H.R. 8467

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8467 Engrossed in House (EH)]

<DOC>

119th CONGRESS
2d Session
H. R. 8467

_______________________________________________________________________

AN ACT

To reform the Payment Integrity Information Act of 2019 to ensure 
executive agencies focus on fraud prevention, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Zeroing Out Monetary Benefits 
Improperly Expended Act'' or the ``ZOMBIE Act''.

SEC. 2. REFORMS TO PAYMENT INTEGRITY INFORMATION ACT OF 2019.

(a) Definitions.--Section 3351 of title 31, United States Code, is 
amended--
(1) in paragraph (2)--
(A) in subparagraph (A)--
(i) in clause (i)--
(I) by inserting ``information on'' 
before ``improper payments'';
(II) by striking ``information 
with'' and inserting ``resulting in 
financial loss to the Government in the 
accompanying materials to''; and
(III) by striking ``and'' at the 
end; and
(ii) by inserting after clause (ii) the 
following new clause:
``(iii) published information on improper 
payments resulting in financial loss to the 
Government with the annual budget justification 
of the executive agency for the most recent 
fiscal year;'';
(B) by redesignating subparagraphs (B) and (C) as 
clauses (iv) and (v), respectively (and adjusting the 
margins accordingly);
(C) by redesignating subparagraphs (D) through (F) 
as subparagraphs (B) through (D), respectively;
(D) in subparagraph (A)(iv), as so redesignated--
(i) by striking ``if required, has''; and
(ii) by inserting ``and'' after the 
semicolon at the end;
(E) in subparagraph (A)(v), as so redesignated, by 
striking ``if required, publishes'' and inserting 
``published'';
(F) by striking subparagraph (B), as so 
redesignated; and
(G) by redesignating subparagraphs (C) and (D), as 
so redesignated, as subparagraphs (B) and (C); and
(2) by adding at the end the following new paragraph:
``(9) Financial loss to the government.--The term 
`financial loss to the Government'--
``(A) means any payment or part of a payment made 
in excess of the correct amount authorized by law that 
results in a financial loss to the Federal Government; 
and
``(B) does not include any payment or part of a 
payment made to the correct person or entity for the 
correct amount authorized by law but not made in 
accordance with certain administrative procedures 
applicable to the executive agency (excluding any such 
procedure necessary to establish eligibility or to 
verify that any payment or part of a payment was made 
in such correct amount).''.
(b) Estimates of Improper Payments Resulting in Financial Loss to 
the Government and Reports on Actions to Reduce Such Payments.--Section 
3352 of title 31, United States Code, is amended--
(1) in the heading--
(A) by inserting ``resulting in financial loss to 
the Government'' before ``and reports'' (and by 
conforming the item relating to such section in the 
table of sections in chapter 33); and
(B) by striking ``reduce improper payments'' and 
inserting ``reduce such payments'' (and by conforming 
the item relating to such section in the table of 
sections in chapter 33);
(2) in subsection (a)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking 
``periodically review all programs and 
activities'' and inserting ``submit annually a 
list of each program and activity required to 
be reported on the Program Inventory under 
section 1122''; and
(ii) in subparagraph (B)--
(I) by striking ``all programs and 
activities'' and inserting ``each 
program and activity from each such 
list''; and
(II) by striking ``(3)'' and 
inserting ``(2)'';
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as paragraph 
(2); and
(D) in paragraph (2), as so redesignated--
(i) in subparagraph (A), by striking 
``improper payments and payments whose 
propriety cannot be determined'' and inserting 
``improper payments resulting in financial loss 
to the Government and payments lacking 
sufficient documentation to determine whether 
the payments result in financial loss to the 
Government'';
(ii) by redesignating subparagraphs (B) and 
(C) as subparagraphs (D) and (E), respectively;
(iii) by inserting after subparagraph (A) 
the following new subparagraphs:
``(B) Development of risk assessment guidance.--Not 
later than 1 year after the date of the enactment of 
this Act, the Secretary of the Treasury shall develop 
risk assessment guidance to assess the risk of improper 
payments resulting in financial loss to the Government 
that addresses the following:
``(i) The likelihood of payment errors and 
the magnitude of such errors that do not result 
in financial loss to the Government.
``(ii) The likelihood of payment errors and 
the magnitude of such errors that do result in 
financial loss to the Government.
``(iii) A formula for estimating financial 
loss to the Government.
``(iv) Relevant governmentwide documents 
and best practices for managing improper 
payments and mitigating fraud risks in Federal 
programs, such as the document of the 
Government Accountability Office entitled `A 
Framework for Managing Fraud Risks in Federal 
Programs' (or any successor document), as 
applicable and appropriate.
``(C) Scope.--In preparing a list under paragraph 
(1)(A), the head of each executive agency shall 
require, within 6 months after issuing the risk 
assessment guidance, a risk assessment using the 
guidance developed under subparagraph (B) for each 
program or activity listed under paragraph (1)(A) for 
each--
``(i) existing programs or activities prior 
to the next disbursement of Federal funds with 
respect to the program or activity; and
``(ii) newly authorized programs and 
activities prior to any disbursement of Federal 
funds with respect to the program or 
activity.'';
(iv) in subparagraph (D), as so 
redesignated--
(I) in the heading, by striking 
``Scope'' and inserting 
``Requirements'';
(II) in the matter preceding clause 
(i)--
(aa) by striking ``In 
conducting a review under 
paragraph (1), the head of each 
executive agency shall'' and 
inserting ``Risk assessments 
are to be conducted on an 
ongoing basis, but no less 
frequently than once every 3 
years, and''; and
(bb) by inserting ``, 
including with respect to fraud 
in any program or activity 
listed under paragraph (1)(A) 
that causes improper payments 
resulting in financial loss to 
the Government'' before ``, 
such as'';
(III) in clause (x), by striking 
``data systems'' and inserting ``data 
assets''; and
(IV) in clause (xi)--
(aa) by inserting ``or 
improper payments'' before ``as 
assessed''; and
(bb) by inserting ``, or 
any successor document'' after 
``(commonly known as the `Green 
Book')''; and
(v) in subparagraph (E), as so 
redesignated--
(I) in the heading, by striking 
``Annual report'' and inserting 
``Reports'';
(II) in the matter preceding clause 
(i), by striking ``Each executive 
agency shall publish an annual report'' 
and inserting ``Not less than once 
every 3 years, the head of each 
executive agency shall publish a 
report, which may be included in a 
report required under subsection 
(b)(2)(F) by such head with respect to 
a high-priority Federal program or 
activity,'';
(III) in clause (i), by striking 
``; and'' and inserting a semicolon;
(IV) in clause (ii), by striking 
the period at the end and inserting ``; 
and''; and
(V) by adding at the end the 
following new clause:
``(iii) a prioritized listing of risks 
identified in subparagraph (D) associated with 
each program and activity listed under 
paragraph (1)(A) and any corresponding 
financial and administrative control to 
mitigate any such risk, including the use of 
the Do Not Pay Initiative (or any successor 
system) and any other system or data asset 
maintained by the Secretary of the Treasury or 
the Inspector General of the executive agency 
to prevent fraud or improper payments resulting 
in financial loss to the Government prior to 
making an eligibility determination to receive 
Federal funds with respect to any such program 
or activity listed under paragraph (1)(A), 
issuing an award, or requesting a payment.'';
(3) in subsection (b)--
(A) in the heading, by inserting ``That Result in 
Financial Loss to the Government'' after ``Improper 
Payments'';
(B) in paragraph (1)--
(i) in subparagraph (A)--
(I) by inserting ``and activities'' 
after ``high-priority Federal 
programs''; and
(II) by inserting ``that result in 
financial loss'' after ``improper 
payments'' each place it appears; and
(ii) in subparagraph (B), by striking 
``associated'' and inserting ``and financial 
loss associated''; and
(C) in paragraph (2)--
(i) in the heading, by inserting ``that 
result in financial loss to the government'' 
after ``improper payments'';
(ii) in subparagraph (A), by striking 
``shall on an annual basis'' and inserting ``, 
not less frequently than once every 3 years, 
shall'';
(iii) in subparagraph (B)--
(I) in clause (i)--
(aa) in subclause (I)--

(AA) by inserting 
``that result in 
financial loss to the 
Government'' after 
``improper payments''; 
and

(BB) by striking 
``; and'' and inserting 
a semicolon;

(bb) in subclause (II), by 
inserting ``that result in 
financial loss to the 
Government, including by making 
it harder for fraudulent actors 
to exploit the program'' after 
``improper payments''; and
(cc) by adding at the end 
the following new subclause:
``(III) has taken or plans to take 
to reduce the percentage of improper 
payments that result in financial loss 
to the Government;'';
(II) by inserting after clause (i) 
the following new clause:
``(ii) shall include--
``(I) an estimate of the total 
amount of the payments that result in 
financial loss to the Government;
``(II) an estimate of the total 
amount of the payments that do not 
result in financial loss to the 
Government;
``(III) the percentage of payments 
that result in financial loss to the 
Government;
``(IV) an assessment of the portion 
of the total amount of payments that 
result in financial loss to the 
Government that are due to fraudulent 
actions by the recipient of such 
payments;
``(V) the total amount of disbursed 
payments; and
``(VI) a description of resources 
or legislative changes proposed to 
improve or maintain the integrity of 
the relevant program or activity; 
and'';and
(III) by redesignating clause (iii) 
as clause (ii);
(iv) in subparagraph (E)(i)--
(I) in subclause (I)--
(aa) by striking ``improper 
payment'' and inserting 
``improper payments that result 
in financial loss''; and
(bb) by striking ``; and'' 
and inserting a semicolon;
(II) in subclause (II), by striking 
``improper payments'' and inserting 
``improper payments that result in 
financial loss''; and
(III) by adding at the end the 
following new subclause:
``(III) each statistically valid 
estimate developed under subsection 
(c)(1)(A) and make a recommendation to 
the head of the executive agency on 
whether the agency estimate should be 
reassessed and reestablished; and'';
(v) by amending subparagraph (F) to read as 
follows:
``(F) Agency liaison designation and mandatory 
coordination meetings.--Not less frequently than once 
every fiscal year, the head of each executive agency 
with a high-priority Federal program or activity 
identified under paragraph (1)(B) shall designate a 
senior official of the executive agency to serve as the 
liaison of the executive agency for work under this 
subchapter who shall meet for a non-audit or 
investigative purpose with the Director of the Office 
of Management and Budget (or a designee of the 
Director), the Commissioner of the Bureau of the Fiscal 
Service of the Department of the Treasury (or a 
designee of the Commissioner), the Inspector General of 
the executive agency (or a designee of the Inspector 
General), and the Pandemic Response Accountability 
Committee established under section 15010 of the CARES 
Act (Public Law 116-136; 134 Stat. 533) (or any 
successor organization) to report on any action taken 
during the preceding fiscal year and any planned 
action, including any reform to any financial or 
administrative control, to prevent improper payments 
(with a focus on improper payments that lead to 
financial loss to the Government) and mitigate fraud in 
such program or activity.''; and
(vi) by adding at the end the following new 
subparagraph:
``(G) Federal-state coordination meetings.--Not 
less frequently than once every fiscal year, the 
Director of the Office of Management and Budget and the 
Secretary of the Treasury shall convene a meeting of 
State officials responsible for program and payment 
integrity in programs administered on behalf of the 
Federal Government by a State or local government to 
review fraud prevention performance, share best 
practices, and identify ongoing coordination 
challenges.'';
(4) in subsection (c)--
(A) in the heading, by inserting ``That Result in 
Financial Loss to the Government'' after ``Improper 
Payments'';
(B) in paragraph (1)--
(i) by amending subparagraph (A) to read as 
follows:
``(A) develop a statistically valid estimate of 
improper payments that result in financial loss to the 
Government;'';
(ii) by striking subparagraph (B); and
(iii) by adding at the end the following 
new subparagraphs:
``(B) include such estimate in the annual budget 
justification of the executive agency; and
``(C) revise such estimate if the head of the 
executive agency determines, which may be based on a 
recommendation from the Director in consultation with 
the Secretary of the Treasury and the Inspector General 
of the executive agency, that there is a need to 
reestablish the estimate of improper payments that 
result in financial loss to the Government due to--
``(i) a significant change, as determined 
by the agency head, to the program or 
activity's appropriation or authorization;
``(ii) newly establishing the program or 
activity; or
``(iii) a recommendation from the agency 
Inspector General in the annual compliance 
report issued under section 3353(a).''; and
(C) in paragraph (2)--
(i) in subparagraph (A), by inserting 
``resulting in financial loss to the 
Government'' after ``improper payment''; and
(ii) in subparagraph (B), by striking 
``improper payments'' before ``estimate'';
(5) in subsection (d)--
(A) in the heading--
(i) by striking ``Reduce'' and inserting 
``Reduce and Prevent''; and
(ii) by inserting ``That Result in 
Financial Loss to the Government'' after 
``Improper Payments'';
(B) in the matter preceding paragraph (1)--
(i) by inserting ``that result in financial 
loss to the Government'' after ``estimated 
improper payments''; and
(ii) by striking ``reduce improper 
payments'' and inserting ``reduce and prevent 
such payments'';
(C) in paragraph (1), by inserting ``that result in 
financial loss to the Government (including actions 
used to commit fraud)'' after ``improper payments'';
(D) in paragraph (2)--
(i) in the matter preceding subparagraph 
(A), by inserting ``that result in financial 
loss to the Government'' after ``in order to 
reduce improper payments'';
(ii) in subparagraph (B), by striking ``; 
and'' and inserting a semicolon at the end;
(iii) in subparagraph (C), by inserting 
``and'' after the semicolon; and
(iv) by adding at the end the following new 
subparagraph:
``(D) access to appropriate records and data 
assets, whether maintained by an executive agency, a 
State or local government, or a private sector 
organization;'';
(E) in paragraph (4), by inserting ``that result in 
financial loss to the Government'' after ``improper 
payments'';
(F) in paragraph (5)--
(i) by inserting ``that result in financial 
loss to the Government'' after ``improper 
payments'' each place it appears; and
(ii) in subparagraph (B)(ii), by striking 
``; and'' and inserting a semicolon at the end;
(G) by amending paragraph (6) to read as follows:
``(6) a description of how the level of planned or 
completed actions by the executive agency to address the causes 
of the improper payments that result in financial loss to the 
Government matched the level of improper payments that resulted 
in financial loss to the Government, including a breakdown by 
category of such improper payments and specific timelines for 
completion of those actions; and''; and
(H) by adding at the end the following new 
paragraph:
``(7) information on the progress of the executive agency 
with respect to--
``(A) implementing the financial and administrative 
controls required to be established under subsection 
(a)(2)(E)(iii);
``(B) implementing relevant governmentwide 
documents and best practices for managing improper 
payments and mitigating fraud risks in Federal 
programs, such as the document of the Government 
Accountability Office entitled `A Framework for 
Managing Fraud Risks in Federal Programs' (or any 
successor document), as applicable and appropriate, 
including with respect to the identification of--
``(i) any dedicated entity that leads the 
fraud risk management activity of the executive 
agency;
``(ii) responsibilities of such entity, 
including any program or operation for which 
the entity is responsible;
``(iii) capacity, including any 
limitations, to strategically manage fraud 
risks;
``(iv) any program or operation within the 
executive agency for which there is not a 
dedicated entity that leads fraud risk 
management, along with a detailed justification 
for not having such a dedicated entity; and
``(v) the status of implementing the 
overarching concepts with associated leading 
practices identified in such document entitled 
`A Framework for Managing Fraud Risks in 
Federal Programs' (or any such successor 
document), as applicable and appropriate;
``(C) implementing the Office of Management and 
Budget Circular A-123, or any successor policy, with 
respect to leading practices for managing fraud and 
improper payments risk;
``(D) identifying fraud risks and vulnerabilities, 
including but not limited to payroll, beneficiary 
payments, grants, large contracts, and purchase and 
travel cards; and
``(E) establishing strategies, procedures, and 
other steps to prevent, detect, and respond to 
fraud.'';
(6) in subsection (e)--
(A) in the matter preceding paragraph (1)--
(i) by inserting ``that result in financial 
loss to the Government,'' after ``With respect 
to improper payments''; and
(ii) by striking ``the improper payments'' 
and inserting ``such payments'';
(B) in paragraph (1), by inserting ``that result in 
financial loss to the Government'' after ``improper 
payments''; and
(C) in paragraph (2), by inserting ``that result in 
financial loss to the Government,'' after ``improper 
payments'';
(7) in subsection (f)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph 
(A)--
(I) by inserting ``that result in 
financial loss to the Government'' 
after ``regarding improper payments''; 
and
(II) by inserting ``such'' after 
``recover'';
(ii) in subparagraph (B)--
(I) by inserting ``Government'' 
before ``Reform''; and
(II) by striking ``and'' at the 
end;
(iii) by inserting after subparagraph (B) 
the following new subparagraphs:
``(C) the Committee on the Budget of the Senate;
``(D) the Committee on the Budget of the House of 
Representatives;
``(E) the Committee on Appropriations of the 
Senate;
``(F) the Committee on Appropriations of the House 
of Representatives; and''; and
(iv) by redesignating subparagraph (C) as 
subparagraph (G); and
(B) in paragraph (2)--
(i) in subparagraph (A), by inserting 
``that result in financial loss to the 
Government'' after ``improper payments'';
(ii) in subparagraph (C), by inserting 
``that result in financial loss to the 
Government'' after ``improper payment'';
(iii) in subparagraph (D), by inserting 
``that result in financial loss to the 
Government'' after ``improper payments''; and
(iv) in subparagraph (E), by inserting 
``that result in financial loss to the 
Government'' after ``improper payment'';
(8) in subsection (g)--
(A) in paragraph (1), by inserting ``and 
periodically thereafter,'' after ``Not later than 1 
year after the date of enactment of this section,''; 
and
(B) in paragraph (2)(B), by striking ``prepayment 
and postpayment'' and inserting ``pre-award, pre-
payment, and post-payment''; and
(9) in subsection (i)(2)--
(A) in subparagraph (C), by striking ``25'' and 
inserting ``10''; and
(B) in subparagraph (D), by striking ``25'' and 
inserting ``75''.

SEC. 3. REFORMS TO ANNUAL COMPLIANCE REPORT BY INSPECTORS GENERAL OF 
EXECUTIVE AGENCIES.

(a) OMB Guidance.--Section 3353(a)(3) of title 31, United States 
Code, is amended--
(1) in the matter preceding subparagraph (A)--
(A) by striking ``date of enactment of this 
section'' and inserting ``date of the enactment of the 
amendments made to this section by the `Zeroing Out 
Monetary Benefits Improperly Expended Act' or the 
`ZOMBIE Act'''; and
(B) by striking ``shall develop and promulgate 
guidance'' and inserting ``shall revise existing 
guidance issued under this section'';
(2) in subparagraph (B)--
(A) by striking ``improper payment estimates 
methodology'' and inserting ``estimation 
methodologies''; and
(B) by inserting ``that result in financial loss to 
the Government'' after ``improper payments'';
(3) in subparagraph (C), by inserting ``that result in 
financial loss to the Government'' after ``improper payments'';
(4) in subparagraph (D), by inserting ``that result in 
financial loss to the Government'' after ``improper payments''; 
and
(5) in subparagraph (E)--
(A) by striking ``Inspectors General include'' and 
inserting ``Inspectors General shall include''; and
(B) by inserting ``that result in financial loss to 
the Government'' after ``improper payments''.
(b) CIGIE Guidance.--Section 3353(a)(4) of title 31, United States 
Code, is amended--
(1) in the matter preceding subparagraph (A)--
(A) by striking ``date of enactment of this 
section'' and inserting ``date of the enactment of the 
amendments made to this section by the `Zeroing Out 
Monetary Benefits Improperly Expended Act' or the 
`ZOMBIE Act'''; and
(B) by striking ``develop and promulgate guidance'' 
and inserting ``revise existing guidance issued under 
this section'';
(2) in subparagraph (B)--
(A) in clause (i)--
(i) by striking ``section 3351(2)(B)'' and 
inserting ``section 3351(2)(A)(iv)''; and
(ii) by inserting ``that result in 
financial loss to the Government'' after 
``improper payments'' each place it appears;
(B) in clause (ii), by striking ``section 
3351(2)(C)'' and inserting ``section 3351(2)(A)(v)'';
(C) by striking clause (iii);
(D) by redesignating clauses (iv) through (vi) as 
clauses (iii) through (v), respectively;
(E) in clause (iii), as so redesignated, by 
inserting ``that result in financial loss to the 
Government'' after ``improper payments''; and
(F) in clause (iv), as so redesignated, by 
inserting ``that result in financial loss to the 
Government'' after ``improper payments''.

Passed the House of Representatives June 10, 2026.

Attest:

Clerk.
119th CONGRESS

2d Session

H. R. 8467

_______________________________________________________________________

AN ACT

To reform the Payment Integrity Information Act of 2019 to ensure 
executive agencies focus on fraud prevention, and for other purposes.