Subcommittee on Government Operations Chairman Pete Sessions announced on Apr. 15 the introduction of the Fraud Prevention and Accountability Act during a hearing focused on understanding and preventing fraud in federally funded programs administered by states.
The topic is significant as it addresses ongoing concerns about improper use of taxpayer dollars in major assistance programs like Medicaid, SNAP, and unemployment insurance. Lawmakers are seeking solutions to ensure that federal funds reach those who need them most while minimizing losses due to fraudulent activities.
In his opening statement, Sessions said, “For too long, too little emphasis has been placed on preventing fraud.” He explained that his proposed legislation aims to shift the approach from chasing after lost funds to stopping fraudulent payments before they occur by empowering the Treasury Fiscal Service. Sessions also highlighted another key aspect of the bill: “My bill also creates the Inspector General for Fraud, Accountability and Recovery (IGFAR), which, in essence, creates a permanent home for the anti-fraud analytic and investigative capabilities developed by the Pandemic Response Accountability Committee (PRAC) during COVID.”
Sessions addressed recent investigations into fraud in Minnesota but clarified that such issues are not isolated to one state. He cited examples from both Minnesota and Mississippi—where State Auditor Shad White uncovered waste and fraud in Mississippi’s Temporary Assistance for Needy Families program—to illustrate how widespread these problems can be.
He posed several questions regarding incentives for states to prevent fraud, potential weaknesses in current statutes, challenges related to information access, and possible improvements needed among transparency officials such as inspectors general or auditors at the state level.
Concluding his remarks, Sessions said he hopes today’s witnesses will help identify root causes of state-level fraud and provide guidance for further actions so taxpayer money is properly used.
