House Passes Bill to Flag Potentially Fraudulent Federal Payments Before Money Goes Out

The Stopping Fraudulent Payments Act Cleared the House on June 10, 2026, by a 218–200 Vote

The U.S. House of Representatives passed legislation that would require federal agencies to intervene when they have reason to believe a payment poses an elevated risk of fraud or error. The bill would also require the Treasury Department to send certain payment requests back to agencies for further action, even after an agency has certified them.

House Oversight Committee Chairman James Comer, a Kentucky Republican, introduced the measure as the Stopping Fraudulent Payments Act. It targets a practice often called “pay and chase,” in which the government issues a payment and tries to recover the money later if it discovers fraud or an eligibility error.

Agencies Would Review High-Risk Requests Before Certifying Them

Under the bill, an agency that identifies an elevated risk of fraud or an improper payment that could cost the government money would have to take corrective action before certifying the request. It could temporarily pause the payment, set conditions before releasing it, or divide it into parts.

Those options give agencies different ways to respond to a warning. A pause gives staff time to check the information behind a request. Setting conditions lets the agency specify what needs to be resolved before payment proceeds. Dividing a payment gives the agency a way to handle portions of the request separately.

An improper payment can result from an error as well as fraud. An agency might need to verify whether the recipient qualifies or whether the requested amount is correct. The proposed safeguards are designed to give agencies time to resolve those questions while they still control whether the money goes out.

Treasury Would Provide a Second Check

The bill also addresses what happens after an agency certifies a payment. If the Treasury Department’s Do Not Pay system identifies an elevated risk of fraud, Treasury would have to return the certified request to the originating agency for corrective action.

That creates two opportunities to catch a problem. The agency can act on a risk it identifies during its own review, and Treasury can send the request back if its screening raises a concern after certification. The House vote approved the proposal in that chamber. The provisions describe how payments would be handled if the bill becomes law.