Key facts
- The House passed two key bills, the Fraud Prevention and Accountability Act and the Stopping Fraudulent Payments Act, to combat federal fraud.
- The Fraud Prevention and Accountability Act will create a governmentwide data analytics function and establish a new inspector general within the Treasury Department.
- The Stopping Fraudulent Payments Act aims to prevent federal agencies from making payments when there is an elevated risk of fraud.
- Proponents argue the legislation will protect taxpayer dollars and ensure federal programs serve intended recipients.
- Critics express concerns that the bills could compromise individual privacy by expanding data access and potentially lead to the denial of benefits to eligible citizens.
The U.S. House of Representatives has passed two significant bills aimed at combating fraud within federal programs. The Fraud Prevention and Accountability Act, sponsored by Representatives Pete Sessions and William Timmons, passed with bipartisan support, including 28 Democrats. This legislation seeks to establish a governmentwide data analytics function and create a new permanent inspector general position within the Treasury Department to oversee fraud prevention and recovery efforts. Proponents argue this will enhance the capabilities of agency inspectors general and ensure the permanent function of anti-fraud tools developed during the pandemic.
The Stopping Fraudulent Payments Act, introduced by House Oversight Committee Chairman James Comer and Representatives Jodey Arrington and Ken Calvert, passed with less Democratic support. This bill aims to address the 'pay and chase' problem by empowering the U.S. Treasury to return payment requests to agencies if they are deemed at high risk for fraud, shifting the focus from recovery to prevention. Chairman Comer stated that these measures are long overdue reforms to safeguard taxpayer dollars and ensure federal programs benefit those most in need.
However, privacy advocates and some Democratic lawmakers have voiced significant concerns. Quinn Anex-Ries of the Center for Democracy & Technology highlighted worries that the bills could expand the types of data held in the Treasury's 'Do Not Pay' system and how it can be used, potentially threatening individual privacy. She noted that the current drafts do not sufficiently address these risks or mitigate the possibility of inadvertently cutting off benefits for eligible individuals. Similarly, Abigail Kunkler from the Electronic Privacy Information Center pointed to the risks associated with creating consolidated national data banks, which Congress has previously rejected in other contexts, and potential violations of the Privacy Act. Representative James Walkinshaw expressed concern that placing the new inspector general within the Treasury Department, rather than as an independent watchdog, could weaken its oversight capabilities.