Fraud Prevention and Accountability Act

This bill would establish the Office of the Inspector General for Fraud, Accountability, and Recovery within the Department of the Treasury to audit and investigate the use of federal funds, including disaster relief and pandemic response spending. It proposes to centralize financial integrity and improper payment prevention functions within the Bureau of the Fiscal Service, which would manage the Do Not Pay system and provide data analysis to various levels of government. Additionally, the bill would require the Treasury to enter into data-sharing agreements with federal agencies and private entities to detect fraud and ensure the reporting of criminal violations to the Department of Justice.

This bill affects federal agencies and state, local, or tribal governments that administer federally funded programs, as well as private entities authorized to enter into data sharing agreements with the Department of the Treasury. Within the Department of the Treasury, the Bureau of the Fiscal Service and the newly established Office of the Inspector General for Fraud, Accountability, and Recovery are assigned specific oversight and data management responsibilities. Additionally, individuals and organizations receiving federal awards of $50,000 or more, disaster relief funds, or coronavirus response loans and tax credits are subject to increased auditing and eligibility verification.

• Centralization of financial integrity functions. The bill assigns responsibility for improper payment prevention, spending transparency, and financial integrity functions to the Bureau of the Fiscal Service within the Department of the Treasury.
• Establishment of the Office of the Inspector General for Fraud, Accountability, and Recovery. A new office is created within the Department of the Treasury to audit and investigate the use of federal funds, including coronavirus response funds, disaster relief, and any federal award of $50,000 or more.
• Expansion of the Do Not Pay system. The Bureau of the Fiscal Service is tasked with administering the Do Not Pay system to help federal and state-administered programs verify recipient identity and eligibility before issuing payments.
• Interagency and private sector data sharing agreements. The Department of the Treasury is required to enter into data sharing agreements with other federal agencies and authorized private entities to detect and prevent fraud and improper payments.
• Support for criminal investigations and prosecutions. The newly established Inspector General must report suspected federal criminal violations to the Department of Justice and provide investigative support to enforcement authorities to protect program integrity.
• Voluntary governmentwide data analysis program. The bill directs the maintenance of a voluntary program to provide data sharing and analysis services to federal, state, local, and tribal governments to identify potential financial losses from fraud.

• H.R. 8312, Fraud Prevention and Accountability Act
  Jun 4, 2026 · As reported by the House Committee on Oversight and Government Reform on June 3, 2026

The bill expands the authority of the Bureau of the Fiscal Service to include the administration of the existing Do Not Pay system and provides for the oversight of funds previously authorized under various coronavirus response laws. It also establishes a new Office of the Inspector General for Fraud, Accountability, and Recovery to audit and investigate federal awards, disaster relief, and economic recovery spending.

The bill aims to enhance government financial integrity and transparency by centralizing fraud prevention functions within the Department of the Treasury and establishing an Office of the Inspector General for Fraud, Accountability, and Recovery. It seeks to prevent improper payments through expanded data sharing between federal, state, and private entities and by providing rigorous oversight of large-scale federal spending, including disaster relief and pandemic response funds.