Stopping Fraudulent Payments Act
Starting one year after enactment, federal officials can pause outgoing government payments to investigate suspected fraud before the money leaves the Treasury. Individuals or businesses whose payments are mistakenly held can dispute the decision with the agency to receive their funds. The bill protects federal payment officials from liability for making good-faith holds, while requiring annual reports on taxpayer dollars saved and how often legitimate payments were wrongly delayed.
What this bill touches.
Who it helps · who it burdens.
Who it helps
- Federal certifying and disbursing officersGrants them protection from personal financial liability for payment errors or losses resulting from good-faith compliance with payment-pause and fraud prevention orders.
Who it burdens
- Department of the TreasuryRequires the Secretary of the Treasury to prepare and submit an annual report to Congress and OMB on paused payments, payee appeals, estimated savings, and fraud-mitigation recommendations.
- Federal disbursing officialsRequires them to comply with orders to pause payments or return certified vouchers flagged for suspected fraud.
- Payees and recipients of federal payments flagged for fraudFace potential payment pauses or delays if their payment vouchers are flagged for suspected fraud and subjected to return orders or agency review.
The provisions, in plain language.
Requires federal disbursing officials to comply with orders to pause payments or return certified vouchers suspected of fraud, effective one year after enactment.
Protects federal certifying and disbursing officers from personal financial liability for losses or payment errors resulting from good-faith efforts to comply with payment-pause and fraud prevention orders, effective one year after enactment.
Requires the Secretary of the Treasury to submit an annual report to Congress and the Office of Management and Budget starting 18 months after enactment detailing paused payments, payee appeals, government savings from prevented fraud, and policy recommendations.