💥House Passes Bill to Curb Fraudulent Federal Payments…

**House Passes Bill to Pause High-Risk Federal Payments**

WASHINGTON — The Republican-controlled House of Representatives on Wednesday approved legislation giving federal agencies new authority to halt or limit payments they believe carry an elevated risk of fraud or error, sending the measure to the Senate on a largely party-line vote.

The Stopping Fraudulent Payments Act, H.R. 8464, passed 218-200. All voting Republicans supported it, joined by six Democrats and Independent Rep. Kevin Kiley of California. Two hundred Democrats voted no. The bill, sponsored by House Oversight Committee Chairman James Comer, R-Ky., and originally cosponsored by Budget Committee Chairman Jodey Arrington, R-Texas, was received in the Senate the following day.

The measure aims to move agencies away from a longstanding “pay and chase” approach, in which payments are issued first and eligibility is verified later. Under the bill, agencies could temporarily pause, condition or segment a payment when they have documented indicators of elevated fraud or improper-payment risk. The Treasury Department could return flagged requests for further review, including through tools such as the Do Not Pay database. Actions would have to be narrowly tailored and limited in duration.

“Congress must take further action to stop fraud before it happens,” Comer said during floor debate. “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.”

Arrington said the bill is needed as large sums flow to state and local governments. “Every dollar must be safeguarded against waste, fraud, and abuse,” he said.

The Government Accountability Office estimated $186 billion in improper payments in fiscal year 2025, up $24 billion from the prior year. Cumulative estimates since 2003 total about $3 trillion. Medicare, Medicaid, the earned income tax credit and other major programs account for most of the latest figure.

The legislation is part of an 11-bill Oversight Committee package targeting payment integrity. Supporters link it to White House and Department of Government Efficiency efforts to reduce losses.

Democrats argued the bill gives agencies overly broad discretion that could delay legitimate benefits. Committee Democrats said vague “sufficient reason” and “elevated risk” standards could produce red tape and invite political misuse of payment systems affecting Social Security, Medicare and other aid. A motion to recommit failed 209-213.

The bill now faces an uncertain path in the Senate, where similar legislation has been introduced.