Stopping Fraudulent Payments Act
This bill allows federal agencies to temporarily freeze government payments if they suspect fraud. It protects government workers from personal financial penalties if they freeze a payment in a good-faith effort to stop a scam, even if a mistake is made. Citizens or businesses whose valid payments are mistakenly paused can contest the decision to get their money. The Treasury Department must also track and report on how much taxpayer money is saved by pausing these suspicious transactions.
The provisions, in plain language.
Starting one year after enactment, requires federal disbursing officials to comply with orders to pause payments under section 3337 of title 31.
Starting one year after enactment, protects federal disbursing and certifying officials from financial liability for lost or deficient government funds if the loss resulted from a good-faith effort to comply with payment-pausing requirements.
Starting 18 months after enactment, requires the Secretary of the Treasury to submit an annual report to Congress and the Office of Management and Budget detailing federal payment pause and correction orders, the percentage of paused payments eventually released (including those successfully contested by payees), the total financial savings from preventing fraudulent payments, and related policy recommendations.
Who it helps · who it burdens.
Who it helps
- Federal disbursing and certifying officialsGains protection from personal financial liability for lost or deficient government funds if the loss resulted from a good-faith effort to comply with payment-pausing requirements.
- Federal governmentGains financial savings from the prevention of fraudulent payments and payments that would result in financial loss.
Who it burdens
- Federal disbursing officialsTakes on a new legal duty to comply with orders to pause federal payments.
- Secretary of the TreasuryTakes on a new administrative duty to submit an annual report to Congress and the Office of Management and Budget detailing payment pauses, savings, and policy recommendations.
- Recipients of federal paymentsMay have their government payments paused or delayed under payment-pausing orders, requiring them to file a contestation to have the funds released.