Pre-Payment Fraud Prevention and Treasury Data Access Act
- Bill Number
- H.R. 8463
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Government Operations and Politics
- Status
- Passed House
- Latest Action
- 2026-06-09: Received in the Senate.
- Last Updated
- 2026-06-10T10:56:30Z
AI-Generated Summary
## Purpose
This legislation aims to strengthen fraud prevention in federal payments and awards by requiring pre-payment checks across government agencies. It expands Treasury's access to data resources for anti-fraud efforts, improves data sharing among agencies, and introduces new reporting for first-time recipients of federal funds.
## Key Provisions
- Pre-payment fraud prevention requirements: Agencies must verify specific details before certifying payment vouchers, including fund availability, correct payee information, valid identification numbers, appropriate appropriations, confirmation that the payee is not deceased, and valid bank account details. The Treasury Secretary, in consultation with the Office of Management and Budget Director, issues regulations and guidance for these checks.
- Do Not Pay system enhancements: Renames and updates the existing system to require screening of recipients against data assets before awards or payments. It grants Treasury broader access to data sources, allows state, local, judicial, and legislative branch access under privacy rules, and includes protections such as limited data use, binary match responses, and penalties for unlawful disclosure.
- Fraud-risk indicators: Requires agencies to incorporate fraud-risk indicators into improper payment risk assessments.
- Single report on first-time fund use: First-time recipients of federal awards of $50,000 or more must submit a one-time report within 180 days on how funds were used, with governmentwide standards for content and format. Noncompliance results in withheld payments.
- Exemptions and compliance: Agencies can request exemptions with remediation plans; quarterly reports and annual evaluations track system effectiveness.
## Significant Changes to Existing Law
- Adds new section 3325a to title 31, United States Code, mandating pre-certification fraud checks before voucher issuance.
- Amends section 3354 to expand the Do Not Pay system with new data access rules, privacy safeguards, and an expedited computer matching process using standardized templates.
- Introduces section 6107 for mandatory post-award reporting by first-time recipients.
- Updates sections 3325, 3528, and 3352 to integrate fraud prevention into certifying official duties and risk assessments.
- These changes shift from voluntary or limited anti-fraud measures to mandatory, governmentwide pre-payment verification and data sharing protocols.
## Potential Impacts
- Government agencies: Increases administrative workload for verification and reporting but may reduce losses from fraud and improper payments through earlier detection.
- Citizens and recipients: Enhances safeguards against fraudulent payments; first-time award recipients face new reporting obligations, with potential payment delays for noncompliance.
- State and local governments: Gains access to the Do Not Pay system for federally funded programs, aiding their fraud prevention efforts.
- No notable effects on international relations are outlined in the legislation.
## Main Stakeholders Affected
- Executive branch agencies and their certifying and disbursing officials.
- Department of the Treasury, particularly the Fiscal Service.
- Office of Management and Budget.
- Recipients of federal awards and payments, including states, localities, and other entities.
- State and local governments administering federal programs.
- Congress, through required reports and evaluations.
- Inspectors General and the Attorney General for oversight and enforcement.
## Notable Legal, Constitutional, or Political Implications
- Strengthens compliance with the Privacy Act by limiting data use to authorized purposes, requiring public notices for new data assets, and imposing fines or imprisonment for violations.
- Introduces streamlined computer matching agreements to reduce administrative hurdles while preserving due process requirements.
- Provides exemptions when federal law mandates payments despite potential ineligibility, balancing fraud prevention with statutory obligations.
- Emphasizes data confidentiality and independent verification before adverse actions, minimizing risks of erroneous decisions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Rep. Arrington, Jodey C. [R-TX-19], Rep. Garcia, Robert [D-CA-42], Rep. Calvert, Ken [R-CA-41]
Recent Actions
- 2026-06-09: Received in the Senate.
- 2026-06-08: Motion to reconsider laid on the table Agreed to without objection.
- 2026-06-08: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3919-3922)
- 2026-06-08: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3919-3922)
- 2026-06-08: DEBATE - The House proceeded with forty minutes of debate on H.R. 8463.
- 2026-06-08: Considered under suspension of the rules. (consideration: CR H3919-3923)
- 2026-06-08: Mr. Gill (TX) moved to suspend the rules and pass the bill, as amended.
- 2026-06-08: Placed on the Union Calendar, Calendar No. 600.
- 2026-06-08: Committee on Ways and Means discharged.
- 2026-06-08: Committee on Ways and Means discharged.
- 2026-06-08: Reported (Amended) by the Committee on Oversight and Government Reform. H. Rept. 119-688, Part I.
- 2026-06-08: Reported (Amended) by the Committee on Oversight and Government Reform. H. Rept. 119-688, Part I.
- 2026-04-29: Ordered to be Reported (Amended) by the Yeas and Nays: 35 - 1.
- 2026-04-29: Committee Consideration and Mark-up Session Held
- 2026-04-23: 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.
Bill Versions
- Pre-Payment Fraud Prevention and Treasury Data Access Act — issued 2026-06-08 — PDF (36 pages)
- Pre-Payment Fraud Prevention and Treasury Data Access Act — issued 2026-04-23 — PDF (34 pages)