S.747 - Improper Payments Transparency Act (119th Congress)
Summary
The Improper Payments Transparency Act (S.747) aims to amend Title 31 of the United States Code to enhance transparency regarding improper payments within federal programs. Specifically, it mandates the inclusion of detailed information on improper payment amounts and rates in the President's budget submission to Congress. This includes explanations for why these improper payments occur, trends over the previous three years, and corrective actions planned or underway to address these issues.
The bill requires executive agencies to provide a narrative description of programs with increasing, decreasing, or stagnant improper payment amounts and rates. It also requires details on incomplete corrective actions and future steps to resolve these issues.
Ultimately, the goal is to improve oversight and accountability of federal spending.
Expected Effects
The act, if passed, would likely lead to increased scrutiny of federal programs and their financial management. Agencies would be compelled to provide more detailed justifications for improper payments, potentially leading to more effective corrective actions and reduced waste. This increased transparency could also influence budget allocations and policy decisions.
It could also lead to agencies investing more resources in preventing improper payments. This could include better training, improved internal controls, and enhanced data analytics capabilities.
However, it could also lead to increased administrative burden for agencies.
Potential Benefits
- Increased Transparency: The public and Congress would have better insight into how federal funds are being spent and where improper payments are occurring.
- Improved Accountability: Agencies would be held more accountable for reducing improper payments and implementing corrective actions.
- Better Resource Allocation: By identifying programs with high rates of improper payments, resources can be better targeted to address these issues.
- Reduced Waste: Enhanced oversight and corrective actions could lead to a reduction in wasteful spending and more efficient use of taxpayer dollars.
- Informed Decision-Making: Congress and the President would have more comprehensive information to make informed decisions about budget allocations and program effectiveness.
Most Benefited Areas:
Potential Disadvantages
- Increased Administrative Burden: Agencies may face increased administrative costs and workload to comply with the new reporting requirements.
- Potential for Misinterpretation: Complex data on improper payments could be misinterpreted or used for political purposes, leading to unwarranted criticism of programs.
- Limited Scope: The act focuses primarily on reporting and transparency, and may not address the underlying causes of improper payments.
- Risk of Inaccurate Reporting: Agencies may face pressure to underreport improper payments, leading to inaccurate data and undermining the effectiveness of the act.
- Focus on Symptoms, Not Causes: The act may lead to a focus on addressing the symptoms of improper payments rather than the root causes, such as inadequate program design or insufficient staffing.
Constitutional Alignment
The Improper Payments Transparency Act appears to align with the US Constitution, particularly Article I, Section 9, Clause 7, which requires a regular Statement and Account of the Receipts and Expenditures of all public Money. By increasing transparency and reporting on improper payments, the act supports the constitutional principle of fiscal accountability.
Furthermore, the act does not infringe upon any specific rights or liberties protected by the Bill of Rights. It primarily focuses on improving the efficiency and transparency of government operations.
Therefore, the act seems constitutionally sound.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).