This bill adds a new section to the federal payment rules that lets agencies temporarily pause, condition, or split up disbursement requests when there is an elevated risk of fraud. The Secretary of the Treasury can return a certified payment voucher to an agency and order corrective action if Treasury finds fraud risk or if a payee is flagged in Treasury validation systems like the Do Not Pay system. Agencies must base actions on objective, documented fraud-risk indicators, limit the action to the risky portion of a payment, and keep the delay only as long as needed to verify eligibility or payment accuracy.
The bill requires agencies to notify payees when a payment is paused, explain the fraud-risk indicator relied on, and provide a process for payees to contest the action. Agencies must issue the payment no later than 45 days after the determination or within 7 days after a payee contests the action. Agencies should allow routine, historically consistent payment amounts to proceed while holding an anomalous or high-risk portion. Law enforcement can request case-by-case exemptions if a pause would jeopardize an investigation. The bill limits personal liability for federal employees acting in good faith and says the new rules do not override other laws. The Secretary of the Treasury and the Office of Management and Budget must issue regulations within 180 days.
The bill also amends rules that relieve accountable officers from liability to say that a covered loss may result from a good-faith effort to follow the new pause-and-segment requirements.
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Supporters state the bill gives agencies and Treasury clear authority and procedures to stop or limit payments that show objective signs of fraud. The bill adds time limits, notice to payees, and rules to let normal payment amounts continue while addressing risky amounts. Supporters also point to protections for employees acting in good faith and an exemption process for law enforcement.
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