I
119THCONGRESS
1
STSESSION 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
FEBRUARY24, 2025
Mr. M
EUSERintroduced the following bill; which was referred to the Com-
mittee on Oversight and Government Reform, and in addition to the
Committee on Ways and Means, for a period to be subsequently deter-
mined 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 account-
ability for improper payments, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘PIIA Reform Act’’. 4
SEC. 2. OVERPAYMENT CZAR. 5
(a) A
MENDMENT.—Chapter 5 of title 31, United 6
States Code, is amended by inserting after section 504 the 7
following new section: 8
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‘‘§ 504A. Overpayment Czar 1
‘‘(a) E
STABLISHMENT.—There is established within 2
the Office of Federal Financial Management a Director 3
of Improper Payment Mitigation, to be referred to as the 4
‘Overpayment Czar’— 5
‘‘(1) under the direction and control of the Con-6
troller; 7
‘‘(2) who shall be appointed and may be re-8
moved by the Director; and 9
‘‘(3) who shall receive a rate of pay fixed by the 10
Director. 11
‘‘(b) D
UTIES.—The Overpayment Czar— 12
‘‘(1) shall assist executive agencies in the iden-13
tification, prevention, and mitigation of improper 14
payments and fraud within Federal programs; and 15
‘‘(2) shall develop and recommend strategies 16
that address improper payment in executive agency 17
payments; and 18
‘‘(3) shall annually submit to the Controller a 19
report that proposes corrective actions to improve 20
payment integrity and combat fraud effectively 21
across the Federal Government. 22
‘‘(c) A
UTHORITY TORECOMMEND POLICY 23
C
HANGES.—The Overpayment Czar may recommend pol-24
icy changes to the Chief Financial Officer of any executive 25
agency to develop reliable estimates of improper payments. 26
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‘‘(d) DEFINITIONS.—In this section: 1
‘‘(1) C
ONTROLLER.—The term ‘Controller’ 2
means the Controller of the Office of Federal Finan-3
cial Management. 4
‘‘(2) D
IRECTOR.—The term ‘Director’ means 5
the Director of the Office of Management and Budg-6
et. 7
‘‘(3) I
MPROPER PAYMENT .—The term ‘im-8
proper payment’ has the meaning given that term in 9
section 3351.’’. 10
(b) T
ECHNICAL AND CONFORMINGAMENDMENT.— 11
The table of sections for chapter 5 of title 31, United 12
States Code, is amended by inserting after the item for 13
section 504 the following new item: 14
‘‘Sec. 504A. Overpayment Czar.’’.
SEC. 3. AMENDMENTS TO FINANCIAL MANAGEMENT PLAN
15
REQUIREMENTS. 16
Section 3512(a)(3) of title 31, United States Code, 17
is amended— 18
(1) in subparagraph (A), by inserting ‘‘the 19
Overpayment Czar,’’ after ‘‘the Controller of the Of-20
fice of Federal Financial Management,’’; and 21
(2) in subparagraph (B)— 22
(A) in clause (viii), by striking ‘‘; and’’ and 23
inserting a semicolon; 24
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(B) in clause (ix), by striking the period at 1
the end and inserting ‘‘; and’’; and 2
(C) by adding at the end the following: 3
‘‘(x) include a plan to decrease im-4
proper payments (as defined in section 5
3351) throughout executive agencies.’’. 6
SEC. 4. IMPROPER PAYMENTS. 7
(a) E
XPANDINGIMPROPERPAYMENTSCOPE.—Sec-8
tion 3352 of title 31, United States Code, is amended— 9
(1) in subsection (a)— 10
(A) in paragraph (3)— 11
(i) in subparagraph (A)— 12
(I) in clause (i), by striking ‘‘; 13
or’’ and inserting a semicolon; 14
(II) in clause (ii), by striking the 15
period at the end; and 16
(III) by adding at the end the 17
following new clauses: 18
‘‘(iii) any new Federal program that 19
makes more than $100,000,000 in pay-20
ments in the first year of operation; 21
‘‘(iv) for which the Inspector general 22
of the executive agency has an outstanding 23
recommendation in the report required by 24
subsection (b)(2)(E); or 25
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‘‘(v) any new Federal program that 1
has or is expected to have outlays exceed-2
ing $100,000,000 in any one of the first 3 3
fiscal years of operation and is in the first 4
4 years of operation.’’; 5
(ii) in subparagraph (B), in the mat-6
ter preceding clause (i), by striking ‘‘para-7
graph (1)’’ and inserting ‘‘paragraph 8
(1)(B)’’; and 9
(iii) in subparagraph (C), by striking 10
‘‘paragraph (1)’’ each place it appears and 11
inserting ‘‘paragraphs (1) and (4)’’; and 12
(B) by adding at the end the following new 13
paragraph: 14
‘‘(4) N
EW PROGRAMS AND ACTIVITIES .— 15
‘‘(A) S
USCEPTIBLE TO SIGNIFICANT IM -16
PROPER PAYMENTS .—In addition to the pro-17
grams and activities identified under paragraph 18
(1)(B), the head of an executive agency shall 19
identify as susceptible to significant improper 20
payments any program or activity that— 21
‘‘(i) has or is expected to have outlays 22
exceeding $100,000,000 in any one of the 23
first 3 fiscal years of operation; and 24
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‘‘(ii) is in the first 4 years of oper-1
ation. 2
‘‘(B) A
PPLICABILITY.—This paragraph 3
shall not apply with respect to any program or 4
activity that the head of the relevant executive 5
agency determines, based on the results of a re-6
view conducted under paragraph (1), is not sus-7
ceptible to significant improper payments.’’; and 8
(2) in subsection (c)(1), in the matter preceding 9
subparagraph (A), by striking ‘‘subsection (a)(1)’’ 10
and inserting ‘‘paragraphs (1) and (4) of subsection 11
(a)’’. 12
(b) A
UTHORITYTOREQUIREDATAREPORTING FOR 13
I
MPROPERPAYMENTESTIMATIONUNDER THE TANF 14
P
ROGRAM.—Section 417 of the Social Security Act (42 15
U.S.C. 617) is amended by striking the period at the end 16
and inserting ‘‘or as the Secretary may determine is nec-17
essary to carry out subsections (a) through (e) of section 18
3352 of title 31, United States Code, with respect to any 19
program or activity authorized by this part.’’. 20
(c) M
ECHANISM FOR NONCOMPLIANCE.—Section 21
3353 of title 31, United States Code, is amended by add-22
ing at the end the following new subsection: 23
‘‘(e) S
PECIALADJUSTMENT FOR PERSISTENTNON-24
COMPLIANCE.— 25
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‘‘(1) IN GENERAL.—Beginning with the first 1
fiscal year after the date of the enactment of this 2
subsection, any executive agency which is in a state 3
of noncompliance according to subsection (b)(1) 4
shall have its highest-level administrative appropria-5
tion account reduced in the final sequestration re-6
port issued under the Balanced Budget and Emer-7
gency Deficit Control Act of 1985 for that fiscal 8
year by an amount equal to 5 percent of the total 9
budget authority provided for that account in the 10
most recently enacted applicable appropriation Act. 11
‘‘(2) F
OR TWO OR MORE YEARS .—If the execu-12
tive agency is noncompliant for two or more fiscal 13
years after the date of the enactment of this sub-14
section, then the highest-level administrative appro-15
priation account shall be reduced in the final seques-16
tration report issued under the Balanced Budget 17
and Emergency Deficit Control Act of 1985 for that 18
fiscal year by an amount equal to 10 percent of the 19
total budget authority provided for that account in 20
the most recently enacted applicable appropriation 21
Act.’’. 22
(d) R
EPORTS.—Subsection (d) of section 3357 of title 23
31, United States Code, is amended to read as follows: 24
‘‘(d) R
EPORTS.— 25
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‘‘(1) IN GENERAL.—For each fiscal year begin-1
ning in the first fiscal year after the date of the en-2
actment of this subsection, and in each of the fol-3
lowing 9 fiscal years, the head of each agency shall 4
submit to Congress, in the report containing the an-5
nual financial statement of the agency, a report on 6
the following: 7
‘‘(A) The progress of the agency in the fol-8
lowing: 9
‘‘(i) The implementation of the fol-10
lowing: 11
‘‘(I) The financial and adminis-12
trative controls required to be estab-13
lished under subsection (c)(1). 14
‘‘(II) The fraud risk principles in 15
the Standards for Internal Control in 16
the Federal Government of the Gov-17
ernment Accountability Office. 18
‘‘(III) Circular A–123 of the Of-19
fice of Management and Budget with 20
respect to the leading practices for 21
managing fraud risk. 22
‘‘(ii) The identification of fraud risks 23
and vulnerabilities, including with respect 24
to payroll, beneficiary payments, grants, 25
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large contracts, and purchase and travel 1
cards. 2
‘‘(iii) The establishment of strategies, 3
procedures, and other steps to curb fraud. 4
‘‘(B) Information on the status of imple-5
menting each of the 11 leading practices identi-6
fied in the report published by the Government 7
Accountability Office on July 28, 2015, entitled 8
‘Framework for Managing Fraud Risks in Fed-9
eral Programs’. 10
‘‘(2) F
ULFILLMENT OF REPORTING REQUIRE -11
MENT.—If the annual financial statement of an 12
agency, or an alternative report of the agency in-13
cluded in the annual financial statement, includes 14
information that fulfills the requirements of this 15
subsection, the head of the agency may include a 16
brief statement to that effect in the financial state-17
ment or alternative report without duplicating the 18
information required under this subsection in a sep-19
arate or standalone report.’’. 20
(e) G
REATERSTATEINVESTMENT INPAYMENTIN-21
TEGRITYSYSTEMS.— 22
(1) I
N GENERAL.—Chapter 33 of title 31, 23
United States Code, is amended by adding at the 24
end the following new section: 25
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‘‘§ 3359. Greater use of payment integrity tools by 1
States 2
‘‘(a) I
NCREASINGUSE OFPAYMENTINTEGRITY 3
T
OOLS BYSTATEADMINISTRATORS.— 4
‘‘(1) I
N GENERAL.—Any State that receives 5
funding in a program described under paragraph (2) 6
shall use each applicable payment integrity tool pub-7
lished pursuant to paragraph (3) and submit a re-8
port on the effectiveness of each such tool in accord-9
ance with subsection (b). 10
‘‘(2) P
ROGRAMS.—The programs described 11
under this paragraph include the following: 12
‘‘(A) The program of block grants to 13
States for temporary assistance for needy fami-14
lies under part A of title IV of the Social Secu-15
rity Act. 16
‘‘(B) The Medicaid program under title 17
XIX of the Social Security Act. 18
‘‘(C) The supplemental nutrition assistance 19
program under the Food and Nutrition Act of 20
2008 (7 U.S.C. 2011 et seq.). 21
‘‘(D) The Federal-State unemployment 22
compensation program under titles III, IX, and 23
XII of the Social Security Act. 24
‘‘(E) The special supplemental nutrition 25
program for women, infants, and children es-26
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tablished by section 17 of the Child Nutrition 1
Act of 1966 (42 U.S.C. 1786). 2
‘‘(3) P
AYMENT INTEGRITY TOOLS .—The Direc-3
tor of the Office of Management and Budget shall 4
publish a list of payment integrity tools that each 5
State shall use to reduce overpayments. 6
‘‘(b) C
ERTIFICATION OF COMPLIANCE.—Not later 7
than September 30 of each year, each State shall submit 8
to the Director of the Office of Management and Budget 9
a report that includes— 10
‘‘(1) the usage by that State of payment integ-11
rity tools; and 12
‘‘(2) an analysis on the effect of using payment 13
integrity tools. 14
‘‘(c) N
ONCOMPLIANCE.—If a State does not use pay-15
ment integrity tools as required by this section, that State 16
shall remit payment to the Treasury for the total amount 17
of overpayment in any program covered by this section.’’. 18
(2) C
LERICAL AMENDMENT .—The table of sec-19
tions for chapter 33 of title 31, United States Code, 20
is amended by adding at the end the following item: 21
‘‘3359. Greater use of payment integrity tools by States.’’.
(3) EFFECTIVE DATE.—Section 3359 of title 22
31, United States Code, as added by paragraph (1), 23
shall take effect on the date that is one year after 24
the date of the enactment of this Act. 25
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(f) WORKINGSYSTEMDATASHARING.—Section 1
205(r)(11) of the Social Security Act is amended— 2
(1) by striking ‘‘During the 3-year period that 3
begins on the effective date of this paragraph, the’’ 4
and inserting ‘‘The’’; and 5
(2) by striking ‘‘to prevent improper payments 6
to deceased individuals’’ and inserting ‘‘for the au-7
thorized uses of the Do Not Pay working system’’. 8
Æ
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