I 

118TH CONGRESS 

2D SESSION H. R. 9537 

To amend title 31, United States Code, to establish the Federal Real Antifraud Unified Directorate, to require agencies implement anti-fraud controls for programs susceptible to significant improper payments and 

high-priority programs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 11, 2024 

Mr. CONNOLLY introduced the following bill; which was referred to the 

Committee on Oversight and Accountability 

A BILL 

To amend title 31, United States Code, to establish the 

Federal Real Anti-fraud Unified Directorate, to require 

agencies implement anti-fraud controls for programs susceptible to significant improper payments and high-priority programs, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Strengthening Tools 

5 to Obstruct and Prevent Fraud Act of 2024’’ or the 

6 ‘‘STOP Fraud Act of 2024’’. 


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1 SEC. 2. FEDERAL REAL ANTI-FRAUD UNIFIED DIREC2 TORATE. 

3 Subchapter I of chapter 5 of title 31, United States 

4 Code, is amended by adding at the end the following: 

5 ‘‘§ 508. Federal Real Anti-fraud Unified Directorate 

6 ‘‘(a) ESTABLISHMENT.— 

7 ‘‘(1) IN GENERAL.—There is established within 

8 the Office of Management and Budget an office to 

9 be known as the Federal Real Anti-fraud Unified 

10 Directorate or the FRAUD. 

11 ‘‘(2) ADMINISTRATOR.—There shall be at the 

12 head of the FRAUD an Administrator who shall 

13 be— 

14 ‘‘(A) appointed by the President; and 

15 ‘‘(B) compensated at the rate of pay in ef16 fect for level III of the Executive Schedule 

17 under section 5314. 

18 ‘‘(b) DUTIES.—The Administrator shall do the fol19 lowing: 

20 ‘‘(1) Carry out the duties prescribed to the Ad21 ministrator under section 3360. 

22 ‘‘(2) Coordinate activities related to reducing 

23 and preventing fraud and improper payments— 

24 ‘‘(A) sharing leading practices and tools 

25 with agencies; 


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1 ‘‘(B) providing technical assistance to 

2 agencies in implementing the fraud risk man3 agement activities described in the GAO Fraud 

4 Risk Management Framework; and 

5 ‘‘(C) assisting agencies in the collection 

6 and use of data, including by assisting agencies 

7 in— 

8 ‘‘(i) working to overcome data sharing 

9 barriers; and 

10 ‘‘(ii) establishing metrics and meth11 odologies to measure the effectiveness of 

12 programs and activities employed by agen13 cies to prevent and reduce fraud and im14 proper payments. 

15 ‘‘(3) Establish an online, publicly accessible 

16 dashboard on the implementation of proactive ana17 lytics in programs designated as susceptible to sig18 nificant improper payments under section 3359 

19 that— 

20 ‘‘(A) promotes transparency; 

21 ‘‘(B) assists in the oversight of the imple22 mentation of proactive analytics in such pro23 grams; and 


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1 ‘‘(C) tracks cost savings, cost avoidance, 

2 and the administrative burden attributable to 

3 such programs. 

4 ‘‘(4) Refer any fraud, waste, or abuse discov5 ered by the Administrator to the appropriate Inspec6 tor General. 

7 ‘‘(5) Carry out any additional duties that may 

8 be prescribed by the Director. 

9 ‘‘(c) ADDITIONAL AUTHORITIES.—The Adminis10 trator may— 

11 ‘‘(1) require agencies administering programs 

12 susceptible to significant improper payments to sub13 mit information as may be necessary to administer 

14 the dashboard required to be established by sub15 section (b)(3), and promulgate regulations that set 

16 standards for— 

17 ‘‘(A) the type of information to be sub18 mitted; and 

19 ‘‘(B) the format in which such information 

20 is to be submitted; 

21 ‘‘(2) provide technical assistance to agencies ad22 ministering a high-priority program, including by— 

23 ‘‘(A) working on behalf of an agency ad24 ministering the program to overcome any issues 

25 that prevent the agency from receiving or using 


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1 data from other governmental and non-govern2 mental entities, including by notifying Congress 

3 on behalf of the agency of any Federal laws 

4 that prevent the agency from receiving or using 

5 such data; 

6 ‘‘(B) facilitating the collection of real-time 

7 data to implement proactive analytics, including 

8 by— 

9 ‘‘(i) identifying governmental or com10 mercial solutions to facilitate such collec11 tion; and 

12 ‘‘(ii) supporting the agency in identi13 fying potential sources of funding to facili14 tate such collection; 

15 ‘‘(C) providing non-reimbursable or reim16 bursable services to agencies administering the 

17 programs; and 

18 ‘‘(D) identifying strategies that may help 

19 the program hire individuals with the requisite 

20 skills to implement proactive analytics; and 

21 ‘‘(3) refer any fraud, waste, or abuse discovered 

22 by the Administrator to the appropriate Inspector 

23 General. 

24 ‘‘(d) DEFINITIONS.—In this section, the terms ‘ad25 ministrative burden’, ‘agency administering a high-priority 


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1 program’, ‘agency administering a program susceptible to 

2 significant improper payments’, ‘anti-fraud control’, 

3 ‘data’, and ‘proactive analytics’ have the meanings given 

4 those terms in section 3360.’’. 

5 SEC. 3. ANTI-FRAUD CONTROLS FOR PROGRAMS SUSCEP6 TIBLE TO SIGNIFICANT IMPROPER PAY7 MENTS AND HIGH-PRIORITY PROGRAMS. 

8 Subchapter IV of chapter 33 of title 31, United 

9 States Code, is amended by adding at the end the fol10 lowing: 

11 ‘‘§ 3359. Proactive analytics with respect to programs 

12 susceptible to significant improper pay13 ments 

14 ‘‘(a) DESIGNATION OF PROGRAMS SUSCEPTIBLE TO

15 SIGNIFICANT IMPROPER PAYMENTS.—Not later than Oc16 tober 1 of each year, for that fiscal year and the next fiscal 

17 year, the head of each executive agency shall designate as 

18 a program susceptible significant improper payments each 

19 program that meets the following criteria: 

20 ‘‘(1) With respect any program of the agency 

21 established during the preceding two fiscal years, 

22 any such program making more than $100,000,000 

23 in payments in any one fiscal year. 

24 ‘‘(2) For any program of the agency not estab25 lished during the preceding two fiscal years, any 


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1 such program that had outlays that exceeded 

2 $1,500,000,000 in the preceding fiscal year. 

3 ‘‘(b) IMPLEMENTATION OF PROACTIVE ANALYTICS

4 FOR HIGH-RISK AREA.—An agency administering a pro5 gram susceptible to significant improper payments shall 

6 implement proactive analytics for one high-risk area of the 

7 program. 

8 ‘‘(c) REPORTS ON ACTIONS TO REDUCE IMPROPER

9 PAYMENTS.—Not later than two years after a head of an 

10 agency has designated a program as susceptible to im11 proper payments, the head of the agency administering the 

12 program shall submit a report on efforts of the agency 

13 to reduce and prevent improper payments and fraud with 

14 respect to the program, including the following: 

15 ‘‘(1) With respect to a program that is not a 

16 high-priority program at the time of the submission 

17 of the report, the following: 

18 ‘‘(A) A description of the proactive ana19 lytics implemented in the two fiscal years pre20 ceding the submission of the report to reduce 

21 improper payments and fraud with respect to 

22 such program. 

23 ‘‘(B) Metrics demonstrating the effective24 ness of the proactive analytics implemented. 


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1 ‘‘(C) An analysis of whether the agency 

2 anticipates the program will remain ‘susceptible 

3 to improper payments’ and require continued 

4 designation as such. 

5 ‘‘(D) A plan for— 

6 ‘‘(i) continuing to use proactive ana7 lytics with respect to that program; 

8 ‘‘(ii) improving the proactive analytics 

9 used with respect to that program; and 

10 ‘‘(iii) identifying, in consultation with 

11 the Administrator of the FRAUD, addi12 tional fraud and improper payment mitiga13 tion strategies, that could be employed by 

14 the agency if the program is redesginated 

15 as a program susceptible to significant im16 proper payments. 

17 ‘‘(2) With respect to a program that is a high18 priority program at the time of the submission of 

19 the report, the following: 

20 ‘‘(A) A copy of the plan approved under 

21 section 3359 for the program. 

22 ‘‘(B) Analysis of whether implementation 

23 of that plan has reduced and prevented im24 proper payments and fraud. 


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1 ‘‘(C) If the plan has not reduced or pre2 vented improper payments or fraud— 

3 ‘‘(i) an explanation of why the plan 

4 has not reduced or prevented improper 

5 payments or fraud; and 

6 ‘‘(ii) a new plan with a different strat7 egy developed in consultation with the Ad8 ministrator of the FRAUD, to reduce or 

9 prevent improper payments or fraud. 

10 ‘‘(D) A statement of whether the agency 

11 has what is needed with respect to internal con12 trols, human capital, and information systems 

13 and other infrastructure, to implement the re14 quirements described in sections 3359 and 

15 3360. 

16 ‘‘(E) Estimates of— 

17 ‘‘(i) any costs avoided and dollars 

18 saved by the implementation of sections 

19 3359 and 3360; 

20 ‘‘(ii) any change in administrative 

21 burden because of the implementation of 

22 sections 3359 and 3360; and 

23 ‘‘(iii) the number of persons eligible to 

24 obtain a thing of value that did not receive 


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1 such thing of value because of the imple2 mentation of sections 3359 and 3360. 

3 ‘‘(3) Whether the information technology (as 

4 defined in section 11101 of title 40) used by the 

5 agency with respect to the program is capable of de6 livering real-time data— 

7 ‘‘(A) to the Administrator of the FRAUD 

8 for inclusion in the dashboard required to be es9 tablished by section 508(b)(3); and 

10 ‘‘(B) for the purpose of implementing 

11 proactive analytics, as required under section 

12 3359 and 3360. 

13 ‘‘(4) A description of the quality of any im14 proper payment estimates and methodology of the 

15 agency relating to the program, including— 

16 ‘‘(A) challenges to accurately estimating 

17 improper payments for the program; and 

18 ‘‘(B) plans to improve the quality of the 

19 estimates. 

20 ‘‘§ 3360. Anti-fraud controls for high-priority pro21 grams 

22 ‘‘(a) DESIGNATION.—By January 31 of each fiscal 

23 year, the Administrator shall designate for the remainder 

24 of that fiscal year and the next full fiscal year, any pro25 gram with outlays in an amount equal to or in excess of 


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1 $50,000,000,000 with respect to the preceding fiscal year 

2 as a high-priority program. 

3 ‘‘(b) PLAN TO IMPLEMENT ANTI-FRAUD POLICY FOR

4 EACH HIGH-PRIORITY PROGRAM.— 

5 ‘‘(1) PLAN.—The head of an agency admin6 istering a high-priority program shall develop a plan 

7 to implement anti-fraud controls for that program, 

8 that— 

9 ‘‘(A) at a minimum includes a plan to 

10 use— 

11 ‘‘(i) any solution that verifies and au12 thenticates identity, known as ‘digital iden13 tity-proofing solutions’, if determined nec14 essary by the Administrator to effectively 

15 reduce and prevent fraud and improper 

16 payments in the high-priority program; 

17 ‘‘(ii) threat intelligence, including 

18 open source intelligence and intelligence 

19 collected from locations on the internet re20 ferred to as the ‘deep web’ and ‘dark web’, 

21 to identify and mitigate emerging fraud 

22 threats; and 

23 ‘‘(iii) proactive analytics; and 

24 ‘‘(B) takes into consideration the adminis25 trative burden of implementing such anti-fraud 


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1 controls, including considering the fraud risk 

2 profile (as defined in the study of the Govern3 ment Accountability Office titled ‘Framework 

4 for Managing Fraud Risks in Federal Pro5 grams’) of the program. 

6 ‘‘(2) INITIAL SUBMISSION OF PLAN TO ADMIN7 ISTRATOR FOR APPROVAL.— 

8 ‘‘(A) INITIAL SUBMISSION.—Not later than 

9 90 days after the date on which a program is 

10 designated as a high-priority program under 

11 subsection (a), the agency administering the 

12 high-priority program shall submit to the Ad13 ministrator the plan developed under paragraph 

14 (1). 

15 ‘‘(B) APPROVAL OR DENIAL OF PLAN.— 

16 Not later than 60 days after the date on which 

17 the plan is submitted pursuant to subparagraph 

18 (A), the Administrator shall approve or deny 

19 such plan. 

20 ‘‘(3) RESUBMISSION OF PLAN TO ADMINIS21 TRATOR FOR APPROVAL IN CASE OF DENIAL.— 

22 ‘‘(A) IN GENERAL.—An agency that sub23 mits a plan that is denied by the Administrator 

24 under paragraph (2) shall, until such time as 

25 the Administrator approves the plan— 


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1 ‘‘(i) revise the plan; and 

2 ‘‘(ii) submit the plan as revised under 

3 clause (i) to the Administrator. 

4 ‘‘(B) APPROVAL OR DENIAL OF REVISED

5 PLAN.—The Administrator shall approve or 

6 deny a plan submitted under subparagraph (A) 

7 not later than 60 days after the Administrator 

8 receives the plan. 

9 ‘‘(C) TECHNICAL ASSISTANCE.—The Ad10 ministrator may provide technical assistance to 

11 any agency required to revise a plan under sub12 paragraph (A). 

13 ‘‘(4) CRITERIA FOR THE APPROVAL OR DENIAL

14 OF PLAN.—Not later than January 31 of each year, 

15 the Administrator shall provide to each agency ad16 ministering a high-priority program criteria on the 

17 basis of which the Administrator will approve or 

18 deny a plan under this subsection. 

19 ‘‘(5) REPORT TO CONGRESS.—An agency re20 quired to submit a plan for approval under this sub21 section with respect a high-priority program, and 

22 has such plan denied by the Administrator three 

23 times, shall submit a report to Congress on why the 

24 plan has not been approved by the Administrator. 

25 ‘‘(c) PROGRAM INTEGRITY FUND.— 


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1 ‘‘(1) ESTABLISHMENT.—There is established in 

2 the Treasury of the United States a fund to be 

3 known as the Program Integrity Fund. 

4 ‘‘(2) USE OF FUND.—Amounts in the fund may 

5 be allocated by the Administrator to agencies to im6 plement plans approved by the Administrator under 

7 subsection (b). 

8 ‘‘(3) MANAGEMENT OF THE PROGRAM INTEG9 RITY FUND.— 

10 ‘‘(A) APPLICATION PROCESS.—Not later 

11 than 90 days after the date of the enactment of 

12 this paragraph, the Administrator shall— 

13 ‘‘(i) establish a process through which 

14 the head of an agency may request that 

15 funds be allocated from the Program In16 tegrity Fund to the agency; and 

17 ‘‘(ii) submit to Congress a report that 

18 describes the process established pursuant 

19 to clause (i). 

20 ‘‘(B) AWARD OF FUNDS.—In determining 

21 the amount, if any, of funds to be allocated to 

22 an agency from the Program Integrity Fund 

23 under paragraph (2), the Administrator shall 

24 consider the extent to which the plan approved 


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1 by the Administrator under subsection (b) of 

2 the agency— 

3 ‘‘(i) implements the use of proactive 

4 analytics; 

5 ‘‘(ii) is likely to significantly reduce or 

6 prevent improper payments and fraud; and 

7 ‘‘(iii) considers the administrative bur8 den of implementing the plan, including 

9 whether there is a clear indication that the 

10 agency considered whether there are any 

11 anti-fraud controls other than the anti12 fraud controls to be implemented under the 

13 plan that could be implemented by the 

14 agency with less of an administrative bur15 den on individuals who interact with the 

16 program. 

17 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

18 There are authorized to be appropriated 

19 $1,000,000,000 for fiscal year 2025 for the Program 

20 Integrity Fund, to remain available until expended. 

21 ‘‘(d) DEFINITIONS.—In this section: 

22 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis23 trator’ means the Administrator of the FRAUD. 

24 ‘‘(2) ADMINISTRATIVE BURDEN.—The term ‘ad25 ministrative burden’ means a cost that a person inVerDate Sep 11 2014 20:37 Sep 20, 2024 Jkt 049200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H9537.IH H9537

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1 curs in interacting with the agency to obtain a thing 

2 of value from the agency, including the following: 

3 ‘‘(A) The amount of time and effort ex4 pended by the person to learn about— 

5 ‘‘(i) the nature of the thing of value; 

6 and 

7 ‘‘(ii) how to gain access to the thing 

8 of value, including— 

9 ‘‘(I) any program or service of 

10 the agency through which the person 

11 may obtain the thing of value from 

12 the agency; and 

13 ‘‘(II) any requirement and condi14 tion that must be satisfied for the 

15 person to obtain and maintain posses16 sion of the thing of value from the 

17 government program or service. 

18 ‘‘(B) The amount of time it takes to— 

19 ‘‘(i) provide information and docu20 mentation to satisfy requirements to obtain 

21 and maintain possession of the thing of 

22 value; and 

23 ‘‘(ii) respond to discretionary requests 

24 of program administrators for the purpose 


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1 of obtaining and maintaining possession of 

2 the thing of value. 

3 ‘‘(C) Any financial cost to access services 

4 that may be necessary to receive the thing of 

5 value (such as fees, legal representation, and 

6 travel costs). 

7 ‘‘(3) AGENCY ADMINISTERING A PROGRAM SUS8 CEPTIBLE TO SIGNIFICANT IMPROPER PAYMENTS.— 

9 The term ‘agency administering a program suscep10 tible to significant improper payments’ means an 

11 agency that is responsible for administering at least 

12 one program that is designated as susceptible to sig13 nificant improper payments under section 3359. 

14 ‘‘(4) AGENCY ADMINISTERING A HIGH-PRIORITY

15 PROGRAM.—The term ‘agency administering a high16 priority program’ means an agency that is respon17 sible for administering at least one program that is 

18 designated as high-priority under this section. 

19 ‘‘(5) ANTI-FRAUD CONTROL.—The term ‘anti20 fraud control’ means a process, system, or tech21 nology that can be implemented to prevent fraud 

22 and improper payments. 

23 ‘‘(6) DATA.—The term ‘data’ has the meaning 

24 given the term in section 3502 of title 44. 


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1 ‘‘(7) DEVICE METADATA.—The term ‘device 

2 metadata’ means structural or descriptive data 

3 about a connected device (as defined in section 

4 902(a) of the Consolidated Appropriations Act, 2021 

5 (47 U.S.C. 1306(a))), such as data about the type, 

6 model, IP address, and geolocation of the device. 

7 ‘‘(8) FRAUD.—The term ‘fraud’ means obtain8 ing a thing of value through willful misrepresenta9 tion. 

10 ‘‘(9) PROACTIVE ANALYTICS.—The term 

11 ‘proactive analytics’ means the collection and anal12 ysis of data (including data that is device metadata, 

13 administrative data controlled by the agency, and 

14 data from other governmental and non-governmental 

15 sources) to prevent fraud and improper payments 

16 from occurring, including by identifying anomalous 

17 or suspicious patterns that might warrant further 

18 investigation.’’. 

19 SEC. 4. AMENDMENTS RELATED TO IMPROPER PAYMENTS 

20 PROVISIONS. 

21 (a) IN GENERAL.—Chapter 33 of subtitle III of title 

22 31, United States Code, is amended— 

23 (1) in section 3351— 

24 (A) in paragraph (2), by adding at the end 

25 the following: 


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1 ‘‘(D) has satisfied the requirements of sec2 tion 3360 with respect to each high-priority 

3 program administered by the agency; and 

4 ‘‘(E) has implemented proactive analytics 

5 for one high-risk area in accordance with sec6 tion 3359(b).’’; 

7 (B) by redesignating paragraphs (4), (5), 

8 (6), (7), and (8) as paragraphs (5), (6), (8), 

9 (9), and (10), respectively; 

10 (C) by inserting after paragraph (3) the 

11 following: 

12 ‘‘(4) HIGH-PRIORITY PROGRAM.—The term 

13 ‘high-priority program’ means a program designated 

14 under section 3360(a).’’; and 

15 (D) by inserting after paragraph (6), as so 

16 redesignated, the following: 

17 ‘‘(7) PROGRAM SUSCEPTIBLE TO SIGNIFICANT

18 IMPROPER PAYMENTS.—The term ‘program suscep19 tible to significant improper payments’ means a pro20 gram designated under section 3359(a).’’; 

21 (2) in section 3352— 

22 (A) by striking subsections (a), (b), (d), 

23 and (e); 


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1 (B) by redesignating subsections (c), (f), 

2 (g), (h), and (i) as subsections (a), (b), (c), (d), 

3 and (e), respectively; 

4 (C) in subsection (a)(1), as so redesig5 nated, by striking ‘‘With respect to each pro6 gram and activity identified under subsection 

7 (a)(1), the head of the relevant executive agen8 cy shall’’ and inserting ‘‘With respect to each 

9 program or activity with outlays exceeding 

10 $1,500,000,000, the head of the relevant execu11 tive agency shall ?’’; 

12 (D) in subsection (b)(2), as so redesig13 nated— 

14 (i) in subparagraph (A), by striking 

15 ‘‘and recovery actions’’; 

16 (ii) in subparagraph (D), by striking 

17 ‘‘; and’’ and inserting a semicolon; 

18 (iii) in subparagraph (E), by striking 

19 the period at the end and inserting ‘‘; 

20 and’’; and 

21 (iv) by inserting after subparagraph 

22 (E), the following: 

23 ‘‘(F) Governmentwide— 

24 ‘‘(i) any cost avoided by implementing 

25 sections 3359 and 3360; 


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1 ‘‘(ii) any change in administrative 

2 burden by implementing sections 3359 and 

3 3360; and 

4 ‘‘(iii) the number of persons eligible to 

5 obtain a thing of value that did not receive 

6 such thing of value because of the imple7 mentation of sections 3359 and 3360.’’; 

8 and 

9 (E) in subsection (e), as so redesignated— 

10 (i) in paragraph (1)(A), by striking 

11 ‘‘shall’’ and inserting ‘‘may’’; 

12 (ii) by striking paragraph (3); 

13 (iii) by redesignating paragraphs (4) 

14 and (5) as paragraphs (3) and (4), respec15 tively; and 

16 (iv) in paragraph (4), as so redesig17 nated, by striking ‘‘paragraph (4)’’ and in18 serting ‘‘paragraph (3)’’; 

19 (3) in section 3353(a)— 

20 (A) by striking ‘‘ANNUAL’’ before ‘‘COM21 PLIANCE’’; and 

22 (B) in paragraph (1), by striking ‘‘Each 

23 fiscal year’’ and inserting ‘‘Not less frequently 

24 than once every 3 fiscal years’’; 

25 (4) by striking section 3355; and 


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1 (5) by amending section 3357(d) to read as fol2 lows: 

3 ‘‘(d) REPORTS.—For each fiscal year, the head of 

4 each agency shall submit to Congress, in the report con5 taining the annual financial statement of the agency, a 

6 report that includes the following: 

7 ‘‘(1) The progress of the agency in— 

8 ‘‘(A) implementing— 

9 ‘‘(i) the financial and administrative 

10 controls required to be established under 

11 subsection (c); 

12 ‘‘(ii) the fraud risk principles in the 

13 standards established by the Government 

14 Accountability Office in the Standards for 

15 Internal Control in the Federal Govern16 ment (commonly known as the Green 

17 Book); and 

18 ‘‘(iii) the requirements in the Office of 

19 Management and Budget Circular A–123 

20 with respect to the leading practices for 

21 managing fraud risk; 

22 ‘‘(B) identifying fraud risks and 

23 vulnerabilities, including with respect to payroll, 

24 beneficiary payments, grants, large contracts, 

25 and purchase and travel cards; and 


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1 ‘‘(C) establishing strategies, procedures, 

2 and other steps to curb fraud. 

3 ‘‘(2) In accordance with the report of the Gov4 ernment Accountability Office titled ‘Framework for 

5 Managing Fraud Risks in Federal Programs,’, pub6 lished on July 28, 2015, the following: 

7 ‘‘(A) An identification of— 

8 ‘‘(i) the entity of the agency and the 

9 personnel of the entity dedicated to leading 

10 the fraud risk management activities of the 

11 agency; 

12 ‘‘(ii) roles and responsibilities of the 

13 personnel of such entity, including any pro14 gram or operation for which the personnel 

15 is responsible for overseeing; 

16 ‘‘(iii) capacity, including any limita17 tion, of such entity to strategically manage 

18 fraud risks; and 

19 ‘‘(iv) any program or operation for 

20 which there is not personnel dedicated to 

21 leading fraud risk management activities, 

22 along with a detailed justification for why 

23 the agency does not have an dedicated per24 sonnel to lead fraud risk management ac25 tivities. 


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1 ‘‘(B) The status of the fraud risk profiles 

2 of each program and operation of the agency, 

3 including— 

4 ‘‘(i) the date on which the profiles 

5 were last updated; and 

6 ‘‘(ii) the date on which the agency 

7 plans to next update the profile. 

8 ‘‘(C) Any program or operation for which 

9 there is not a fraud risk profile, along with a 

10 detailed justification for why such program or 

11 operation does not have a fraud risk profile. 

12 ‘‘(D) The status of any anti-fraud strategy 

13 for each program and operation of the agency, 

14 including— 

15 ‘‘(i) the date on which any such strat16 egy was last updated; and 

17 ‘‘(ii) the date on which the agency 

18 plans to next update each such strategy. 

19 ‘‘(E) Any program or operation for which 

20 there is not any anti-fraud strategy, along with 

21 a detailed justification for why there is not any 

22 anti-fraud strategy for such program or oper23 ation.’’. 


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1 (b) RECOVERY OF COSTS.—Section 3806(g)(1) of 

2 title 31, United States Code, is amended to read as fol3 lows: 

4 ‘‘(1) RECOVERY OF COSTS.— 

5 ‘‘(A) Except as provided in paragraph 

6 (2)— 

7 ‘‘(i) any amount collected under this 

8 chapter or chapter 33 shall be used to re9 imburse any authority that obligated funds 

10 in support of efforts of the authority to re11 duce or prevent improper payments or 

12 fraud, including prosecution of the action, 

13 any court or hearing costs, investments in 

14 information technologies, or the hiring of 

15 additional staff related to such efforts; and 

16 ‘‘(ii) amounts reimbursed under 

17 clause (i) shall— 

18 ‘‘(I) be deposited in— 

19 ‘‘(aa) the appropriations ac20 count of the authority from 

21 which the funds described in sub22 paragraph (A) were obligated; 

23 ‘‘(bb) any other similar ap24 propriations account of the au25 thority; or 


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1 ‘‘(cc) if the authority obli2 gated nonappropriated funds, an 

3 appropriate account other than 

4 any account under item (aa) or 

5 (bb); and 

6 ‘‘(II) remain available until ex7 pended. 

8 ‘‘(B) Any amount remaining after reim9 bursements described in subparagraph (A) shall 

10 be deposited as miscellaneous receipts in the 

11 Treasury of the United States.’’. 

12 (c) DELEGATION TO FRAUD.—The Director of the 

13 Office of Management and Budget shall delegate to the 

14 Administrator of the FRAUD any function of the Director 

15 under subchapter IV of chapter 33 of title 31, United 

16 States Code, relating to the identification, analysis, and 

17 reduction of improper payments and fraud. 

18 SEC. 5. TECHNICAL AND CONFORMING AMENDMENTS. 

19 (a) SECTION 3351.—Section 3351 of title 31, United 

20 States Code, is amended— 

21 (1) in paragraph (2)— 

22 (A) in subparagraph (C), by striking ‘‘pro23 grams and activities identified’’ and inserting 

24 ‘‘programs described under’’; 


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1 (B) in subparagraph (F), by striking ‘‘sec2 tion 3352(c)’’ and inserting ‘‘section 3352(a)’’; 

3 (C) by striking subparagraphs (B), (D), 

4 and (E); and 

5 (D) by redesignating subparagraphs (C) 

6 and (F) as subparagraphs (B) and (C) respec7 tively; and 

8 (2) in paragraph (9), by striking ‘‘section 

9 3352(i)’’ and inserting ‘‘section 3352(e)’’. 

10 (b) AMENDMENT TO TABLE OF CONTENTS.—The 

11 table of contents for— 

12 (1) subchapter I of chapter 5 of subtitle I of 

13 title 31, United States Code, is amended by adding 

14 at the end the following: 

‘‘Sec. 508. Federal Real Anti-fraud Unified Directorate.’’; 

15 and 

16 (2) subchapter IV of chapter 33 of subtitle III 

17 of title 31, United States Code, is amended by— 

18 (A) striking the item related to section 

19 3355; and 

20 (B) adding at the end the following new 

21 item: 

‘‘Sec. 3359. Proactive analytics with respect to programs susceptible to significant improper payments. 

‘‘Sec. 3360. Anti-fraud controls for high-priority programs.’’. 

Æ 


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