James Comer in the 119th Congress. Mr. COMER. Mr. Speaker, pursuant to House Resolution 1345, I call up the bill (H.R. 8312) to establish fraud prevention and program integrity functions and data sharing authorities
Full text
Mr. COMER. Mr. Speaker, pursuant to House Resolution 1345, I call up the bill (H.R. 8312) to establish fraud prevention and program integrity functions and data sharing authorities within the Department of Treasury and a permanent governmentwide Inspector General for Fraud, Accountability, and Recovery, and for other purposes, and ask for its immediate consideration.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Pursuant to House Resolution 1345, the amendment in the nature of a substitute recommended by the Committee on Oversight and Government Reform, printed in the bill, is adopted and the bill, as amended, is considered read.
The text of the bill, as amended, is as follows:
H.R. 8312
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Fraud Prevention and
Accountability Act”.
SEC. 2. ESTABLISHMENT OF FRAUD PREVENTION AND FINANCIAL
INTEGRITY FUNCTIONS WITHIN THE DEPARTMENT OF
THE TREASURY.
(a) In General.—Section 306 of title 31, United States
Code, is amended to read as follows:
“Sec. 306. Fiscal Service
“(a) The Bureau of the Fiscal Service is a service in the
Department of the Treasury.
“(b) The head of the Bureau of the Fiscal Service is the
Fiscal Assistant Secretary appointed under section 301(d).
“(c) The Bureau of the Fiscal Service, having as its head
a Commissioner, shall maintain the following functions
related to financial integrity, spending transparency, and
preventing improper payments resulting in financial loss to
the government, and does not include any investigative or law
enforcement function, which, in addition to any other duty
the Secretary of the Treasury assigns—
“(1) shall administer and operate the Do Not Pay system
required under section 3354 in a manner that ensures that any
data provided to the Secretary is used only for the purposes
set
forth under section 3354 in accordance with applicable law;
and
“(2) shall, in consultation with the Director of the
Office of Management and Budget, establish and maintain a
voluntary governmentwide data analysis program in accordance
with applicable law and using the authorities under section
6(c)(1) of the Federal Funding Accountability and
Transparency Act (Public Law 109-282; 31 U.S.C. 6101 note)—
“(A) to provide data sharing and analysis services to
Federal agencies and any State (meaning a State of the United
States, the District of Columbia, a territory or possession
of the United States, or a federally recognized Indian Tribe)
and local government responsible for the administration of a
federally funded program or the disbursement of Federal
funds, to detect fraud and prevent improper payments
resulting in a financial loss to the government, but for no
other purpose including any policy analysis and enforcement
action purpose, and, including by facilitating the following
services upon request and on a voluntary basis in accordance
with all applicable privacy and security laws:
“(i) Federal agency or State and local government data
sharing of known fraudulent entities and transactions
resulting from final adverse action determinations, payment
denials, referrals for criminal investigation, or equivalent
findings with the Department of the Treasury.
“(ii) Screening awardees and payees against the
centralized fraud database prior to award or payment
issuance, as feasible and in accordance with individual
program requirements.
“(iii) Screening relevant cyber activity against the
centralized fraud database to review recipient or payee
changes to virtual identity or payment information.
“(iv) Establishing governmentwide standards for the
collection, labeling, and sharing of data related to improper
payments, to include fraudulent payments, with the Department
of the Treasury.
“(v) Partnering with financial institutions and industry
to share best practices and, as appropriate, information on
known fraud patterns and results of investigations into
fraudulent activity.
“(vi) Providing identity, eligibility, account, and vital
event verification and validation tools and analytical
services to agencies, as necessary and appropriate; and
“(B) that is capable of receiving (including in bulk data
formats and through systems that facilitate real-time data
access) any data asset, information, or record related to the
administration of Federal programs (including federally
funded State-administered programs) and disbursement of
Federal funds under such programs, provided to the Secretary
for secure and confidential use by the center or the
Inspector General for Fraud, Accountability and Recovery (in
accordance with any terms included in a written data sharing
agreement between the Secretary and the Inspector General) to
recognize and address patterns of fraudulent actors,
information, and claims across such programs; and
“(3) shall provide the Inspector General for Fraud,
Accountability, and Recovery, access to such information
technology, data assets, information, and records to support
the functions and services of the Office of the Inspector
General for Fraud, Accountability, and Recovery established
under section 317 in accordance with applicable law.
“(d) The Secretary of the Treasury, in consultation with
the Director of the Office of Management and Budget, shall
not later than 2 years after the establishment of this
section, and on an annual basis thereafter, submit, to the
Committee on Oversight and Government Reform of the House of
Representatives and the Committee on Homeland Security and
Governmental Affairs of the Senate, a report, which may be
included as part of another report submitted to Congress by
the Secretary, on the implementation of the Program,
including participation rates and an assessment of the
Program's effectiveness in reducing fraud and preventing
improper payments resulting in a financial loss to the
government.
“(e) The Secretary of the Treasury may designate another
officer or employee of the Department to act as the Fiscal
Assistant Secretary when the Fiscal Assistant Secretary is
absent or unable to serve or when the office of Fiscal
Assistant Secretary is vacant.”.
(b) Coordination in Designating Do Not Pay Databases.—
Section 3354(b)(1)(B) of title 31, United States Code, is
amended by inserting “in coordination with the Secretary of
the Treasury” before “in consultation”.
(c) Amendment to Data Act of 2014 Data Analysis Center
Authorization.—Section 6(c)(1) of the Federal Funding
Accountability and Transparency Act of 2006 (Public Law 109-
282; 31 U.S.C. 6101 note) is amended by striking “may” and
inserting “shall”.
SEC. 3. ESTABLISHMENT OF INSPECTOR GENERAL FOR FRAUD,
ACCOUNTABILITY, AND RECOVERY.
(a) Establishment of Inspector for Fraud, Accountability,
and Recovery.—Subchapter I of chapter 3 of title 31, United
States Code, is amended by adding at the end the following:
“Sec. 317. Inspector General for Fraud, Accountability, and
Recovery within the Department of the Treasury
“(a) Office of Inspector General.—There is established
within the Department of the Treasury, the Office of the
Inspector General for Fraud, Accountability, and Recovery.
“(b) Appointment of Inspector General; Removal.—
“(1) In general.—The head of the Office shall be the
Inspector General for Fraud, Accountability, and Recovery,
who shall be appointed by the President, by and with the
advice and consent of the Senate.
“(2) Nomination.—The nomination of the Inspector General
shall be made without regard to political affiliation and
solely on the basis of integrity and demonstrated ability in
accounting, auditing, financial analysis, law, management
analysis, public administration, or investigations.
“(3) Removal.—The Inspector General shall be removable
from office in accordance with the provisions of section
403(b) of title 5.
“(4) Political activity.—For purposes of section 7324 of
title 5, the Inspector General shall not be considered an
employee who determines policies to be pursued by the United
States in the nationwide administration of Federal law.
“(5) Basic pay.—The annual rate of basic pay of the
Inspector General shall be the annual rate of basic pay for
an Inspector General under section 403(e) of title 5.
“(6) Legal counsel.—The Inspector General for Fraud,
Accountability, and Recovery shall, in accordance with
applicable laws and regulations governing the civil service,
obtain legal advice from a counsel either reporting directly
to the Inspector General for Fraud, Accountability, and
Recovery or another inspector general within the executive
branch.
“(c) Duties and Responsibilities.—
“(1) In general.—It shall be the duty of the Inspector
General, in accordance with section 404(b)(1) of title 5, to
conduct, supervise, or coordinate oversight activities,
including audits and investigations of the use of and the
provision or award of covered funds, and the management by
agency heads of any program established by the use of covered
funds, with such related activities of the Inspector General
to be considered civil or criminal law enforcement
activities, including by—
“(A) providing support to agency Inspectors General, if
requested by the agency Inspector General, in the oversight
of covered funds in order to—
“(i) detect and prevent fraud, waste, abuse, and
mismanagement;
“(ii) identify major risks that cut across programs and
agency boundaries; and
“(iii) identify and promote best practices and tools to
prevent, detect, and respond to fraud across covered funds;
and
“(B) coordinating with relevant agency Inspectors General,
the Department of Justice, and, as appropriate, the Fiscal
Service to—
“(i) provide support in conducting investigations, audits,
and reviews relating to covered funds, including through—
“(I) the establishment or use of an independent data
analytics platform, which shall incorporate to the extent
practicable and feasible the data analytic platform
maintained by the Pandemic Response Accountability Committee
prior to the enactment of this section;
“(II) the sharing of data, tools, and services;
“(III) the development and enhancement of data practices,
analysis, and visualization; and
“(IV) any other appropriate means as determined by the
Inspector General in coordination with relevant Inspectors
General from any agency that expends or obligates covered
funds;
“(ii) provide analytical products to agencies to promote
program integrity, prevent improper payments, facilitate
verification efforts to ensure proper expenditure and
utilization of covered funds, and assist with civil and
criminal investigations or litigation relating to fraud,
waste, abuse and mismanagement of covered funds;
“(iii) review the economy, efficiency, and effectiveness
in the administration of, and the detection of fraud, waste,
abuse, and mismanagement in, programs and operations using
covered funds;
“(iv) as appropriate and practicable, identify data assets
and information records collected, produced, and maintained
by the Office that can be securely provided through data
sharing agreements, including in bulk data formats and
through systems that facilitate real-time data access, with
the Secretary of the Treasury to support the functions and
activities of the Fiscal Service and civil and criminal
investigations or litigation relating to fraud, waste, abuse,
and mismanagement of covered funds; and
“(v) expeditiously report to the Attorney General any
instance in which the Inspector General has reasonable
grounds to believe there has been a violation of Federal
criminal law;
“(C) establish an advisory committee composed of other
Inspectors General, with at least three representing an
agency specified under section 901(b) of title 31, United
States Code, and three from another agency, in accordance
with the following:
“(i) General functions.—The advisory committee may
identify and prioritize cross-agency fraud risks and
activities to prevent, detect, and otherwise mitigate such
risks, including by reviewing—
“(I) the economy, efficiency, and effectiveness in the
administration of, and the detection of fraud, waste, abuse,
and mismanagement in, programs and operations using covered
funds; and
“(II) whether there are appropriate mechanisms for
interagency collaboration relating to the oversight of
covered funds, including coordinating and collaborating to
the extent practicable with State and local government
entities.
“(ii) Recommendations.—The advisory committee may, in
coordination with the Secretary of the Treasury and the
Director of the Office of Management and Budget, make
recommendations to agencies on measures to prevent or address
fraud, waste, abuse, and mismanagement, and to mitigate major
risks that cut across programs and agency boundaries,
relating to covered funds.
“(iii) Preventing duplication in oversight functions.—
With a view to preventing duplication in government functions
and provide for ongoing coordination of resources to prevent
fraud and improper payments in Federal programs and spending
the advisory committee may—
“(I) provide recommendations to the Secretary of the
Treasury to assist the Secretary in making recommendations
under section 321(a)(11) of title 31; and
“(II) provide any such additional recommendations in a
timely manner to the appropriate congressional committees as
the advisory committee determines necessary and to ensure
that the definition of `covered funds' established under
section 317(l) of title 31 is legislatively expanded, as
necessary;
“(D) the Inspector General may provide investigative
support to prosecutive and enforcement authorities to protect
program integrity and prevent, detect, and prosecute fraud of
covered funds; and
“(E) coordinating the oversight and investigative
activities with the Comptroller General of the United States,
State and local government Inspectors General, and State and
local auditors, as appropriate.
“(2) Maintenance of systems.—The Inspector General shall
establish, maintain, and oversee such systems, procedures,
and controls as the Inspector General considers appropriate
to discharge the duties of the Inspector General under
paragraph (1).
“(3) Technical assistance and data analytics support.—In
addition to the duties of the Inspector General with respect
to covered funds, for any Inspector General enumerated under
section 424(b)(1) of title 5, the Inspector General may
provide technical assistance to support independent oversight
activities on a reimbursable or non-reimbursable basis
provided that appropriate data privacy and security
protection provisions are provided for in agreements to
provide such technical assistance. Such technical assistance
may include, but not be limited to the following:
“(A) Sharing data available to the Inspector General, as
appropriate under a data sharing agreement.
“(B) Sharing and providing data analytics services.
“(C) Supporting the development of data analytics tools
and capabilities.
“(D) Sharing of data analysis best practices.
“(4) Additional duties and responsibilities.—In addition
to the duties described in paragraphs (1) and (2), the duties
and responsibilities of inspectors general under subsections
(b) through (e) of section 404 of title 5, United States
Code, shall apply to the Inspector General. However, such
duties and responsibilities shall extend beyond the
Department of the Treasury notwithstanding any reference to
the establishment in such section.
“(d) Powers and Authorities.—
“(1) In general.—In carrying out the provisions of this
section, the Inspector General shall have the authorities
provided under section 406 of title 5, United States Code,
except that the references to the establishment in section
406 of such title are not limited to the Department of the
Treasury, and references to `this chapter' in section 406 of
such title shall include this section.
“(2) Treatment of office.—The Office shall be considered
to be an office described in section 406(f)(3) of title 5 and
shall be exempt from an initial determination by the Attorney
General under subsection (f)(2) of such section.
“(3) Treatment of records.—In carrying out the duties and
functions under this subsection with respect to the oversight
of covered funds, the Office shall—
“(A) be considered to be conducting civil or criminal law
enforcement activity for the purposes of section 552a(b)(7)
of title 5; and
“(B) for the purposes of sections 552 and 552a of title 5,
be considered to be a component which performs as its
principal function an activity pertaining to the enforcement
of criminal laws, and its records may constitute
investigatory material compiled for law enforcement purposes.
“(e) Personnel, Facilities, and Other Resources.—
“(1) Appointment of officers and employees.—
Notwithstanding section 406(a)(7) of title 5, the Inspector
General may exercise the authorities of subsections (b)
through (i) of section 3161 of title 5 (without regard to
subsections (a) or (b)(2) of that section) as if the Office
of the Inspector General were a temporary organization, as
defined in such section, to appoint such officers and
employees as may be necessary for carrying out the duties of
the Inspector General and to otherwise carry out the
functions of the Office of the Inspector General under this
section, including appointing an Assistant Inspector General
for Investigations.
“(2) Additional staff.—Upon the request of an Inspector
General of an Office established under chapter 4 of title 5,
the Inspector General may detail, on a nonreimbursable basis,
any personnel of the Office to that Inspector General to
assist in carrying out any audit, review, or investigation
pertaining to the oversight of covered funds.
“(3) Annuitants.—
“(A) In general.—The Office may employ an annuitant
receiving an annuity from the Civil Service Retirement and
Disability Fund for purposes of the oversight of covered
funds.
“(B) Treatment of annuitants.—The employment of
annuitants under this paragraph shall be subject to the
provisions of section 9902(g) of title 5, as if the Office
were the Department of Defense.
“(4) Contracts.—The Inspector General may enter into
contracts and other arrangements for audits, studies,
analyses, and other services with public agencies and with
private persons, and make such payments as may be necessary
to carry out the duties of the Office.
“(f) Requests for Information.—
“(1) In general.—Upon request of the Inspector General
for information or assistance from any department, agency, or
other entity of the Federal Government, the head of that
department, agency, or entity shall, to the extent
practicable and not in contravention of any existing law,
furnish that information or assistance to the Office, or an
authorized designee.
“(2) Refusal to provide requested information or
assistance.—Whenever information or assistance requested by
the Inspector General is, in the judgment of the Inspector
General, unreasonably refused or not provided, the Inspector
General shall immediately report the circumstances to the
appropriate congressional committees.
“(g) Reports.—
“(1) Annual reports.—
“(A) In general.—Not later than 60 days after the date on
which a Inspector General is confirmed, and once every year
thereafter until the Inspector General is no longer serving
in such position, the Inspector General shall submit to the
appropriate committees of Congress a report summarizing the
activities of the Inspector General.
“(B) Contents.—Each report submitted under subparagraph
(A)—
“(i) shall include—
“(I) for the period covered by the report, a detailed
statement the activities conducted by the Inspector General,
including estimates of fraudulent payments the Office helped
prevent and assisted in recovering or prosecuting; and
“(II) policy and legislative recommendations to improve
governmentwide fraud and improper payment prevention and
payment and program integrity improvements; and
“(ii) may include a classified annex.
“(2) Periodic reports.—
“(A) Management alerts.—The Inspector General shall
submit to the President and Congress, including the
appropriate congressional committees, such periodic reports
as may be necessary to notify the President and the Director
of the Office of Management and Budget, and Congress of any
potential program management, risk, or funding
accountability, or payment integrity problems related to the
use and provision or awarding of covered funds that require
immediate attention by Federal agencies or Congress.
“(B) Update reports.—The Inspector General shall submit
to Congress such other reports or provide such periodic
updates on the work of the Office as the Inspector General
considers appropriate on the use of covered funds including
any recommended changes to the scope of covered funds under
subsection (l)(2).
“(3) Public availability.—The Inspector General shall
publish on the website established under subsection (k) all
reports submitted under this subsection.
“(4) Redactions.—Any portion of a report submitted under
this subsection may be redacted when made publicly available,
if that portion would disclose information that is not
subject to disclosure under sections 552 and 552a of this
title, or is otherwise prohibited from disclosure by law.
“(5) Rule of construction.—Nothing in this subsection may
be construed to authorize the public disclosure of
information that is—
“(A) specifically prohibited from disclosure by any other
provision of law;
“(B) specifically required by Executive order to be
protected from disclosure in the interest of national defense
or national security or in the conduct of foreign affairs; or
“(C) a part of an ongoing criminal investigation.
“(h) Funding, Transfer of Funds, Assets, and
Obligations.—
“(1) Funding.—Beginning in fiscal year 2035, and annually
thereafter, there is authorized to be appropriated
$10,000,000 to the Office to carry out the duties and
functions of this section.
“(2) Transfer authority.—The Office may transfer funds
appropriated to the Office for expenses to support
administrative support services and audits, reviews, or other
activities related to oversight of covered funds to any
Inspector General Office and the Department of the Treasury.
“(3) Transfer of assets and obligations.—
“(A) In general.—Upon the effective date of this section,
the assets and obligations held by or available in connection
with the Pandemic Response Accountability Committee
established under section 15010 of the CARES Act (Public Law
116-136; 134 Stat. 533) shall be transferred to the Office.
Upon the effective date of this section the Pandemic Response
Accountability Committee may undertake all activities to
enable such transfer of assets.
“(B) Assets defined.—In this paragraph, the term `assets'
includes contracts, agreements (including data use agreements
and memoranda of understanding), facilities, property, data,
records, unobligated or unexpended balances of
appropriations, personnel identified by the Chairperson and
Executive Director of the Pandemic Response Accountability
Committee pursuant to section 317(e)(1) of title 31, and
other funds or resources.
“(C) Use of unexpended balances of appropriations.—Any
unobligated and unexpended balances of appropriations and
funds transferred pursuant to subparagraph (B) may be used to
support the work of the Inspector General, regardless of the
purpose of the original appropriation.
“(i) Membership in Councils and Committees.—The Inspector
General shall be a member of the Council of the Inspectors
General on Integrity and Efficiency.
“(j) Corrective Responses To Audit Problems.—Agency heads
shall—
“(1) take action to address deficiencies identified by a
report or investigation of the Inspector General; or
“(2) with respect to a deficiency identified under
paragraph (1), certify to the appropriate congressional
committees that they do not concur with the recommendation
and no action is necessary, feasible, or appropriate.
“(k) Website.—The Office shall establish and maintain a
user-friendly, public-facing website—
“(1) to foster greater accountability and transparency in
the use of covered funds, including future supplemental
relief and recovery funds as may be added to the definition
of covered funds, which shall have a uniform resource locator
that is descriptive and memorable;
“(2) that shall be a centralized, governmentwide portal or
gateway to key information relating to the oversight of
covered funds, as appropriate, and to the extent practicable
provide connections to other government websites with related
anti-fraud, improper payment, and oversight and
accountability information; and
“(3) provide information, including findings from the
Office, agency Inspectors General, or State auditors and
financial managers as to the oversight of covered funds,
including related audits, inspections, or other reports.
“(l) Definitions.—In this section:
“(1) Appropriate congressional committee.—The term
`appropriate congressional committees' means the following:
“(A) The Committees on Appropriations of the Senate and
the House of Representatives.
“(B) The Committee on Homeland Security and Governmental
Affairs of the Senate.
“(C) The Committee on Oversight and Government Reform of
the House of Representatives.
“(D) Any other relevant congressional committee of
jurisdiction.
“(2) Covered funds.—The term `covered funds' means the
following:
“(A) Any funds, including loans or tax credits, that are
made available in any form to any non-Federal entity or
individual, under the following:
“(i) Division A or B of the CARES Act (Public Law 116-
136).
“(ii) The Coronavirus Preparedness and Response
Supplemental Appropriations Act, 2020 (Public Law 116-123).
“(iii) The Families First Coronavirus Response Act (Public
Law 116-127).
“(iv) The Paycheck Protection Program and Health Care
Enhancement Act (Public Law 116-139).
“(v) Division M or N of the Consolidated Appropriations
Act, 2021 (Public Law 116-260).
“(vi) The American Rescue Plan Act of 2021 (Public Law
117-2).
“(vii) Any loan guaranteed or made by the Small Business
Administration, including any direct loan or guarantee of a
trust certificate, under the Small Business Act (15 U.S.C.
631 et seq.), the Small Business Investment Act of 1958 (15
U.S.C. 661 et seq.), or any other provision of law.
“(viii) Unemployment compensation, as defined in section
85 of the Internal Revenue Code of 1986.
“(ix) The Infrastructure Investment and Jobs Act (Public
Law 117-58).
“(x) Public Law 117-169 (commonly known as the `Inflation
Reduction Act').
“(xi) The Honoring our PACT Act of 2022 (Public Law 117-
168).
“(xii) The CHIPS Act of 2022 (division A of Public Law
117-167 (commonly known as the `CHIPS and Science Act of
2022')).
“(xiii) The Act titled `An Act to provide for
reconciliation pursuant to title II of H. Con. Res. 14'
(Public Law 119-21).
“(B) A Federal award (as defined under section 7501) in an
amount not less than $50,000.
“(C) Any intramural payment made governmentwide for
research activity.
“(D) Any emergency spending related to disaster relief or
economic recovery.
“(3) Inspector general.—The term `Inspector General'
means the Inspector General for Fraud, Accountability, and
Recovery.
“(4) Office.—The term `Office' means the Office of the
Inspector General for Fraud, Accountability, and Recovery.
“(5) State.—The term `State' means each of the several
States, the District of Columbia, each commonwealth,
territory, or possession of the United States, and each
federally recognized Indian Tribe.
“(m) Rule of Construction.—Nothing in this section shall
be construed to—
“(1) affect the independent authority of an Inspector
General to determine whether to conduct an audit or
investigation of covered funds; or
“(2) require any Inspector General to provide funding to
support the activities of the Office.”.
(b) Office of Management and Budget Directive.—On or
before March 1, 2029, the Director of the Office of
Management and Budget, in coordination with the Secretary of
the Treasury and the Inspector General of Fraud,
Accountability, and Recovery, shall issue a directive to the
head of each agency in the executive branch that disburses or
awards covered funds (as such term is defined section 317(n)
of title 31, United States Code, as added by subsection (a))
that requires the agency to identify and report opportunities
to use the information system and data analytics products of
the Fiscal Service to detect and prevent waste, fraud, abuse,
and improper payments in expenditure of covered funds to the
Director and Secretary within 60 days after receiving the
directive.
(c) Transitional Provision.—
(1) In general.—Notwithstanding sections 403 and 3345
through 3349 of title 5, United States Code, and section
317(b)(1) of title 31, United States Code (as added by
subsection (a)), the individual described in paragraph (2)
shall temporarily perform the functions and duties of the
Office of the Inspector General Fraud, Accountability, and
Prevention in an acting capacity until such permanent
Inspector General can be appointed under the process
established by such section 317(b)(1).
(2) Individual described.—The individual described in this
paragraph is—
(A) the Chairperson of the Pandemic Response Accountability
Committee established under section 15010 of the CARES Act
(Public Law 116-136; 134 Stat. 533) (hereafter “PRAC”) as
of the date this section takes effect; or
(B) if the position described in subparagraph (A) is vacant
as of the date on which this section takes effect, the
Executive Director of the PRAC.
(d) Transfer of Employees.—Each employee of the PRAC who
is to be transferred to the Office of the Inspector General
of Fraud, Accountability, and Recovery under section
317(h)(3) of title 31, United States Code, as added by
subsection (a), shall be appointed to positions in such
Office under terms and conditions of employment that are
substantively the same as the terms and conditions of
employment applicable to such employee as an employee of PRAC
as of the day immediately preceding the date on which this
section takes effect.
(e) Table of Sections.—The table of sections for
subchapter I of chapter 3 of title 31, United States Code, is
amended by adding at the end the following:
“317. Inspector General for Fraud, Accountability, and Recovery within
the Department of the Treasury.”.
(f) Effective Date.—This section, and the amendments made
by this section, shall take effect on December 31, 2028.
SEC. 4. DATA SHARING FOR FRAUD PREVENTION AND PROGRAM
INTEGRITY.
(a) Authority To Negotiate Data Sharing Agreements;
Requirement To Provide Future Legislative Recommendations to
Congress.—Section 321(a) of title 31, United States Code, is
amended—
(1) in paragraph (8)(C), by striking “and” at the end;
(2) in paragraph (9), by striking the period at the end and
inserting a semicolon; and
(3) by inserting at the end the following:
“(10) enter into memoranda of understanding with the heads
of other Federal agencies, including Offices of Inspector
General and Federal law enforcement agencies, and agreements
with private entities as may be appropriate and allowable
under existing law to secure access to such data assets and
information resources as may be appropriate for the Fiscal
Service to use to—
“(A) prevent fraud and improper payments in Federal
programs and spending;
“(B) support the activities and functions of the Do Not
Pay Initiative;
“(C) beginning on December 31, 2028, support the
activities and functions of the—
“(i) the Fiscal Service; and
“(ii) the Office of the Inspector General for Fraud,
Accountability, and Recovery established under section 317,
in coordination with such Office;
“(D) provide such data to relevant Federal agencies for
the identification, prevention, and reduction of waste,
fraud, and abuse relating to Federal spending and use in the
conduct of criminal and other investigations, as appropriate;
and
“(E) in a manner that ensures any related data sharing
agreements provide long term, reliable access to such data
assets and information resources, provide the best value to
the taxpayer by avoiding duplicative data sharing agreements,
include appropriate privacy protections, and require, as
appropriate, reimbursement to the Treasury for the reasonable
cost of carrying out the agreement.
“(11) with respect to any supplemental emergency disaster,
pandemic, economic relief, or other such supplemental
appropriations legislative measures totaling more than
$100,000,000,000 in total funding being considered by
Congress or any legislative measure establishing a new
program with more than $100,000,000 in anticipated additional
spending in a single fiscal year following the enactment of
such legislative measure being considered by Congress,
provide, in coordination with the Director of the Office of
Management and Budget and the Office of the Inspector General
for Fraud, Accountability, and Recovery, to the leadership of
the House of Representatives and Senate, the Committees on
Appropriations of the House of Representatives and Senate,
the Committee on Homeland Security and Governmental Affairs
of the Senate, and the Committee on Oversight and Government
Reform of the House of Representatives any legislative
recommendations on such measures to ensure that—
“(A) existing fraud prevention and oversight functions and
entities of the Federal Government or are not supplanted or
duplicated under such legislative measure, but are instead
required to be used or expanded under such legislative
measure;
“(B) any additional resources or authorities for such
existing functions and entities are adequately provided for
in such legislative measures in order to provide adequate
fraud prevention and oversight of funds appropriated for and
expended under such program; and
“(C) fraud prevention, payment integrity, and spending
transparency best practices are implemented in such
legislation to ensure that—
“(i) reporting obligations for Federal fund recipients are
harmonized governmentwide and conditioned through legally
enforceable mechanisms prior to award; and
“(ii) any sub-recipients and sub-awardees of Federal fund
recipients are also included in reporting obligations for
such recipients for the purposes of ensuring proper recipient
reporting and transparency on the use of funds.”.
(b) Coordination and Duties of the Office of Management and
Budge.—Not later than 270 days after the date of the
enactment of this Act, the Director of the Office of
Management and Budget, in coordination with the Secretary of
the Treasury, shall—
(1) update or revise as necessary any regulations,
memorandum, circulars, or guidance documents to ensure the
full and timely implementation of this section; and
(2) issue any necessary governmentwide guidance to Federal
agencies to ensure the full and timely implementation of this
section.
SEC. 5. TERMINATION AND TRANSFER OF ASSETS OF PANDEMIC
RESPONSE ACCOUNTABILITY COMMITTEE.
(a) Termination.—Section 15010(k) of the CARES Act (Public
Law 116-136; 15 U.S.C. 9053) is amended by striking
“September 30, 2034” and inserting “December 31, 2028”.
(b) Transfer of Assets.—On December 31, 2028, all the
assets and obligations held by or available in connection
with the Pandemic Response Accountability Committee shall be
transferred to the Office of the Inspector General for Fraud,
Accountability, and Recovery established under section 317 of
title 31, United States Code, as added by this Act.
(c) Technical Amendment.—On December 31, 2028, section
15010 of the CARES Act (Public Law 116-136; 15 U.S.C. 9053)
is repealed.
(d) Definition of Assets.—In this section, the term
“assets” includes contracts, agreements (including data use
agreements and memoranda of understanding), facilities,
property, data, records, unobligated or unexpended balances
of appropriations, personnel identified by the Chairperson
and Executive Director of the Pandemic Response
Accountability Committee pursuant to section 317(e)(1) of
title 31, United States Code, as added by this Act, and other
funds or resources.
The SPEAKER pro tempore. The bill, as amended, shall be debatable for 1 hour equally divided and controlled by the chair and ranking minority member of the Committee on Oversight and Government Reform or their respective designees.
The gentleman from Kentucky (Mr. Comer) and the gentleman from Virginia (Mr. Walkinshaw) each will control 30 minutes.
The Chair recognizes the gentleman from Kentucky.
General Leave
Mr. COMER. Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on the measure under consideration.
The SPEAKER pro tempore. Is there objection to the request of the gentleman from Kentucky?
There was no objection.
Mr. COMER. Madam Speaker, I yield myself such time as I may consume.
dramatically enhances how agencies prevent fraud, especially during any future national emergency. It also ensures the governmentwide data analytic resources established to investigate pandemic-era fraud are permanently preserved.
to a crisis, agencies often let their guard down. Serious failures were exposed during the COVID-19 pandemic, especially for the newly established or rapidly expanded financial assistance and benefits programs.
will never be determined, GAO estimates that hundreds of billions of dollars were potentially lost to fraud.
and advanced analysis that could have quickly identified fraudulent activities.
analytics capability on the fly as pandemic relief funds were already being expended by agencies.
H.R. 8312 was drafted based on years of diligent oversight work under the leadership of Government Operations Subcommittee Chairman Pete Sessions from Texas, who is the sponsor of this bill.
antifraud analytics function to assist agency inspectors general with their fraud work.
Accountability, and Recovery, utilizing the valuable proven resources built by the PRAC over recent years.
with the governmentwide program integrity and improper payment tools maintained by the U.S. Treasury's Bureau of the Fiscal Service, providing Treasury the authority to develop a governmentwide data analytic support platform for Federal agencies and State-administered, federally funded programs to voluntarily participate in.
understand how agencies can improve their operations to protect hard- earned taxpayer money from fraudsters.
I encourage my colleagues to support H.R. 8312, and I reserve the balance of my time.
Mr. WALKINSHAW. Madam Speaker, I yield myself 5 minutes.
I am opposed to the Fraud Prevention and Accountability Act.
millions of dollars in pandemic fraud, and it stands as an exemplar of what smart oversight can do with strong bipartisan support. It works. I support making it permanent, as do my Democratic colleagues on the Oversight Committee.
2034 last year. Thanks to that bipartisan work, the PRAC is in no danger of disappearing in the near future.
continuation of President Trump's war on the inspector general community.
General for Integrity and Efficiency, or CIGIE, which was created by Congress to provide a way for the IG community to coordinate, share resources, set audit and investigative standards, learn from one another, and, most importantly, ensure accountability within the IG community itself.
community. It is clear that President Trump and his administration are afraid of CIGIE, because one of its functions, its core functions, is to investigate inspectors general who are accused of wrongdoing; a function that disrupts his administration's efforts over the last year and a half to illegally fire independent IGs and replace them with political allies who his administration hopes will cover up the waste, fraud, and abuse perpetrated by his own administration.
funding last fall. All of us, Democrats and Republicans, should be outraged by that because we appropriated that funding. It caused CIGIE to abruptly stop functioning. The websites housing thousands of audit reports went offline. Investigators and law enforcement officers across the IG community were left without access to essential training. That fraud prevention work came to a halt.
IG is another attempt to weaken the case for funding CIGIE and to further dismantle what remains of a community already very severely weakened by the Trump administration's efforts to purge independent IGs and replace them with political cronies.
capacity for the IG community and less waste, fraud, and abuse identified.
the privacy of millions of Americans, given this administration's really poor track record on information privacy. That is why I filed an amendment to the bill that would walk back the changes proposed and would instead simply make the successful functions of the PRAC permanent within CIGIE. It ain't broke. We don't need to fix it. But the majority would not allow that amendment to move forward.
support the administration's unrelenting attack on the IG community that started with the illegal mass firings in his first month in office in 2025. Since then, many IG positions have been left vacant, and they have installed overtly partisan appointees in others.
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are fearful to come forward when they identify waste, fraud, and abuse. Independent oversight has been blocked, and I fear that this bill would give the Trump administration another way to
Madam Speaker, I reserve the balance of my time.
Mr. COMER. Madam Speaker, you will not hear anything more rich in this body today than listening to a Democrat who did absolutely nothing about fraud for the last 4 years talk about why we should oppose a very good measure to prevent and oppose fraud.
Mr. SESSIONS. Madam Speaker, I thank the distinguished gentleman, the chairman of the Government Reform and Oversight Committee, for yielding.
Mr. Comer has begun telling the story about H.R. 8312, Fraud Prevention and Accountability Act, which we today will discuss, but I think it is important that we probably tell a story because this has two tales, but one truth to it.
because they are embarrassed. They are embarrassed about the legislation that they passed, the operation of the Biden administration with the Treasury, and their insistence that we continue allowing unaided opportunity for fraudsters to come and take advantage of the government.
very beginning. He, as chairman of the committee, and I, as chairman of the Government Operations Subcommittee, have worked completely on a bipartisan methodology, since I have become chairman, with the Democrats, holding hearings, understanding not only the problems but the potential answers. The answers that we have come up with completely would sustain themselves under any opportunity for people to look.
from someone who probably does not know many IGs, has probably never spoken to those about some fear that he believes exists.
estimated that the Federal Government has improperly paid about $3 trillion. That means $3 trillion that was intended for a purpose— probably a very good purpose—has gone to people who have taken that money for a different reason, and that means it is an unintended payment.
$230 and $520 billion each year. While it is easy to say that the predominance of this occurred, really what the President was dealing with was working through issues related to COVID. I need to understand that I do know that this is a fact.
Federal Government workers were given opportunities to not come to work. They call it telework, but the bottom line is, they were not there to challenge people who were trying to take advantage of the government, knowing that between $230 and $500 billion was being fleeced from the Federal Government every year.
known as the PRAC, investigated these payments as they went out the door. They didn't just go out the door; they flew out the door.
The PRAC was established by the CARES Act of 2020 to oversee the $2.2 trillion in pandemic spending. In other words, they added fuel to the fire, $2.2 trillion, knowing they had a problem without an answer.
money go—just let it go—because we don't like the way Donald Trump and Republicans are attempting to hold these fraudsters accountable.
spending of $2.2 trillion and left the PRAC to figure out why we were losing so much money, who it was. Madam Speaker, it is hard to watch $2.2 trillion go out the door knowing that roughly 25 percent of it will never be found or recovered.
for an organization that would begin looking at this issue. Today, we take that beyond looking.
stop the fraud. Instead, they prioritized payments and ignored the need to learn who was getting these payments, to establish an organization that would know more about what was happening on their watch. The Federal Government got payment receipt information on how these recipients requested their money. They had the whole story in front of them.
the answer. Since the creation of the PRAC, the PRAC has assisted law enforcement and agency inspectors general and partners across 1,200 pandemic-related investigations, with a potential fraud loss of $2.5 billion.
Oversight Committee and my Government Operations Subcommittee, it is clear that we have a huge number of people defrauding the government, and the PRAC has lots of data and information.
The PRAC has some 1.7 billion pieces of data—names, addresses, emails, cohorts who assisted with that, and other data and information—that was gleaned through the process.
This bill today, H.R. 8312, the Fraud Prevention and Accountability Act, will make sure that the PRAC cannot only continue permanently, which my friends, the Democrats, say that they are not against, but it will also allow a placement of a permanent home to alleviate the questions that had come up earlier, and that was who is doing the work.
It has been decided that the U.S. Treasury's Bureau of the Fiscal Service's financial and integrity services will handle this. They are professionals. They are law enforcement, and they have an eye to fraud.
oversight of funds. We will make sure that no matter the problems that face this Nation, we will be prepared.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. COMER. Madam Speaker, I yield an additional 1 minute to the gentleman from Texas.
Mr. SESSIONS. We are here on the floor today with this opportunity to come up with what started as and still should be a bipartisan agreement.
run every bit of this data and information through the PRAC of existing people who receive benefits today. We are going to know that just the word alone of fraud is enough not to stop a payment, but to do an investigation, and it will be done by law enforcement professionals who understand not only authority and responsibility, but they understand the taxpayers' needs.
Madam Speaker, I thank you for allowing this bill to come today. I thank the distinguished chairman of our committee, and I want you to know, this bipartisan bill that started that way still has a chance to end that way.
Mr. WALKINSHAW. Madam Speaker, I yield myself such time as I may consume.
for the last 4 years here. I know the gentleman from Kentucky knows that I have not been a Member of this House for 4 years because he reminds me often, but I did spend the last 5 years serving in local government for a county government that was repeatedly named the best managed county in the United States of America.
analogue to IGs, and when they brought forward information that might have been inconvenient for us that there was perhaps waste, fraud, or abuse taking place within the government, we didn't fire them. We listened to that information and acted on it. The Trump administration could learn a little bit from that.
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if you come to the conclusion that Joe Biden is President of the United States right now. That is because with my friends on the other side, every sentence is “subject verb Joe Biden,” “subject verb Joe Biden,” “Joe Biden this,” “Joe Biden that.” Joe Biden is on the beach in Delaware.
Donald J. Trump is President of the United States, and he is responsible for the fraud, the corruption, and the abuse taking place in the administration: the $400 million jet gift of a foreign government; the digital schemes that were reported recently where the Trump family profited $500 million, while investors—I use that term loosely—in those schemes lost out, every one of our constituents; the no-bid contracts awarded to close political allies of former DHS Secretary Kristi Noem; and the credible allegations that Corey Lewandowski had to be paid off before contracts could be awarded at DHS.
majority about it in this Chamber or on the Oversight and Government Reform Committee.
is sincere in his view that this bill would be an improvement—I want to share, again, my concerns. We agree that the PRAC works. It is one thing that maybe we agree on today.
Why does it work? Why has it worked better than other tools that we have? I will give you three reasons, Madam Speaker.
One, PRAC has multiagency ownership because it is housed at CIGIE. It can bring together the judgment of IGs across the government, all the IGs. CIGIE is uniquely positioned to allow for all of those perspectives to be brought to bear on the PRAC's work.
Second, it has institutional independence. It is independent of the White House and independent of any agency or department, which allows it to speak truth in a way that, right now, other IGs don't feel they can do.
Third, it is separate from the payment system. It is separate from the payment system, so we can look from above and outside on what is taking place in the payment system to help prevent fraud.
inside the very agency that runs that payment structure. I think that weakens it.
I respect that the gentleman from Texas believes that strengthens it. I think the record is clear. If we agree that it works, then why do we want to risk disrupting it?
Madam Speaker, I reserve the balance of my time.
Mr. COMER. Madam Speaker, I yield 2 minutes to the gentlewoman from Colorado (Ms. Boebert).
Ms. BOEBERT. Madam Speaker, I rise today in support of H.R. 8312, the Fraud Prevention and Accountability Act.
steward of taxpayer dollars, yet every year, the Federal Government loses hundreds of billions of dollars to fraud, waste, and abuse of our hard-earned money.
businesses with the support they need, several COVID-era spending programs exposed serious weaknesses in our ability to prevent fraud. Once those dollars were lost, it has proven to be nearly impossible to recover them.
proactive one. Instead of focusing primarily on recovering funds after they have been stolen, it prioritizes preventing fraud before taxpayer dollars are ever stolen.
safeguards, this bill helps ensure Federal programs are protected from abuse. At a time when our Nation is almost $40 trillion in debt, every dollar matters.
wait far too long for their paychecks to watch them be sacrificed to bureaucratic incompetence.
Madam Speaker, I urge my colleagues to support this bill.
Mr. WALKINSHAW. Madam Speaker, I yield myself the balance of my time.
inspectors general, which is one of the most powerful tools we have to combat waste, fraud, and abuse.
program that is not broken. We agree, both sides, that the PRAC is working. Why we would want to disrupt it, I don't comprehend. I struggle to comprehend.
advance the Trump administration's efforts to further undermine and weaken our independent inspectors general, who are our key tools to combat waste, fraud, and abuse.
Madam Speaker, I yield back the balance of my time.
Mr. COMER. Madam Speaker, it is estimated that if the Pandemic Response Accountability Committee were established prior to the pandemic, as much as $79 billion in fraudulent payments could have been prevented on the front end.
The Nation cannot afford to lose such a valuable resource. That is why I call on each of my colleagues to support H.R. 8312 to ensure that these antifraud capabilities are permanently available to Federal agencies and in preparation for any future national emergency.
Madam Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. All time for debate has expired.
The question is on the engrossment and third reading of the bill.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that the ayes appeared to have it.
Mr. WALKINSHAW. Madam Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further proceedings on this question will be postponed.