Ernst Introduces Senate Companion to the Stopping Fraudulent Payments Act

WASHINGTON - U.S. Senator Joni Ernst (R-Iowa) introduced the Senate companion to H.R. 8464, the Stopping Fraudulent Payments Act, legislation designed to strengthen federal safeguards against fraud and improper payments.

The bill would shift the federal government away from the costly "pay and chase" approach where agencies attempt to recover improper payments after they have already been issued and instead require fraud prevention and eligibility verification before payments are made.

"Washington has lost billions of taxpayer dollars to fraud and improper payments because the government too often pays first and asks questions later," said Ernst. "Iowans work hard for their money, and they deserve a government that protects it. This bill helps stop suspicious payments before taxpayer dollars walk out the door."

The legislation comes as federal watchdogs continue to warn about widespread payment integrity failures. The Government Accountability Office recently estimated that the federal government improperly paid approximately $186 billion in fiscal year 2025 alone and has improperly paid roughly $3 trillion since 2003. GAO also estimates that between $233 billion and $521 billion is lost annually due to fraud across federal programs and operations. Washington has been awarding taxpayer money to companies with names so outrageous no one could possibly believe they are real, like Satanic Lives Matter, and approving applications for government assistance containing names of well-known celebrities and fictional characters, like Charlie Brown and Nancy Drew.

The Stopping Fraudulent Payments Act would require federal agencies to conduct fraud prevention and eligibility verification before requesting payments and prohibit agencies from certifying payment requests when there is a known risk of fraud or improper payment that could result in a loss to taxpayers. The legislation would also authorize the U.S. Treasury Department to pause and return payment requests flagged for elevated fraud risks, allowing agencies time to conduct further review and take corrective action before taxpayer dollars are distributed.

Ernst has long advocated for stronger oversight of federal spending and increased accountability across government programs. As chair of the Senate Committee on Small Business and Entrepreneurship, she has repeatedly pushed to identify and eliminate waste, fraud, and abuse in federal programs.

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