters. Just yesterday, Federal authorities raided more than 20 locations in Minneapolis as part of ongoing federal fraud investigations. But taxpayers demand that we stop the theft of their tax dollars before it happens. The Stopping Fraudulent Payments Act adds critical safeguards to the processing of federal payments to ensure they are made in the right amounts and to the right people before an agency awards funds or requests a payment be disbursed," said Chairman Comer.

H.R. 8312, Fraud Prevention and Accountability Act of 2025: Introduced by Subcommittee on Government Operations Chairman Pete Sessions (R-Texas), the bill establishes a permanent Inspector General for Fraud, Accountability, and Recovery (IGFAR) within the U.S. Treasury to assume and expand the data analytics and investigative functions of the Pandemic Response Accountability Committee after 2028. The bill strengthens Treasury's Fiscal Service program integrity role, including administration of the Do Not Pay system and development of a government-wide data analytics platform, and requires data access agreements to support both pre-award fraud prevention and post-award investigative activities.

"The Fraud Prevention and Accountability Act will dramatically enhance how agencies prevent fraud during any future national emergency and will ensure the resources created to investigate pandemic era fraud is permanently preserved. It ensures that there is a permanent, government-wide anti-fraud analytics function to assist agency IGs with their fraud work by providing cross-agency fraud detection and data analysis tools. It also establishes a permanent IG for Fraud, Accountability and Recovery with the valuable resources and functions built by the PRAC. This ensures proper coordination with the government-wide program integrity and improper payment tools maintained by the U.S. Treasury's Bureau of the Fiscal Service. I thank my colleague, Mr. Sessions, the Chairman of the Government Operations Subcommittee, for introducing this important legislation which is based on the insights of numerous hearings his subcommittee has held with Ranking Member Mfume to understand what Congress needs to do to combat fraud and improper payments," said Chairman Comer.

"Over the last few years on a bipartisan basis Mr. Mfume and I have dived into this fraudulent payment issue. We have worked together to deliver solutions for this problem. H.R. 8312 tackles this fraud problem. This bill puts all agencies in a better position to coordinate and do something about fraud payments. These are steps that are crucial to making progress and ensures anti-fraud measures put in place in the aftermath of COVID do not simply fade away," said Rep. Sessions.

H.R. 8467, Zeroing Out Monetary Benefits Improperly Expended Act: Introduced by Representative Gary Palmer (R-Ala.), the bill reforms the Payment Integrity Information Act of 2019 by requiring agencies to conduct more comprehensive and ongoing fraud risk assessments focused on improper payments that result in financial loss to the government. The bill mandates implementation of fraud risk management best practices, including the GAO Fraud Risk Framework, replaces annual improper payment estimates with continuous risk-based controls such as use of the Do Not Pay system prior to award decisions, requires agencies to estimate financial losses from improper payments, and increases coordination among agencies, Inspectors General, and the U.S. Treasury through annual meetings.

"The Zeroing Out Monetary Benefits Improperly Expended Act strengthens agency efforts to prevent improper payments that cause financial losses to the government. In Fiscal Year 2025, federal agencies reported $186 billion in improper payments, an increase of about $24 billion from the previous year alone. The status quo isn't working and is unacceptable. This bill replaces the current, broken practice of completing backwards looking annual improper payment estimates that remain unchanged year-to-year. It instead directs agencies to focus more closely on payments that result in financial loss to the government and cost savings associated with anti-fraud activities. This bill requires agencies to comprehensively assess fraud risk management practices in their programs-such as the implementation of the GAO fraud risk management framework-develop fraud-risk indicators, and apply key fraud risk controls and procedures. I thank my colleague, Mr. Palmer for bringing this long overdue legislation for consideration and urge my colleagues to support it," said Chairman Comer.

"Americans are struggling and the government continues to squander their money. The federal government has mismanaged taxpayer dollars intended to fund programs. I'm pleased to sponsor this bill which represents an important step to addressing this broken system permanently and prevent improper payments before the money goes out the door. It will replace the current costly practice of completing a yearly improper payment estimate with ongoing risk assessments on a rolling basis. Assessments will focus on a comprehensive review of risk that includes how agencies are implementing fraud prevention best practices," said Rep. Palmer

H.R. 8428, Federal Fraud Prevention Workforce Training Act: Introduced by Subcommittee on Health Care and Financial Services Chairman Glenn Grothman (R-Wis.), the bill requires the U.S. Treasury and the Office of Management and Budget, in consultation with the Office of Personnel Management, to establish a government-wide training program to ensure the federal workforce can identify fraud risks, implement anti-fraud best practices, and utilize Treasury tools such as the Do Not Pay system. The training program is also made available to State and local governments administering federally funded programs at no cost.

"Billions of taxpayer dollars are lost every year to increasingly sophisticated fraud schemes. Unfortunately, federal agencies working to safeguard these funds are often outmatched by the increasing sophistication of fraudsters and criminals. The Federal Fraud Prevention Workforce Training Act recognizes this growing challenge and helps fortify the financial defenses of our federal programs against bad actors. It requires a government-wide anti-fraud training program for agency officials, like grant managers and auditors, so they are adequately trained on best practices for preventing and addressing fraud in agency programs. I thank my colleague, Mr. Grothman for introducing this important legislation," said Chairman Comer.

"We should remember this day because fraud continues to be a problem, but we are working to implement stronger oversight at every level. This bill is a common sense and bipartisan effort to strengthen oversight and protect taxpayer dollars. We are ensuring employees have the tools and resources they need to identify fraud. The bill requires Treasury to establish a government wide anti-fraud training program so staff can see the danger before it makes the newspaper," said Rep. Grothman.

H.R. 8466, Taxpayer Resources Used in Emergencies (TRUE) Accountability Act: Introduced by Representative Andy Biggs (R-Ariz.), the bill requires the Office of Management and Budget to issue guidance for agency internal control plans for use during future emergency spending. It requires agencies to incorporate GAO improper payment and fraud risk frameworks, conduct risk assessments, and implement real-time, data-driven payment monitoring techniques in emergency response programs.

"From the beginning of the COVID-19 pandemic, there were concerns that the trillions of dollars in relief payments were vulnerable to fraud. Agencies rushed to get money out the door, in some cases loosening guardrails to make access easier and more efficient. The Taxpayer Resources Used in Emergencies Accountability Act, or TRUE Accountability Act, takes action to ensure agencies are prepared to protect taxpayer dollars from fraud schemes during future national emergencies. When an emergency occurs and money needs to get out of the door quickly, it is imperative that Federal agencies and programs have strong financial controls in place from the start rather than developing them after the fact. I thank Representative Biggs for his work in developing this important legislation," said Chairman Comer.

H.R. 8340, Taxpayer Funds Oversight and Accountability Act of 2025: Introduced by Subcommittee on Military and Foreign Affairs Subcommittee Chairman William Timmons (R-S.C.) and Representative Dave Min (D-Calif.), the bill clarifies agency Chief Financial Officers' responsibilities over financial performance, internal controls, and financial reporting, including implementation of financial management plans issued by the Office of Management and Budget. It requires regular updates on plan implementation, authorizes Deputy CFOs to serve as acting CFOs during vacancies, removes Vacancy Act limitations, and requires agencies to establish and annually assess internal accounting and administrative controls aligned with reporting obligations and improper payment assessments.

"The Government Accountability Office has recommended that agency Chief Financial Officers have the responsibilities necessary to effectively carry out federal financial management activities. The Taxpayer Funds Oversight and Accountability Act makes each agency Chief Financial Officer responsible for overseeing and providing leadership on risk management and internal controls. Specifically, the bill requires Chief Financial Officers to identify key information such as spending and reporting on improper payments-and assess the effectiveness of these internal controls annually. This ensures that a top-level official is responsible for effective and targeted financial management. I want to thank the late Representative Connolly, the original sponsor of this bill, and Representatives Min and Timmons for their work in further developing and carrying forward this important bipartisan bill," said Chairman Comer.

"The oversight tools Congress relies on have not kept pace. GAO has repeatedly flagged federal financial management systems as high risk and improper payments have been a persistent problem across the executive branch. This committee's investigation into Minnesota made clear that when no senior official is clearly responsible for financial risk management, fraud finds the gaps. This bill strengthens the role of agency chief financial officers by explicitly assigning responsibility for internal controls over financial reporting," said Rep. Timmons.

H.R. 1755, Timely and Accurate Benefits Act of 2025: Introduced by Subcommittee on Military and Foreign Affairs Subcommittee Chairman William Timmons (R-S.C.) and Representative Maxwell Frost (D-Fla.), the bill requires the U.S. Treasury to make the Do Not Pay system available to States administering federally funded programs for eligibility determinations and payment verification. The bill requires States to develop and maintain plans to ensure they have access to data and systems necessary for identity verification, financial and household eligibility checks, and payment validation, and requires States to identify and address any gaps in their verification capabilities.

"As the Committee has heard through many subcommittee hearings, Treasury's Do Not Pay system is a critical tool that can prevent improper payments and fraud before the money goes out the door. Despite the fact that State and local governments administer more than a trillion dollars of federal funds annually, States do not have access to this essential tool. This bill ensures that states have access to the U.S. Treasury's Do Not Pay system so that they can run eligibility checks and prevent taxpayer dollars from going to fraudsters," said Chairman Comer.

"When federal benefit programs determine eligibility based on income that income verification needs to be accurate. Right now, it often is not. States rely on outdated fragmented data systems that miss significant sources of income such as gig economy earnings, self-employment income, rental income, recurring cash contributions, and more. The result is that benefits go to people who don't qualify for them at the expense of the taxpayers funding those programs and the people who actually need them. This bill requires states to develop and submit plans documenting their capabilities for conducting eligibility checks including verifying identity, living status, banking information, and financial eligibility. If a state identifies gaps in its data systems or capabilities, it must identify those gaps and commit to addressing them. The American people expect federal dollars go to the people who need them. This bill helps make that happen," said Rep. Timmons.

H.R. 8107, Government Audit and Accountability of Federally Funded State-Administered Programs Act of 2025: Introduced by Subcommittee on Delivering on Government Efficiency Chairman Tim Burchett (R-Tenn.) and Representative Ro Khanna (D-Calif.), the bill directs the Comptroller General to produce a recurring assessment of federally funded State-administered programs. This report will compare trends across States to identify programs and administrative practices most vulnerable to waste, fraud, and abuse in State and local administration of federal funds.

"H.R. 8107 will make sure Congress and others are fully informed about fraud risks in federally funded programs run by state and local governments. It requires that the Government Accountability Office assess program areas and administrative practices that present the greatest risk to the integrity of Federal funds administered by States and local governments. Importantly, it ensures that this assessment is thorough and independent. With this information, Congress can enhance its oversight of agencies' and states' efforts to strategically manage fraud risks, including payment integrity controls needed to effectively respond. I applaud the efforts of Representatives Ro Khanna and Tim Burchett for bringing this bill for consideration before this Committee," said Chairman Comer.