Stopping Fraudulent Payments Act

Bill Number: H.R. 8464
Origin Chamber: House
Congress: 119th Congress, Session 2
Policy Area: Government Operations and Politics
Status: Passed House
Latest Action: 2026-06-11: Received in the Senate.
Last Updated: 2026-06-30T21:37:09Z

AI-Generated Summary

Purpose

The legislation, titled the "Stopping Fraudulent Payments Act," aims to give federal agencies new tools to temporarily delay or split payments when there is a risk of fraud or improper payments, helping to reduce financial losses to the government while allowing for review and correction.

Key Provisions

New Authority for Pausing Payments: Adds Section 3337 to Title 31 of the U.S. Code, requiring agency heads to pause, condition, or segment a payment request if there is an elevated fraud risk based on data indicators or notifications from state or local officials.
Treasury's Role: The Secretary of the Treasury must notify agencies and order the return of certain payment vouchers within 2 days if the "Do Not Pay" system flags a risk, with agencies required to act accordingly.
Payee Protections and Timelines: Agencies must notify payees within 2 days of a pause, explain the reason, and allow them to contest the action. Payments must generally resume within 30 days (or 7 days after a successful contest), unless fraud risk remains.
Segmentation Option: Agencies should let routine, low-risk portions of payments proceed while holding only the suspicious parts for review.
Exemptions and Limits: Waivers are allowed for active law enforcement investigations. Actions must be documented, narrowly focused, and time-limited. Good-faith compliance protects officials from personal liability.
Regulations and Reporting: The Treasury, with input from the Office of Management and Budget, must issue rules within 180 days. Annual reports to Congress must detail paused payments, savings achieved, and any recommendations.
Effective Date: Changes take effect 1 year after the bill becomes law.

Significant Changes to Existing Law

This creates a new process for pausing disbursements before final certification, expanding beyond current fraud detection tools like the "Do Not Pay" system.
It amends sections on certifying and disbursing officials (e.g., 3325, 3527, 3528) to require compliance with pause orders and extend liability relief for good-faith efforts.
It introduces specific notification and appeal procedures for payees that did not previously exist in this context.

Potential Impacts

On Government Agencies: Increases administrative workload for reviews and documentation, but could lead to reduced improper payments and improved internal controls.
On Citizens and Payees: May cause short-term delays in receiving funds, with a formal process to challenge pauses, potentially affecting individuals, businesses, and state/local programs funded by federal money.
On International Relations: No direct effects noted in the legislation.

Main Stakeholders Affected

Federal agencies and their officials responsible for payments.
Payees, including individuals, organizations, and state or local governments receiving federal funds.
The Department of the Treasury and Office of Management and Budget, which handle oversight and regulations.
Congress, through required reporting on results.

Notable Legal, Constitutional, or Political Implications

The bill includes a rule of construction stating it does not override other laws authorizing specific payments or programs.
It emphasizes objective data-based decisions and limits on duration to balance fraud prevention with timely payments.
Protections for officials aim to encourage use of the authority without fear of personal lawsuits, while avoiding any final judgment on payee eligibility.

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

Sponsor

Rep. Comer, James [R-KY-1]

Cosponsors (2)

Rep. Arrington, Jodey C. [R-TX-19], Rep. Calvert, Ken [R-CA-41]

Recent Actions

2026-06-11: Received in the Senate.
2026-06-10: Motion to reconsider laid on the table Agreed to without objection.
2026-06-10: On passage Passed by the Yeas and Nays: 218 - 200 (Roll no. 220). (text of amendment in the nature of a substitute: CR H4071-4073) (Roll call 220)
2026-06-10: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 218 - 200 (Roll no. 220). (text of amendment in the nature of a substitute: CR H4071-4073) (Roll call 220)
2026-06-10: On motion to recommit Failed by the Yeas and Nays: 209 - 213 (Roll no. 219). (Roll call 219)
2026-06-10: Considered as unfinished business. (consideration: CR H4078-4079)
2026-06-10: POSTPONED PROCEEDINGS - At the conclusion of debate on H.R. 8464, the Chair put the question on motion to recommit and by voice vote, announced the ayes had prevailed. Mr. Comer demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.
2026-06-10: The previous question on the motion to recommit was ordered pursuant to clause 2(b) of rule XIX.
2026-06-10: Mr. McGarvey moved to recommit to the Committee on Oversight and Government Reform. (text: CR H4075)
2026-06-10: The previous question was ordered pursuant to the rule.
2026-06-10: DEBATE - The House proceeded with one hour of debate on H.R. 8464.
2026-06-10: Rule provides for consideration of H.R. 8312, H.R. 8464, H. Res. 1335 and S. 2. The resolution provides for consideration of H.R. 8312, H.R. 8464, H. Res. 1335, and S. 2 under a closed rule with one hour of general debate on each measure. The resolution provides for a motion to recommit H.R. 8312 and H.R. 8464 and a motion to commit S. 2.
2026-06-10: Considered under the provisions of rule H. Res. 1345. (consideration: CR H4071-4075)
2026-06-08: Rules Committee Resolution H. Res. 1345 Reported to House. Rule provides for consideration of H.R. 8312, H.R. 8464, H. Res. 1335 and S. 2. The resolution provides for consideration of H.R. 8312, H.R. 8464, H. Res. 1335, and S. 2 under a closed rule with one hour of general debate on each measure. The resolution provides for a motion to recommit H.R. 8312 and H.R. 8464 and a motion to commit S. 2.
2026-06-03: Placed on the Union Calendar, Calendar No. 597.

Bill Versions

Stopping Fraudulent Payments Act — issued 2026-06-10 — PDF (14 pages)
Stopping Fraudulent Payments Act — issued 2026-04-23 — PDF (7 pages)
Stopping Fraudulent Payments Act — issued 2026-06-03 — PDF (14 pages)