Plain Language Summary
# PIIA Reform Act Summary **What It Does:** The PIIA Reform Act would create a new federal position called the "Overpayment Czar" (officially the Director of Improper Payment Mitigation) within the Office of Management and Budget. This official would work to prevent federal agencies from making improper payments—money that shouldn't have been paid out or was paid in the wrong amount. The bill also requires federal agencies to identify which of their programs are most vulnerable to these errors and fraud, particularly new programs spending over $100 million in their first few years. **Who It Affects & Key Details:** The bill primarily affects federal agencies that distribute money through programs like food assistance, Medicaid, and unemployment benefits—areas historically prone to payment errors.
If agencies fail to comply with the new requirements to identify problem areas and reduce improper payments, they could face financial penalties. The goal is to reduce taxpayer money wasted through mistakes, fraud, or mismanagement across government programs. **Current Status:** The bill (HR 1533) was introduced by Representative Daniel Meuser (R-PA) in the 119th Congress and is currently in committee, meaning it hasn't yet been debated or voted on by the full House of Representatives.
CRS Official Summary
PIIA Reform ActThis bill establishes a federal Overpayment Czar position, requires federal agencies to identify certain programs and activities as susceptible to improper payments (i.e., payments that should not have been made or were made in an incorrect amount), and imposes financial penalties on agencies for noncompliance with requirements related to reducing improper payments.The bill establishes the position of Director of Improper Payment Mitigation, to be known as the Overpayment Czar, within the Office of Management and Budget (OMB). The duties of the Overpayment Czar include assisting federal agencies in preventing improper payments and fraud. Under the bill, federal agencies must additionally identify as susceptible to significant improper payments any program or activity that is in the first four years of operation and has or is expected to have outlays exceeding $100 million in any of the first three fiscal years of operation unless, based upon a review of the program or activity, the agency makes a determination to the contrary. The bill requires a reduction in certain appropriations accounts for agencies that do not comply with various requirements related to reducing improper payments (such as publishing improper payments estimates and programmatic corrective action plans). States receiving funding for certain programs, such as Medicaid and unemployment compensation, must use payment integrity tools approved by OMB to reduce overpayments.Each annual governmentwide five-year financial management plan produced by OMB must include a plan to decrease improper payments throughout executive agencies.
Latest Action
Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Ways and Means, 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 concerned.