HR8312-119

What This Bill Does

The Fraud Prevention and Accountability Act creates a permanent Treasury-centered fraud oversight structure. It codifies Bureau of the Fiscal Service functions around financial integrity, spending transparency, Do Not Pay administration, and a governmentwide data-analysis program that helps federal agencies, states administering federally funded programs, and nongovernmental disbursing entities detect fraud and prevent improper payments. Agencies must share data on known or suspected fraudulent entities and transactions with Treasury, screen potential awardees and payees against a centralized fraud database before awards or payments, screen relevant cyber activity before virtual identity or payment-information changes, and follow governmentwide standards for collecting, labeling, and sharing fraudulent payment data. The bill establishes the Office of the Inspector General for Fraud, Accountability, and Recovery in the Department of the Treasury, led by a Senate-confirmed Inspector General appointed based on integrity and expertise. That IG must coordinate oversight of covered funds, support agency inspectors general on request, detect and prevent fraud, waste, abuse, and mismanagement, identify cross-program risks, promote best practices and tools, coordinate with DOJ and Fiscal Service, and provide fraud analytics support. The bill accelerates the Pandemic Response Accountability Committee termination to December 31, 2028, transfers its contracts, data agreements, records, funds, personnel, and other assets to the new Treasury IG, and repeals the PRAC section on that date.

Who Benefits and How

Federal taxpayers benefit from a permanent fraud-recovery office and stronger Do Not Pay data analysis. Agency inspectors general benefit from Treasury IG support, cross-program risk identification, and shared analytics. Treasury Fiscal Service staff benefit from explicit authority for governmentwide fraud-data sharing and payment validation. DOJ fraud prosecutors benefit from coordinated referrals and fraud-risk information. State agencies administering federal funds benefit from access to Treasury data-analysis services and best practices. Congressional oversight committees benefit from a permanent successor to pandemic-response accountability infrastructure.

Who Bears the Burden and How

The Treasury Department must stand up the new Inspector General office, manage appointments, legal counsel, pay, staffing, data assets, and PRAC transfers. Agency heads must share known or suspected fraud data, screen payees and awardees, and screen cyber activity before identity or payment changes. Agency inspectors general must coordinate with the Treasury fraud IG when covered funds overlap. The Pandemic Response Accountability Committee must transfer assets and wind down earlier than the prior 2034 date. Entities flagged as fraudulent face greater screening and enforcement exposure. Federal program administrators must adapt to centralized fraud data standards and analytics.

Key Provisions

• Establishes a Treasury Inspector General for Fraud, Accountability, and Recovery.
• Preserves Bureau of the Fiscal Service functions for Do Not Pay, spending transparency, financial integrity, and fraud-prevention data analysis.
• Requires agencies to share known or suspected fraudulent entity and transaction data with Treasury.
• Requires awardee, payee, and cyber-activity screening against centralized fraud data before awards, payments, or payment-information changes.
• Directs the Treasury fraud IG to support agency inspectors general, coordinate with DOJ, and identify cross-program risks.
• Transfers Pandemic Response Accountability Committee assets and obligations to the Treasury fraud IG on December 31, 2028.
• Repeals the Pandemic Response Accountability Committee on December 31, 2028.