House Passes Bill Aimed at Reducing Fraudulent Federal Payments
The Republican-controlled U.S. House of Representatives has passed the Stopping Fraudulent Payments Act by a vote of 218-200, advancing legislation designed to strengthen safeguards against improper federal payments and reduce taxpayer losses from fraud.
Introduced by House Oversight Committee Chairman James Comer (R-Ky.), the bill seeks to shift the federal government’s approach from recovering fraudulent payments after they have been issued to preventing suspicious payments before funds are disbursed. Supporters argue that the current “pay and chase” system has allowed billions of dollars in improper payments to be distributed, with only a portion ultimately recovered.
Under the legislation, federal agencies would be authorized to temporarily pause, condition, or divide payments identified as presenting an elevated risk of fraud or ineligibility. The measure also grants the U.S. Treasury Department additional authority to return flagged payment requests to agencies for further review using fraud detection tools, including the Do Not Pay database.
Speaking in support of the bill, Chairman Comer said the legislation would help ensure federal funds are delivered to eligible recipients in the correct amounts while reducing waste, fraud, and abuse. He pointed to Government Accountability Office estimates showing that improper federal payments totaled approximately $186 billion in fiscal year 2025, underscoring the need for stronger preventive measures.
Republican lawmakers described the bill as part of a broader effort to improve government accountability and protect taxpayer dollars. They argued that strengthening payment verification would help preserve funding for programs such as Social Security, Medicare, and other federal benefits by reducing losses to fraud.
Most House Democrats opposed the legislation, voting against its passage. While supporters characterized the measure as a commonsense anti-fraud reform, opponents have raised concerns about its implementation and potential effects on the timely delivery of benefits to eligible recipients.
The bill now moves to the Senate, where lawmakers will consider whether to advance the legislation for President Donald Trump’s signature.
