Education Department Bolsters Fraud Checks with Treasury Data Sharing
Published Date: 12/9/2025
Notice
Summary
The U.S. Department of Education is updating its records system to better catch and stop fraud and waste, sharing info with the Treasury Department as allowed by law. This change affects anyone whose data is in these systems and kicks in after January 8, 2026, unless public feedback says otherwise. No new costs for the public, just smarter ways to protect taxpayer money!
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
Department can share records with Treasury
If your data is in the Department of Education systems listed (for example, EDCAPS or the Financial Management System), the Department may disclose those records to the U.S. Department of the Treasury for Do Not Pay reviews to identify, prevent, or recoup improper payments. This routine use becomes applicable on January 8, 2026. The change is intended to better catch and stop fraud, waste, and abuse.
Applies to applicants and recipients of federal funds
If you are an applicant for or a recipient of Federal funds (including funds disbursed by a state in a state‑administered, federally funded program), your records in the named systems may be disclosed to Treasury to review payment and award eligibility and to recoup improper payments. The Department listed the affected systems as the Education Central Automated Processing System (EDCAPS) and the Financial Management System (FMS).
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