Stopping Fraudulent Payments Act

Key Points

• The bill gives federal agencies the power to temporarily pause, delay, or split a payment if there is strong evidence it could be fraudulent or improper. This applies to any federal payment where a fraud-risk indicator or data mismatch is detected.
• The Treasury Department can also flag payments using its Do Not Pay system, returning certified payment vouchers and ordering corrective action within 2 days of finding elevated fraud risk.
• Anyone whose payment is paused must be notified within 2 days, told why it was paused, and given a chance to contest factual errors. The agency must release a cleared payment within 30 days, or within 7 days if the person successfully contests the hold.
• Agencies should let routine, historically consistent payment amounts go through while only holding back the suspicious or unusually large portion, reducing hardship for legitimate recipients.
• Federal employees who pause payments in good faith are shielded from personal liability. Pausing a payment does not count as a final decision about whether the recipient did anything wrong.
• The Treasury must issue regulations within 180 days of enactment, and the full law takes effect one year after enactment. Annual reports to Congress on fraud savings and errors are also required starting 18 months after enactment.

Votes

No votes have been recorded for this legislation yet.