[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8467 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 8467
To reform the Payment Integrity Information Act of 2019 to ensure
executive agencies focus on fraud prevention, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 23, 2026
Mr. Palmer introduced the following bill; which was referred to the
Committee on Oversight and Government Reform
_______________________________________________________________________
A BILL
To reform the Payment Integrity Information Act of 2019 to ensure
executive agencies focus on fraud prevention, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Zeroing Out Monetary Benefits
Improperly Expended Act'' or the ``ZOMBIE Act''.
SEC. 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
with''; 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 by
redesignating subparagraphs (D) through (F) as
subparagraphs (B) through (D), respectively);
(C) in subparagraph (A)(iv), as so redesignated, by
striking ``if required, has'';
(D) in subparagraph (A)(v), as so redesignated, by
striking ``if required, publishes'' and inserting
``published'';
(E) by striking subparagraph (B), as so
redesignated; and
(F) 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
(B) by striking ``reduce improper payments'' and
inserting ``reduce such payments'';
(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'';
(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) by redesignating subparagraphs (A) and
(B) as subparagraphs (B) and (C), respectively;
(ii) by inserting before subparagraph (B),
as so redesignated, the following new
subparagraph:
``(A) review 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;'';
(iii) in subparagraph (B)--
(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
(iv) in subparagraph (C)--
(I) by striking ``(A)'' and
inserting ``(B)''; and
(II) 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;''; and
(II) by inserting after clause (i)
the following new clause (and
redesignating the succeeding clause
accordingly):
``(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'';
(iv) in subparagraph (E)(i)--
(I) in subclause (I), by striking
``improper payment'' and inserting
``improper payments that result in
financial loss''; and
(II) in subclause (II), by striking
``improper payments'' and inserting
``improper payments that result in
financial loss''; 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.'';
(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 striking the
period at the end and inserting ``; and''; 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 (5), by striking ``; and'' and
inserting a semicolon at the end;
(F) in paragraph (6), by striking the period at the
end and inserting ``; and''; and
(G) 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)(1)--
(A) 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'';
(B) in subparagraph (B)--
(i) by inserting ``Government'' before
``Reform''; and
(ii) by striking ``and'' at the end; and
(C) by inserting after subparagraph (B) the
following new subparagraphs (and redesignating the
succeeding subparagraph accordingly):
``(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'';
(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 and pre-
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''.
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