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Wednesday, March 12, 2025

Congress examines methods to prevent fraud in government payment systems

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U.S. Rep. James Comer representing Kentucky's 1st Congressional District | Official U.S. House headshot

U.S. Rep. James Comer representing Kentucky's 1st Congressional District | Official U.S. House headshot

The Subcommittee on Government Operations convened to discuss ongoing efforts to prevent fraud and improper payments in federal government payment systems. The hearing, titled “Shifting Gears: Moving from Recovery to Prevention of Improper Payments and Fraud,” is part of a long-term investigation into these issues.

Subcommittee Chairman Pete Sessions (R-Texas) emphasized the need for improved data collection and sharing among federal agencies. "Actual data and actual solutions are what today’s hearing is going to be about," he stated. Expert witnesses presented practical solutions such as eliminating the "pay and chase" model, enhancing data sharing, and modernizing payment systems.

Kristen Kociolek from the U.S. Government Accountability Office highlighted preventive measures, stating, “The best way to reduce improper or fraudulent payments is to not make them." She advocated for using the Treasury’s Do Not Pay System to consolidate data matching efforts.

Ken Dieffenbach from the Pandemic Response Accountability Committee identified loopholes that allow fraud, stressing the importance of comprehensive data use across government levels. He said, "We must address obvious anomalies such as Social Security numbers that have never been issued."

Rep. Brandon Gill (R-Texas) criticized the current system's lack of accountability: “It seems to me that we’ve got an overextended bureaucratic administrative leviathan.” Rep. Gary Palmer (R-Texas) praised technological advancements brought by external experts in addressing these issues.

The hearing underscored bipartisan support for tackling fraud through enhanced technology and accountability measures within federal agencies.

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