Senate BillS 80Fraud offenses and financial crimesCongressional oversight
STEP Act
INTRO JAN 13· LAST ACTION JAN 13
READING
5MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
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Improper payments, which include mistaken payments, fraud, and waste, cost the government billions of dollars each year. This bill matters because it seeks to tighten the rules and increase accountability to reduce this financial leakage. If it becomes law, federal agencies will be required to be more vigilant from the outset, especially with new programs that often represent significant financial commitments.
Without this bill, agencies might continue with less rigorous or delayed scrutiny of new programs for improper payment risks, and the personal accountability of CFOs for ensuring payment accuracy would remain at its current level. By passing this bill, voters could see a more transparent and efficient government spending process, potentially leading to a reduction in wasted tax dollars. It addresses a persistent concern about government efficiency and fiscal responsibility.
KEY PROVISIONS
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PROVISION 01
Requires new federal programs with expected outlays exceeding $100 million in their first three years to be identified as susceptible to significant improper payments earlier.
This provision aims to proactively identify and address improper payment risks in new programs before they become entrenched.
PROVISION 02
Mandates that an agency's Chief Financial Officer (CFO) must approve the methodology for estimating improper payments and certify the reliability of reports on such payments.
This significantly increases the accountability of high-level financial officials within federal agencies for payment accuracy.
PROVISION 03
Requires federal agencies to submit annual reports to Congress for ten years detailing their progress in implementing fraud prevention controls and strategies.
This provision enhances transparency and congressional oversight over agencies' efforts to combat fraud and improper payments.
Improper payments, which include mistaken payments, fraud, and waste, cost the government billions of dollars each year. This bill matters because it seeks to tighten the rules and increase accountability to reduce this financial leakage. If it becomes law, federal agencies will be required to be more vigilant from the outset, especially with new programs that often represent significant financial commitments.
Without this bill, agencies might continue with less rigorous or delayed scrutiny of new programs for improper payment risks, and the personal accountability of CFOs for ensuring payment accuracy would remain at its current level. By passing this bill, voters could see a more transparent and efficient government spending process, potentially leading to a reduction in wasted tax dollars. It addresses a persistent concern about government efficiency and fiscal responsibility.
KEY PROVISIONS
AI-extracted
high
Requires new federal programs with expected outlays exceeding $100 million in their first three years to be identified as susceptible to significant improper payments earlier.
This provision aims to proactively identify and address improper payment risks in new programs before they become entrenched.
high
Mandates that an agency's Chief Financial Officer (CFO) must approve the methodology for estimating improper payments and certify the reliability of reports on such payments.
This significantly increases the accountability of high-level financial officials within federal agencies for payment accuracy.
high
Requires federal agencies to submit annual reports to Congress for ten years detailing their progress in implementing fraud prevention controls and strategies.
This provision enhances transparency and congressional oversight over agencies' efforts to combat fraud and improper payments.
For 10 consecutive fiscal years, starting the first fiscal year after the bill becomes law.
Agencies must submit annual reports to Congress on their progress in implementing fraud prevention controls and identifying fraud risks.
GLOSSARY
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Improper payment
A payment made by the government that should not have been made, or was made for an incorrect amount, to an ineligible recipient, or for an ineligible service. It can also include payments to the right recipient but for the wrong amount or at the wrong time.
Chief Financial Officer (CFO)
A senior executive within a federal agency responsible for overseeing and managing all financial activities, including budgeting, accounting, and financial reporting.
Executive agency
A department or independent agency in the executive branch of the U.S. federal government.
Outlays
The actual amount of money spent by the government during a fiscal year, often referring to the cash paid out for programs or activities.
Statistically valid estimate
An estimate calculated using widely accepted statistical methods, ensuring that the results are reliable and representative of the larger population.
Circular A-123
A document issued by the Office of Management and Budget (OMB) that provides guidance to federal agencies on how to improve the accountability and effectiveness of federal programs through the establishment and maintenance of internal controls.
ACTION TIMELINE
2 EVENTS
JAN 13, 25
Introduced in Senate
INTROREFERRAL
JAN 13, 25
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Standards for Internal Control in the Federal Government
Guidelines issued by the Government Accountability Office (GAO) that provide a framework for federal agencies to design, implement, and operate an effective system of internal control, including fraud risk management.
