Improper Payments Transparency Act

The Improper Payments Transparency Act would amend title 31 of the U.S. Code to require the President’s annual budget submission to include detailed information about improper payments in federal programs. Specifically, it adds a new item to the budget submission that requires (1) a narrative describing why improper payments occurred and trends over the previous three years for each program with rising or falling improper payments, as well as for programs with no change, and (2) a description of corrective actions, including those already outlined in corrective action plans under the agency’s improper payment program, and the steps agencies will take to address improper payment amounts and rates. The bill defines improper payments according to section 3351 and applies to executive agencies that must report improper payments under subchapter IV of chapter 33. In short, the bill would force agencies to couple budget presentations with explicit, narrative analyses of improper payments and planned corrective actions, enhancing transparency and accountability around how such payments occur and how they’re being reduced.