Federal Spending Control: Act to Prevent Waste, Fraud, and Improper Payments
The STEP Act aims to reduce waste and fraud in government spending by implementing stricter payment control rules across federal agencies. It mandates that new, high-budget programs must be identified as susceptible to improper payments, and requires Chief Financial Officers to personally certify the reliability of these risk assessments. For citizens, this means increased assurance that taxpayer money is being spent efficiently and is better protected against errors and fraud.
Key points
New federal programs with budgets exceeding $100 million must be mandatorily reviewed for the risk of improper payments (errors or fraud) during their first four years of operation.
Agency Chief Financial Officers (CFOs) must personally certify the validity of improper payment estimates, increasing their accountability for public funds.
Agencies are required to report to Congress for 10 years on their progress in implementing strategies and controls designed to actively manage fraud risks, including payroll, grants, and beneficiary payments.
Expired
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