The bill strengthens federal screening, verification, and reporting to detect and recover improper payments and improve program integrity, but it increases data sharing, privacy risks, administrative costs, and the potential for payment delays and compliance burdens—especially for small recipients and nonfederal partners.
Taxpayers and federal agencies: The bill strengthens Do Not Pay screening by including IRS and SSA data and other expanded checks, improving detection and recovery of improper payments and reducing waste.
Federal agencies and program administrators: Treasury-led guidance and standardized verification checks create consistent procedures across agencies, improving payment accuracy, auditability, and program integrity.
Agencies and recipients: Standardized reporting on first-time award recipients (and alignment with FFATA/chapter 64) improves oversight, reduces duplicate reporting over time, and helps ensure grant and contract funds are used for intended purposes.
Taxpayers and individuals (including people with disabilities): Expanding IRS/SSA data sharing and collecting more payee/bank information increases privacy and data-security risks from centralized sensitive records and broader redisclosure authority.
Benefit recipients, contractors, and state/local governments: Mandatory preaward and prepayment screening and added verification steps could delay awards and payments, harming recipients who rely on timely federal funds and slowing contracts/grants.
Agencies and nonfederal entities: Implementing verification checks, expanded Do Not Pay access, and required safeguards will increase administrative burden and costs for federal, state, and local agencies and for auditors.
Based on analysis of 6 sections of legislative text.
Requires pre-award/prepayment Do Not Pay screening, payee verification, a one-time post-award recipient report, and limited IRS/SSA data sharing to prevent improper payments.
Requires federal agencies to perform standardized pre-award and prepayment fraud checks, verify payee bank and identifying information, and screen payments against the Treasury Do Not Pay system before certifying vouchers. Creates a one-time post-award reporting requirement for recipients of covered federal awards, expands the Do Not Pay data assets, and authorizes limited IRS and Social Security data sharing to support Do Not Pay screening. Directs Treasury (with OMB) to issue implementing regulations and a public System of Records Notice for Do Not Pay assets, sets deadlines for agency rulemaking, and makes the law effective 180 days after enactment.
Official title: To establish governmentwide requirements for pre-payment fraud prevention actions, to provide the U.S. Treasury appropriate data resources, to facilitate participation in governmentwide anti-fraud data sharing, and for other purposes.
Introduced April 23, 2026 by James Comer · Last progress June 9, 2026