PIIA Reform Act

The PIIA Reform Act establishes a new "Overpayment Czar" within the Office of Federal Financial Management to identify, prevent, and mitigate improper payments across federal programs. It requires federal agencies to develop plans reducing improper payments (defined as payments made in error) exceeding $100 million in the first three years of operation for new programs, and mandates states receiving funds for programs like Medicaid, TANF, and food assistance to use specific payment integrity tools. Agencies failing to comply face budget cuts of 5-10% for persistent noncompliance, while states failing to use required tools must repay overpayments to the Treasury. The bill targets payment integrity in high-risk federal programs, focusing on concrete reporting and enforcement mechanisms without advocating for outcomes.