Fraud Prevention and Accountability Act

Key Points

• The bill creates a permanent Inspector General for Fraud, Accountability, and Recovery within the Treasury Department. This new office would oversee trillions of dollars in federal spending to detect and prevent fraud, waste, and abuse across government programs.
• Federal agencies would be required to screen potential recipients and payees against a centralized fraud database before making any payments or awards. This is meant to stop money from going to known fraudulent entities before it leaves the door.
• The Treasury Department would build a governmentwide data sharing and analysis program, connecting agencies, states, and even private financial institutions to share information about fraud patterns in real time.
• The new watchdog covers a sweeping range of spending, including pandemic relief funds, the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, the CHIPS Act, SBA loans, unemployment compensation, and any federal award of $50,000 or more.
• The Pandemic Response Accountability Committee (PRAC) would be terminated on December 31, 2028, and all of its assets, staff, data, and contracts would transfer to the new permanent office. The new IG office would officially begin operations on that same date.
• Starting in fiscal year 2035, Congress would authorize $10 million per year for the new office. Before that, the office would rely on transferred PRAC funds and resources.

Votes

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Related Bills

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