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Saturday, May 18, 2024

Budget Committee to Introduce Legislation to Rein-In Improper Payments

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Jodey Arrington - Chairman of the House Budget Committee | Official U.S. House headshot

Jodey Arrington - Chairman of the House Budget Committee | Official U.S. House headshot

WASHINGTON, D.C. – Today, the House Budget Committee unveiled plans for a legislative initiative aimed at curbing improper payments within the federal government. House Budget Committee Chairman Jodey Arrington (R-TX) emphasized the urgency of addressing wasteful spending in a recent op-ed titled “It’s Time to Stop Talking and Start Acting on Fraud and Improper Payments.”

In his article, Chairman Arrington stressed the importance of combatting improper payments to improve fiscal responsibility, stating, "Every dollar lost to improper payments and fraud represents a theft from the American people." He highlighted the need for concrete actions to tackle financial abuses rather than mere discussions.

The upcoming legislation, consisting of the Improper Payments Transparency Act and the Enhancing Improper Payment Accountability Act, is a direct response to the House Budget Committee's extensive efforts to address the issue of improper payments. These bills are designed to enhance accountability and transparency in government spending by establishing clearer guidelines to reduce erroneous payments.

Improper payments, as defined by the Government Accountability Office, refer to payments that should not have been made or were made in the incorrect amount. The federal government has been plagued by this issue, with approximately $236 billion spent on improper payments in 2023 alone.

Chairman Arrington highlighted the severity of the problem, noting that since 2003, the government has made an estimated $2.7 trillion in improper payments. Under the Biden Administration, the issue has worsened, with over $750 billion in federal funds distributed improperly since taking office.

The Improper Payments Transparency Act aims to address gaps in reporting by requiring detailed descriptions of programs, reasons for improper payments, and steps taken to reduce them in the President's budget request. This legislation seeks to provide a more accurate account of improper payments and the underlying causes.

On the other hand, the Enhancing Improper Payment Accountability Act focuses on new programs with stringent reporting requirements for federal programs dispensing over $100 million annually. This measure is intended to prevent wasteful and fraudulent spending in newly established programs.

Chairman Arrington reiterated the importance of responsible stewardship of taxpayer dollars, emphasizing the need for Congress to take decisive action in combating improper payments. The proposed legislation is part of the House Budget Committee's strategy to address the nation's public debt and ensure transparency and accountability in government spending.

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