Protecting American Taxpayers Act
Sponsored By: Senator Sen. Ernst, Joni [R-IA]
In Committee
Summary
Stopping improper payments and returning unspent federal funds. This bill sets new fraud triggers and data‑sharing rules across child care, health care, Medicaid/CHIP, and federal awards to detect and recover improper payments. It rescinds many unobligated pandemic and Afghanistan‑era balances for deficit reduction and expands whistleblower protections and agency incentives to find savings.
Show full summary
- Families and child care providers: Requires child care payments to be based on attendance not enrollment, allows timely reimbursement after services, and mandates attendance records be kept for 7 years.
- States and low‑income households: Applies improper‑payment laws to TANF, adds a non‑supplantation rule, forces expanded full‑population work and earnings reporting, and requires a plan to reduce improper payments within 10 years.
- Taxpayers, contractors, and transparency: Rescinds unobligated COVID and Afghanistan reconstruction balances and directs them to the Treasury general fund for deficit reduction while preserving a 60‑day Presidential national‑security waiver. The bill expands Do Not Pay access to new‑hire and select tax data and Social Security identifiers, strengthens federal award reporting including other transaction agreements, widens whistleblower protections to contractors and grantees, and lets agencies retain up to 10% of identified surplus funds as awards.
*By channeling rescinded and recovered funds to the Treasury general fund, the bill is designed to reduce the federal deficit.*
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Bill Overview
Analyzed Economic Effects
12 provisions identified: 3 benefits, 4 costs, 5 mixed.
New rules to recover improper payments
If enacted, OMB would require agencies to recover improper payments and include improper payment amounts, trends, and corrective actions in the President's budget. Inspectors General must report the amount of improper payments recovered each year. The steps aim to increase recoveries across federal programs.
New remittance ban for assistance recipients
If enacted, applicants or reapplicants for certain public assistance would have to sign under penalty of perjury that they will not make remittance transfers while receiving benefits. If someone signs and later makes a remittance transfer during the benefit period, they could face a $100,000 civil penalty. This rule would apply to benefits provided more than 30 days after enactment.
SBA bans aid for fraud-convicted associates
If enacted, an associate who is finally convicted of covered loan- or grant-related financial misconduct would be ineligible for most SBA financial assistance. A small business with such an associate would also be ineligible for SBA aid except under limited authority. Existing government contracts entered before enactment would still apply.
Rescind unused pandemic funds
If enacted, this bill would rescind unobligated balances from listed pandemic-era laws and transfer them to the Treasury general fund to reduce the deficit. The President could waive a rescission for a specific account if done within 60 days after enactment. This would reduce funds available to affected federal programs but would not itself change existing household entitlements.
Stricter fraud checks for health programs
If enacted, Medicare, Medicaid/CHIP, and marketplace plans would be flagged when payments or the number of providers in a ZIP/county area spike sharply. Agencies must notify the HHS Inspector General when year-over-year payments or provider counts more than double. The IG must audit programs with 400% growth over five years and investigate 10% growth over any six-month period. These rules aim to curb fraud but could trigger audits and slower payments that affect beneficiaries and providers.
More transparency for federal awards
If enacted, agencies would add Other Transaction Agreement data and payment metadata to USAspending.gov and the FFATA site. Payment details would post within 30 days of certification and agencies must meet stepped deadlines over 1–3 years. Inspectors General and the Government Accountability Office would report and recommend procurement updates.
Longer enforcement windows for pandemic relief
If enacted, prosecutors and civil enforcers would generally have up to 10 years to bring criminal or civil cases about pandemic-era programs, including Restaurant Revitalization and Shuttered Venue grants. Civil forfeiture and False Claims Act actions would also have extended filing periods with discovery tolling rules. The change lengthens legal exposure for many recipients of pandemic relief.
New TANF reporting and safeguards
If enacted, Part A TANF and related State programs would be subject to federal improper-payment laws. HHS must write regulations within two years and send a 10-year plan to cut improper payments within one year. States would report each person's work-eligibility, monthly hours (including zero), reasons for nonparticipation, and other data to compute employment and earnings outcomes, and Part A funds must supplement, not replace, State spending.
Pay child care by attendance
If enacted, child care subsidy payments would be based on recorded attendance, not enrollment, and agencies would not be required to pay before services are given. Payments must be timely reimbursements and providers must keep attendance and service records for 7 years for audits. This could reduce improper payments but change provider cash flow and affect families' access or costs.
Treasury gets more tax and hire data
If enacted, Treasury would get limited IRS return data for at least three years, regular SSA name/DOB/SSN data, and access to the National Directory of New Hires to run Do Not Pay checks. Treasury could share this information with contractors, Federal and State program agencies, and authorized parties to find and recover improper payments. This would strengthen recovery efforts but expand government access to sensitive taxpayer and hire data.
Move agency salary savings to Treasury
If enacted, agencies would transfer identified surplus salaries and expenses to the Treasury general fund to reduce the deficit. Agencies could keep up to 10 percent of the transferred amounts to pay cash awards to employees who identified the savings. Agencies must report savings annually and OPM would ensure award compliance.
New VA veterans fraud officer
If enacted, the VA would create a Veterans Scam and Fraud Evasion Officer to prevent scams, promote the VSAFE hotline and website, give guidance, develop training, and coordinate with other agencies. The office would not add new full-time staff and would terminate on September 30, 2030.
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Sponsors & CoSponsors
Sponsor
Sen. Ernst, Joni [R-IA]
IA • R
Cosponsors
Sen. Ricketts, Pete [R-NE]
NE • R
Sponsored 4/22/2026
Sen. Marshall, Roger [R-KS]
KS • R
Sponsored 4/22/2026
Kevin Cramer
ND • R
Sponsored 4/22/2026
Sen. Moody, Ashley [R-FL]
FL • R
Sponsored 4/22/2026
Sen. Sheehy, Tim [R-MT]
MT • R
Sponsored 4/22/2026
Sen. Banks, Jim [R-IN]
IN • R
Sponsored 4/22/2026
Sen. Grassley, Chuck [R-IA]
IA • R
Sponsored 4/22/2026
Sen. Cornyn, John [R-TX]
TX • R
Sponsored 4/22/2026
Sen. Moreno, Bernie [R-OH]
OH • R
Sponsored 4/22/2026
Sen. Husted, Jon [R-OH]
OH • R
Sponsored 4/22/2026
Sen. McCormick, David [R-PA]
PA • R
Sponsored 4/22/2026
Sen. Lankford, James [R-OK]
OK • R
Sponsored 4/22/2026
Sen. Young, Todd [R-IN]
IN • R
Sponsored 4/28/2026
Roll Call Votes
No roll call votes available for this bill.
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