House Approves Measure To Crack Down on Wasteful Schemes
House Republicans advanced a major government-accountability measure aimed at preventing suspicious federal payments before taxpayer dollars disappear into fraudulent schemes, administrative errors, or payments to ineligible recipients.
The House passed H.R. 8464, the Stopping Fraudulent Payments Act, by a vote of 218-200 on June 10. Every voting Republican supported the legislation, while six Democrats crossed party lines to join them. The remaining 200 Democrats voted against the bill.
Introduced by House Oversight Committee Chairman James Comer, R-Ky., the legislation seeks to replace Washington’s costly “pay and chase” model with a system focused on verification before federal money is distributed.
Under the existing process, agencies can submit payment requests even when Treasury systems identify warning signs suggesting an elevated risk of fraud or an improper payment. The Treasury Department generally lacks sufficient authority to stop and return those requests for additional investigation.
H.R. 8464 would require federal agencies to conduct fraud-prevention and eligibility-verification activities before requesting certain payments. It would also authorize the Treasury Department to pause and return requests flagged for elevated risk, allowing the responsible agency to review the information and correct potential problems before money leaves the government.
The bill does not automatically cancel every flagged payment. Instead, it establishes temporary safeguards through which agencies can pause, condition, or divide payments while verifying that the intended recipient is eligible and that the requested amount is accurate.
Supporters argue that such precautions are long overdue in a federal bureaucracy that too often distributes money first and investigates irregularities only after losses have occurred.
“This legislation is common sense,” Chairman Comer declared on the House floor.
“Congress must take further action to stop fraud before it happens. The Stopping Fraudulent Payments Act adds critical safeguards to ensure federal payments go to the right recipient in the right amount before funds are awarded or disbursed,” Comer added.
Comer said federal law currently lacks a government-wide requirement to verify payments across financial-assistance and public-benefit programs before funds are released. His legislation would require agencies to respond quickly to Treasury warnings while keeping final administration of each program within the agency authorized by Congress.
Improper Payments Reach $186 Billion
The bill comes as the Government Accountability Office reports that federal agencies identified approximately $186 billion in improper payments during fiscal year 2025, an increase of roughly $24 billion from the previous year.
Those payments were reported across 64 programs administered by 15 federal agencies. Approximately $153 billion, or 82 percent, involved overpayments. Since fiscal year 2003, federal agencies have reported an estimated $3 trillion in cumulative improper payments.
Improper payments are not necessarily the same as proven fraud. The GAO category includes overpayments, payments to ineligible recipients, incorrect amounts, insufficient documentation, administrative errors, and money obtained through deliberate criminal schemes.
The distinction does not diminish the fiscal consequences. Whether money is lost through criminal conduct, weak eligibility controls, or bureaucratic incompetence, American taxpayers ultimately bear the cost.
The $186 billion estimate may also understate the full problem because it excludes certain federal programs already considered vulnerable to significant improper payments. GAO reported that 19 programs had estimated improper-payment rates of at least 10 percent, while six exceeded 25 percent.
For Republicans, those figures demonstrate why the government must stop relying on attempts to recover money after it has already been distributed.
House Budget Committee Chairman Jodey Arrington, R-Texas, an original cosponsor, emphasized that federal officials have a basic obligation to protect the money Americans earn.
“I’m tired of turning on the TV and seeing the misuse of Americans’ hard-earned tax dollars. As trillions of taxpayer dollars flow to state and local governments, every dollar must be safeguarded against waste, fraud, and abuse.”
Rep. Pat Fallon, R-Texas, similarly argued that years of inadequate oversight allowed fraud vulnerabilities to spread throughout federal programs.
“For years, Democrats at all levels of government have turned a blind eye to the rampant fraud in government programs. This isn’t always an accident, and it’s often intentional. Federal programs are in dire need of reform.”
Fallon’s complete statement accompanying the House package called for agencies to verify beneficiary eligibility and stop taxpayer money from reaching criminal fraudsters.
Minnesota Scandal Strengthened Republican Demands for Reform
The legislation builds on House Oversight Committee investigations into alleged fraud involving federally funded social-service programs administered by state governments, including extensive scrutiny of programs in Minnesota.
Committee Republicans have alleged that weak controls allowed fraud schemes to exploit programs intended to feed children, support people with disabilities, and provide assistance to vulnerable families.
Comer cited the committee’s Minnesota investigation while arguing that taxpayers and legitimate beneficiaries both suffer when government officials fail to identify suspicious activity before payments are approved.
The Republican approach is straightforward: benefits should reach eligible Americans promptly, but government agencies should not ignore credible warnings that a payment request may be fraudulent or improper.
Critics of H.R. 8464 argue that its expanded Treasury authority could delay legitimate benefits and give the executive branch excessive discretion over federally funded safety-net programs. Supporters counter that the legislation requires agencies to investigate and resolve flagged payments rather than permanently withholding assistance without review.
Broader Republican Campaign Against Government Waste
The Stopping Fraudulent Payments Act was one of 11 Oversight Committee measures approved by the House as part of a broader Republican effort to improve payment verification, fraud detection, government-wide data sharing, workforce training, and accountability for emergency spending.
The package included proposals addressing anti-fraud analytics, student-aid irregularities, identity theft, improper eligibility determinations, and the preservation of investigative tools originally developed to track pandemic-related fraud.
The effort aligns with President Donald Trump’s second-term campaign to reduce waste, fraud, and abuse throughout the federal government. The Trump administration has also established a White House Task Force to Eliminate Fraud, while its wider government-efficiency initiatives have focused public attention on whether federal agencies can account for the vast sums they distribute.
Republicans argue that stronger controls will help preserve programs such as Social Security, Medicare, Medicaid, and federal assistance for citizens who genuinely qualify.
Preventing fraud is not an attack on legitimate beneficiaries. It is essential to protecting the financial stability and public credibility of the programs on which millions of Americans depend.
The legislation was received by the Senate on June 11. Sen. Joni Ernst, R-Iowa, subsequently introduced a Senate companion measure, creating another path for lawmakers to advance the proposed safeguards.
Whether the Senate will act remains uncertain. But the House vote has established a clear contrast: Republicans unanimously supported giving federal agencies additional tools to prevent suspicious payments, while 200 Democrats voted against the legislation.
For taxpayers who are tired of watching Washington lose staggering amounts of money and then demand additional revenue, the principle behind the bill could hardly be simpler: verify first, pay second.