The Republican-controlled U.S. House of Representatives this week approved legislation designed to tighten defenses against improper and fraudulent federal payments, voting 218-200 to pass the Stopping Fraudulent Payments Act. The bill, introduced by House Oversight Committee Chairman James Comer (R-Ky.), targets what critics have long called the “pay and chase” model, in which agencies release funds before confirming that recipients are eligible and then struggle to recover money that was sent in error.
Under the proposal, federal agencies would be authorized to pause, place conditions on, or divide suspicious payments when data signals a heightened risk of fraud or error. The U.S. Treasury Department would also have the power to send flagged requests back for further review, using tools such as the Do Not Pay database.
“Congress must take further action to stop fraud before it happens,” Comer said from the House floor. “The Stopping Fraudulent Payments Act adds critical safeguards to ensure federal payments go to the right recipient in the right amount before funds are awarded or disbursed.”
The Scale of the Problem
Government Accountability Office estimates put improper payments at $186 billion in fiscal year 2025, a $24 billion jump from the year before. According to oversight findings, cumulative improper payments since 2003 have approached $3 trillion. The losses touch taxpayer-funded programs including Social Security, Medicare, and a range of welfare initiatives.
Accountability and a Broader Push
House Budget Committee Chairman Jodey Arrington (R-Texas), an original cosponsor of the bill, stressed the need for accountability as large sums continue to flow to state and local governments. “Every dollar must be safeguarded against waste, fraud, and abuse,” he said.
The legislation builds on earlier Oversight Committee investigations that exposed weaknesses in federal programs. It is part of a larger package of 11 Oversight Committee bills that address problems ranging from student aid fraud to improper payments across multiple agencies.
Democrats largely opposed the measure, with nearly all members voting no and only a small number crossing party lines. The bill now moves to the Senate. Supporters place the effort alongside broader government efficiency initiatives, including the White House Task Force to Eliminate Fraud and the Department of Government Efficiency. Their central argument is that the government should shift from recovering money after it is lost to preventing losses in the first place, directing limited resources to eligible recipients and cutting off payments to fraudsters and ineligible claimants.
