US House passes bill to curb improper federal payments and shift from recovery to prevention.
The Republican-controlled U.S. House of Representatives passed legislation this week aimed at strengthening safeguards against improper and fraudulent federal payments, approving the Stopping Fraudulent Payments Act by a 218-200 vote. The measure, introduced by House Oversight Committee Chairman James Comer (R-Ky.), seeks to reform the longstanding “pay and chase” system in which agencies issue payments before verifying eligibility, often resulting in costly and incomplete recovery efforts. Under the bill, federal agencies would gain authority to pause, condition, or segment suspicious payments when data indicates elevated risk of fraud or error. The U.S. Treasury Department would also be empowered to return flagged requests for additional review using tools such as the Do Not Pay database.
“Congress must take further action to stop fraud before it happens,” Chairman Comer said on the House floor. “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.” Government Accountability Office estimates place improper payments at $186 billion in fiscal year 2025, a $24 billion increase from the previous year. Cumulative improper payments since 2003 have approached $3 trillion, according to oversight findings.