I 
117TH CONGRESS 
2D SESSION 
H. R. 8322 
To amend title 31, United States Code, to establish the Federal Real Anti- 
fraud Unified Directorate, to require agencies implement anti-fraud con-
trols for programs susceptible to significant improper payments and 
high-priority programs, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 11, 2022 
Mr. CONNOLLY introduced the following bill; which was referred to the 
Committee on Oversight and Reform 
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 sus-
ceptible to significant improper payments and high-pri-
ority programs, 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 ‘‘Strengthening Tools 
to Obstruct and Prevent Fraud Act of 2022’’ or the 
‘‘STOP Fraud Act’’. 
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SEC. 2. FEDERAL REAL ANTI-FRAUD UNIFIED DIREC-
TORATE. 
Subchapter I of chapter 5 of title 31, United States 
Code, is amended by adding at the end the following: 
‘‘§ 508. Federal Real Anti-fraud Unified Directorate 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—There is established within 
the Office of Management and Budget an office to 
be known as the Federal Real Anti-fraud Unified 
Directorate or the FRAUD. 
‘‘(2) ADMINISTRATOR.—There shall be at the 
head of the FRAUD an Administrator who shall 
be— 
‘‘(A) appointed by the President; and 
‘‘(B) compensated at the rate of pay in ef-
fect for level III of the Executive Schedule 
under section 5314. 
‘‘(b) DUTIES.—The Administrator shall do the fol-
lowing: 
‘‘(1) Carry out the duties prescribed to the Ad-
ministrator under section 3360. 
‘‘(2) Coordinate activities related to reducing 
and preventing fraud and improper payments— 
‘‘(A) sharing leading practices and tools 
with agencies; 
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‘‘(B) providing technical assistance to 
agencies in implementing the fraud risk man-
agement activities described in the GAO Fraud 
Risk Management Framework; and 
‘‘(C) assisting agencies in the collection 
and use of data, including by assisting agencies 
in— 
‘‘(i) working to overcome data sharing 
barriers; and 
‘‘(ii) establishing metrics and meth-
odologies to measure the effectiveness of 
programs and activities employed by agen-
cies to prevent and reduce fraud and im-
proper payments. 
‘‘(3) Establish an online, publicly accessible 
dashboard on the implementation of proactive ana-
lytics in programs designated as susceptible to sig-
nificant improper payments under section 3359 
that— 
‘‘(A) promotes transparency; 
‘‘(B) assists in the oversight of the imple-
mentation of proactive analytics in such pro-
grams; and 
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‘‘(C) tracks cost savings, cost avoidance, 
and the administrative burden attributable to 
such programs. 
‘‘(4) Refer any fraud, waste, or abuse discov-
ered by the Administrator to the appropriate Inspec-
tor General. 
‘‘(5) Carry out any additional duties that may 
be prescribed by the Director. 
‘‘(c) ADDITIONAL
AUTHORITIES.—The Adminis-
trator may— 
‘‘(1) require agencies administering programs 
susceptible to significant improper payments to sub-
mit information as may be necessary to administer 
the dashboard required to be established by sub-
section (b)(3), and promulgate regulations that set 
standards for— 
‘‘(A) the type of information to be sub-
mitted; and 
‘‘(B) the format in which such information 
is to be submitted; 
‘‘(2) provide technical assistance to agencies ad-
ministering a high-priority program, including by— 
‘‘(A) working on behalf of an agency ad-
ministering the program to overcome any issues 
that prevent the agency from receiving or using 
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data from other governmental and non-govern-
mental entities, including by notifying Congress 
on behalf of the agency of any Federal laws 
that prevent the agency from receiving or using 
such data; 
‘‘(B) facilitating the collection of real-time 
data to implement proactive analytics, including 
by— 
‘‘(i) identifying governmental or com-
mercial solutions to facilitate such collec-
tion; and 
‘‘(ii) supporting the agency in identi-
fying potential sources of funding to facili-
tate such collection; 
‘‘(C) providing non-reimbursable or reim-
bursable services to agencies administering the 
programs; and 
‘‘(D) identifying strategies that may help 
the program hire individuals with the requisite 
skills to implement proactive analytics; and 
‘‘(3) refer any fraud, waste, or abuse discovered 
by the Administrator to the appropriate Inspector 
General. 
‘‘(d) DEFINITIONS.—In this section, the terms ‘ad-
ministrative burden’, ‘agency administering a high-priority 
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program’, ‘agency administering a program susceptible to 
significant improper payments’, ‘anti-fraud control’, 
‘data’, and ‘proactive analytics’ have the meanings given 
those terms in section 3360.’’. 
SEC. 3. ANTI-FRAUD CONTROLS FOR PROGRAMS SUSCEP-
TIBLE 
TO 
SIGNIFICANT 
IMPROPER 
PAY-
MENTS AND HIGH-PRIORITY PROGRAMS. 
Subchapter IV of chapter 33 of title 31, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 3359. Proactive analytics with respect to programs 
susceptible to significant improper pay-
ments 
‘‘(a) DESIGNATION OF PROGRAMS SUSCEPTIBLE TO 
SIGNIFICANT IMPROPER PAYMENTS.—Not later than Oc-
tober 1 of each year, for that fiscal year and the next fiscal 
year, the head of each executive agency shall designate as 
a program susceptible significant improper payments each 
program that meets the following criteria: 
‘‘(1) With respect any program of the agency 
established during the preceding two fiscal years, 
any such program making more than $100,000,000 
in payments in any one fiscal year. 
‘‘(2) For any program of the agency not estab-
lished during the preceding two fiscal years, any 
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such program that had outlays that exceeded 
$1,500,000,000 in the preceding fiscal year. 
‘‘(b) IMPLEMENTATION OF PROACTIVE ANALYTICS 
FOR HIGH-RISK AREA.—An agency administering a pro-
gram susceptible to significant improper payments shall 
implement proactive analytics for one high-risk area of the 
program. 
‘‘(c) REPORTS ON ACTIONS TO REDUCE IMPROPER 
PAYMENTS.—Not later than two years after a head of an 
agency has designated a program as susceptible to im-
proper payments, the head of the agency administering the 
program shall submit a report on efforts of the agency 
to reduce and prevent improper payments and fraud with 
respect to the program, including the following: 
‘‘(1) With respect to a program that is not a 
high-priority program at the time of the submission 
of the report, the following: 
‘‘(A) A description of the proactive ana-
lytics implemented in the two fiscal years pre-
ceding the submission of the report to reduce 
improper payments and fraud with respect to 
such program. 
‘‘(B) Metrics demonstrating the effective-
ness of the proactive analytics implemented. 
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‘‘(C) An analysis of whether the agency 
anticipates the program will remain ‘susceptible 
to improper payments’ and require continued 
designation as such. 
‘‘(D) A plan for— 
‘‘(i) continuing to use proactive ana-
lytics with respect to that program; 
‘‘(ii) improving the proactive analytics 
used with respect to that program; and 
‘‘(iii) identifying, in consultation with 
the Administrator of the FRAUD, addi-
tional fraud and improper payment mitiga-
tion strategies, that could be employed by 
the agency if the program is redesginated 
as a program susceptible to significant im-
proper payments. 
‘‘(2) With respect to a program that is a high- 
priority program at the time of the submission of 
the report, the following: 
‘‘(A) A copy of the plan approved under 
section 3359 for the program. 
‘‘(B) Analysis of whether implementation 
of that plan has reduced and prevented im-
proper payments and fraud. 
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‘‘(C) If the plan has not reduced or pre-
vented improper payments or fraud— 
‘‘(i) an explanation of why the plan 
has not reduced or prevented improper 
payments or fraud; and 
‘‘(ii) a new plan with a different strat-
egy developed in consultation with the Ad-
ministrator of the FRAUD, to reduce or 
prevent improper payments or fraud. 
‘‘(D) A statement of whether the agency 
has what is needed with respect to internal con-
trols, human capital, and information systems 
and other infrastructure, to implement the re-
quirements described in sections 3359 and 
3360. 
‘‘(E) Estimates of— 
‘‘(i) any costs avoided and dollars 
saved by the implementation of sections 
3359 and 3360; 
‘‘(ii) any change in administrative 
burden because of the implementation of 
sections 3359 and 3360; and 
‘‘(iii) the number of persons eligible to 
obtain a thing of value that did not receive 
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such thing of value because of the imple-
mentation of sections 3359 and 3360. 
‘‘(3) Whether the information technology (as 
defined in section 11101 of title 40) used by the 
agency with respect to the program is capable of de-
livering real-time data— 
‘‘(A) to the Administrator of the FRAUD 
for inclusion in the dashboard required to be es-
tablished by section 508(b)(3); and 
‘‘(B) for the purpose of implementing 
proactive analytics, as required under section 
3359 and 3360. 
‘‘(4) A description of the quality of any im-
proper payment estimates and methodology of the 
agency relating to the program, including— 
‘‘(A) challenges to accurately estimating 
improper payments for the program; and 
‘‘(B) plans to improve the quality of the 
estimates. 
‘‘§ 3360. Anti-fraud controls for high-priority pro-
grams 
‘‘(a) DESIGNATION.—By January 31 of each fiscal 
year, the Administrator shall designate for the remainder 
of that fiscal year and the next full fiscal year, any pro-
gram with outlays in an amount equal to or in excess of 
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$50,000,000,000 with respect to the preceding fiscal year 
as a high-priority program. 
‘‘(b) PLAN TO IMPLEMENT ANTI-FRAUD POLICY FOR 
EACH HIGH-PRIORITY PROGRAM.— 
‘‘(1) PLAN.—The head of an agency admin-
istering a high-priority program shall develop a plan 
to implement anti-fraud controls for that program, 
that— 
‘‘(A) at a minimum includes a plan to 
use— 
‘‘(i) any solution that verifies and au-
thenticates identity, known as ‘digital iden-
tity-proofing solutions’, if determined nec-
essary by the Administrator to effectively 
reduce and prevent fraud and improper 
payments in the high-priority program; 
‘‘(ii) threat intelligence, including 
open source intelligence and intelligence 
collected from locations on the internet re-
ferred to as the ‘deep web’ and ‘dark web’, 
to identify and mitigate emerging fraud 
threats; and 
‘‘(iii) proactive analytics; and 
‘‘(B) takes into consideration the adminis-
trative burden of implementing such anti-fraud 
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controls, including considering the fraud risk 
profile (as defined in the study of the Govern-
ment Accountability Office titled ‘Framework 
for Managing Fraud Risks in Federal Pro-
grams’) of the program. 
‘‘(2) INITIAL SUBMISSION OF PLAN TO ADMIN-
ISTRATOR FOR APPROVAL.— 
‘‘(A) INITIAL SUBMISSION.—Not later than 
90 days after the date on which a program is 
designated as a high-priority program under 
subsection (a), the agency administering the 
high-priority program shall submit to the Ad-
ministrator the plan developed under paragraph 
(1). 
‘‘(B) APPROVAL OR DENIAL OF PLAN.— 
Not later than 60 days after the date on which 
the plan is submitted pursuant to subparagraph 
(A), the Administrator shall approve or deny 
such plan. 
‘‘(3) RESUBMISSION
OF
PLAN
TO
ADMINIS-
TRATOR FOR APPROVAL IN CASE OF DENIAL.— 
‘‘(A) IN GENERAL.—An agency that sub-
mits a plan that is denied by the Administrator 
under paragraph (2) shall, until such time as 
the Administrator approves the plan— 
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‘‘(i) revise the plan; and 
‘‘(ii) submit the plan as revised under 
clause (i) to the Administrator. 
‘‘(B) APPROVAL OR DENIAL OF REVISED 
PLAN.—The Administrator shall approve or 
deny a plan submitted under subparagraph (A) 
not later than 60 days after the Administrator 
receives the plan. 
‘‘(C) TECHNICAL
ASSISTANCE.—The Ad-
ministrator may provide technical assistance to 
any agency required to revise a plan under sub-
paragraph (A). 
‘‘(4) CRITERIA FOR THE APPROVAL OR DENIAL 
OF PLAN.—Not later than January 31 of each year, 
the Administrator shall provide to each agency ad-
ministering a high-priority program criteria on the 
basis of which the Administrator will approve or 
deny a plan under this subsection. 
‘‘(5) REPORT
TO
CONGRESS.—An agency re-
quired to submit a plan for approval under this sub-
section with respect a high-priority program, and 
has such plan denied by the Administrator three 
times, shall submit a report to Congress on why the 
plan has not been approved by the Administrator. 
‘‘(c) PROGRAM INTEGRITY FUND.— 
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‘‘(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a fund to be 
known as the Program Integrity Fund. 
‘‘(2) USE OF FUND.—Amounts in the fund may 
be allocated by the Administrator to agencies to im-
plement plans approved by the Administrator under 
subsection (b). 
‘‘(3) MANAGEMENT OF THE PROGRAM INTEG-
RITY FUND.— 
‘‘(A) APPLICATION
PROCESS.—Not later 
than 90 days after the date of the enactment of 
this paragraph, the Administrator shall— 
‘‘(i) establish a process through which 
the head of an agency may request that 
funds be allocated from the Program In-
tegrity Fund to the agency; and 
‘‘(ii) submit to Congress a report that 
describes the process established pursuant 
to clause (i). 
‘‘(B) AWARD OF FUNDS.—In determining 
the amount, if any, of funds to be allocated to 
an agency from the Program Integrity Fund 
under paragraph (2), the Administrator shall 
consider the extent to which the plan approved 
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by the Administrator under subsection (b) of 
the agency— 
‘‘(i) implements the use of proactive 
analytics; 
‘‘(ii) is likely to significantly reduce or 
prevent improper payments and fraud; and 
‘‘(iii) considers the administrative bur-
den of implementing the plan, including 
whether there is a clear indication that the 
agency considered whether there are any 
anti-fraud controls other than the anti- 
fraud controls to be implemented under the 
plan that could be implemented by the 
agency with less of an administrative bur-
den on individuals who interact with the 
program. 
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There 
are 
authorized 
to 
be 
appropriated 
$1,000,000,000 for fiscal year 2023 for the Program 
Integrity Fund, to remain available until expended. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) ADMINISTRATOR.—The term ‘Adminis-
trator’ means the Administrator of the FRAUD. 
‘‘(2) ADMINISTRATIVE BURDEN.—The term ‘ad-
ministrative burden’ means a cost that a person in-
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curs in interacting with the agency to obtain a thing 
of value from the agency, including the following: 
‘‘(A) The amount of time and effort ex-
pended by the person to learn about— 
‘‘(i) the nature of the thing of value; 
and 
‘‘(ii) how to gain access to the thing 
of value, including— 
‘‘(I) any program or service of 
the agency through which the person 
may obtain the thing of value from 
the agency; and 
‘‘(II) any requirement and condi-
tion that must be satisfied for the 
person to obtain and maintain posses-
sion of the thing of value from the 
government program or service. 
‘‘(B) The amount of time it takes to— 
‘‘(i) provide information and docu-
mentation to satisfy requirements to obtain 
and maintain possession of the thing of 
value; and 
‘‘(ii) respond to discretionary requests 
of program administrators for the purpose 
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of obtaining and maintaining possession of 
the thing of value. 
‘‘(C) Any financial cost to access services 
that may be necessary to receive the thing of 
value (such as fees, legal representation, and 
travel costs). 
‘‘(3) AGENCY ADMINISTERING A PROGRAM SUS-
CEPTIBLE TO SIGNIFICANT IMPROPER PAYMENTS.— 
The term ‘agency administering a program suscep-
tible to significant improper payments’ means an 
agency that is responsible for administering at least 
one program that is designated as susceptible to sig-
nificant improper payments under section 3359. 
‘‘(4) AGENCY ADMINISTERING A HIGH-PRIORITY 
PROGRAM.—The term ‘agency administering a high- 
priority program’ means an agency that is respon-
sible for administering at least one program that is 
designated as high-priority under this section. 
‘‘(5) ANTI-FRAUD CONTROL.—The term ‘anti- 
fraud control’ means a process, system, or tech-
nology that can be implemented to prevent fraud 
and improper payments. 
‘‘(6) DATA.—The term ‘data’ has the meaning 
given the term in section 3502 of title 44. 
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‘‘(7) DEVICE
METADATA.—The term ‘device 
metadata’ means structural or descriptive data 
about a connected device (as defined in section 
902(a) of the Consolidated Appropriations Act, 2021 
(47 U.S.C. 1306(a))), such as data about the type, 
model, IP address, and geolocation of the device. 
‘‘(8) FRAUD.—The term ‘fraud’ means obtain-
ing a thing of value through willful misrepresenta-
tion. 
‘‘(9) 
PROACTIVE
ANALYTICS.—The 
term 
‘proactive analytics’ means the collection and anal-
ysis of data (including data that is device metadata, 
administrative data controlled by the agency, and 
data from other governmental and non-governmental 
sources) to prevent fraud and improper payments 
from occurring, including by identifying anomalous 
or suspicious patterns that might warrant further 
investigation.’’. 
SEC. 4. AMENDMENTS RELATED TO IMPROPER PAYMENTS 
PROVISIONS. 
(a) IN GENERAL.—Chapter 33 of subtitle III of title 
31, United States Code, is amended— 
(1) in section 3351— 
(A) in paragraph (2), by adding at the end 
the following: 
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