H.R. 8489

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8489 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 8489

To require the Secretary of Housing and Urban Development to conduct an 
improper payment assessment for project-based and tenant-based 
assistance, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

April 23, 2026

Mr. Meuser introduced the following bill; which was referred to the 
Committee on Financial Services

_______________________________________________________________________

A BILL

To require the Secretary of Housing and Urban Development to conduct an 
improper payment assessment for project-based and tenant-based 
assistance, 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 ``HUD Payment Integrity and 
Accountability Act of 2026''.

SEC. 2. DEFINITIONS.

In this Act:
(1) Department.--The term ``Department'' means the 
Department of Housing and Urban Development.
(2) Project-based assistance; tenant-based assistance.--The 
terms ``project-based assistance'' and ``tenant-based 
assistance'' have the meanings given those terms in section 
8(f) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(f)).
(3) Public housing agency.--The term ``public housing 
agency'' has the meaning given the term in section 3(b) of the 
United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
(4) Secretary.--The term ``Secretary'' means the Secretary 
of Housing and Urban Development.

SEC. 3. MANDATORY COMPLIANCE DATE.

(a) In General.--Not later than December 1, 2027, the Secretary 
shall include, as part of the agency financial report for fiscal year 
2027 required under OMB Circular No. A-36, a compliant improper payment 
assessment for project-based assistance and tenant-based assistance.
(b) Detailed Plan and Timeline.--The Secretary shall develop and 
execute a detailed plan and timeline for testing and reporting improper 
payment estimates in the Office of Public and Indian Housing's Tenant-
Based Rental Assistance program and the Office of Multifamily Housing's 
Project-Based Rental Assistance program, in full compliance with 
Federal law and applicable guidance issued by the Office of Management 
and Budget.

SEC. 4. IDENTIFYING FRAUD IN HOUSING AND RENTAL ASSISTANCE.

(a) Public and Section 8 Housing.--
(1) In general.--Not later than 60 days after making a 
determination described in paragraph (2), the Secretary shall 
notify the Inspector General of the Department of the 
determination.
(2) Determination.--A determination described in this 
paragraph is a determination that--
(A) the aggregate amount of housing assistance 
payments or grants paid under the United States Housing 
Act of 1937 (42 U.S.C. 1437 et seq.) for a ZIP Code and 
county or county equivalent increased by more than 100 
percent in a single year; or
(B) the number of owners, landlords, or public 
housing agencies receiving Federal rental assistance or 
operating subsidies increased in a ZIP Code and county 
or county equivalent by more than 100 percent in a 
single year.
(b) Community Development and Disaster Recovery Grants.--
(1) In general.--Not later than 60 days after making a 
determination described in paragraph (2), the Secretary shall 
notify the Inspector General of the Department of the 
determination.
(2) Determination.--A determination described in this 
paragraph is a determination that--
(A) the aggregate amount paid under the Community 
Development Block Grant program under title I of the 
Housing and Community Development Act of 1974 (42 
U.S.C. 3601 et seq.) or funds paid under the Community 
Development Block Grant program for Disaster Recovery 
for a specific project or within a ZIP Code and county 
equivalent increased by more than 100 percent in a 
single year; or
(B) the number of sub-recipients or contractors 
receiving payments under the programs described in 
subparagraph (A) in a specific jurisdiction increased 
by more than 100 percent in a single year.
(c) Audit by the Inspector General of HUD.--Not later than 2 years 
after the date of enactment of this Act, and annually thereafter, the 
Inspector General of the Department shall--
(1) identify, based on the results of notifications 
received under subsection (a)(1) or (b)(1), any program or 
geographic area in which the aggregate amount paid or the 
number of participating housing providers increased by not less 
than 400 percent during the preceding 5-year period; and
(2) audit any such program, agency, or recipient to ensure 
compliance with improper payment testing requirements and to 
detect potential fraudulent activity.

SEC. 5. INSPECTOR GENERAL OVERSIGHT.

(a) Pre-Validation.--Not later than 180 days before the deadline 
described in section 3(a), the Inspector General of the Department 
shall certify whether or not--
(1) the methodology chosen by the Secretary for the 
assessment described in that section is statistically sound and 
addresses all material findings from financial statement audits 
and program audits conducted by the Inspector General related 
to improper payment testing, eligibility tier verification, and 
validation of payments to property owners; and
(2) the Secretary made a serious effort to conduct a data 
draw and receive supporting documents needed to conduct the 
assessment described in section 3(a).
(b) Fraud Risk Assessment.--
(1) In general.--The Inspector General of the Department 
shall conduct, and submit to the Committee on Banking, Housing, 
and Urban Affairs and the Committee on Homeland Security and 
Governmental Affairs of the Senate a report on, a separate 
fraud risk assessment specifically for the approximately 
$50,000,000,000 expended annually for rental assistance, 
including tenant-based ad project-based assistance under 
section 8(o) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)), to identify high-risk nodes in the payment 
chain.
(2) Data draw and analytics.--In conducting the assessment 
under paragraph (1), the Inspector General shall of the 
Department shall--
(A) execute a comprehensive data draw from all 
relevant departmental and third-party contract 
administrator systems to reconcile payments at the 
eligibility tier;
(B) identify specific barriers preventing the 
Department from reestablishing computer matching 
agreements with the ``Do Not Pay'' database of the 
Department of the Treasury; and
(C) include in the report an analysis on how system 
enhancement funding provided in previous fiscal years 
has been utilized to specifically address noncompliance 
with subchapter IV of chapter 33 of title 31, United 
States Code, and other provisions of law related to 
improper payments.
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