H.R. 8312

Fraud Prevention and Accountability Act

Sponsor: Pete Sessions · 1 cosponsor

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Official summary

Written by the Congressional Research Service.

Fraud Prevention and Accountability Act

This bill (1) assigns financial integrity, improper payment prevention, and spending transparency functions to the Bureau of the Fiscal Service (BFS) within the Department of the Treasury; (2) establishes an Office of the Inspector General for Fraud, Accountability, and Recovery (OIGFAR) within Treasury; and (3) requires Treasury to enter into data sharing agreements with other federal agencies and allowable private entities to prevent fraud and improper payments.

Functions assigned to BFS by the bill include

  • administering the Do Not Pay system (which provides federal agencies and federally funded state-administered programs the ability to verify recipient identity and eligibility before making an award or issuing a payment);
  • maintaining a voluntary governmentwide program to provide data sharing and analysis to federal agencies and to state, local, or tribal governments responsible for administering a federally funded program in order to detect fraud and prevent improper payments that result in financial loss; and
  • supporting OIGFAR by providing access to information technology and data.

The duties of OIGFAR include auditing and investigating the use of certain federal funds, such as

  • funds, loans, and tax credits made available by various coronavirus response laws;
  • any federal award of $50,000 or more; and
  • emergency spending related to disaster relief or economic recovery.

OIGFAR must ensure the expeditious reporting of suspected violations of federal criminal law to the Department of Justice. OIGFAR is authorized to provide investigative support to prosecutive and enforcement authorities to protect program integrity and prevent, detect, and prosecute fraud.

Text of the bill

Expand all
Sec. 2. Establishment of Fraud Prevention and Financial Integrity functions within the Department of the Treasury Changed · Jun 3

Where this section came from

  1. Apr 15, 2026 · Introduced in House Referred to House Committee on Oversight and Government Reform, Apr 15
  2. Jun 3, 2026 · Reported in House Marked up by House Committee on Oversight and Government Reform, Apr 29 Reported by House Committee on Oversight and Government Reform, Jun 3 Committee members' individual votes aren't in our records.
What changed in the text

… 4 unchanged passages …

(b) The head of the Bureau of the Fiscal Service is the Fiscal Assistant Secretary appointed under section 301(d ) of this title. ).

… 2 unchanged passages …

(2) shall, in consultation with the Director of the Office of Management and Budget, establish and maintain a voluntary governmentwide data analysis program , utilizing in accordance with applicable law and using the authorities outlined under section 6(c)(1) of the Federal Funding Accountability and Transparency Act (Public Law 109–282; 31 U.S.C. 6101 note)— (A) to provide data sharing and analysis services to Federal agencies , States and any State ( with meaning respect a to State any of the United States, the District of Columbia, a territory or possession of the United States, or a federally funded recognized State-administered Indian programs), Tribe) and any local nongovernmental government entity responsible administering for the administration of a federally funded program or disbursing the disbursement of Federal funds, to detect fraud and prevent improper payments resulting in a financial loss to the government , but for no other purpose including any policy analysis and enforcement action purpose , and, including by — facilitating the following services upon request and on a voluntary basis in accordance with all applicable privacy and security laws: (i) requiring Federal each agency to or share State and local government data sharing of known or suspected fraudulent entities and transactions ( resulting from internal final agency adverse fraud action prevention determinations, payment denials, referrals for criminal investigation, or detection equivalent investigations) findings with the Department of the Treasury ; . (ii) requiring Screening each agency to screen their potential awardees and payees against the centralized fraud database prior to award or payment issuance ; , (iii) as requiring feasible each and agency in to accordance screen with individual program requirements. (iii) Screening relevant cyber activity against the centralized fraud database prior to allowing review recipient or payee changes to virtual identity or payment information ; . (iv) establishing Establishing governmentwide standards for the collection, labeling, and sharing of fraudulent data payment related data to improper payments , to include improper fraudulent payments, with the Department of the Treasury ; . (v) partnering Partnering with financial institutions and industry to share best practices and, where as appropriate, data information regarding on known fraud patterns and results of investigations into fraudulent activity ; . and (vi) providing Providing identity, eligibility, account, and vital event verification and validation tools and analytical services to agencies, as necessary and appropriate; and

… 1 unchanged passage …

(3) shall provide the Inspector General for Fraud, Accountability, and Recovery, access to such information technology, data assets, information, and records to support the functions and services of the Office of the Inspector General for Fraud, Accountability, and Recovery established under section 317 , unless in the accordance Secretary with determines applicable that such access is not appropriate and notifies the appropriate congressional committees and the Office of such Inspector General in writing law .

… 4 unchanged passages …

(c) Amendment to data act of 2014 data analysis center authorization. Section 6(c)(1) of the Federal Funding Accountability and Transparency Act of 2006 (Public Law 109–282; 31 U.S.C. 6101 note) is amended by striking may and inserting shall.

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(a) In general. Section 306 of title 31, United States Code, is amended to read as follows:

Text this section adds to the law

306. Fiscal Service

(a) The Bureau of the Fiscal Service is a service in the Department of the Treasury.

(b) The head of the Bureau of the Fiscal Service is the Fiscal Assistant Secretary appointed under section 301(d).

(c) The Bureau of the Fiscal Service, having as its head a Commissioner, shall maintain the following functions related to financial integrity, spending transparency, and preventing improper payments resulting in financial loss to the government, and does not include any investigative or law enforcement function, which, in addition to any other duty the Secretary of the Treasury assigns—

(1) shall administer and operate the Do Not Pay system required under section 3354 in a manner that ensures that any data provided to the Secretary is used only for the purposes set forth under section 3354 in accordance with applicable law; and

(2) shall, in consultation with the Director of the Office of Management and Budget, establish and maintain a voluntary governmentwide data analysis program in accordance with applicable law and using the authorities under section 6(c)(1) of the Federal Funding Accountability and Transparency Act (Public Law 109–282; 31 U.S.C. 6101 note)—

(A) to provide data sharing and analysis services to Federal agencies and any State (meaning a State of the United States, the District of Columbia, a territory or possession of the United States, or a federally recognized Indian Tribe) and local government responsible for the administration of a federally funded program or the disbursement of Federal funds, to detect fraud and prevent improper payments resulting in a financial loss to the government, but for no other purpose including any policy analysis and enforcement action purpose, and, including by facilitating the following services upon request and on a voluntary basis in accordance with all applicable privacy and security laws:

(i) Federal agency or State and local government data sharing of known fraudulent entities and transactions resulting from final adverse action determinations, payment denials, referrals for criminal investigation, or equivalent findings with the Department of the Treasury.

(ii) Screening awardees and payees against the centralized fraud database prior to award or payment issuance, as feasible and in accordance with individual program requirements.

(iii) Screening relevant cyber activity against the centralized fraud database to review recipient or payee changes to virtual identity or payment information.

(iv) Establishing governmentwide standards for the collection, labeling, and sharing of data related to improper payments, to include fraudulent payments, with the Department of the Treasury.

(v) Partnering with financial institutions and industry to share best practices and, as appropriate, information on known fraud patterns and results of investigations into fraudulent activity.

(vi) Providing identity, eligibility, account, and vital event verification and validation tools and analytical services to agencies, as necessary and appropriate; and

(B) that is capable of receiving (including in bulk data formats and through systems that facilitate real-time data access) any data asset, information, or record related to the administration of Federal programs (including federally funded State-administered programs) and disbursement of Federal funds under such programs, provided to the Secretary for secure and confidential use by the center or the Inspector General for Fraud, Accountability and Recovery (in accordance with any terms included in a written data sharing agreement between the Secretary and the Inspector General) to recognize and address patterns of fraudulent actors, information, and claims across such programs; and

(3) shall provide the Inspector General for Fraud, Accountability, and Recovery, access to such information technology, data assets, information, and records to support the functions and services of the Office of the Inspector General for Fraud, Accountability, and Recovery established under section 317 in accordance with applicable law.

(d) The Secretary of the Treasury, in consultation with the Director of the Office of Management and Budget, shall not later than 2 years after the establishment of this section, and on an annual basis thereafter, submit, to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate, a report, which may be included as part of another report submitted to Congress by the Secretary, on the implementation of the Program, including participation rates and an assessment of the Program’s effectiveness in reducing fraud and preventing improper payments resulting in a financial loss to the government.

(e) The Secretary of the Treasury may designate another officer or employee of the Department to act as the Fiscal Assistant Secretary when the Fiscal Assistant Secretary is absent or unable to serve or when the office of Fiscal Assistant Secretary is vacant.

(b) Coordination in designating Do Not Pay databases. Section 3354(b)(1)(B) of title 31, United States Code, is amended by inserting in coordination with the Secretary of the Treasury before in consultation.

(c) Amendment to data act of 2014 data analysis center authorization. Section 6(c)(1) of the Federal Funding Accountability and Transparency Act of 2006 (Public Law 109–282; 31 U.S.C. 6101 note) is amended by striking may and inserting shall.