Protecting American Taxpayers Act
Sponsored By: Senator Ernst, Joni [R-IA]
In Committee
Summary
payment integrity is the bill's core aim. It would tighten fraud detection, force more data sharing and timely recovery of improper payments, and boost transparency for nontraditional federal funding while restricting aid to some foreign-linked entities.
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- Families and child-care providers: Would require child-care payments be based on attendance not enrollment, ensure prompt reimbursement for actual services, and mandate keeping attendance records for 7 years for audits.
- State welfare programs and beneficiaries: Would apply improper-payment laws to Temporary Assistance for Needy Families (TANF), require full-population data with work-eligibility and participation details, set a plan to reduce improper payments within 10 years, and trigger Inspector General reviews for payment spikes (10 percent over six months).
- Contractors, grantees, and small businesses: Would expand non-waivable whistleblower protections to contractors, grantees, subcontractors, and related employees and allow discipline for officials who seek reprisals. It also would bar Small Business Administration assistance to associates of fraud-convicted firms.
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Bill Overview
Analyzed Economic Effects
11 provisions identified: 7 benefits, 2 costs, 2 mixed.
More data to stop improper payments
If enacted, the bill would let Treasury expand the Do Not Pay system by getting tax return details from the IRS (at least 3 taxable years) when Treasury asks about a specific person, and by having SSA regularly share name, birth date, and Social Security number to help identify improper payments. It would also let Treasury obtain certain consumer-report information and new-hire records for improper-payment prevention and recovery, with limited redisclosure to authorized agents and contractors. These changes would take effect upon enactment.
New checks for big health payment spikes
If enacted, HHS would track and report unusually large jumps in payments or provider counts for Medicare, Qualified Health Plans offered through Exchanges, Medicaid, and CHIP. Agencies must notify the HHS Inspector General within 60 days when ZIP-code-and-county payments or provider counts increase by more than 100% in a single year. The HHS Inspector General must audit programs with 400% growth over five years and open investigations when provider payments rise 10% or more in any six-month period. Medicare and QHP notification rules take effect 180 days after enactment.
Return unused COVID and Afghan funds
If enacted, the bill would take back unused amounts from specified COVID-era laws on the date of enactment and move them into the Treasury general fund for deficit reduction. The President could waive a takeback for an account by notifying Congress within 60 days. The bill would also transfer unobligated Afghanistan reconstruction funds to the Treasury general fund and require State Department reports on the Afghan Fund within 90 days and then every 180 days for five years. Separately, agencies would have to send payment metadata to Treasury and USAspending.gov would publish that data within 30 days after payment certification; timelines for including other transaction agreements would start within 1–3 years.
New remittance ban for aid recipients
If enacted, applicants or reapplicants for covered public assistance would have to sign, under penalty of perjury, that they will not send remittance transfers while receiving benefits. This requirement would apply to payments made more than 30 days after enactment. An individual who signs the declaration and later sends a remittance transfer while receiving benefits could face a civil fine of $100,000.
VA fraud hotline for veterans
If enacted, VA would create a Veterans Scam and Fraud Evasion (VSAFE) Officer to run a fraud hotline and website, guide veterans to fraud-avoidance resources, build monitoring and analytics, and train staff who handle fraud inquiries. The role would coordinate with other federal agencies and veterans service organizations. The authorities would terminate on September 30, 2030.
Reports on aid and Taliban links
If enacted, the State Department would report within 90 days on U.S.-funded direct cash assistance in Afghanistan from August 1, 2021 through 30 days after enactment, describing who got money, payment methods, currency exchanges and hawala use, and steps to protect recipients' personal data. The State Department would also submit, within 180 days, a report listing foreign countries and organizations that gave aid to the Taliban, amounts involved, how the Taliban used the aid, and a strategy to oppose such assistance.
Stronger whistleblower protections for contractors
If enacted, the bill would expand whistleblower protections for many people tied to federal contracts, grants, and subgrants by replacing the term 'employee' with 'protected individual' and covering refusals to obey illegal orders and disclosures of gross waste, abuse, or threats to public health. It would bar executive branch officials from requesting reprisals and make rights and remedies non‑waivable, including removing predispute arbitration for these claims. These protections would apply to new contracts after enactment.
SBA help barred for firms with fraud
If enacted, a small business would be ineligible for most SBA financial assistance if an associate (officer, director, owner of 20%+, key employee, or related entity) has a final conviction for financial misconduct or a false statement related to a covered loan or grant. 'Covered loan or grant' would include certain 7(a) and 7(b) loans and some COVID-era and ARP/Economic Aid Act grants. This rule would take effect upon enactment.
Pay child care by attendance
If enacted, states would be required to pay child care providers based on recorded attendance instead of enrollment. Lead agencies would not have to pay before services are provided and may reimburse after services. Child care providers who get payments must keep attendance and service records for seven years and allow audits by federal officials. These rules take effect upon enactment.
Tighter reporting for TANF payments
If enacted, HHS would apply federal improper‑payment laws to State TANF programs and require regulations within two years. HHS would give Congress a plan within one year to reduce improper payments in TANF over ten years. States would need to use non‑proprietary data standards and report full-population TANF data, including each person's work-eligibility status and hours of participation. Federal TANF funds would be required to supplement, not supplant, certain State spending.
Treasury study on AI bank fraud
If enacted, the Treasury Secretary would seek public feedback within 90 days and report to Congress on how banks and credit unions protect customers from AI-enabled fraud, including deep fakes. The report would include standard AI definitions, a list of risks, best practices for financial institutions, and legislative or regulatory recommendations.
Sponsors & CoSponsors
Sponsor
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
Sen. Cramer, Kevin [R-ND]
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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