Summary

Gives federal agency heads a new, limited power to pause, condition, or split up government payments when there is an objective sign of fraud or a likely improper payment, or when Treasury directs it. Agencies must document their reasons, notify payees, offer a way to contest holds, and move to release payments quickly (generally within 45 days or 7 days after a payee challenge). Treasury (with OMB) must write implementing rules within 180 days and update them yearly. The law also lets agencies segment routine, historically consistent portions of payments so predictable amounts still go out while questionable portions are reviewed. Law enforcement investigations can be exempted when necessary, and federal employees who act in good faith under this law are protected from personal liability. Definitions, procedural guardrails, and minor technical changes to the U.S. Code are included.

• Agency heads may pause, condition, or segment disbursements when objective fraud-risk indicators or estimated improper payments exist.
• Treasury can return certified vouchers and issue corrective-action orders if it detects elevated fraud risk or a Do Not Pay flag.
• Agencies must document actions, notify payees, provide a contest process, and keep holds as narrow and brief as possible.
• Withheld payments generally must be released within 45 days, or within 7 days after a payee contest is resolved in the payee’s favor.
• Agencies should segment and release routine, historically consistent portions of payments when practicable.
• Exemptions allowed to avoid jeopardizing active law enforcement investigations, including False Claims Act probes.
• Federal employees acting in good faith under this authority are protected from personal liability.
• Treasury and OMB must issue implementing regulations within 180 days and update them annually.
• Includes definitions of key terms and makes minor technical amendments to Title 31 of the U.S. Code.