HR 8463 — Pre-Payment Fraud Prevention and Treasury Data Access Act

8463 ReportedEngrossed in House (RH)](EH)] <DOC> Union119th CalendarCONGRESS No.2d Session H.

600 119th CONGRESS 2d Session H.

8463 [Report_______________________________________________________________________ No.AN ACT To establish governmentwide requirements for pre-payment fraud prevention actions, to provide the U.S.

119-688, Part I] To establish governmentwide requirements for pre-payment fraud prevention actions, to provide the U.S.

_______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES April 23, 2026 Mr.

Comer (for himself and Mr.

Arrington) introduced the following bill;

which was referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned June 8, 2026 Additional sponsors:

Mr.

Garcia of California and Mr.

Calvert June 8, 2026 Reported from the Committee on Oversight and Government Reform with an amendment [Strike out all after the enacting clause and insert the part printed in italic] June 8, 2026 Committee on Ways and Means discharged;

committed to the Committee of the Whole House on the State of the Union and ordered to be printed [For text of introduced bill, see copy of bill as introduced on April 23, 2026] _______________________________________________________________________ A BILL To establish governmentwide requirements for pre-payment fraud prevention actions, to provide the U.S.

Treasury appropriate data resources, to facilitate participation in governmentwide anti-fraud data sharing, and for other purposes.

``, including pre-certification requirementrequirements described in section 3325a'';

(B) in paragraph (2)--(2), (i) by striking ``At a minimum and before issuing any payment or award, each executive agency shall review as appropriate the following databases to verify eligibility of the payment and award:'' and inserting the following:

and (ii) by adding at the end the following:

``(G) Information made available to such head pursuant to a request made under section 6103(i)(9)(A) of the Internal Revenue Code of 1986.

``(H) Information made available to the Secretary of Treasury by the Commissioner of Social Security pursuant to section 235 of the Social Security Act.'';

additional data assets.-- ``(A) Publication of data assets.--The Secretary shall publish and maintain a System of Records Notice for the Do Not Pay system that identifies each data asset, the routine useuses authority under which the data asset is accessed,disclosed from that system of record, the specific permitted purposes, and the access controls applicable to each data asset.

A data asset may not be accesseddisclosed throughfrom the Do Not Pay system before publication of the applicable routine useuses in the relevant System of Records Notice.

``(B) Designation.--The SecretarySecretary, in consultation with the Director, may designate additional categories of data assets for inclusion in the Do Not Pay system tothat addresssubstantially risksassist ofagencies fraudin andcarrying improperout payments.the requirements of paragraph (1).

and ``(ii) provide public notice and an opportunity for comment for not less than 3015 days prior to designation.

``(D) Database inclusion.--Following designation of a category of data assets under subparagraph (A),(B), the Secretary shall provide public notice and an opportunity for comment for not less than 30 days before adding any specific data asset within such category.

``(E) Non-sensitive data.--Data assets that do not include personally identifiable orinformation, law enforcement sensitive information, or information subject to section 552a of title 5 may be added at the discretion of the Secretary without designation if a list of such data setsassets is disclosed to the public on a public website maintained by the Department of the Treasury.

``(B) Implementation of system.--The Do Not Pay system shall be implemented in a manner to strictly provide match-based queries that return only limited responses derived from the data submitted by any individual described in subparagraph (A) with the minimum data exchanged and retained in order to conduct the verification match,match and any associated responsibility under section 552a(p) of title 5, if-- ``(i) such responses to match-based queries are limited to a confirmation or denial of a match, the level of confidence in a match, the data sources that informed the match, and other administrative metadata or the minimum additional data elements necessary to achieve the purposes described in paragraph (1);

and ``(ii) any individual described in subparagraph (A) mayis notprohibited retrieve,from browse,retrieving, makebrowsing, making repeated and tailored match-basedmatch- based inquiries with the intention of reconstituting the underlying record in another system, or otherwise accessaccessing any underlying record maintained in the Do Not Pay system under subsection (a)(2) beyond the information necessary to resolve a match-based query solely for the purposes described in paragraph (1).

``(3) Privacy requirements.--The Secretary,Director, in consultationcoordination with the DirectorSecretary, of the Office of Management and Budget, shall issue regulations implementing this section, including establishing privacy and other requirements applicable to such access,access and disclosure, consistent with section 552a of title 5.

``(d) Quarterly Report.--The SecretarySecretary, in consultation with the Director, shall submit to the appropriate authorizing and appropriations committees of Congress quarterly reports on the governmentwide operation of the Do Not Pay system, which may be included as part of another report submitted to Congress by the Secretary, and which shall include the following:

``(B) Requirement for use of treasury computer matching agreement template.--Not later than 90180 days after the effective date of this section, the SecretaryDirector, of the Treasury, in consultationcoordination with the DirectorSecretary of the OfficeTreasury, of Management and Budget, shall establish a standard computer matching agreement template for the Do Not Pay system which shall authorize an agency that adopts the standard template to be deemed to have satisfied the requirements of section 552a(o) of title 5 upon execution of the agreement without the need for review by a Data Integrity Board established under section 552a(u) of title 5.

``(E) Requirement for omb guidance.--Not later than days after the effective date of this section, the Director of the Office of Management and Budget, in consultation with the Secretary of the Treasury, shall issue guidanceguidance, including the computer matching agreement template, to implement this paragraph.

UNITED STATES TREASURY DATA ACCESS FOR PURPOSES OF PROGRAM INTEGRITY.

(a) Privacy-preserving Validation of Select Tax Information.-- (1) In general.--Section 6103(i) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

``(9) Disclosure of certain return information for use in the do not pay working system.-- ``(A) In general.--Upon execution of a written intra agency agreement between the Internal Revenue Service and the office of the Department of the Treasury that operates the Do Not Pay system described in section 3354(c) of title 31, United States Code, the Secretary may disclose to any authorized individual return information described in subparagraph (C) with respect to an individual taxpayer for the applicable period described in subparagraph (D) for the limited purpose described in subparagraph (E).

The Secretary may further authorize the redisclosure of such return information by an authorized person, subject to such terms, conditions, and safeguards as the Secretary determines appropriate, to other authorized persons described in subparagraph (B) solely for the limited purpose described in subparagraph (E).

The Secretary shall disclose or permit the redisclosure of such return information only to the extent necessary and for the purpose of the Do Not Pay system assisting an authorized individual to identify, prevent, and recover improper payments.

``(B) Authorized individual.--For purposes of this paragraph, the term `authorized individual' means-- ``(i) an officer, employee, agent, or contractor of the Department of Treasury, whose official duties require access to the Do Not Pay system for the purpose of facilitating the identification, prevention, or recovery of improper payments, or ``(ii) an officer, employee, or contractor of an entity authorized to access the Do Not Pay system for the purposes described in subparagraph (E).

``(C) Return information.--The return information that may be disclosed under this paragraph is limited to-- ``(i) taxpayer identity, and ``(ii) any reported identity theft related to the taxpayer identification number.

``(D) Applicable period.--For purposes of this paragraph, the term `applicable period' means, with respect to any individual taxpayer, the period-- ``(i) consisting of the number of taxable years specified in the agreement entered under subparagraph (A), except that such period shall not be fewer than 3 taxable years, and ``(ii) ending with the most recent taxable year for which the information described in subparagraph (C) is available.

``(E) Limitation on use of information.-- Information disclosed under this subparagraph shall be solely for the use of the authorized persons to whom such information is disclosed and solely for the purpose of detecting, preventing, and recovering improper payments.''.

(2) Conforming amendments.-- (A) Section 6103(a)(3) of the Internal Revenue Code of 1986 is amended by inserting ``subsection (i)(9),'' after ``subsection (e)(1)(D)(iii),''.