ZOMBIE Act

Key Points

• The bill shifts how the government tracks improper payments. Instead of flagging all paperwork errors, agencies must focus specifically on payments that cause actual financial loss to the government, like fraud or overpayments.
• Payments made to the right person for the right amount but with minor administrative mistakes would no longer count as improper payments under the new definition, letting agencies focus on real fraud.
• Federal agencies must include estimates of payments resulting in financial loss in their annual budget requests, making it easier for Congress and the public to see how much money is being wasted or stolen.
• The Treasury Department must create new risk assessment guidance within one year to help agencies measure and distinguish between harmless errors and real financial losses, including fraud.
• Agencies with high-priority programs must appoint a senior official as a liaison who meets yearly with the OMB, Treasury, and the agency's Inspector General to report on fraud prevention progress.
• Agencies must use tools like the Do Not Pay system and share data across federal, state, and private sector sources to catch fraud before payments go out, not just after.