Technical corrections only. The diff reflects the bill's progression from being reported in the House (v2) to being engrossed (v3) after passing the House. No substantive policy changes were made to the text of the bill.
Stopping Fraudulent Payments Act
- Sponsor
- Rep. Comer, James [R-KY-1]
- Committees
- Oversight and Government Reform Committee (primary)
- Last action
- Jun 11, 2026
Bottom line
The Stopping Fraudulent Payments Act aims to reduce financial losses to the government from fraud and improper payments by empowering federal agencies and Treasury to pause suspicious disbursements, while also establishing safeguards for payees.
What it actually does
This bill amends Title 31 of the U.S. Code to grant federal agencies and the Department of the Treasury new authority to temporarily delay, condition, or segment federal payments if there is an elevated risk of fraud or improper payment. It establishes procedures for notifying payees of such pauses, outlining a process for them to contest the action, and setting time limits for resolution. The bill also provides liability relief for federal officers acting in good faith under these new authorities.
Proponents argue
Proponents argue that this bill is a crucial step to protect taxpayer money by providing federal agencies with essential tools to proactively combat fraud and improper payments. They contend it will enhance government accountability, improve the integrity of federal spending, and prevent significant financial losses that currently occur across various programs.
Opponents contend
Critics might raise concerns that the new payment pause authorities could lead to delays in legitimate payments, potentially causing financial hardship for individuals, businesses, and state/local governments relying on federal funds. They may also point to the administrative burden on agencies to implement these new procedures and manage payee disputes, questioning the overall efficiency and potential for overreach.
The bill is concise and its core provisions are relatively straightforward, allowing an informed reader to grasp its implications within a reasonable timeframe.
Sec. 2(a)(1), adding 31 U.S.C. 3337(a)
Agency Obligation to Pause Disbursement Requests for Corrective Action
This provision requires the head of a federal agency to temporarily delay, condition, or segment a payment request before it is certified if the agency determines there is an elevated risk of fraud or improper payment. This determination can be based on objective fraud-risk indicators or notifications from state or local governments regarding federally-funded programs.
Supporters argue
Supporters argue this empowers agencies to proactively prevent fraud and improper payments, safeguarding taxpayer funds at the first line of defense by allowing for immediate action on suspicious transactions.
Critics contend
Critics might argue this adds a layer of bureaucracy and potential for delays in legitimate payments, especially if fraud-risk indicators are overly broad or lead to false positives.
Tradeoffs
This provision balances the need for robust fraud prevention at the agency level with the potential for administrative burden and temporary delays in payment processing.
Sec. 2(a)(1), adding 31 U.S.C. 3337(b)
Treasury Obligation to Return Payment Voucher and Issue Corrective Action Order
This section mandates that the Secretary of the Treasury promptly notify relevant certifying officials and issue a corrective action order to an agency within two days if the Treasury's 'Do Not Pay' system identifies an elevated risk of fraud or improper payment for a certified payment voucher. This centralizes a critical fraud detection function.
Sec. 2(a)(1), adding 31 U.S.C. 3337(d)
Payee Notification and Time Limit of Paused Disbursement Requests
This section requires agencies to promptly notify payees (within two days) when a payment has been temporarily paused, conditioned, or segmented. The notification must identify the fraud-risk indicator and outline a process for the payee to contest the action. Payments must be issued within 30 days of the initial pause determination, or within 7 days if the payee successfully contests the action.
Sec. 2(a)(1), adding 31 U.S.C. 3337(e)
Segmentation of Low-risk Payments
This provision directs agencies, to the maximum extent practicable, to allow routine and historically consistent portions of a payment to proceed while only temporarily holding the anomalous, unusually large, or high-risk portion for review. This aims to minimize disruption to legitimate transactions.
Sec. 2(c) and Sec. 2(e)
Relief from Liability for Good Faith Compliance
This bill amends existing sections 31 U.S.C. 3527 and 3528 to provide relief from personal liability for federal accountable and certifying officers. This relief applies if an illegal or incorrect payment was made as a result of a good faith effort to comply with the new requirements of section 3337 regarding payment pauses and reviews.
The amendments made by this Act, which establish the new payment pause authorities and related procedures, shall take effect 1 year after the date of the enactment of this Act.
Section 2(g)
Why it matters:This is standard legislative practice for effective dates, which are often placed at the conclusion of a title or section to provide a clear transition period for implementation.
Case for: Provides federal agencies and the Department of the Treasury with a full year to develop the necessary regulations, update IT systems, train personnel, and establish clear procedures to comply with the new requirements before they become legally binding.
Case against: Delays the implementation of enhanced fraud prevention measures for a significant period, potentially allowing more improper payments to occur in the interim before the new authorities can be fully utilized.
Estimated impact: Delays the potential savings from enhanced fraud prevention by one year, while providing agencies with crucial time for preparation.