WASHINGTON, D.C. — Congressman Michael Baumgartner (WA-05) welcomed House passage of several anti-fraud measures to stop improper payments, protect taxpayers, and ensure federal resources reach the Americans they were intended to serve.

“Fraud is not a victimless crime,” said Congressman Baumgartner. “Every dollar stolen by a fraudster is a dollar taken from a taxpayer or denied to a family, student, or small business that followed the rules. The federal government must do more than chase stolen money after it is gone. It must verify eligibility and stop suspicious payments before they go out the door.”

The House passed these anti fraud measures:

• The Stopping Fraudulent Payments Act requires the Treasury Department to return payment requests to federal agencies when they present an identified risk of fraud. It also allows agencies to pause, segment, or cancel payments with elevated fraud risks while corrective action is taken.    
• The No Aid for Ghost Students Act requires the Department of Education to screen FAFSA applications for suspected identity fraud and requires additional identity verification before federal student aid is disbursed in flagged cases. It also allows heightened oversight of institutions that repeatedly send aid to suspicious applicants.  
• The Fraud Prevention and Accountability Act fights fraud and promotes accountability government-wide by establishing a permanent Inspector General for Fraud, Accountability, and Recovery at the Treasury Department.  
• The Anti-Fraud Resolution condemns efforts to defraud the federal government and affirms that eligibility should be verified before federal payments are issued.  

“College tuition is already out of control, and financial aid is supposed to help real students pursue an education,” Baumgartner said.“Sophisticated fraud rings should not be able to steal money intended for hardworking families. These common-sense safeguards will protect taxpayers, preserve resources for legitimate recipients, and bring greater accountability to Washington.”

The Government Accountability Office estimates that, based on data from 2018 to 2022, the federal government loses between $233 billion and $521 billion annually to fraud across all federal programs and operations. Significant fraud risks exist in programs that are federally funded and administered by State, territorial, and local agencies. The simple step of verifying federal program eligibility and spending activities prior to payments being issued is a common sense measure to put a cap on fraud. 

The Stopping Fraudulent Payments Act passed by a vote of 218 to 200, now heads to the Senate. Text and background can be found here and here.

The No Aid for Ghost Students passed by a vote of 249 to 172, now heads to the Senate. Text and background can be found here and here. 

The Fraud Prevention and Accountability Act passed by a vote of 240 to 181, now heads to the Senate. Text and background can be found here. 

The text of the anti-fraud resolution can be found here.