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Stopping Fraudulent Payments Act

USA119th CongressS-4747| Senate 
| Updated: 6/10/2026
Joni Ernst

Joni Ernst

Republican Senator

Iowa

Homeland Security and Governmental Affairs Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
The "Stopping Fraudulent Payments Act" amends title 31, United States Code, to establish a new authority for federal agencies and the Department of the Treasury to pause, condition, or segment federal payments . This measure is designed to combat fraud and improper payments by allowing for further review and corrective action before funds are disbursed. Agencies are mandated to take such actions when a payment presents an elevated risk of fraud, based on fraud-risk indicators or notifications from state or local governments. The Treasury Department is also empowered to order agencies to return certified payment vouchers and issue corrective action orders if its "Do Not Pay" system identifies an elevated risk of fraud. Any corrective action taken must be based on objective, documented fraud-risk indicators , narrowly applied, and limited in duration to verify eligibility or accuracy. The bill emphasizes allowing routine payment portions to proceed while only holding anomalous or high-risk segments. Crucially, the legislation requires agencies to promptly notify payees (within two days) when a payment is paused, explaining the reason and outlining a process for contesting the action. Payments must be resolved and issued within 30 days of the initial determination or 7 days if the payee successfully contests the pause. Federal officers and employees acting in good faith under this section are granted protection from personal liability. To ensure effective implementation, the Secretary of the Treasury, in consultation with the Director of the Office of Management and Budget, must issue regulations within 180 days. These regulations will specify procedures for agency determinations, the use of the "Do Not Pay" system, and agency dispute processes. The bill also mandates annual reporting on the number of paused payments, resolution rates, and total savings achieved, aiming to enhance government efficiency and prevent financial losses.
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Timeline
Jun 10, 2026
Introduced in Senate
Jun 10, 2026
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Jun 11, 2026

Latest Companion Bill Action

HR 119-8464
Received in the Senate.
  • June 10, 2026
    Introduced in Senate


  • June 10, 2026
    Read twice and referred to the Committee on Homeland Security and Governmental Affairs.


  • June 11, 2026

    Latest Companion Bill Action

    HR 119-8464
    Received in the Senate.

Related Bills

  • HR 119-8464: Stopping Fraudulent Payments Act

Stopping Fraudulent Payments Act

USA119th CongressS-4747| Senate 
| Updated: 6/10/2026
The "Stopping Fraudulent Payments Act" amends title 31, United States Code, to establish a new authority for federal agencies and the Department of the Treasury to pause, condition, or segment federal payments . This measure is designed to combat fraud and improper payments by allowing for further review and corrective action before funds are disbursed. Agencies are mandated to take such actions when a payment presents an elevated risk of fraud, based on fraud-risk indicators or notifications from state or local governments. The Treasury Department is also empowered to order agencies to return certified payment vouchers and issue corrective action orders if its "Do Not Pay" system identifies an elevated risk of fraud. Any corrective action taken must be based on objective, documented fraud-risk indicators , narrowly applied, and limited in duration to verify eligibility or accuracy. The bill emphasizes allowing routine payment portions to proceed while only holding anomalous or high-risk segments. Crucially, the legislation requires agencies to promptly notify payees (within two days) when a payment is paused, explaining the reason and outlining a process for contesting the action. Payments must be resolved and issued within 30 days of the initial determination or 7 days if the payee successfully contests the pause. Federal officers and employees acting in good faith under this section are granted protection from personal liability. To ensure effective implementation, the Secretary of the Treasury, in consultation with the Director of the Office of Management and Budget, must issue regulations within 180 days. These regulations will specify procedures for agency determinations, the use of the "Do Not Pay" system, and agency dispute processes. The bill also mandates annual reporting on the number of paused payments, resolution rates, and total savings achieved, aiming to enhance government efficiency and prevent financial losses.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline
Jun 10, 2026
Introduced in Senate
Jun 10, 2026
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Jun 11, 2026

Latest Companion Bill Action

HR 119-8464
Received in the Senate.
  • June 10, 2026
    Introduced in Senate


  • June 10, 2026
    Read twice and referred to the Committee on Homeland Security and Governmental Affairs.


  • June 11, 2026

    Latest Companion Bill Action

    HR 119-8464
    Received in the Senate.
Joni Ernst

Joni Ernst

Republican Senator

Iowa

Homeland Security and Governmental Affairs Committee

Related Bills

  • HR 119-8464: Stopping Fraudulent Payments Act
  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted