Delivering On Government Efficiency in Spending Act
- Bill Number
- S. 1991
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-12-10: Committee on Small Business and Entrepreneurship. Hearings held.
- Last Updated
- 2025-12-17T18:41:56Z
AI-Generated Summary
Purpose of the Legislation
The "Delivering On Government Efficiency in Spending Act" (S. 1991) aims to increase transparency, accuracy, and accountability in federal payments by requiring detailed reporting of payment information and expanding access to certain data sources. This helps prevent improper payments (such as overpayments, fraud, or errors) while protecting sensitive national security or law enforcement activities.
Key Provisions
- Mandatory Reporting of Payment Details (New Section 3337 in 31 U.S.C. Chapter 33):
- Agencies must submit to the Treasury Department, for every federal payment processed through Treasury systems, a short description of the payment's purpose, the funding account (e.g., specific budget line), and the type of activity (e.g., a code for grants or contracts).
- Annual reviews: Agency officials must check and confirm the accuracy of this information yearly, with written attestations, and work with Treasury to improve the system.
- Public disclosure: Within 30 days of certification, the data (minus exemptions) must be posted on the public website under the Federal Funding Accountability and Transparency Act (commonly known as USAspending.gov).
- Exemptions: Payments tied to "sensitive operations" (e.g., national security or law enforcement activities where disclosure could cause harm, reveal classified info, or violate laws) are exempt, but agencies must report aggregated details of these in their budget documents.
- Implementation and Protections:
- The Treasury Secretary can issue rules to carry out these changes.
- Disbursing officials (those who actually send the payments) face no legal liability for actions taken under this law.
- Enhanced Data Access for Preventing Improper Payments (Section 3):
- National Directory of New Hires: Treasury gains access to this Social Security Administration database (which tracks new employee hires) to identify and recover improper payments; Treasury can share this with authorized federal/non-federal partners.
- Bank Account Verification: Before approving payments, agencies must verify recipient bank details and cross-check against other records to ensure accuracy.
- Consumer Credit Reports: Under the Fair Credit Reporting Act, Treasury can use credit reports to spot improper payments without counting certain preventive actions as "adverse" credit decisions; sharing is allowed with authorized partners.
- Tax Information Sharing: The IRS can provide limited, privacy-protected tax data (e.g., taxpayer ID, income, filing status, bank details, identity theft flags) to Treasury's "Do Not Pay" system (a tool to screen payments for errors/fraud) for at least the past three tax years; this can be shared with federal/state agencies managing federal funds.
- Social Security Data: The Social Security Administration must share basic personal info (name, birth date, Social Security number) with Treasury for the Do Not Pay system to prevent fraudulent payments.
Significant Changes to Existing Law
- Adds a new section (3337) to 31 U.S.C. Chapter 33, mandating payment reporting and public transparency, which builds on but expands the Federal Funding Accountability and Transparency Act by requiring more detailed, verified data for all Treasury-processed payments.
- Amends the Social Security Act (Sections 453 and new 235) to broaden Treasury's access to employment and personal data for fraud prevention.
- Modifies 31 U.S.C. Section 3325 to require proactive bank verification before payments, shifting from optional to mandatory checks.
- Updates the Fair Credit Reporting Act (Sections 603 and 604) to permit use of credit data for payment accuracy without triggering credit reporting penalties.
- Revises the Internal Revenue Code (Section 6103) to allow targeted, anonymized tax data sharing for the Do Not Pay system, with privacy safeguards to limit disclosure.
Potential Impacts
- Government Agencies: Increases administrative workload for reporting and verification, but improves tools to reduce improper payments (estimated to cost billions annually). Enhances coordination between Treasury, IRS, Social Security Administration, and other agencies via the Do Not Pay system.
- Citizens: Boosts public access to how federal funds are spent (via online postings), potentially building trust, while protecting privacy through exemptions and anonymized data sharing. May reduce errors in benefits or payments, benefiting eligible recipients.
- International Relations: Minimal direct impact, though better fraud controls could indirectly strengthen U.S. financial systems in global contexts (e.g., foreign aid payments).
Main Stakeholders Affected
- Federal Agencies: All executive agencies, independent regulators, Congress, courts, territories, and D.C. that use Treasury payment systems; they must report and verify data.
- Treasury Department and OMB: Lead implementation, public disclosure, and system improvements.
- IRS and Social Security Administration: Provide data to Treasury, with limits to protect taxpayer privacy.
- Payment Recipients: Individuals, businesses, or entities receiving federal funds; face stricter verification but fewer errors/fraud risks.
- Public and Oversight Bodies: Gain transparency on spending; watchdog groups and taxpayers benefit from accessible data.
- State/Local/Tribal Governments: Indirectly affected through coordinated sensitive operations or shared federal programs.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens anti-fraud measures under existing laws like the Improper Payments Elimination and Recovery Act, without creating new liabilities for officials. Emphasizes privacy by requiring "privacy-preserving" methods for data sharing and exemptions for classified info, aligning with Freedom of Information Act exemptions (e.g., under 5 U.S.C. 552(b)).
- Constitutional: Supports accountability in spending (Article I, Section 9 on public money), but balances with national security protections to avoid First Amendment or due process issues from over-disclosure.
- Political: Promotes government efficiency and waste reduction, appealing to fiscal conservatives; could spark debates on privacy vs. transparency, especially for tax and Social Security data access, but includes safeguards to mitigate concerns. As a bipartisan-introduced bill (by Sens. Ernst and others), it signals broad support for curbing improper payments without major controversy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (15)
Sen. Sheehy, Tim [R-MT], Sen. Lummis, Cynthia M. [R-WY], Sen. Mullin, Markwayne [R-OK], Sen. Lee, Mike [R-UT], Sen. Risch, James E. [R-ID], Sen. Tuberville, Tommy [R-AL], Sen. Cramer, Kevin [R-ND], Sen. Marshall, Roger [R-KS], Sen. Budd, Ted [R-NC], Sen. Daines, Steve [R-MT], Sen. Lankford, James [R-OK], Sen. Britt, Katie Boyd [R-AL], Sen. Grassley, Chuck [R-IA], Sen. Scott, Rick [R-FL], Sen. McCormick, David [R-PA]
Recent Actions
- 2025-12-10: Committee on Small Business and Entrepreneurship. Hearings held.
- 2025-06-09: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- 2025-06-09: Introduced in Senate
Bill Versions
- Delivering On Government Efficiency in Spending Act — issued 2025-06-09 — PDF (14 pages)