HUD Payment Integrity and Accountability Act of 2026

(a) Pre-Validation. Not later than 180 days before the deadline described in section 3(a), the Inspector General of the Department shall certify whether or not—

(1) the methodology chosen by the Secretary for the assessment described in that section is statistically sound and addresses all material findings from financial statement audits and program audits conducted by the Inspector General related to improper payment testing, eligibility tier verification, and validation of payments to property owners; and

(2) the Secretary made a serious effort to conduct a data draw and receive supporting documents needed to conduct the assessment described in section 3(a).

(b) Fraud risk assessment

(1) In general. The Inspector General of the Department shall conduct, and submit to the Committee on Banking, Housing, and Urban Affairs and the Committee on Homeland Security and Governmental Affairs of the Senate a report on, a separate fraud risk assessment specifically for the approximately $50,000,000,000 expended annually for rental assistance, including tenant-based ad project-based assistance under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)), to identify high-risk nodes in the payment chain.

(2) Data draw and analytics. In conducting the assessment under paragraph (1), the Inspector General shall of the Department shall—

(A) execute a comprehensive data draw from all relevant departmental and third-party contract administrator systems to reconcile payments at the eligibility tier;

(B) identify specific barriers preventing the Department from reestablishing computer matching agreements with the Do Not Pay database of the Department of the Treasury; and

(C) include in the report an analysis on how system enhancement funding provided in previous fiscal years has been utilized to specifically address noncompliance with subchapter IV of chapter 33 of title 31, United States Code, and other provisions of law related to improper payments.