H.R. 8467

ZOMBIE Act

Sponsor: Gary J. Palmer · 0 cosponsors

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Official summary

Written by the Congressional Research Service.

Zeroing Out Monetary Benefits Improperly Expended Act or the ZOMBIE Act

This bill focuses requirements governing the assessment, tracking, and reporting of improper payments made by federal agencies on improper payments that result in financial loss to the government.

The bill defines financial loss to the government as any payment (or part of a payment) in excess of the correct amount that results in a financial loss to the government, but excludes any payment (or part of a payment) that is made to the correct recipient for the correct amount but fails to meet administrative procedures (other than those required to verify the validity of the payment).

The bill requires agencies to assess programs and activities every three years for the risk of improper payments resulting in financial loss to the government. The bill also generally modifies other reporting requirements to focus on such improper payments, including by expanding reporting requirements to include information about actions taken by agencies to prevent such payments (e.g., use of the Do Not Pay system) and to implement certain best practices.

The bill also

  • requires an estimate of such improper payments in agencies’ annual budget justification,
  • requires the Department of the Treasury to develop risk assessment guidance, and
  • allows up to 75% of funds that are recovered through audits to be directed back to the original program or activity (currently, up to 25% of such funds may be directed back to the original program or activity).

Text of the bill

Expand all
Sec. 3. Reforms to annual compliance report by inspectors general of executive agencies Added Jun 10

Where this section came from

Not in the first version (Introduced in House, Apr 23).

  1. Jun 10, 2026 · Engrossed in House Marked up by House Committee on Oversight and Government Reform, Apr 29 Committee members' individual votes aren't in our records.
What is a markup?

A markup is a committee meeting where members go through a bill and vote on changes before sending it to the full chamber.

(a) OMB guidance. Section 3353(a)(3) of title 31, United States Code, is amended—

(1) in the matter preceding subparagraph (A)—

(A) by striking date of enactment of this section and inserting date of the enactment of the amendments made to this section by the Zeroing Out Monetary Benefits Improperly Expended Act or the ZOMBIE Act; and

(B) by striking shall develop and promulgate guidance and inserting shall revise existing guidance issued under this section;

(2) in subparagraph (B)—

(A) by striking improper payment estimates methodology and inserting estimation methodologies; and

(B) by inserting that result in financial loss to the Government after improper payments;

(3) in subparagraph (C), by inserting that result in financial loss to the Government after improper payments;

(4) in subparagraph (D), by inserting that result in financial loss to the Government after improper payments; and

(5) in subparagraph (E)—

(A) by striking Inspectors General include and inserting Inspectors General shall include; and

(B) by inserting that result in financial loss to the Government after improper payments.

(b) CIGIE guidance. Section 3353(a)(4) of title 31, United States Code, is amended—

(1) in the matter preceding subparagraph (A)—

(A) by striking date of enactment of this section and inserting date of the enactment of the amendments made to this section by the Zeroing Out Monetary Benefits Improperly Expended Act or the ZOMBIE Act; and

(B) by striking develop and promulgate guidance and inserting revise existing guidance issued under this section;

(2) in subparagraph (B)—

(A) in clause (i)—

(i) by striking section 3351(2)(B) and inserting section 3351(2)(A)(iv); and

(ii) by inserting that result in financial loss to the Government after improper payments each place it appears;

(B) in clause (ii), by striking section 3351(2)(C) and inserting section 3351(2)(A)(v);

(C) by striking clause (iii);

(D) by redesignating clauses (iv) through (vi) as clauses (iii) through (v), respectively;

(E) in clause (iii), as so redesignated, by inserting that result in financial loss to the Government after improper payments; and

(F) in clause (iv), as so redesignated, by inserting that result in financial loss to the Government after improper payments.