The Republican-controlled House approved legislation Wednesday to stop fraudulent federal payments before they are issued, passing the Stopping Fraudulent Payments Act 218-200.

The bill, introduced by House Oversight Committee Chairman James Comer of Kentucky, targets the “pay and chase” system where agencies distribute payments before verifying eligibility. The Government Accountability Office estimates improper payments reached $186 billion in fiscal year 2025, a $24 billion increase from the prior year.

What the Bill Does

Under the measure, federal agencies would gain new authority to pause, condition, or segment payments flagged as high-risk for fraud or error. The Treasury Department would use tools like the Do Not Pay database to request additional review of suspicious transactions before funds are released.

Since 2003, cumulative improper payments have approached $3 trillion across federal programs including Social Security, Medicare, and welfare programs. Large sums also flow to state and local governments, creating accountability concerns across multiple levels of administration.

Lawmakers’ Positions

“Congress must take further action to stop fraud before it happens,” Comer said during House floor debate. “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.”

House Budget Committee Chairman Jodey Arrington of Texas, an original cosponsor, stressed accountability: “Every dollar must be safeguarded against waste, fraud, and abuse.” Democrats largely opposed the measure, with nearly all voting against it, though a small number crossed party lines.

What Comes Next

The bill now moves to the Senate for consideration as part of an 11-bill package from the Oversight Committee addressing fraud across federal programs. Supporters frame the effort as consistent with White House initiatives to improve government efficiency and shift strategy from recovering fraudulent payments after the fact to preventing them before disbursement occurs.