I 
119TH CONGRESS 
1ST SESSION H. R. 1533 
To amend title 31, United States Code, to establish an Overpayment Czar, 
strengthen oversight and accountability for improper payments, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 24, 2025 
Mr. MEUSER introduced the following bill; which was referred to the Com-
mittee on Oversight and Government Reform, and in addition to the 
Committee on Ways and Means, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend title 31, United States Code, to establish an 
Overpayment Czar, strengthen oversight and account-
ability for improper payments, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘PIIA Reform Act’’. 
SEC. 2. OVERPAYMENT CZAR. 
(a) AMENDMENT.—Chapter 5 of title 31, United 
States Code, is amended by inserting after section 504 the 
following new section: 
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‘‘§ 504A. Overpayment Czar 
‘‘(a) ESTABLISHMENT.—There is established within 
the Office of Federal Financial Management a Director 
of Improper Payment Mitigation, to be referred to as the 
‘Overpayment Czar’— 
‘‘(1) under the direction and control of the Con-
troller; 
‘‘(2) who shall be appointed and may be re-
moved by the Director; and 
‘‘(3) who shall receive a rate of pay fixed by the 
Director. 
‘‘(b) DUTIES.—The Overpayment Czar— 
‘‘(1) shall assist executive agencies in the iden-
tification, prevention, and mitigation of improper 
payments and fraud within Federal programs; and 
‘‘(2) shall develop and recommend strategies 
that address improper payment in executive agency 
payments; and 
‘‘(3) shall annually submit to the Controller a 
report that proposes corrective actions to improve 
payment integrity and combat fraud effectively 
across the Federal Government. 
‘‘(c) 
AUTHORITY
TO
RECOMMEND
POLICY 
CHANGES.—The Overpayment Czar may recommend pol-
icy changes to the Chief Financial Officer of any executive 
agency to develop reliable estimates of improper payments. 
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‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) 
CONTROLLER.—The 
term 
‘Controller’ 
means the Controller of the Office of Federal Finan-
cial Management. 
‘‘(2) DIRECTOR.—The term ‘Director’ means 
the Director of the Office of Management and Budg-
et. 
‘‘(3) IMPROPER
PAYMENT.—The term ‘im-
proper payment’ has the meaning given that term in 
section 3351.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.— 
The table of sections for chapter 5 of title 31, United 
States Code, is amended by inserting after the item for 
section 504 the following new item: 
‘‘Sec. 504A. Overpayment Czar.’’. 
SEC. 3. AMENDMENTS TO FINANCIAL MANAGEMENT PLAN 
REQUIREMENTS. 
Section 3512(a)(3) of title 31, United States Code, 
is amended— 
(1) in subparagraph (A), by inserting ‘‘the 
Overpayment Czar,’’ after ‘‘the Controller of the Of-
fice of Federal Financial Management,’’; and 
(2) in subparagraph (B)— 
(A) in clause (viii), by striking ‘‘; and’’ and 
inserting a semicolon; 
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(B) in clause (ix), by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(x) include a plan to decrease im-
proper payments (as defined in section 
3351) throughout executive agencies.’’. 
SEC. 4. IMPROPER PAYMENTS. 
(a) EXPANDING IMPROPER PAYMENT SCOPE.—Sec-
tion 3352 of title 31, United States Code, is amended— 
(1) in subsection (a)— 
(A) in paragraph (3)— 
(i) in subparagraph (A)— 
(I) in clause (i), by striking ‘‘; 
or’’ and inserting a semicolon; 
(II) in clause (ii), by striking the 
period at the end; and 
(III) by adding at the end the 
following new clauses: 
‘‘(iii) any new Federal program that 
makes more than $100,000,000 in pay-
ments in the first year of operation; 
‘‘(iv) for which the Inspector general 
of the executive agency has an outstanding 
recommendation in the report required by 
subsection (b)(2)(E); or 
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‘‘(v) any new Federal program that 
has or is expected to have outlays exceed-
ing $100,000,000 in any one of the first 3 
fiscal years of operation and is in the first 
4 years of operation.’’; 
(ii) in subparagraph (B), in the mat-
ter preceding clause (i), by striking ‘‘para-
graph (1)’’ and inserting ‘‘paragraph 
(1)(B)’’; and 
(iii) in subparagraph (C), by striking 
‘‘paragraph (1)’’ each place it appears and 
inserting ‘‘paragraphs (1) and (4)’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(4) NEW PROGRAMS AND ACTIVITIES.— 
‘‘(A) SUSCEPTIBLE
TO
SIGNIFICANT
IM-
PROPER
PAYMENTS.—In addition to the pro-
grams and activities identified under paragraph 
(1)(B), the head of an executive agency shall 
identify as susceptible to significant improper 
payments any program or activity that— 
‘‘(i) has or is expected to have outlays 
exceeding $100,000,000 in any one of the 
first 3 fiscal years of operation; and 
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‘‘(ii) is in the first 4 years of oper-
ation. 
‘‘(B) 
APPLICABILITY.—This 
paragraph 
shall not apply with respect to any program or 
activity that the head of the relevant executive 
agency determines, based on the results of a re-
view conducted under paragraph (1), is not sus-
ceptible to significant improper payments.’’; and 
(2) in subsection (c)(1), in the matter preceding 
subparagraph (A), by striking ‘‘subsection (a)(1)’’ 
and inserting ‘‘paragraphs (1) and (4) of subsection 
(a)’’. 
(b) AUTHORITY TO REQUIRE DATA REPORTING FOR 
IMPROPER PAYMENT ESTIMATION UNDER THE TANF 
PROGRAM.—Section 417 of the Social Security Act (42 
U.S.C. 617) is amended by striking the period at the end 
and inserting ‘‘or as the Secretary may determine is nec-
essary to carry out subsections (a) through (e) of section 
3352 of title 31, United States Code, with respect to any 
program or activity authorized by this part.’’. 
(c) MECHANISM
FOR
NONCOMPLIANCE.—Section 
3353 of title 31, United States Code, is amended by add-
ing at the end the following new subsection: 
‘‘(e) SPECIAL ADJUSTMENT FOR PERSISTENT NON-
COMPLIANCE.— 
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‘‘(1) IN
GENERAL.—Beginning with the first 
fiscal year after the date of the enactment of this 
subsection, any executive agency which is in a state 
of noncompliance according to subsection (b)(1) 
shall have its highest-level administrative appropria-
tion account reduced in the final sequestration re-
port issued under the Balanced Budget and Emer-
gency Deficit Control Act of 1985 for that fiscal 
year by an amount equal to 5 percent of the total 
budget authority provided for that account in the 
most recently enacted applicable appropriation Act. 
‘‘(2) FOR TWO OR MORE YEARS.—If the execu-
tive agency is noncompliant for two or more fiscal 
years after the date of the enactment of this sub-
section, then the highest-level administrative appro-
priation account shall be reduced in the final seques-
tration report issued under the Balanced Budget 
and Emergency Deficit Control Act of 1985 for that 
fiscal year by an amount equal to 10 percent of the 
total budget authority provided for that account in 
the most recently enacted applicable appropriation 
Act.’’. 
(d) REPORTS.—Subsection (d) of section 3357 of title 
31, United States Code, is amended to read as follows: 
‘‘(d) REPORTS.— 
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‘‘(1) IN GENERAL.—For each fiscal year begin-
ning in the first fiscal year after the date of the en-
actment of this subsection, and in each of the fol-
lowing 9 fiscal years, the head of each agency shall 
submit to Congress, in the report containing the an-
nual financial statement of the agency, a report on 
the following: 
‘‘(A) The progress of the agency in the fol-
lowing: 
‘‘(i) The implementation of the fol-
lowing: 
‘‘(I) The financial and adminis-
trative controls required to be estab-
lished under subsection (c)(1). 
‘‘(II) The fraud risk principles in 
the Standards for Internal Control in 
the Federal Government of the Gov-
ernment Accountability Office. 
‘‘(III) Circular A–123 of the Of-
fice of Management and Budget with 
respect to the leading practices for 
managing fraud risk. 
‘‘(ii) The identification of fraud risks 
and vulnerabilities, including with respect 
to payroll, beneficiary payments, grants, 
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large contracts, and purchase and travel 
cards. 
‘‘(iii) The establishment of strategies, 
procedures, and other steps to curb fraud. 
‘‘(B) Information on the status of imple-
menting each of the 11 leading practices identi-
fied in the report published by the Government 
Accountability Office on July 28, 2015, entitled 
‘Framework for Managing Fraud Risks in Fed-
eral Programs’. 
‘‘(2) FULFILLMENT OF REPORTING REQUIRE-
MENT.—If the annual financial statement of an 
agency, or an alternative report of the agency in-
cluded in the annual financial statement, includes 
information that fulfills the requirements of this 
subsection, the head of the agency may include a 
brief statement to that effect in the financial state-
ment or alternative report without duplicating the 
information required under this subsection in a sep-
arate or standalone report.’’. 
(e) GREATER STATE INVESTMENT IN PAYMENT IN-
TEGRITY SYSTEMS.— 
(1) IN
GENERAL.—Chapter 33 of title 31, 
United States Code, is amended by adding at the 
end the following new section: 
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‘‘§ 3359. Greater use of payment integrity tools by 
States 
‘‘(a) INCREASING USE
OF PAYMENT INTEGRITY 
TOOLS BY STATE ADMINISTRATORS.— 
‘‘(1) IN
GENERAL.—Any State that receives 
funding in a program described under paragraph (2) 
shall use each applicable payment integrity tool pub-
lished pursuant to paragraph (3) and submit a re-
port on the effectiveness of each such tool in accord-
ance with subsection (b). 
‘‘(2) 
PROGRAMS.—The 
programs 
described 
under this paragraph include the following: 
‘‘(A) The program of block grants to 
States for temporary assistance for needy fami-
lies under part A of title IV of the Social Secu-
rity Act. 
‘‘(B) The Medicaid program under title 
XIX of the Social Security Act. 
‘‘(C) The supplemental nutrition assistance 
program under the Food and Nutrition Act of 
2008 (7 U.S.C. 2011 et seq.). 
‘‘(D) The Federal-State unemployment 
compensation program under titles III, IX, and 
XII of the Social Security Act. 
‘‘(E) The special supplemental nutrition 
program for women, infants, and children es-
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tablished by section 17 of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786). 
‘‘(3) PAYMENT INTEGRITY TOOLS.—The Direc-
tor of the Office of Management and Budget shall 
publish a list of payment integrity tools that each 
State shall use to reduce overpayments. 
‘‘(b) CERTIFICATION
OF COMPLIANCE.—Not later 
than September 30 of each year, each State shall submit 
to the Director of the Office of Management and Budget 
a report that includes— 
‘‘(1) the usage by that State of payment integ-
rity tools; and 
‘‘(2) an analysis on the effect of using payment 
integrity tools. 
‘‘(c) NONCOMPLIANCE.—If a State does not use pay-
ment integrity tools as required by this section, that State 
shall remit payment to the Treasury for the total amount 
of overpayment in any program covered by this section.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 33 of title 31, United States Code, 
is amended by adding at the end the following item: 
‘‘3359. Greater use of payment integrity tools by States.’’. 
(3) EFFECTIVE DATE.—Section 3359 of title 
31, United States Code, as added by paragraph (1), 
shall take effect on the date that is one year after 
the date of the enactment of this Act. 
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(f) WORKING
SYSTEM
DATA
SHARING.—Section 
205(r)(11) of the Social Security Act is amended— 
(1) by striking ‘‘During the 3-year period that 
begins on the effective date of this paragraph, the’’ 
and inserting ‘‘The’’; and 
(2) by striking ‘‘to prevent improper payments 
to deceased individuals’’ and inserting ‘‘for the au-
thorized uses of the Do Not Pay working system’’. 
Æ 
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