The bill increases accountability and transparency to reduce fraud in emergency spending but does so without new funding and with limits on judicial review, creating administrative cost pressures and a risk of slowing emergency disbursements.
Taxpayers and federal employees: covered agencies must maintain internal-control plans to reduce improper emergency payments and fraud, improving safeguards over emergency funds.
Federal employees: agencies must designate a senior responsible official for emergency spending controls, improving accountability and clearer lines of responsibility within agencies.
Taxpayers: agencies must annually transmit their emergency internal-control plans to Congress, increasing transparency about how emergency funds are protected from waste.
State governments and taxpayers: added compliance and reporting requirements could increase administrative burden and — if controls are overapplied — slow rapid emergency disbursements.
Federal employees and taxpayers: agencies must absorb implementation costs without new funding, which could divert staff time and resources from other programs and services.
Taxpayers: prohibiting judicial review of agency application or interpretation of the guidance removes a legal remedy if agencies apply the rules improperly.
Based on analysis of 2 sections of legislative text.
Requires OMB guidance and federal agencies to create, submit, and regularly update emergency-ready internal-control plans to address improper payments and fraud when emergency funds are provided.
Requires the Office of Management and Budget (OMB) to issue guidance and require covered federal agencies to create internal-control plans they can deploy immediately in future emergencies. Agencies must designate senior officials, adopt procedures to detect and respond to improper payments and fraud tied to supplemental emergency funding, submit plans to OMB within one year, and update those plans at least every three years; OMB must review its guidance every three years and transmit agency plans to Congress annually. No additional funds are authorized and determinations under the law are not subject to judicial review.
Introduced January 13, 2025 by James Lankford · Last progress January 13, 2025