The bill increases transparency and accountability around improper federal payments—giving taxpayers and policymakers better data to target reforms—but imposes administrative costs, risks exposing sensitive program details, and could trigger short-term program cuts that reduce services.
Taxpayers, Congress, and state budget reviewers will receive program- and activity-level improper payment amounts, rates, and three-year trends, giving the public and policymakers clearer transparency into where federal funds are being lost.
Taxpayers and federal employees will see that budgets must disclose incomplete corrective actions and planned steps to address improper payments, increasing agency accountability for fixing problems.
Budget reviewers and Congress will have better, program-level data to target reforms or adjust funding based on documented multi-year trends, improving the ability to direct fixes where they matter most.
Program beneficiaries, taxpayers, and state governments could face short-term reductions in services if higher reported improper payment rates prompt budget cuts to affected programs.
Federal agencies will face increased administrative burden and costs to prepare detailed program- and activity-level improper payment reports, potentially diverting staff time from service delivery.
Disclosure of incomplete corrective actions could reveal sensitive program details or operational vulnerabilities, complicating fixes and creating security or operational risks for affected federal programs.
Based on analysis of 2 sections of legislative text.
Requires the President’s budget to include program- and activity-level improper payment amounts/rates, explanations of causes and trends, and descriptions of incomplete corrective actions with planned steps.
Introduced February 26, 2025 by John Peter Ricketts · Last progress February 26, 2025
Requires the President’s annual budget submission to include detailed improper payment information for each executive agency that must report on improper payments. Agencies must supply program- and activity-level improper payment amounts and rates, a plain-language narrative explaining why the amounts and rates occurred and how they trended over the prior three years, and descriptions of any incomplete corrective actions plus planned steps to finish them. The change increases transparency for Congress and the public about improper payments, gives budget reviewers more program-level data, and creates modest additional reporting work for agencies’ financial and compliance offices.