PIIA Reform Act

Bill Number

H.R. 1533

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Government Operations and Politics

Status

Introduced

Latest Action

2025-02-24: Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-04-09T15:32:42Z

AI-Generated Summary

Purpose

The PIIA Reform Act aims to reduce improper payments and fraud in federal programs by creating a dedicated position to oversee these issues, expanding requirements for identifying and reporting improper payments, enhancing accountability mechanisms, and mandating the use of payment integrity tools, particularly involving states in programs like welfare and Medicaid.

Key Provisions

• Establishment of the Overpayment Czar: Creates a Director of Improper Payment Mitigation (nicknamed "Overpayment Czar") within the Office of Federal Financial Management. This position, appointed by the Director of the Office of Management and Budget, assists federal agencies in identifying, preventing, and mitigating improper payments and fraud; develops strategies to address them; and submits annual reports with corrective actions to the Controller of the Office of Federal Financial Management.
• Enhanced Financial Management Plans: Requires agency financial management plans to include input from the Overpayment Czar and a specific strategy to reduce improper payments across executive agencies.
• Expanded Scope of Improper Payments: Broadens the definition of programs susceptible to significant improper payments to include new federal programs expected to exceed $100 million in outlays in their first three years, especially those in their first four years of operation. Agencies must review and identify such risks.
• Data Reporting for Specific Programs: Authorizes the Secretary of Health and Human Services to require data from states under the Temporary Assistance for Needy Families (TANF) program to estimate improper payments.
• Penalties for Noncompliance: For agencies persistently failing to address improper payments, imposes automatic budget reductions—5% for one year of noncompliance and 10% for two or more years—applied to their highest-level administrative appropriation accounts via sequestration under the Balanced Budget and Emergency Deficit Control Act of 1985.
• Annual Fraud Risk Reports: Mandates agencies to report annually on progress in implementing fraud controls, identifying risks (e.g., in payroll, grants, contracts), and following leading practices from the Government Accountability Office (GAO) and Office of Management and Budget (OMB) guidelines. Agencies can integrate this into existing financial statements to avoid duplication.
• State Requirements for Payment Integrity Tools: Requires states receiving federal funds for programs like TANF, Medicaid, SNAP (Supplemental Nutrition Assistance Program), unemployment insurance, and WIC (Women, Infants, and Children) to use OMB-published payment integrity tools to reduce overpayments. States must submit annual certifications on usage and effectiveness; noncompliance results in remitting overpayment amounts to the U.S. Treasury. This takes effect one year after enactment.
• Data Sharing Expansion: Permanently extends and broadens the Social Security Administration's "Do Not Pay" working system for verifying eligibility and preventing improper payments, beyond the previous temporary limit focused on deceased individuals.

Significant Changes to Existing Law

• New Position and Oversight: Inserts a new section (504A) into title 31 USC for the Overpayment Czar, a role not previously existing, which can recommend policy changes to agency chief financial officers for better improper payment estimates.
• Broader Program Coverage: Amends section 3352 of title 31 USC to automatically flag new high-outlay programs as susceptible to improper payments, unless a review proves otherwise, expanding beyond current thresholds.
• Accountability Mechanisms: Adds budget sequestration penalties in section 3353 for agency noncompliance (previously limited to reporting and corrective action plans) and state-level remittance requirements in a new section 3359 for failing to use integrity tools.
• Reporting Enhancements: Updates section 3357 to require detailed, multi-year fraud risk reporting aligned with GAO's 2015 fraud management framework, and extends data-sharing under the Social Security Act beyond its prior three-year pilot.
• State Involvement: Introduces mandatory tool usage and reporting for states in key assistance programs, amending the Social Security Act to enable TANF data collection for federal improper payment estimates.

Potential Impacts

• On Government Agencies: Increases administrative burdens through new reporting, reviews, and potential budget cuts, but provides centralized guidance via the Overpayment Czar to improve payment accuracy and reduce fraud, potentially saving billions in federal funds annually.
• On Citizens: Could lead to more accurate benefit distribution in programs like Medicaid and SNAP, reducing errors that affect eligibility or payments; however, stricter state compliance might indirectly influence program administration and access.
• On International Relations: Minimal direct impact, as the bill focuses on domestic federal and state programs; no provisions address foreign aid or international payments.

Main Stakeholders Affected

• Federal Agencies: Executive agencies, particularly those handling payments (e.g., Health and Human Services, Agriculture, Labor), must comply with expanded reviews, reporting, and potential penalties.
• States: Administrators of block grant and assistance programs (TANF, Medicaid, SNAP, unemployment, WIC) face new tool usage mandates, annual reporting, and financial penalties for overpayments.
• Office of Management and Budget (OMB) and GAO: Gain roles in publishing tools, overseeing the Overpayment Czar, and influencing fraud standards.
• Congress and Taxpayers: Benefit from improved fiscal accountability, with annual reports submitted to Congress for oversight.
• Program Beneficiaries: Indirectly affected through potentially more reliable payment systems, reducing waste in social services.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens enforcement via automatic sequestration (tying into existing budget control laws) and state remittance requirements, which could face challenges if seen as unfunded mandates under the Anti-Mandate Act; expands data-sharing authorities, raising privacy concerns under laws like the Privacy Act, though focused on authorized uses.
• Constitutional: No direct challenges noted, but penalties on state funds might invoke federalism debates (10th Amendment) if perceived as coercive; aligns with Congress's spending power to attach conditions to federal grants.
• Political: Promotes fiscal responsibility and anti-fraud measures, appealing to budget hawks, but could spark partisan divides over agency burdens and state autonomy; the "Czar" title may draw symbolic criticism for expanding executive oversight without Senate confirmation (appointed by OMB Director).

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Meuser, Daniel [R-PA-9]

Recent Actions

• 2025-02-24: Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-02-24: Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-02-24: Introduced in House
• 2025-02-24: Introduced in House

Bill Versions

• PIIA Reform Act — issued 2025-02-24 — PDF (12 pages)