PIIA Reform Act
This bill establishes a federal Overpayment Czar position, requires federal agencies to identify certain programs and activities as susceptible to improper payments (i.e., payments that should not have been made or were made in an incorrect amount), and imposes financial penalties on agencies for noncompliance with requirements related to reducing improper payments.
The bill establishes the position of Director of Improper Payment Mitigation, to be known as the Overpayment Czar, within the Office of Management and Budget (OMB). The duties of the Overpayment Czar include assisting federal agencies in preventing improper payments and fraud.
Under the bill, federal agencies must additionally identify as susceptible to significant improper payments any program or activity that is in the first four years of operation and has or is expected to have outlays exceeding $100 million in any of the first three fiscal years of operation unless, based upon a review of the program or activity, the agency makes a determination to the contrary.
The bill requires a reduction in certain appropriations accounts for agencies that do not comply with various requirements related to reducing improper payments (such as publishing improper payments estimates and programmatic corrective action plans).
States receiving funding for certain programs, such as Medicaid and unemployment compensation, must use payment integrity tools approved by OMB to reduce overpayments.
Each annual governmentwide five-year financial management plan produced by OMB must include a plan to decrease improper payments throughout executive agencies.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1533 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1533
To amend title 31, United States Code, to establish an Overpayment
Czar, strengthen oversight and accountability for improper payments,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 24, 2025
Mr. Meuser introduced the following bill; which was referred to the
Committee on Oversight and Government Reform, and in addition to the
Committee on Ways and Means, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend title 31, United States Code, to establish an Overpayment
Czar, strengthen oversight and accountability for improper payments,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``PIIA Reform Act''.
SEC. 2. OVERPAYMENT CZAR.
(a) Amendment.--Chapter 5 of title 31, United States Code, is
amended by inserting after section 504 the following new section:
``Sec. 504A. Overpayment Czar
``(a) Establishment.--There is established within the Office of
Federal Financial Management a Director of Improper Payment Mitigation,
to be referred to as the `Overpayment Czar'--
``(1) under the direction and control of the Controller;
``(2) who shall be appointed and may be removed by the
Director; and
``(3) who shall receive a rate of pay fixed by the
Director.
``(b) Duties.--The Overpayment Czar--
``(1) shall assist executive agencies in the
identification, prevention, and mitigation of improper payments
and fraud within Federal programs; and
``(2) shall develop and recommend strategies that address
improper payment in executive agency payments; and
``(3) shall annually submit to the Controller a report that
proposes corrective actions to improve payment integrity and
combat fraud effectively across the Federal Government.
``(c) Authority To Recommend Policy Changes.--The Overpayment Czar
may recommend policy changes to the Chief Financial Officer of any
executive agency to develop reliable estimates of improper payments.
``(d) Definitions.--In this section:
``(1) Controller.--The term `Controller' means the
Controller of the Office of Federal Financial Management.
``(2) Director.--The term `Director' means the Director of
the Office of Management and Budget.
``(3) Improper payment.--The term `improper payment' has
the meaning given that term in section 3351.''.
(b) Technical and Conforming Amendment.--The table of sections for
chapter 5 of title 31, United States Code, is amended by inserting
after the item for section 504 the following new item:
``Sec. 504A. Overpayment Czar.''.
SEC. 3. AMENDMENTS TO FINANCIAL MANAGEMENT PLAN REQUIREMENTS.
Section 3512(a)(3) of title 31, United States Code, is amended--
(1) in subparagraph (A), by inserting ``the Overpayment
Czar,'' after ``the Controller of the Office of Federal
Financial Management,''; and
(2) in subparagraph (B)--
(A) in clause (viii), by striking ``; and'' and
inserting a semicolon;
(B) in clause (ix), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(x) include a plan to decrease improper
payments (as defined in section 3351)
throughout executive agencies.''.
SEC. 4. IMPROPER PAYMENTS.
(a) Expanding Improper Payment Scope.--Section 3352 of title 31,
United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (3)--
(i) in subparagraph (A)--
(I) in clause (i), by striking ``;
or'' and inserting a semicolon;
(II) in clause (ii), by striking
the period at the end; and
(III) by adding at the end the
following new clauses:
``(iii) any new Federal program that makes
more than $100,000,000 in payments in the first
year of operation;
``(iv) for which the Inspector general of
the executive agency has an outstanding
recommendation in the report required by
subsection (b)(2)(E); or
``(v) any new Federal program that has or
is expected to have outlays exceeding
$100,000,000 in any one of the first 3 fiscal
years of operation and is in the first 4 years
of operation.'';
(ii) in subparagraph (B), in the matter
preceding clause (i), by striking ``paragraph
(1)'' and inserting ``paragraph (1)(B)''; and
(iii) in subparagraph (C), by striking
``paragraph (1)'' each place it appears and
inserting ``paragraphs (1) and (4)''; and
(B) by adding at the end the following new
paragraph:
``(4) New programs and activities.--
``(A) Susceptible to significant improper
payments.--In addition to the programs and activities
identified under paragraph (1)(B), the head of an
executive agency shall identify as susceptible to
significant improper payments any program or activity
that--
``(i) has or is expected to have outlays
exceeding $100,000,000 in any one of the first
3 fiscal years of operation; and
``(ii) is in the first 4 years of
operation.
``(B) Applicability.--This paragraph shall not
apply with respect to any program or activity that the
head of the relevant executive agency determines, based
on the results of a review conducted under paragraph
(1), is not susceptible to significant improper
payments.''; and
(2) in subsection (c)(1), in the matter preceding
subparagraph (A), by striking ``subsection (a)(1)'' and
inserting ``paragraphs (1) and (4) of subsection (a)''.
(b) Authority To Require Data Reporting for Improper Payment
Estimation Under the TANF Program.--Section 417 of the Social Security
Act (42 U.S.C. 617) is amended by striking the period at the end and
inserting ``or as the Secretary may determine is necessary to carry out
subsections (a) through (e) of section 3352 of title 31, United States
Code, with respect to any program or activity authorized by this
part.''.
(c) Mechanism for Noncompliance.--Section 3353 of title 31, United
States Code, is amended by adding at the end the following new
subsection:
``(e) Special Adjustment for Persistent Noncompliance.--
``(1) In general.--Beginning with the first fiscal year
after the date of the enactment of this subsection, any
executive agency which is in a state of noncompliance according
to subsection (b)(1) shall have its highest-level
administrative appropriation account reduced in the final
sequestration report issued under the Balanced Budget and
Emergency Deficit Control Act of 1985 for that fiscal year by
an amount equal to 5 percent of the total budget authority
provided for that account in the most recently enacted
applicable appropriation Act.
``(2) For two or more years.--If the executive agency is
noncompliant for two or more fiscal years after the date of the
enactment of this subsection, then the highest-level
administrative appropriation account shall be reduced in the
final sequestration report issued under the Balanced Budget and
Emergency Deficit Control Act of 1985 for that fiscal year by
an amount equal to 10 percent of the total budget authority
provided for that account in the most recently enacted
applicable appropriation Act.''.
(d) Reports.--Subsection (d) of section 3357 of title 31, United
States Code, is amended to read as follows:
``(d) Reports.--
``(1) In general.--For each fiscal year beginning in the
first fiscal year after the date of the enactment of this
subsection, and in each of the following 9 fiscal years, the
head of each agency shall submit to Congress, in the report
containing the annual financial statement of the agency, a
report on the following:
``(A) The progress of the agency in the following:
``(i) The implementation of the following:
``(I) The financial and
administrative controls required to be
established under subsection (c)(1).
``(II) The fraud risk principles in
the Standards for Internal Control in
the Federal Government of the
Government Accountability Office.
``(III) Circular A-123 of the
Office of Management and Budget with
respect to the leading practices for
managing fraud risk.
``(ii) The identification of fraud risks
and vulnerabilities, including with respect to
payroll, beneficiary payments, grants, large
contracts, and purchase and travel cards.
``(iii) The establishment of strategies,
procedures, and other steps to curb fraud.
``(B) Information on the status of implementing
each of the 11 leading practices identified in the
report published by the Government Accountability
Office on July 28, 2015, entitled `Framework for
Managing Fraud Risks in Federal Programs'.
``(2) Fulfillment of reporting requirement.--If the annual
financial statement of an agency, or an alternative report of
the agency included in the annual financial statement, includes
information that fulfills the requirements of this subsection,
the head of the agency may include a brief statement to that
effect in the financial statement or alternative report without
duplicating the information required under this subsection in a
separate or standalone report.''.
(e) Greater State Investment in Payment Integrity Systems.--
(1) In general.--Chapter 33 of title 31, United States
Code, is amended by adding at the end the following new
section:
``Sec. 3359. Greater use of payment integrity tools by States
``(a) Increasing Use of Payment Integrity Tools by State
Administrators.--
``(1) In general.--Any State that receives funding in a
program described under paragraph (2) shall use each applicable
payment integrity tool published pursuant to paragraph (3) and
submit a report on the effectiveness of each such tool in
accordance with subsection (b).
``(2) Programs.--The programs described under this
paragraph include the following:
``(A) The program of block grants to States for
temporary assistance for needy families under part A of
title IV of the Social Security Act.
``(B) The Medicaid program under title XIX of the
Social Security Act.
``(C) The supplemental nutrition assistance program
under the Food and Nutrition Act of 2008 (7 U.S.C. 2011
et seq.).
``(D) The Federal-State unemployment compensation
program under titles III, IX, and XII of the Social
Security Act.
``(E) The special supplemental nutrition program
for women, infants, and children established by section
17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786).
``(3) Payment integrity tools.--The Director of the Office
of Management and Budget shall publish a list of payment
integrity tools that each State shall use to reduce
overpayments.
``(b) Certification of Compliance.--Not later than September 30 of
each year, each State shall submit to the Director of the Office of
Management and Budget a report that includes--
``(1) the usage by that State of payment integrity tools;
and
``(2) an analysis on the effect of using payment integrity
tools.
``(c) Noncompliance.--If a State does not use payment integrity
tools as required by this section, that State shall remit payment to
the Treasury for the total amount of overpayment in any program covered
by this section.''.
(2) Clerical amendment.--The table of sections for chapter
33 of title 31, United States Code, is amended by adding at the
end the following item:
``3359. Greater use of payment integrity tools by States.''.
(3) Effective date.--Section 3359 of title 31, United
States Code, as added by paragraph (1), shall take effect on
the date that is one year after the date of the enactment of
this Act.
(f) Working System Data Sharing.--Section 205(r)(11) of the Social
Security Act is amended--
(1) by striking ``During the 3-year period that begins on
the effective date of this paragraph, the'' and inserting
``The''; and
(2) by striking ``to prevent improper payments to deceased
individuals'' and inserting ``for the authorized uses of the Do
Not Pay working system''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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