Sponsors (2)
Introduced April 23, 2026 by James Comer · Last progress April 23, 2026
The bill strengthens government tools to detect and recover improper federal payments—potentially saving taxpayers—while imposing new data-sharing and verification regimes that raise privacy, security, administrative costs, and risks of delayed or denied payments for vulnerable people and small recipients.
Taxpayers and federal program managers will see fewer improper and fraudulent federal payments because agencies must screen recipients, use Do Not Pay checks, share fraud indicators, and expand data matches to detect and recover waste.
Payees (beneficiaries, vendors, small businesses) and agencies get improved payment verification and identity confirmation (including SSA name/SSN checks and standardized pre-certification), which should raise payment accuracy and reduce billing errors and disputes.
Agencies, oversight bodies, and recipients gain standardized reporting, clearer governmentwide processes, and stronger Treasury reporting authority to improve oversight of award use and speed criminal/referral actions for fraud.
Millions of Americans (taxpayers, beneficiaries, immigrants, people with disabilities) face greater privacy risk because the bill expands federal access to IRS returns, wage data, SSA records, and payee identifiers and loosens some Privacy Act protections.
Federal agencies, states, contractors, nonprofits, and small recipients will incur substantial new administrative and implementation costs to build verification systems, run additional screening, and comply with expanded reporting requirements.
Beneficiaries and vendors (low-income individuals, patients, small businesses) risk delayed or denied payments because stricter verification, DNP matches, and hard deadlines (withholds of disbursements) can slow or stop legitimate payments.
Based on analysis of 6 sections of legislative text.
Expands pre-award/prepayment checks and data-sharing (Treasury/IRS/SSA/NDNH) for Do Not Pay, requires one-time post-award recipient reports, and sets rulemaking deadlines.
Requires federal agencies to run stronger pre-award and pre-payment fraud checks and to verify payee and bank details before certifying vouchers, expands the federal Do Not Pay data sources (including IRS, SSA, and the National Directory of New Hires), and makes a one-time post-award report from covered recipients a condition of receiving funds. Gives Treasury and OMB deadlines to issue regulations and guidance, expands permissible data sharing among Treasury, IRS, and SSA for fraud-prevention uses, and takes effect 180 days after enactment.