WASHINGTON, D.C. — Today, the House Budget Committee passed the bipartisan Improper Payments Transparency Act, which was introduced by Bipartisan Fiscal Forum Co-Chair Representative Scott Peters (D-CA-50) along with Representatives Rudy Yakym (R-IN-02), Jimmy Panetta (D-CA-19), and Jack Bergman (R-MI-01). This legislation would correct existing gaps in improper payment reporting by directing the President’s budget request to include key data and context on this waste, fraud, and abuse of federal funds.

Since Fiscal Year (FY) 2003, the federal government has made $2.7 trillion in improper payments. In FY 2023 alone, 14 federal agencies reported a total of $236 billion in improper payments across 71 government programs. Ninety-five percent of improper payments were overpayments, which place undue burdens on benefit recipients, disabled people, retirees, and other Americans who struggle to make ends meet.

“Improper payments are a burden not only on the federal government as we face an exploding federal debt, but also on hardworking Americans who face collections for overpayments they never realized they were receiving,” said Rep. Peters. “Our Improper Payments Transparency Act will ensure future Presidents’ budget requests include more detail on the scale of improper payments — helping Congress better understand what corrective actions agencies are taking and what more we can do to stop improper payments.”

The true cost to the federal government of improper payments is likely even higher than current data indicate, as some programs that are susceptible to significant improper payments still do not report estimates. By enhancing transparency and reporting, the Improper Payments Transparency Act will help the federal government better understand the scope of improper payments and take corrective action to protect taxpayers and taxpayer dollars.

Specifically, the Improper Payments Transparency Act would require the President’s annual budget request to include information critical to detecting and preventing federal improper payments, such as:

• A description of programs required to submit improper payment reports;
• A detailed explanation of why improper payments occurred;
• Trends in improper payment amounts and rates over a three-year period;
• What corrective actions agencies are taking regarding improper payments; and
• The status of those actions, including disclosure of programs and activities with incomplete actions.

The Improper Payment Transparency Act is supported by BPC Action, the Economic Policy Innovation Center (EPIC), Citizens Against Government Waste (CAGW), the Foundation for Government Accountability (FGA), and Open the Books.

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