💵 House Passes Bill to Pause Suspect Federal Payments Before Cash Goes Out

WASHINGTON — The Republican-controlled House passed the Stopping Fraudulent Payments Act this week, 218-200, in a bid to slow federal money when data flags a high risk of fraud or error.

The bill, sponsored by House Oversight Chairman James Comer (R-Ky.), targets the government’s long-running “pay and chase” habit: send the check first, try to claw it back later. Agencies would gain clearer authority to pause, condition or split payments that look suspicious. The Treasury Department could send flagged requests back for another look, using tools such as the Do Not Pay database.

“Congress must take further action to stop fraud before it happens,” Comer said on the floor. “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.”

The Government Accountability Office estimated $186 billion in improper payments in fiscal 2025, up $24 billion from the year before. Oversight reports put the total since 2003 near $3 trillion. The losses cut across Social Security, Medicare and other benefit programs.

House Budget Chairman Jodey Arrington (R-Texas), an original cosponsor, said large transfers to state and local governments need the same discipline. “Every dollar must be safeguarded against waste, fraud, and abuse,” he said.

The measure is one of 11 Oversight bills on student-aid fraud and payment integrity. Democrats almost all voted no; a handful crossed the aisle. Opponents argued the trigger is too loose and could let an administration delay legitimate benefits before facts are proven.

The bill now goes to the Senate. Supporters cast it as part of a wider push that includes the White House Task Force to Eliminate Fraud and the Department of Government Efficiency: move from chasing stolen money after the fact to stopping it at the door. Whether the Senate will accept that shift — and how agencies would use a pause in practice — is the next fight.

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