ZOMBIE Act Payment Integrity

Summary#

The ZOMBIE Act would change the Payment Integrity Information Act of 2019 to focus federal reporting and prevention work on improper payments that "result in financial loss to the Government." It adds a legal definition for that phrase and requires agencies to publish estimates of those payments with their budget justifications. The Secretary of the Treasury must issue risk-assessment guidance within one year. Agency heads must require risk assessments for listed programs before disbursing funds and at least every three years. Agencies must publish reports at least once every three years that list prioritized risks, controls to mitigate risks (including use of the Do Not Pay system and other data assets), and progress on fraud-management practices. The bill requires agencies to develop statistically valid estimates of improper payments that cause financial loss, include those estimates in budget materials, revise them when certain changes occur, designate senior liaisons, and meet annually with OMB, Treasury Fiscal Service, Inspectors General, and a pandemic accountability committee (or successors).

What it means for you#

  • Federal agencies would change what they count and report: they would focus on payments that cause a financial loss and include those estimates in budget documents.
  • Agencies would run risk assessments before starting new programs and at least every three years for covered programs.
  • Agencies would be expected to use data tools like the Do Not Pay initiative and other data assets before making eligibility decisions, issuing awards, or requesting payments.
  • People or organizations that apply for or receive federal funds may see more pre-award or pre-payment checks and documentation requests as agencies try to prevent payments that cause financial loss.

Expenses#

No publicly available information.

Proponents' View#

The bill text states its purpose is to reform the Payment Integrity Information Act to ensure executive agencies focus on fraud prevention. It adds requirements for risk guidance, regular risk assessments, published estimates tied to budget justifications, prioritized risk lists, and use of data assets to prevent improper payments that cause financial loss.

Opponents' View#

No publicly available information.