H.R. 8467

119 HR 8467 EH: Zeroing Out Monetary Benefits Improperly Expended Act
 U.S. House of Representatives
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 I
 119th CONGRESS  2d Session
 H. R. 8467
 IN THE HOUSE OF REPRESENTATIVES
 AN ACT
To reform the Payment Integrity Information Act of 2019 to ensure executive agencies focus on fraud prevention, and for other purposes.
1.
Short title
This Act may be cited as the   Zeroing Out Monetary Benefits Improperly Expended Act   or the   ZOMBIE Act  .
2.
Reforms to Payment Integrity Information Act of 2019
(a)
Definitions
Section 3351 of title 31, United States Code, is amended—
(1)
in paragraph (2)—
(A)
in subparagraph (A)—
(i)
in clause (i)—
(I)
by inserting  information on  before  improper payments ;
(II)
by striking  information with  and inserting  resulting in financial loss to the Government in the accompanying materials to ; and
(III)
by striking  and  at the end; and
(ii)
by inserting after clause (ii) the following new clause:
(iii)
published information on improper payments resulting in financial loss to the Government with the annual budget justification of the executive agency for the most recent fiscal year;
 ;
(B)
by redesignating subparagraphs (B) and (C) as clauses (iv) and (v), respectively (and adjusting the margins accordingly);
(C)
by redesignating subparagraphs (D) through (F) as subparagraphs (B) through (D), respectively;
(D)
in subparagraph (A)(iv), as so redesignated—
(i)
by striking  if required, has ; and
(ii)
by inserting  and  after the semicolon at the end;
(E)
in subparagraph (A)(v), as so redesignated, by striking  if required, publishes  and inserting  published ;
(F)
by striking subparagraph (B), as so redesignated; and
(G)
by redesignating subparagraphs (C) and (D), as so redesignated, as subparagraphs (B) and (C); and
(2)
by adding at the end the following new paragraph:
(9)
Financial loss to the Government
The term  financial loss to the Government —
(A)
means any payment or part of a payment made in excess of the correct amount authorized by law that results in a financial loss to the Federal Government; and
(B)
does not include any payment or part of a payment made to the correct person or entity for the correct amount authorized by law but not made in accordance with certain administrative procedures applicable to the executive agency (excluding any such procedure necessary to establish eligibility or to verify that any payment or part of a payment was made in such correct amount).
 .
(b)
Estimates of improper payments resulting in financial loss to the government and reports on actions to reduce such payments
Section 3352 of title 31, United States Code, is amended—
(1)
in the heading—
(A)
by inserting
resulting in financial loss to the Government   before
and reports   (and by conforming the item relating to such section in the table of sections in chapter 33); and
(B)
by striking
reduce improper payments   and inserting
reduce such payments   (and by conforming the item relating to such section in the table of sections in chapter 33);
(2)
in subsection (a)—
(A)
in paragraph (1)—
(i)
in subparagraph (A), by striking  periodically review all programs and activities  and inserting  submit annually a list of each program and activity required to be reported on the Program Inventory under section 1122 ; and
(ii)
in subparagraph (B)—
(I)
by striking  all programs and activities  and inserting  each program and activity from each such list ; and
(II)
by striking  (3)  and inserting  (2) ;
(B)
by striking paragraph (2);
(C)
by redesignating paragraph (3) as paragraph (2); and
(D)
in paragraph (2), as so redesignated—
(i)
in subparagraph (A), by striking  improper payments and payments whose propriety cannot be determined  and inserting  improper payments resulting in financial loss to the Government and payments lacking sufficient documentation to determine whether the payments result in financial loss to the Government ;
(ii)
by redesignating subparagraphs (B) and (C) as subparagraphs (D) and (E), respectively;
(iii)
by inserting after subparagraph (A) the following new subparagraphs:
(B)
Development of risk assessment guidance
Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury shall develop risk assessment guidance to assess the risk of improper payments resulting in financial loss to the Government that addresses the following:
(i)
The likelihood of payment errors and the magnitude of such errors that do not result in financial loss to the Government.
(ii)
The likelihood of payment errors and the magnitude of such errors that do result in financial loss to the Government.
(iii)
A formula for estimating financial loss to the Government.
(iv)
Relevant governmentwide documents and best practices for managing improper payments and mitigating fraud risks in Federal programs, such as the document of the Government Accountability Office entitled  A Framework for Managing Fraud Risks in Federal Programs  (or any successor document), as applicable and appropriate.
(C)
Scope
In preparing a list under paragraph (1)(A), the head of each executive agency shall require, within 6 months after issuing the risk assessment guidance, a risk assessment using the guidance developed under subparagraph (B) for each program or activity listed under paragraph (1)(A) for each—
(i)
existing programs or activities prior to the next disbursement of Federal funds with respect to the program or activity; and
(ii)
newly authorized programs and activities prior to any disbursement of Federal funds with respect to the program or activity.
 ;
(iv)
in subparagraph (D), as so redesignated—
(I)
in the heading, by striking
Scope   and inserting
Requirements  ;
(II)
in the matter preceding clause (i)—
(aa)
by striking  In conducting a review under paragraph (1), the head of each executive agency shall  and inserting  Risk assessments are to be conducted on an ongoing basis, but no less frequently than once every 3 years, and ; and
(bb)
by inserting  , including with respect to fraud in any program or activity listed under paragraph (1)(A) that causes improper payments resulting in financial loss to the Government  before  , such as ;
(III)
in clause (x), by striking  data systems  and inserting  data assets ; and
(IV)
in clause (xi)—
(aa)
by inserting  or improper payments  before  as assessed ; and
(bb)
by inserting  , or any successor document  after  (commonly known as the  Green Book ) ; and
(v)
in subparagraph (E), as so redesignated—
(I)
in the heading, by striking
Annual report   and inserting
Reports  ;
(II)
in the matter preceding clause (i), by striking  Each executive agency shall publish an annual report  and inserting  Not less than once every 3 years, the head of each executive agency shall publish a report, which may be included in a report required under subsection (b)(2)(F) by such head with respect to a high-priority Federal program or activity, ;
(III)
in clause (i), by striking  ; and  and inserting a semicolon;
(IV)
in clause (ii), by striking the period at the end and inserting  ; and ; and
(V)
by adding at the end the following new clause:
(iii)
a prioritized listing of risks identified in subparagraph (D) associated with each program and activity listed under paragraph (1)(A) and any corresponding financial and administrative control to mitigate any such risk, including the use of the Do Not Pay Initiative (or any successor system) and any other system or data asset maintained by the Secretary of the Treasury or the Inspector General of the executive agency to prevent fraud or improper payments resulting in financial loss to the Government prior to making an eligibility determination to receive Federal funds with respect to any such program or activity listed under paragraph (1)(A), issuing an award, or requesting a payment.
 ;
(3)
in subsection (b)—
(A)
in the heading, by inserting
that result in financial loss to the Government   after
Improper payments  ;
(B)
in paragraph (1)—
(i)
in subparagraph (A)—
(I)
by inserting  and activities  after  high-priority Federal programs ; and
(II)
by inserting  that result in financial loss  after  improper payments  each place it appears; and
(ii)
in subparagraph (B), by striking  associated  and inserting  and financial loss associated ; and
(C)
in paragraph (2)—
(i)
in the heading, by inserting
that result in financial loss to the Government   after
improper payments  ;
(ii)
in subparagraph (A), by striking  shall on an annual basis  and inserting  , not less frequently than once every 3 years, shall ;
(iii)
in subparagraph (B)—
(I)
in clause (i)—
(aa)
in subclause (I)—
(AA)
by inserting  that result in financial loss to the Government  after  improper payments ; and
(BB)
by striking  ; and  and inserting a semicolon;
(bb)
in subclause (II), by inserting  that result in financial loss to the Government, including by making it harder for fraudulent actors to exploit the program  after  improper payments ; and
(cc)
by adding at the end the following new subclause:
(III)
has taken or plans to take to reduce the percentage of improper payments that result in financial loss to the Government;
  ;
(II)
by inserting after clause (i) the following new clause:
(ii)
shall include—
(I)
an estimate of the total amount of the payments that result in financial loss to the Government;
(II)
an estimate of the total amount of the payments that do not result in financial loss to the Government;
(III)
the percentage of payments that result in financial loss to the Government;
(IV)
an assessment of the portion of the total amount of payments that result in financial loss to the Government that are due to fraudulent actions by the recipient of such payments;
(V)
the total amount of disbursed payments; and
(VI)
a description of resources or legislative changes proposed to improve or maintain the integrity of the relevant program or activity; and
 ;and
(III)
by redesignating clause (iii) as clause (ii);
(iv)
in subparagraph (E)(i)—
(I)
in subclause (I)—
(aa)
by striking  improper payment  and inserting  improper payments that result in financial loss ; and
(bb)
by striking  ; and  and inserting a semicolon;
(II)
in subclause (II), by striking  improper payments  and inserting  improper payments that result in financial loss ; and
(III)
by adding at the end the following new subclause:
(III)
each statistically valid estimate developed under subsection (c)(1)(A) and make a recommendation to the head of the executive agency on whether the agency estimate should be reassessed and reestablished; and
  ;
(v)
by amending subparagraph (F) to read as follows:
(F)
Agency liaison designation and mandatory coordination meetings
Not less frequently than once every fiscal year, the head of each executive agency with a high-priority Federal program or activity identified under paragraph (1)(B) shall designate a senior official of the executive agency to serve as the liaison of the executive agency for work under this subchapter who shall meet for a non-audit or investigative purpose with the Director of the Office of Management and Budget (or a designee of the Director), the Commissioner of the Bureau of the Fiscal Service of the Department of the Treasury (or a designee of the Commissioner), the Inspector General of the executive agency (or a designee of the Inspector General), and the Pandemic Response Accountability Committee established under section 15010 of the CARES Act ( Public Law 116–136 ; 134 Stat. 533) (or any successor organization) to report on any action taken during the preceding fiscal year and any planned action, including any reform to any financial or administrative control, to prevent improper payments (with a focus on improper payments that lead to financial loss to the Government) and mitigate fraud in such program or activity.
 ; and
(vi)
by adding at the end the following new subparagraph:
(G)
Federal-State coordination meetings
Not less frequently than once every fiscal year, the Director of the Office of Management and Budget and the Secretary of the Treasury shall convene a meeting of State officials responsible for program and payment integrity in programs administered on behalf of the Federal Government by a State or local government to review fraud prevention performance, share best practices, and identify ongoing coordination challenges.
 ;
(4)
in subsection (c)—
(A)
in the heading, by inserting
that result in financial loss to the Government   after
Improper payments  ;
(B)
in paragraph (1)—
(i)
by amending subparagraph (A) to read as follows:
(A)
develop a statistically valid estimate of improper payments that result in financial loss to the Government;
 ;
(ii)
by striking subparagraph (B); and
(iii)
by adding at the end the following new subparagraphs:
(B)
include such estimate in the annual budget justification of the executive agency; and
(C)
revise such estimate if the head of the executive agency determines, which may be based on a recommendation from the Director in consultation with the Secretary of the Treasury and the Inspector General of the executive agency, that there is a need to reestablish the estimate of improper payments that result in financial loss to the Government due to—
(i)
a significant change, as determined by the agency head, to the program or activity’s appropriation or authorization;
(ii)
newly establishing the program or activity; or
(iii)
a recommendation from the agency Inspector General in the annual compliance report issued under section 3353(a).
 ; and
(C)
in paragraph (2)—
(i)
in subparagraph (A), by inserting  resulting in financial loss to the Government  after  improper payment ; and
(ii)
in subparagraph (B), by striking  improper payments  before  estimate ;
(5)
in subsection (d)—
(A)
in the heading—
(i)
by striking
Reduce   and inserting
Reduce and prevent  ; and
(ii)
by inserting
that result in financial loss to the Government   after
Improper payments  ;
(B)
in the matter preceding paragraph (1)—
(i)
by inserting  that result in financial loss to the Government  after  estimated improper payments ; and
(ii)
by striking  reduce improper payments  and inserting  reduce and prevent such payments ;
(C)
in paragraph (1), by inserting  that result in financial loss to the Government (including actions used to commit fraud)  after  improper payments ;
(D)
in paragraph (2)—
(i)
in the matter preceding subparagraph (A), by inserting  that result in financial loss to the Government  after  in order to reduce improper payments ;
(ii)
in subparagraph (B), by striking  ; and  and inserting a semicolon at the end;
(iii)
in subparagraph (C), by inserting  and  after the semicolon; and
(iv)
by adding at the end the following new subparagraph:
(D)
access to appropriate records and data assets, whether maintained by an executive agency, a State or local government, or a private sector organization;
 ;
(E)
in paragraph (4), by inserting  that result in financial loss to the Government  after  improper payments ;
(F)
in paragraph (5)—
(i)
by inserting  that result in financial loss to the Government  after  improper payments  each place it appears; and
(ii)
in subparagraph (B)(ii), by striking  ; and  and inserting a semicolon at the end;
(G)
by amending paragraph (6) to read as follows:
(6)
a description of how the level of planned or completed actions by the executive agency to address the causes of the improper payments that result in financial loss to the Government matched the level of improper payments that resulted in financial loss to the Government, including a breakdown by category of such improper payments and specific timelines for completion of those actions; and
 ; and
(H)
by adding at the end the following new paragraph:
(7)
information on the progress of the executive agency with respect to—
(A)
implementing the financial and administrative controls required to be established under subsection (a)(2)(E)(iii);
(B)
implementing relevant governmentwide documents and best practices for managing improper payments and mitigating fraud risks in Federal programs, such as the document of the Government Accountability Office entitled  A Framework for Managing Fraud Risks in Federal Programs  (or any successor document), as applicable and appropriate, including with respect to the identification of—
(i)
any dedicated entity that leads the fraud risk management activity of the executive agency;
(ii)
responsibilities of such entity, including any program or operation for which the entity is responsible;
(iii)
capacity, including any limitations, to strategically manage fraud risks;
(iv)
any program or operation within the executive agency for which there is not a dedicated entity that leads fraud risk management, along with a detailed justification for not having such a dedicated entity; and
(v)
the status of implementing the overarching concepts with associated leading practices identified in such document entitled  A Framework for Managing Fraud Risks in Federal Programs  (or any such successor document), as applicable and appropriate;
(C)
implementing the Office of Management and Budget Circular A–123, or any successor policy, with respect to leading practices for managing fraud and improper payments risk;
(D)
identifying fraud risks and vulnerabilities, including but not limited to payroll, beneficiary payments, grants, large contracts, and purchase and travel cards; and
(E)
establishing strategies, procedures, and other steps to prevent, detect, and respond to fraud.
 ;
(6)
in subsection (e)—
(A)
in the matter preceding paragraph (1)—
(i)
by inserting  that result in financial loss to the Government,  after  With respect to improper payments ; and
(ii)
by striking  the improper payments  and inserting  such payments ;
(B)
in paragraph (1), by inserting  that result in financial loss to the Government  after  improper payments ; and
(C)
in paragraph (2), by inserting  that result in financial loss to the Government,  after  improper payments ;
(7)
in subsection (f)—
(A)
in paragraph (1)—
(i)
in the matter preceding subparagraph (A)—
(I)
by inserting  that result in financial loss to the Government  after  regarding improper payments ; and
(II)
by inserting  such  after  recover ;
(ii)
in subparagraph (B)—
(I)
by inserting  Government  before  Reform ; and
(II)
by striking  and  at the end;
(iii)
by inserting after subparagraph (B) the following new subparagraphs:
(C)
the Committee on the Budget of the Senate;
(D)
the Committee on the Budget of the House of Representatives;
(E)
the Committee on Appropriations of the Senate;
(F)
the Committee on Appropriations of the House of Representatives; and
 ; and
(iv)
by redesignating subparagraph (C) as subparagraph (G); and
(B)
in paragraph (2)—
(i)
in subparagraph (A), by inserting  that result in financial loss to the Government  after  improper payments ;
(ii)
in subparagraph (C), by inserting  that result in financial loss to the Government  after  improper payment ;
(iii)
in subparagraph (D), by inserting  that result in financial loss to the Government  after  improper payments ; and
(iv)
in subparagraph (E), by inserting  that result in financial loss to the Government  after  improper payment ;
(8)
in subsection (g)—
(A)
in paragraph (1), by inserting  and periodically thereafter,  after  Not later than 1 year after the date of enactment of this section, ; and
(B)
in paragraph (2)(B), by striking  prepayment and postpayment  and inserting  pre-award, pre-payment, and post-payment ; and
(9)
in subsection (i)(2)—
(A)
in subparagraph (C), by striking  25  and inserting  10 ; and
(B)
in subparagraph (D), by striking  25  and inserting  75 .
3.
Reforms to annual compliance report by inspectors general of executive agencies
(a)
OMB guidance
Section 3353(a)(3) of title 31, United States Code, is amended—
(1)
in the matter preceding subparagraph (A)—
(A)
by striking  date of enactment of this section  and inserting  date of the enactment of the amendments made to this section by the   Zeroing Out Monetary Benefits Improperly Expended Act   or the   ZOMBIE Act   ; and
(B)
by striking  shall develop and promulgate guidance  and inserting  shall revise existing guidance issued under this section ;
(2)
in subparagraph (B)—
(A)
by striking  improper payment estimates methodology  and inserting  estimation methodologies ; and
(B)
by inserting  that result in financial loss to the Government  after  improper payments ;
(3)
in subparagraph (C), by inserting  that result in financial loss to the Government  after  improper payments ;
(4)
in subparagraph (D), by inserting  that result in financial loss to the Government  after  improper payments ; and
(5)
in subparagraph (E)—
(A)
by striking  Inspectors General include  and inserting  Inspectors General shall include ; and
(B)
by inserting  that result in financial loss to the Government  after  improper payments .
(b)
CIGIE guidance
Section 3353(a)(4) of title 31, United States Code, is amended—
(1)
in the matter preceding subparagraph (A)—
(A)
by striking  date of enactment of this section  and inserting  date of the enactment of the amendments made to this section by the   Zeroing Out Monetary Benefits Improperly Expended Act   or the   ZOMBIE Act   ; and
(B)
by striking  develop and promulgate guidance  and inserting  revise existing guidance issued under this section ;
(2)
in subparagraph (B)—
(A)
in clause (i)—
(i)
by striking  section 3351(2)(B)  and inserting  section 3351(2)(A)(iv) ; and
(ii)
by inserting  that result in financial loss to the Government  after  improper payments  each place it appears;
(B)
in clause (ii), by striking  section 3351(2)(C)  and inserting  section 3351(2)(A)(v) ;
(C)
by striking clause (iii);
(D)
by redesignating clauses (iv) through (vi) as clauses (iii) through (v), respectively;
(E)
in clause (iii), as so redesignated, by inserting  that result in financial loss to the Government  after  improper payments ; and
(F)
in clause (iv), as so redesignated, by inserting  that result in financial loss to the Government  after  improper payments .
      Passed the House of Representatives June 10, 2026.  Kevin F. McCumber,  Clerk.