The Republican-controlled U.S. House of Representatives passed legislation this week aimed at strengthening safeguards against improper and fraudulent federal payments, approving the Stopping Fraudulent Payments Act by a 218-200 vote.
The measure, introduced by House Oversight Committee Chairman James Comer (R-Ky.), seeks to reform the longstanding “pay and chase” system in which agencies issue payments before verifying eligibility, often resulting in costly and incomplete recovery efforts.
Under the bill, federal agencies would gain authority to pause, condition, or segment suspicious payments when data indicates elevated risk of fraud or error.
The U.S. Treasury Department would also be empowered to return flagged requests for additional review using tools such as the Do Not Pay database.