Stopping Fraudulent Payments Act

The Stopping Fraudulent Payments Act empowers federal agencies to temporarily pause, condition, or segment payments when there is a significant risk of fraud or financial loss to the government. This authority is triggered by specific fraud-risk indicators, notifications from state or local officials, or orders from the Treasury Department based on its Do Not Pay system. Agencies must notify payees within two days of a pause, outline the review process, and issue a final decision within 30 days, though they may allow routine portions of a payment to proceed while holding anomalous amounts. The bill also provides legal protections for government officials acting in good faith and requires the Treasury to submit annual reports on the number of paused payments and the savings generated.