Eliminate Preventable Waste Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Eliminate Preventable Waste Act''.

SEC. 2. REPORTS ON IMPROPER PAYMENTS.

    (a) In General.--Notwithstanding the requirements of section 
2(a)(2) of the Improper Payments Information Act of 2002 (31 U.S.C. 
3321 note), not later than 90 days after the end of fiscal year 2014 
and each fiscal year thereafter, the following agency heads shall 
perform the review required under section 2(a)(1) of such Act for the 
following programs, respectively:
            (1) Commissioner of the Social Security Administration--
                    (A) the Supplemental Security Income program under 
                title XVI of the Social Security Act (42 U.S.C. 1381 et 
                seq.); and
                    (B) the Old Age, Survivors, and Disability 
                Insurance program under title XVI of the Social 
                Security Act (42 U.S.C. 1381 et seq.).
            (2) Secretary of Agriculture--
                    (A) the school lunch program under the Richard B. 
                Russell National School Lunch Act (42 U.S.C. 1751 et 
                seq.); and
                    (B) the school breakfast program under section 4 of 
                the Child Nutrition Act of 1966 (42 U.S.C. 1773).
            (3) Secretary of Labor; State unemployment compensation 
        programs approved by the Secretary of Labor under section 3304 
        of the Internal Revenue Code of 1986.
            (4) Secretary of Health and Human Services--
                    (A) Medicare fee-for-service (parts A and B of 
                title XVIII of the Social Security Act (42 U.S.C. 1381 
                et seq.));
                    (B) Medicaid (title XIX of such Act), Medicare 
                Advantage (part C of title XVIII of such Act);
                    (C) Medicare prescription drug benefit (part D of 
                title XVIII of such Act); and
                    (D) the Child Care and Development Fund (section 
                5082 of subchapter C of Public Law 101-508).
            (5) Secretary of the Treasury; the Earned Income Tax Credit 
        (section 32 of the Internal Revenue Code of 1986).
            (6) Secretary of Veterans Affairs--
                    (A) payments under section 607 of the 
                Transportation, Treasury, and Independent Agencies 
                Appropriations Act, 2004 (division F of Public Law 108-
                199); and
                    (B) payments to non-Department facilities (as 
                defined in section 1701(4) of title 38, United States 
                Code) under the following:
                            (i) section 1703 of such title (relating to 
                        hospital care and medical services provided to 
                        veterans in non-Department facilities);
                            (ii) section 1725 of such title (relating 
                        to reimbursement to veterans for certain 
                        emergency treatment in non-Department 
                        facilities);
                            (iii) section 1728 of such title (relating 
                        to reimbursement to veterans for certain 
                        treatment in non-Department facilities);
                            (iv) section 8111 of such title (relating 
                        to the sharing of Department of Veterans 
                        Affairs and Department of Defense health-care 
                        resources); and
                            (v) section 8153 of such title (relating to 
                        the sharing of health-care resources).
    (b) Budget Submission.--Each agency head shall include in the 
applicable agency annual budget request to the Office of Management and 
Budget a report on the review required under subsection (a).
    (c) Sunset.--If a review under subsection (a) shows that the 
improper payment rate for any listed program is less than or equal to 
0.00034 percent, this section shall no longer apply with respect to 
such program.

SEC. 3. AMENDMENT WITH RESPECT TO PRESIDENT'S BUDGET SUBMISSION.

    (a) In General.--Section 1105(a) of title 31, United States Code, 
is amended by--
            (1) redesignating paragraph (37) (relating to the list of 
        outdated or duplicative plans and reports) as paragraph (39); 
        and
            (2) by adding at the end the following:
            ``(40) any report submitted to the Office of Management and 
        Budget pursuant to section 2 of the Eliminate Preventable Waste 
        Act.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2014.

SEC. 4. RESCISSION OF FUNDS.

    (a) Reduction in Error Rates.--If any report submitted by an agency 
head required under section 2, as included in President's budget under 
section 1105(a) of title 31, United States Code (as amended by section 
2 of this Act), does not show, with respect to the relevant program 
listed in section 2(a), a decrease in the improper payment rate from 
the fiscal year immediately preceding the fiscal year covered by the 
report, a rescission under subsection (b) of certain funds made 
available to the applicable agency shall apply.
    (b) Rescission.--
            (1) In general.--On the day that the President submits such 
        a budget, there is rescinded (if necessary) from the following 
        accounts a percentage of such account equal to the percentage 
        of the highest improper payment rate of the program listed in 
        the report submitted by the relevant agency pursuant to section 
        2 and included in such agency's budget:
                    (A) Department of Agriculture, ``Agricultural 
                Programs--Production, Process, and Marketing--Office of 
                the Secretary''.
                    (B) Department of Health and Human Services, 
                ``Department of Health and Human Services--Office of 
                the Secretary''.
                    (C) Department of Labor, ``Department of Labor--
                Departmental Management--Salaries and Expenses''.
                    (D) Department of the Treasury, ``Department of the 
                Treasury--Departmental Offices--Salaries and 
                Expenses''.
                    (E) Social Security Administration, ``Social 
                Security Administration--Limitation on Administrative 
                Expenses''.
                    (F) Department of Veterans Affairs, ``Department of 
                Veterans Affairs--Departmental Administration--General 
                Administration''.
            (2) Proportionate application.--Any rescission made under 
        paragraph (1) shall be applied proportionately within each 
        listed account to each program, project, and activity (with 
        programs, projects, and activities as delineated in the 
        appropriation Act or accompanying reports for the applicable 
        fiscal year covering such account).
    (c) Report to Congress.--For each fiscal year beginning in fiscal 
year 2015, not later than the date on which President submits a budget 
under section 1105(a) of title 31, United States Code, each agency head 
listed in section 2(a) shall submit to Congress any report required by 
section 2 of this Act.
    (d) Effective Date.--This section shall take effect on October 1, 
2014.

Summary: Eliminate Preventable Waste Act - Directs the Commissioner of the Social Security Administration (SSA), the Secretary of Agriculture, the Secretary of Labor, the Secretary of Health and Human Services (HHS), the Secretary of the Treasury, and the Secretary of Veterans Affairs (VA) to: (1) conduct reviews of specified programs they administer to identify improper payments, and (2) report on such reviews in their budget submissions&nbsp;to the Office of Management and Budget (OMB) and to Congress. Requires such reports to OMB to be included in the President's annual budget submission to Congress.  Requires a rescission of funds for such an agency if its report does not show a decrease in the improper payment rate from the preceding fiscal year for the relevant program.