Pre-Payment Fraud Prevention and Treasury Data Access Act

This bill would require federal agencies to verify payee information, payment details, and bank account accuracy before directing the Department of the Treasury to issue funds. It proposes to expand the "Do Not Pay" system by adding new data assets, including certain taxpayer and Social Security information, while establishing penalties for the unlawful disclosure of this data. Additionally, state and local governments administering federal programs would be required to screen payees against these data tools, and certain first-time recipients of awards over $50,000 would face new post-award reporting requirements.

This bill affects federal executive agencies and state and local governments that administer federally funded programs, requiring them to screen payees against the Do Not Pay system. The Department of the Treasury is affected as the designated administrator of the system with expanded authority to access taxpayer and Social Security information. Additionally, first-time recipients of federal awards of $50,000 or more are subject to new post-award reporting requirements.

• Establishment of pre-payment verification requirements. The Department of the Treasury must set requirements for agencies to verify payee information, payment details, and fund availability before issuing federal funds. Agencies are also required to verify the accuracy of payee bank account information whenever practicable.
• Expansion of the Do Not Pay system. The bill provides statutory authority for the Treasury to administer the Do Not Pay system and mandates the inclusion of specific data assets. It further authorizes the Treasury to access certain Social Security and taxpayer information to assist agencies in verifying payee eligibility.
• Mandatory screening for federal, state, and local entities. Executive agencies and state or local governments managing federally funded programs must screen payees against Do Not Pay data and risk tools before making awards or payments. Information obtained through this system is restricted to preventing and recovering improper payments, with penalties established for unlawful disclosure.
• Post-award reporting for first-time recipients. The bill implements new reporting requirements for first-time recipients of federal program funds for awards valued at $50,000 or more.

The bill expands the existing Do Not Pay system and provides formal statutory authority for the Department of the Treasury to serve as its administrator. It also modifies federal payment procedures by requiring agencies to verify payee information against specific data assets, including taxpayer and Social Security information, to prevent improper payments.

The bill aims to enhance the identification, prevention, and recovery of improper federal payments by establishing mandatory pre-payment verification requirements for agencies and expanding the Do Not Pay system. It seeks to ensure the accuracy of payee information and eligibility through increased data access and stricter screening protocols for federal, state, and local government entities.