HR-8463 — Pre-Payment Fraud Prevention and Treasury Data Access Act

YourVoice.Now Summary

Civil LibertiesTransparency & AccountabilityCriminal Justice & Due Process

Requires agencies to verify a payee's ID and bank account before sending payments, expanding Treasury's fraud-matching database with privacy limits.

Civil Liberties

Treasury access to personal data — Expanded for cross-system matching of payees and benefit recipients
Privacy Act matching-program protections — Waived for qualifying Do Not Pay queries
Match-result retention — Limited to 30 days for verification purposes
Adverse-action protection — A database match alone cannot deny a payment or benefit
Permitted-use limits — Do Not Pay data confined to fraud prevention and law enforcement

Transparency & Accountability

Congressional reporting — Quarterly Do Not Pay reports and annual evaluations required
System of Records Notice — Treasury must publish data assets and uses before disclosure
Public notice-and-comment — 15-to-30-day comment periods required before adding data categories
First-time-use reporting — Recipients of awards $50,000+ must file a one-time fund-use report
Matching-agreement disclosure — Active agreements posted publicly and in the Federal Register
Data Integrity Board review — Bypassed when agencies adopt the standard matching template

Criminal Justice & Due Process

Criminal penalty for unlawful data disclosure — Up to $250,000 and 5 years for willful violations

The details

Federal agencies would face new rules to verify payments before sending out money, aimed at cutting fraud and improper payments. Before certifying a payment, an agency must confirm the amount and payee are correct. It must also confirm a valid taxpayer or ID number exists, the payee isn't deceased, and the bank account is open and belongs to the payee. The Treasury Department's "Do Not Pay" program would be renamed a "system" and broadened. Treasury could match payment and benefit recipients against government databases, and state and local governments running federally funded programs would also gain access. New privacy guardrails would limit how matched data is used, and results could be kept for only 30 days. Agencies could not deny a payment based on a database match alone. Willfully disclosing the data unlawfully carries a penalty of up to $250,000 and 5 years in prison. First-time recipients of federal awards of $50,000 or more must file a one-time report explaining how they used the funds. Agencies would halt further payments to recipients who don't comply. These changes take effect 180 days after enactment.

Congressional Summary

Pre-Payment Fraud Prevention and Treasury Data Access ActThis bill expands efforts to identify, prevent, and recover improper payments of federal funds (e.g., overpayments, underpayments, payments to ineligible recipients).Specifically, the Department of the Treasury must establish certain requirements that agencies must meet before directing Treasury to make a payment of federal funds. These pre-payment requirements must include verification of payee information, payment details, and fund availability. Further, agencies must, to the extent practicable, verify the accuracy of payee bank account information before directing Treasury to make a payment.The bill also expands the Do Not Pay system, which provides agencies with access to centralized data for the purpose of verifying payee eligibility, and provides statutory authority for Treasury’s role as administrator of the system. The bill requires specified data assets to be added to the system and authorizes Treasury to (1) designate additional data assets for inclusion, and (2) access certain taxpayer and Social Security information for the system. The bill specifies that information obtained through the system may only be used to prevent and recover improper payments and establishes penalties for the unlawful disclosure of such information.The bill explicitly requires executive agencies and state and local governments administering federally funded programs to screen payees against all appropriate Do Not Pay data assets and risk tools before making an award or directing a payment.Finally, the bill establishes post-award reporting requirements for certain first-time fund recipients under federal programs for awards of $50,000 or more.

Legislative Subjects

Administrative law and regulatory proceduresCongressional oversightData collection, sharing, protectionDepartment of the TreasuryFraud offenses and financial crimesGovernment information and archivesIntergovernmental relationsOffice of Management and Budget (OMB)Right of privacySocial security and elderly assistanceState and local government operationsTax administration and collection, taxpayers

Details

Congress: 119th
Chamber: House
Status: summarized
Action: Introduced in House
Action Date: 2026-04-23
Date Added: 2026-06-05
Source: Congress.gov →

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