Stopping Fraudulent Payments Act

This bill would require executive agencies to pause or condition federal payment requests if they identify an elevated risk of fraud or improper financial loss based on objective indicators. The Department of the Treasury would be directed to return payment vouchers to agencies for corrective action if the Do Not Pay system flags them as high-risk. Additionally, the proposal would protect federal employees from personal liability for actions taken in good faith to implement these fraud prevention measures.

This bill primarily affects executive agencies and the Department of the Treasury, which are required to implement new procedures for identifying and pausing payment vouchers that present elevated risks of fraud. Federal officers and employees are also affected, as the legislation provides them with protection from personal liability for actions taken in good faith under these new requirements. Additionally, individuals or entities receiving federal payments may experience temporary pauses or conditions on their funds if their payment requests are flagged for verification based on fraud-risk indicators.

• Mandatory corrective actions for high-risk payments. Executive agencies must temporarily pause, condition, or segment payment voucher requests if they identify an elevated risk of fraud or improper payments that could cause financial loss to the government.
• Standards for payment interventions. Corrective actions must be based on objective, documented fraud-risk indicators and applied narrowly to the specific portion of payments presenting risk for the minimum duration needed to verify eligibility.
• Treasury Department oversight via Do Not Pay system. The Department of the Treasury is required to return certified payment vouchers to agencies for corrective action if the Do Not Pay system identifies an elevated risk of fraud.
• Liability protection for federal personnel. Federal officers and employees are prohibited from being held personally liable for actions taken in good faith to carry out the requirements of this bill.

This bill modifies federal payment certification procedures by requiring executive agencies and the Department of the Treasury to utilize the existing Do Not Pay system to identify and pause high-risk payment vouchers.

The bill aims to prevent financial loss to the government by establishing requirements for federal agencies to identify and address fraudulent or improper payments. It authorizes agencies and the Department of the Treasury to pause or condition payment vouchers when objective risk indicators suggest an elevated risk of fraud.