I 
111TH CONGRESS 
2D SESSION 
H. R. 5363 
To make funds available to increase program integrity efforts and reduce 
wasteful government spending of taxpayer’s dollars. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 20, 2010 
Mr. SCHRADER (for himself, Mr. ARCURI, Mr. BOREN, Mr. BOYD, Mr. 
CARDOZA, Mr. CHANDLER, Mr. CHILDERS, Mr. COOPER, Mr. COSTA, Mr. 
CUELLAR, Mr. DAVIS of Tennessee, Mr. ELLSWORTH, Ms. GIFFORDS, 
Ms. HARMAN, Ms. HERSETH SANDLIN, Mr. HILL, Mr. HOLDEN, Mr. 
KAGEN, Mr. KRATOVIL, Ms. MARKEY of Colorado, Mr. MATHESON, Mr. 
MCINTYRE, Mr. MELANCON, Mr. MICHAUD, Mr. MINNICK, Mr. MOORE 
of Kansas, Mr. MURPHY of New York, Mr. NYE, Mr. ROSS, Ms. LORET-
TA SANCHEZ of California, Mr. SCHIFF, Mr. SHULER, Mr. TANNER, and 
Mr. WILSON of Ohio) introduced the following bill; which was referred 
to the Committee on Ways and Means, and in addition to the Committees 
on Energy and Commerce and Education and Labor, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
A BILL 
To make funds available to increase program integrity efforts 
and reduce wasteful government spending of taxpayer’s 
dollars. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Preventing Waste, 
Fraud, and Abuse Act of 2010’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) To protect the taxpayer and the Treasury, 
it is the responsibility of the Congress to provide 
Federal agencies with the financial resources nec-
essary to enforce the laws of the United States and 
to prevent waste, fraud, and abuse of taxpayer’s dol-
lars. 
(2) For every $1 invested in the Department of 
Health and Human Services and the Department of 
Justice for program integrity efforts to prevent 
waste, fraud, and abuse of Medicare, Medicaid, and 
the Children’s Health Insurance Program, approxi-
mately $1.55 will be saved, according to a report 
issued by the Office of Management and Budget. 
(3) Increased program integrity efforts by the 
Department of Health and Human Services and the 
Department of Justice can provide an estimated sav-
ings of $4,470,000,000 on an investment of 
$3,100,000,000 in Medicare, Medicaid, and the Chil-
dren’s Health Insurance Program over the next 5 
fiscal 
years 
and 
an 
estimated 
savings 
of 
$9,870,000,000 on an investment of $6,753,000,000 
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over the next 10 fiscal years, according to a report 
issued by the Office of Management and Budget. 
(4) For every $1 invested in the Social Security 
Administration for program integrity efforts to in-
crease the volume of continuing disability reviews 
conducted pursuant to section 221(i) of the Social 
Security Act (42 U.S.C. 421(i)) to determine wheth-
er a recipient of disability insurance benefits under 
section 223(a) of such Act (42 U.S.C. 423(a)) will 
continue to be eligible for such benefits, approxi-
mately $10 will be saved, according to a report 
issued by the Office of Management and Budget. 
(5) For every $1 invested in the Social Security 
Administration for program integrity efforts to in-
crease the volume of continuing disability reviews 
conducted pursuant to section 1631(j) of Social Se-
curity Act (42 U.S.C. 1383(j)) to determine whether 
a recipient of supplemental security income benefits 
under section 1611 of such Act (42 U.S.C. 1382) 
will continue to be eligible for such benefits, approxi-
mately $8 will be saved, according to a report issued 
by the Office of Management and Budget. 
(6) Providing additional funding to the Social 
Security Administration to increase the volume of 
continuing disability reviews conducted pursuant to 
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sections 221(i) and 1631(j) of Social Security Act 
(42 U.S.C. 421(i), 1383(j), respectively) can provide 
an estimated savings of $16,102,000,000 on an in-
vestment of $3,953,000,000 over the next 5 fiscal 
years and an estimated savings of $57,838,000,000 
on an investment of $10,252,000,000 over the next 
10 fiscal years, according to a report issued by the 
Office of Management and Budget. 
(7) The tax gap, the difference between the an-
nual amount of Federal income taxes owed and the 
amount voluntarily paid on time, places an undue 
burden upon the overwhelming majority of taxpayers 
who fully and voluntarily pay their taxes on time. 
(8) In a report released in 2009 by the Internal 
Revenue Service, it was estimated that in 2005 (the 
most recent estimate available) the gross tax gap 
was $345,000,000,000 and the net tax gap (after 
the collection of late and enforced payments) was 
$290,000,000,000. 
(9) In 2009, for every $1 that was invested for 
the purposes of enforcing the tax code, the Internal 
Revenue Service returned an average of $4 to the 
Treasury, with some enforcement activities returning 
as much as $11 for every $1 invested, according to 
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fiscal years, according to a report issued by the Of-
fice of Management and Budget. 
(13) The investments described in the preceding 
paragraphs, if carried out, will save the taxpayers 
nearly $2,000,000,000 during fiscal year 2011, while 
laying the foundations for saving more than 
$35,000,000,000 over the next 5 fiscal years and 
more than $132,000,000,000 over the next 10 fiscal 
years. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) AGENCY HEAD.—The term ‘‘agency head’’ 
means— 
(A) the Attorney General; 
(B) the Commissioner of Social Security; 
(C) the Secretary of Health and Human 
Services; 
(D) the Secretary of Labor; and 
(E) the Secretary of the Treasury. 
(2) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Office of Management and Budg-
et. 
SEC. 4. INCREASING PROGRAM INTEGRITY EFFORTS. 
(a) PROGRAM INTEGRITY EFFORTS.— 
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(1) IN GENERAL.—Each agency head, in con-
sultation with the Director, shall— 
(A) identify existing Federal laws and reg-
ulations that may impede the ability to decrease 
waste, fraud, and abuse of funds appropriated 
to the agency head’s agency; and 
(B) 
develop 
appropriate 
performance 
metrics to measure such agency’s success in de-
creasing waste, fraud, and abuse. 
(2) DEVELOPMENT
OF
METRICS.—In devel-
oping performance metrics referred to in paragraph 
(1)(B), each agency head shall— 
(A) ensure that such metrics accurately 
demonstrate the effectiveness of the programs 
and activities referred to in subsection (d) in 
decreasing waste, fraud, and abuse; 
(B) provide estimates for points of dimin-
ishing returns on the funds provided under this 
Act to increase program integrity efforts; 
(C) identify optimal baselines for each of 
the metrics developed under this subsection and 
appropriate methods to measure variations from 
such baselines; and 
(D) set performance targets for each of fis-
cal years 2012 through 2020. 
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(b) INNOVATION AND DEVELOPMENT.—Each agency 
head shall make appropriate accommodations for innova-
tion and development to address the program integrity ef-
forts for programs and activities referred to in subsection 
(d). 
(c) REPORTS.— 
(1) IN GENERAL.—Each agency head shall sub-
mit to Congress— 
(A) not later than 6 months after the date 
of enactment of this Act, an interim report that 
includes a description of— 
(i) what the performance metrics de-
veloped under subsection (a) will be meas-
uring; and 
(ii) how such metrics will measure and 
provide an accurate analysis of the per-
formance of the applicable programs and 
activities referred to in subsection (d); and 
(B) not later than 1 year after the date of 
enactment of this Act, a final report that sets 
forth the performance metrics developed under 
subsection (a). 
(2) FEDERAL
REGISTER; WEB
SITE.—Each 
agency head shall publish in the Federal Register 
and make available on the agency Web site the per-
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formance metrics set forth in its final report sub-
mitted under paragraph (1)(B) not later than 30 
days after such report is submitted. 
(3) 
MODIFICATION
OF
PERFORMANCE 
METRICS.—Not later than 30 days after the date on 
which any performance metrics developed under sub-
section (a) are modified by an agency head, such 
agency head shall submit to Congress a written no-
tice describing such modifications. 
(4) OMB ANNUAL
REPORT.—Using the per-
formance metrics developed under subsection (a), 
each year, beginning with the first fiscal year fol-
lowing the date on which the final reports are re-
quired to be submitted under paragraph (1)(B), on 
or after the first Monday in January but not later 
than the first Monday in February, the Director 
shall submit to Congress an annual report meas-
uring the success of the agency head’s agency in de-
creasing waste, fraud, and abuse of funds appro-
priated to such agency. Each annual report shall in-
clude a summary of and justifications for any modi-
fied performance metrics submitted to Congress pur-
suant to paragraph (3). 
(5) REFERRAL OF REPORTS.—Each report sub-
mitted pursuant to this subsection shall be referred 
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to the Committee on Appropriations and the Com-
mittee on the Budget of the House of Representa-
tives and the Committee on Appropriations and the 
Committee on the Budget of the Senate, and any 
other appropriate committee of jurisdiction. 
(d) AUTHORIZATION OF APPROPRIATIONS.— 
(1) DEPARTMENT
OF
HEALTH
AND
HUMAN 
SERVICES; DEPARTMENT OF JUSTICE.—For the pur-
poses of continuing and increasing program integrity 
efforts of the Department of Health and Human 
Services and the Department of Justice to prevent 
waste, fraud, and abuse of Medicare, Medicaid, and 
the Children’s Health Insurance Program, there are 
authorized to be appropriated the following sums: 
(A) $561,000,000 for fiscal year 2011, to 
remain available through September 30, 2012. 
(B) $589,000,000 for fiscal year 2012, to 
remain available through September 30, 2013. 
(C) $619,000,000 for fiscal year 2013, to 
remain available through September 30, 2014. 
(D) $649,000,000 for fiscal year 2014, to 
remain available through September 30, 2015. 
(E) $682,000,000 for fiscal year 2015, to 
remain available through September 30, 2016. 
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(F) $3,653,000,000 for the period encom-
passing fiscal years 2016 through 2020. 
(2) SOCIAL
SECURITY
ADMINISTRATION.—For 
the purposes of continuing and increasing program 
integrity efforts of the Social Security Administra-
tion by increasing the volume of continuing disability 
reviews conducted pursuant to sections 221(i) and 
1631(j) of the Social Security Act (42 U.S.C. 421(i), 
1383(j), respectively), there are authorized to be ap-
propriated to the Commissioner of Social Security 
the following sums: 
(A) $513,000,000 for fiscal year 2011, to 
remain available through September 30, 2012. 
(B) $642,000,000 for fiscal year 2012, to 
remain available through September 30, 2013. 
(C) $751,000,000 for fiscal year 2013, to 
remain available through September 30, 2014. 
(D) $924,000,000 for fiscal year 2014, to 
remain available through September 30, 2015. 
(E) $1,123,000,000 for fiscal year 2015, 
to remain available through September 30, 
2016. 
(F) $6,299,000,000 for the period encom-
passing fiscal years 2016 through 2020. 
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(3) DEPARTMENT
OF
THE
TREASURY.—For 
purposes of continuing and increasing program in-
tegrity efforts of the Department of the Treasury by 
expanding tax enforcement activities, there are au-
thorized to be appropriated to the Secretary of the 
Treasury the following sums: 
(A) $1,115,000,000 for fiscal year 2011, 
to remain available through September 30, 
2012. 
(B) $1,357,000,000 for fiscal year 2012, 
to remain available through September 30, 
2013. 
(C) $1,724,000,000 for fiscal year 2013, 
to remain available through September 30, 
2014. 
(D) $2,105,000,000 for fiscal year 2014, 
to remain available through September 30, 
2015. 
(E) $2,568,000,000 for fiscal year 2015, 
to remain available through September 30, 
2016. 
(F) $14,406,000,000 for the period encom-
passing fiscal years 2016 through 2020. 
(4) DEPARTMENT OF LABOR.—For purposes of 
continuing and increasing program integrity efforts 
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of the Department of Labor by increasing the vol-
ume of in-person reemployment and eligibility as-
sessments of unemployment insurance beneficiaries 
conducted by States, there are authorized to be ap-
propriated to the Secretary of Labor the following 
sums: 
(A) $55,000,000 for fiscal year 2011, to 
remain available through September 30, 2012. 
(B) $60,000,000 for fiscal year 2012, to 
remain available through September 30, 2013. 
(C) $65,000,000 for fiscal year 2013, to 
remain available through September 30, 2014. 
(D) $70,000,000 for fiscal year 2014, to 
remain available through September 30, 2015. 
(E) $75,000,000 for fiscal year 2015, to 
remain available through September 30, 2016. 
(F) $395,000,000 for the period encom-
passing fiscal years 2016 through 2020. 
Æ 
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