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Press Release Published: Jul 23, 2026

GAO Report Affirms Oversight Committee Bills to Combat Fraud in Federally Funded State-Administered Programs

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WASHINGTON—Today, the Government Accountability Office (GAO) produced its first report to the House Committee on Oversight and Government Reform on fraud risks in federally funded, state-administered programs. In March 2026, Chairman James Comer (R-Ky.) requested GAO conduct a systemic review of waste, fraud, and abuse across numerous federally funded benefits programs managed directly by states and U.S. territories. 

“Today’s GAO report confirms that the House Oversight Committee’s fraud prevention bills will provide critical new tools to combat rampant waste, fraud, and abuse in federally funded, state-administered programs. After we exposed massive fraud in Minnesota’s social services programs under Governor Walz’s watch, the House of Representatives passed nearly a dozen Oversight Committee bills to stop this type of theft and protect taxpayer dollars. The Senate must pass these bills immediately so we can equip federal agencies with additional tools to safeguard federal programs for those who truly qualify, protect taxpayer dollars, and ensure Americans’ investment in their government is stewarded wisely,” said Chairman Comer.

The new GAO report details how 20 programs made up nearly 90 percent of federal obligations among programs administered by state and other government entities and collectively accounted for $1.1 trillion in total federal obligations in fiscal year 2025. The GAO estimates that between $233 billion and $521 billion is lost annually across all federal programs and operations due to fraud specifically. The report details fraud risks inherent in state-administered programs and provides Congress with insights to meaningfully address the problem. 

The House of Representatives has passed eleven Committee on Oversight and Government Reform bills aimed at protecting taxpayer funds and combating rampant fraud and improper payments in federal programs, many of which address GAO’s recommendations: 

  • The Stopping Fraudulent Payments Act (H.R. 8464), introduced by House Committee on Oversight and Government Reform Chairman James Comer (R-Ky.), tackles the widespread “pay and chase” problem by preventing federal agencies from making payments when an agency has determined there is an elevated risk of fraud or the payment is likely to be improper. The bill also gives the U.S. Treasury new authority to return payment requests to agencies if they appear to be at risk for fraud. These reforms shift agency actions from recovery to prevention which protects taxpayer dollars. 
  • The Pre-Payment Fraud Prevention and Treasury Data Access Act (H.R. 8463), also introduced by Chairman Comer and cosponsored by Ranking Member Robert Garcia (D-CA), strengthens the federal government’s financial oversight and controls by directing the U.S. Treasury to work with agencies to verify payment and payee information before payments go out the door, not after. It reduces fraud by reforming the Treasury’s Do Not Pay system to ensure federal agencies have better access to this payment verification tool to prevent improper and fraudulent payments. 
  • The Fraud Prevention and Accountability Act (H.R. 8312), introduced by Subcommittee on Government Operations Chairman Pete Sessions (R-Texas), ensures agency Inspectors General have access to government-wide anti-fraud analytics tools developed by the Pandemic Response Accountability Committee (PRAC) transferring the resources into a permanent Inspector General office focused on fraud detection, investigations, and recovering taxpayer dollars. It expands Treasury’s role in preventing improper payments by authorizing the development of government-wide fraud analytic detection tools for agencies, and improving data sharing to help stop fraud before it occurs and better investigate it after it happens.
  • H.Res. 1335, introduced by Representative Pat Fallon (R-Texas), affirms the House of Representatives’ commitment to government-wide fraud and improper payment prevention reforms to ensure the prosperity of the United States. It also expresses the sense of the House that federal program eligibility should be verified before payment. 
  • The Zeroing Out Monetary Benefits Improperly Expended Act (H.R. 8467),introduced by Representative Gary Palmer (R-Ala.), requires agencies to conduct more comprehensive and ongoing fraud risk assessments focused on improper payments that result in financial loss to the government. The bill mandates implementation of fraud risk management best practices, replaces annual improper payment estimates with continuous risk-based controls such as use of the Do Not Pay system prior to award decisions, requires agencies to estimate financial losses from improper payments, and increases coordination among agencies, Inspectors General, and the U.S. Treasury.
  • The Federal Fraud Prevention Workforce Training Act (H.R. 8428), introduced by Subcommittee on Health Care and Financial Services Chairman Glenn Grothman (R-Wis.) and Raja Krishnamoorthi (D-Ill.), authorizes the establishment of a government-wide training program to ensure the federal workforce can identify fraud risks, implement anti-fraud best practices, and utilize fraud prevention tools. 
  • The Taxpayer Resources Used in Emergencies Accountability Act (H.R. 8466), introduced by Representatives Andy Biggs (R-Ariz.) and Suhas Subramanyam (D-Va.), ensures federal agencies are better equipped to protect taxpayer dollars from fraud schemes during future national emergencies. It requires the Office of Management and Budget to issue guidance for agency internal control plans for use during future emergency spending. It also requires agencies to incorporate GAO improper payment and fraud risk frameworks, conduct risk assessments, and implement real-time, data-driven payment monitoring techniques in emergency response programs.
  • The Taxpayer Funds Oversight and Accountability Act of 2025 (H.R. 8340), introduced by Representative Dave Min (D-Calif.) and co-led by Subcommittee on Military and Foreign Affairs Subcommittee Chairman William Timmons (R-S.C.), strengthens Chief Financial Officers’ responsibility for agency finances, internal controls to reduce improper payments, and improve agency financial performance.
  • The Government Audit and Accountability of Federally Funded State-Administered Programs Act of 2025 (H.R. 8107), introduced by Representative Ro Khanna (D-Calif.) and co-led by Subcommittee on Delivering on Government Efficiency Chairman Tim Burchett (R-Tenn.), helps Congress identify where taxpayer dollars are most at risk by requiring a sweeping GAO review of federally funded, state-administered programs.
  • The Federal Program Integrity and Fraud Prevention Act of 2025 (H.R. 6916), introduced by Representative Keith Self (R-Texas) and co-led by Representative Emily Randall (D-Wash.), prohibits felons convicted of defrauding the federal government from participating in federal contracts or receiving grants and federal financial assistance in the future. 
  • The Bonuses for Cost-Cutters and Fraud Preventers Act (H.R. 428), introduced by Representative Chuck Fleischmann (R-Tenn.) and co-led by Representative Ed Case (D-Hawaii), expands existing waste, fraud, and mismanagement prevention cash award incentive programs for federal employees by also incentivizing the successful identification of wasteful expenses or improper payments.

The House Committee on Oversight and Government Reform has exposed widespread fraud in federally funded, state-administered programs in Minnesota, California, and Ohio.