Improper Payments Transparency Act

This bill aims to shine a light on waste and mistakes in federal spending. It requires the President’s yearly budget to clearly show how much money was paid by mistake in certain federal programs, why those mistakes happened, and whether they’re getting better or worse over time. It also must spell out what steps agencies will take to fix the problems and which fixes are still not done.

An “improper payment” means money that shouldn’t have been paid at all, or was paid in the wrong amount—either too much or too little.

Key points:

• Who is affected: Executive branch agencies that report on improper payments; the public and taxpayers who want to see how money is managed.
• What changes: Each year’s President’s budget must include a plain-language explanation of improper payment amounts and rates, show three-year trends for each program (up, down, or no change), and list the corrective actions and next steps to reduce these errors.
• When: With each annual President’s budget submission.