Pre-Payment Fraud Prevention and Treasury Data Access Act
Key claim: The bill requires agencies and federally funded state/local programs to verify payees against an expanded Treasury Do Not Pay system before payment and authorizes Treasury access to taxpayer and Social Security data for improper-payment prevention, with strict use and disclosure limits.
Abstract
(HR8463 · 119th Congress) Pre-Payment Fraud Prevention and Treasury Data Access Act This bill expands efforts to identify, prevent, and recover improper payments of federal funds (e.g., overpayments, underpayments, payments to ineligible recipients). Specifically, the Department of the Treasury must establish certain requirements that agencies must meet before directing Treasury to make a payment of federal funds. These pre-payment requirements must include verification of payee information, payment details, and fund availability. Further, agencies must, to the extent practicable, verify the accuracy of payee bank account information before directing Treasury to make a payment. The bill also expands the Do Not Pay system, which provides agencies with access to centralized data for the purpose of verifying payee eligibility, and provides statutory authority for Treasury’s role as administrator of the system. The bill requires specified data assets to be added to the system and authorizes Treasury to (1) designate additional data assets for inclusion, and (2) access certain taxpayer and Social Security information for the system. The bill specifies that information obtained through the system may only be used to prevent and recover improper payments and establishes penalties for the unlawful disclosure of such information. The bill explicitly requires executive agencies and state and local governments administering federally funded programs to screen payees against all appropriate Do Not Pay data assets and risk tools before making an award or directing a payment. Finally, the bill establishes post-award reporting requirements for certain first-time fund recipients under federal programs for awards of $50,000 or more. Latest action (2026-06-09): Received in the Senate.
Why this matters
The bill enlarges the federal pre-payment data-matching apparatus by routing more taxpayer and SSA data into Treasury’s Do Not Pay system and making screening mandatory for federally funded state and local programs. That shifts individuals’ tax and Social Security records into a broader anti-fraud pipeline while imposing new statutory use, safeguard, and redisclosure limits on the agencies handling them. The status is introduced, so operative scope and safeguards will depend on committee text.