Key Takeaways
- •The committee advanced a legislative package to curb improper payments, including bills to expand Treasury's Do Not Pay system and establish a permanent fraud-focused Inspector General.
- •Rep. James Comer (R, KY-1) stated the federal government lost $236 billion to improper payments in 2023, totaling over $2.8 trillion in financial losses since 2003.
- •Rep. Stephen Lynch (D, MA-8) challenged the committee's focus, arguing that alleged ethical and electoral "frauds" involving the president at the White House were being ignored.
- •Members reached bipartisan consensus on workforce training and state data access but split on party lines regarding Treasury's authority to pause payments and relocate fraud oversight.
- •The legislation seeks to end the "pay-and-chase" model by requiring agencies to conduct anti-fraud checks before funds are disbursed, pending further action by the full House.
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Hearing Analysis
Overview
This hearing consisted of a markup session for a suite of legislative measures aimed at modernizing federal financial management and curbing the hundreds of billions of dollars lost annually to improper payments and fraud. The primary objective of the legislative package is to transition the federal government from a "pay-and-chase" model—where agencies attempt to recover funds after they have been erroneously distributed—to a "pre-payment" prevention model. By leveraging data analytics, expanding access to the Department of the Treasury’s "Do Not Pay" system, and strengthening the roles of Chief Financial Officers (CFOs), the committee sought to fortify the integrity of both federal and state-administered benefit programs.
Key Testimony & Policy
The committee considered and advanced nine substantive bills and several postal naming measures. Central to the package was H.R. 8463, the Pre-Payment Fraud Prevention and Treasury Data Access Act, introduced by Chairman James Comer (R, KY-1). This bill addresses the underutilization of the Treasury’s Do Not Pay (DNP) system, which Chairman Comer noted is currently used by only 4% of eligible programs. The legislation streamlines procedural hurdles for agencies and enables Treasury to incorporate additional data sets to verify recipient eligibility before funds are disbursed.
Another cornerstone of the markup was H.R. 8312, the Fraud Prevention and Accountability Act, sponsored by Rep. Pete Sessions (R, TX-17). This bill seeks to make the anti-fraud capabilities developed during the COVID-19 pandemic permanent by establishing a government-wide Inspector General for fraud, accountability, and recovery within the Treasury Department. It effectively transitions the functions of the Pandemic Response Accountability Committee (PRAC) into a permanent fixture to ensure the government does not have to "start from scratch" during future national emergencies.
The committee also focused on workforce and state-level coordination. H.R. 8428, the Federal Fraud Prevention Workforce Training Act, co-led by Rep. Glenn Grothman (R, WI-6) and Rep. Raja Krishnamoorthi (D, IL-8), mandates anti-fraud training for federal program administrators and offers this training to state and local entities. Furthermore, H.R. 1755, the Timely and Accurate Benefits (TABS) Act, sponsored by Rep. William Timmons (R, SC-4), grants states direct access to the Treasury’s DNP system to verify income and eligibility for federally funded programs like Medicaid, which Rep. Timmons noted saw $37.4 billion in improper payments in fiscal year 2025.
Other significant measures included H.R. 8467 (the ZOMBIE Act), which replaces annual improper payment estimates with rolling risk assessments; H.R. 8466 (the TRUE Accountability Act), requiring internal control plans to be established before emergencies occur; and H.R. 8340, which updates the Chief Financial Officers Act of 1990 to clarify the responsibilities of agency CFOs regarding financial risk management.
Notable Exchanges & Partisan Dynamics
While much of the legislative package enjoyed broad bipartisan support, two bills faced significant opposition from Democratic members. Rep. James Walkinshaw (D, VA-11) led the opposition to H.R. 8464, the Stopping Fraudulent Payments Act, arguing that its "vague criteria" for pausing payments could create red tape and delay legitimate benefits to Americans in need. The bill passed on a party-line vote of 23-17.
Similarly, H.R. 8312 saw a partisan split regarding the placement of the new permanent Inspector General. Rep. Walkinshaw argued that the PRAC’s "secret sauce" was its independence within the Council of the Inspectors General on Integrity and Efficiency (CIGIE), and expressed concern that moving these functions to the Treasury Department would weaken its ability to compel cooperation from other agency IGs. This bill also passed 23-17.
A moment of sharp partisan friction occurred when Rep. Stephen Lynch (D, MA-8) used the discussion on H.R. 8312 to criticize the executive branch, referring to 1600 Pennsylvania Avenue as "fraud central" and citing concerns over election integrity and the naming of the Kennedy Center. Additionally, Rep. Scott Perry (R, PA-10) registered the sole "no" vote on the en bloc postal naming package, objecting to naming a facility after an individual he alleged had ties to the Communist Workers World Party.
Organizations Mentioned
* **United States Department of the Treasury (Treasury):** The central hub for the proposed anti-fraud reforms, specifically through the expansion of its Do Not Pay (DNP) system and the hosting of a new permanent Inspector General for fraud. * **Pandemic Response Accountability Committee (PRAC):** Cited as the successful model for data-driven fraud detection; its functions would be made permanent under H.R. 8312. * **Government Accountability Office (GAO):** Frequently referenced for its data estimating that the federal government has lost over $2.8 trillion to improper payments since 2003. * **Office of Management and Budget (OMB):** Tasked under several bills, including the TRUE Accountability Act, to issue guidance on internal controls and emergency funding. * **Council of the Inspectors General on Integrity and Efficiency (CIGIE):** Discussed as the current home of the PRAC, with Democrats arguing it is a more independent location than the Treasury Department. * **United States Postal Service (USPS):** The subject of several facility naming bills, including a controversial measure involving a post office in Xenia, Ohio. * **Data Foundation:** Provided a letter of support for H.R. 8463, emphasizing the importance of data sharing in fraud prevention. * **America First Policy Institute (AFPI):** Mentioned in a letter of support for H.R. 8464 and the broader effort to end the "pay-and-chase" model.
What's Next
All nine substantive bills and the postal naming measures were ordered to be reported favorably to the House of Representatives. Following the markup, Chairman Comer announced a closed-door briefing for committee members with the United States Secret Service regarding a recent security incident. The legislative package now moves to the full House for consideration, where the bipartisan consensus on most measures suggests a high likelihood of passage, though the partisan disagreements on Treasury oversight and payment pausing may persist in floor debates.
Transcript
The committee will please come to order. A quorum is present. Without objection, the chair is authorized to declare a recess at any time. Pursuant to Committee Rule 5B and House Rule 11, Clause 2, the chair may postpone further proceedings today on the question of approving any measure or matter or adopting an amendment on which a recorded vote or the yeas and nays are ordered. The committee will continue to use electronic system for recorded votes on amendments and passage of the bills before the committee. Of course, should any technical issues arise, which I do not anticipate, we will immediately transition to traditional roll call votes. Any procedural or motion-related votes during today's markup will be dispensed with by a traditional roll call vote. The first order of business is ratifying the new subcommittee roster. The clerks have distributed the roster electronically. I ask unanimous consent that the committee's approve the appointments and assignments as shown on the roster. Without objection, the subcommittee roster is approved. I'd like to welcome Representative Rick McCormick from Georgia to the committee. I look forward to working with him. Our next item for consideration is H.R. 8463, the Pre-Payment Fraud Prevention and Treasury Data Access Act. The clerk will please designate the bill.
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