[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8312 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 8312
To establish fraud prevention and program integrity functions and data
sharing authorities within the Department of Treasury and a permanent
governmentwide Inspector General for Fraud, Accountability, and
Recovery, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 15, 2026
Mr. Sessions introduced the following bill; which was referred to the
Committee on Oversight and Government Reform
_______________________________________________________________________
A BILL
To establish fraud prevention and program integrity functions and data
sharing authorities within the Department of Treasury and a permanent
governmentwide Inspector General for Fraud, Accountability, and
Recovery, 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 ``Fraud Prevention and Accountability
Act''.
SEC. 2. ESTABLISHMENT OF FRAUD PREVENTION AND FINANCIAL INTEGRITY
FUNCTIONS WITHIN THE DEPARTMENT OF THE TREASURY.
(a) In General.--Section 306 of title 31, United States Code, is
amended to read as follows:
``Sec. 306. Fiscal Service
``(a) The Bureau of the Fiscal Service is a service in the
Department of the Treasury.
``(b) The head of the Bureau of the Fiscal Service is the Fiscal
Assistant Secretary appointed under section 301(d) of this title.
``(c) The Bureau of the Fiscal Service, having as its head a
Commissioner, shall maintain the following functions related to
financial integrity, spending transparency, and preventing improper
payments resulting in financial loss to the government, and does not
include any investigative or law enforcement function, which, in
addition to any other duty the Secretary of the Treasury assigns--
``(1) shall administer and operate the Do Not Pay system
required under section 3354 in a manner that ensures that any
data provided to the Secretary is used only for the purposes
set forth under section 3354 in accordance with applicable law;
and
``(2) shall, in consultation with the Director of the
Office of Management and Budget, establish and maintain a
governmentwide data analysis program, utilizing the authorities
outlined under section 6(c)(1) of the Federal Funding
Accountability and Transparency Act (Public Law 109-282; 31
U.S.C. 6101 note)--
``(A) to provide data sharing and analysis services
to Federal agencies, States (with respect to any
federally funded State-administered programs), and any
nongovernmental entity administering or disbursing
Federal funds, to detect fraud and prevent improper
payments resulting in a financial loss to the
government and, including by--
``(i) requiring each agency to share data
of known or suspected fraudulent entities and
transactions (resulting from internal agency
fraud prevention or detection investigations)
with the Department of the Treasury;
``(ii) requiring each agency to screen
their potential awardees and payees against the
centralized fraud database prior to award or
payment issuance;
``(iii) requiring each agency to screen
relevant cyber activity against the centralized
fraud database prior to allowing changes to
virtual identity or payment information;
``(iv) establishing governmentwide
standards for the collection, labeling, and
sharing of fraudulent payment data, to include
improper payments, with the Department of the
Treasury;
``(v) partnering with financial
institutions and industry to share best
practices and, where appropriate, data
regarding fraud patterns and results of
investigations into fraudulent activity; and
``(vi) providing identity, eligibility,
account, and vital event verification and
validation tools and analytical services to
agencies, as necessary and appropriate; and
``(B) that is capable of receiving (including in
bulk data formats and through systems that facilitate
real-time data access) any data asset, information, or
record related to the administration of Federal
programs (including federally funded State-administered
programs) and disbursement of Federal funds under such
programs, provided to the Secretary for secure and
confidential use by the center or the Inspector General
for Fraud, Accountability and Recovery (in accordance
with any terms included in a written data sharing
agreement between the Secretary and the Inspector
General) to recognize and address patterns of
fraudulent actors, information, and claims across such
programs; and
``(3) shall provide the Inspector General for Fraud,
Accountability, and Recovery, access to such information
technology, data assets, information, and records to support
the functions and services of the Office of the Inspector
General for Fraud, Accountability, and Recovery established
under section 317, unless the Secretary determines that such
access is not appropriate and notifies the appropriate
congressional committees and the Office of such Inspector
General in writing.
``(d) The Secretary of the Treasury, in consultation with the
Director of the Office of Management and Budget, shall not later than 2
years after the establishment of this section, and on an annual basis
thereafter, submit, to the Committee on Oversight and Government Reform
of the House of Representatives and the Committee on Homeland Security
and Governmental Affairs of the Senate, a report, which may be included
as part of another report submitted to Congress by the Secretary, on
the implementation of the Program, including participation rates and an
assessment of the Program's effectiveness in reducing fraud and
preventing improper payments resulting in a financial loss to the
government.
``(e) The Secretary of the Treasury may designate another officer
or employee of the Department to act as the Fiscal Assistant Secretary
when the Fiscal Assistant Secretary is absent or unable to serve or
when the office of Fiscal Assistant Secretary is vacant.''.
(b) Coordination in Designating Do Not Pay Databases.--Section
3354(b)(1)(B) of title 31, United States Code, is amended by inserting
``in coordination with the Secretary of the Treasury'' before ``in
consultation''.
(c) Amendment to Data Act of 2014 Data Analysis Center
Authorization.--Section 6(c)(1) of the Federal Funding Accountability
and Transparency Act (Public Law 109-282; 31 U.S.C. 6101 note) is
amended by striking ``may'' and inserting ``shall''.
SEC. 3. ESTABLISHMENT OF INSPECTOR GENERAL FOR FRAUD, ACCOUNTABILITY,
AND RECOVERY.
(a) Establishment of Inspector for Fraud, Accountability, and
Recovery.--Subchapter I of chapter 3 of title 31, United States Code,
is amended by adding at the end the following:
``Sec. 317. Inspector General for Fraud, Accountability, and Recovery
within the Department of the Treasury.
``(a) Office of Inspector General.--There is established within the
Department of the Treasury, the Office of the Inspector General for
Fraud, Accountability, and Recovery.
``(b) Appointment of Inspector General; Removal.--
``(1) In general.--The head of the Office shall be the
Inspector General for Fraud, Accountability, and Recovery, who
shall be appointed by the President, by and with the advice and
consent of the Senate.
``(2) Nomination.--The nomination of the Inspector General
shall be made without regard to political affiliation and
solely on the basis of integrity and demonstrated ability in
accounting, auditing, financial analysis, law, management
analysis, public administration, or investigations.
``(3) Removal.--The Inspector General shall be removable
from office in accordance with the provisions of section 403(b)
of title 5.
``(4) Political activity.--For purposes of section 7324 of
title 5, the Inspector General shall not be considered an
employee who determines policies to be pursued by the United
States in the nationwide administration of Federal law.
``(5) Basic pay.--The annual rate of basic pay of the
Inspector General shall be the annual rate of basic pay for an
Inspector General under section 403(e) of title 5.
``(6) Legal counsel.--The Inspector General for Fraud,
Accountability, and Recovery shall, in accordance with
applicable laws and regulations governing the civil service,
obtain legal advice from a counsel either reporting directly to
the Inspector General for Fraud, Accountability, and Recovery
or another inspector general within the executive branch.
``(c) Duties and Responsibilities.--
``(1) In general.--It shall be the duty of the Inspector
General, in accordance with section 404(b)(1) of title 5, to
conduct, supervise, or coordinate oversight activities,
including audits and investigations of the use of and the
provision or award of covered funds, and the management by
agency heads of any program established by the use of covered
funds, with such related activities of the Inspector General to
be considered civil or criminal law enforcement activities,
including by--
``(A) providing support to agency Inspectors
General, if requested by the agency Inspector General,
in the oversight of covered funds in order to--
``(i) detect and prevent fraud, waste,
abuse, and mismanagement;
``(ii) identify major risks that cut across
programs and agency boundaries; and
``(iii) identify and promote best practices
and tools to prevent, detect, and respond to
fraud across covered funds; and
``(B) coordinating with relevant agency Inspectors
General, the Department of Justice, and, as
appropriate, the Fiscal Service to--
``(i) provide support in conducting
investigations, audits, and reviews relating to
covered funds, including through--
``(I) the establishment or use of
an independent data analytics platform,
which shall incorporate to the extent
practicable and feasible the data
analytic platform maintained by the
Pandemic Response Accountability
Committee prior to the enactment of
this section;
``(II) the sharing of data, tools,
and services;
``(III) the development and
enhancement of data practices,
analysis, and visualization; and
``(IV) any other appropriate means
as determined by the Inspector General
in coordination with relevant
Inspectors General from any agency that
expends or obligates covered funds;
``(ii) provide analytical products to
agencies to promote program integrity, prevent
improper payments, facilitate verification
efforts to ensure proper expenditure and
utilization of covered funds, and assist with
civil and criminal investigations or litigation
relating to fraud, waste, abuse and
mismanagement of covered funds;
``(iii) review the economy, efficiency, and
effectiveness in the administration of, and the
detection of fraud, waste, abuse, and
mismanagement in, programs and operations using
covered funds;
``(iv) as appropriate and practicable,
identify data assets and information records
collected, produced, and maintained by the
Office that can be securely provided through
data sharing agreements, including in bulk data
formats and through systems that facilitate
real-time data access, with the Secretary of
the Treasury to support the functions and
activities of the Fiscal Service and civil and
criminal investigations or litigation relating
to fraud, waste, abuse, and mismanagement of
covered funds; and
``(v) expeditiously report to the Attorney
General any instance in which the Inspector
General has reasonable grounds to believe there
has been a violation of Federal criminal law;
``(C) establish an advisory committee composed of
other Inspectors General, with at least three
representing an agency specified under section 901(b)
of title 31, United States Code, and three from another
agency, in accordance with the following:
``(i) General functions.--The advisory
committee may identify and prioritize cross-
agency fraud risks and activities to prevent,
detect, and otherwise mitigate such risks,
including by reviewing--
``(I) the economy, efficiency, and
effectiveness in the administration of,
and the detection of fraud, waste,
abuse, and mismanagement in, programs
and operations using covered funds; and
``(II) whether there are
appropriate mechanisms for interagency
collaboration relating to the oversight
of covered funds, including
coordinating and collaborating to the
extent practicable with State and local
government entities.
``(ii) Recommendations.--The advisory
committee may, in coordination with the
Secretary of the Treasury and the Director of
the Office of Management and Budget, make
recommendations to agencies on measures to
prevent or address fraud, waste, abuse, and
mismanagement, and to mitigate major risks that
cut across programs and agency boundaries,
relating to covered funds.
``(iii) Preventing duplication in oversight
functions.--With a view to preventing
duplication in government functions and provide
for ongoing coordination of resources to
prevent fraud and improper payments in Federal
programs and spending the advisory committee
may--
``(I) provide recommendations to
the Secretary of the Treasury to assist
the Secretary in making recommendations
under section 321(a)(11) of title 31;
and
``(II) provide any such additional
recommendations in a timely manner to
the appropriate congressional
committees as the advisory committee
determines necessary and to ensure that
the definition of `covered funds'
established under section 317(l) of
title 31 is legislatively expanded, as
necessary;
``(D) the Inspector General may provide
investigative support to prosecutive and enforcement
authorities to protect program integrity and prevent,
detect, and prosecute fraud of covered funds; and
``(E) coordinating the oversight and investigative
activities with the Comptroller General of the United
States, State and local government Inspectors General,
and State and local auditors, as appropriate.
``(2) Maintenance of systems.--The Inspector General shall
establish, maintain, and oversee such systems, procedures, and
controls as the Inspector General considers appropriate to
discharge the duties of the Inspector General under paragraph
(1).
``(3) Technical assistance and data analytics support.--In
addition to the duties of the Inspector General with respect to
covered funds, for any Inspector General enumerated under
section 424(b)(1) of title 5, the Inspector General may provide
technical assistance to support independent oversight
activities on a reimbursable or non-reimbursable basis provided
that appropriate data privacy and security protection