Protecting America’s Bank Account Against Fraud, Waste, and Abuse
Summary
This executive order aims to reduce fraud, waste, and abuse in federal government spending. It focuses on strengthening the Department of the Treasury's oversight of the United States General Fund. The order mandates increased financial information sharing from agencies and consolidates core financial systems.
It also seeks to reduce the number of Non-Treasury Disbursing Offices (NTDOs) and centralize payment processes. The goal is to improve financial integrity, transparency, and operational efficiency in federal payments.
The order directs various agencies and the Office of Management and Budget (OMB) to implement these changes within specific timeframes, enhancing the Treasury's ability to prevent improper payments.
Expected Effects
The order will likely lead to more stringent pre-payment verification processes for federal disbursements. Agencies will need to update their systems and procedures to comply with the new requirements.
Consolidation of financial systems and reduction of NTDOs could streamline operations and reduce redundancies. This could also lead to more centralized control over federal spending by the Department of the Treasury.
Increased data sharing and oversight may result in the identification and prevention of more fraudulent or improper payments, potentially saving taxpayer money.
Potential Benefits 4/5
- Reduced fraud and improper payments, leading to potential savings for taxpayers.
- Increased transparency and accountability in federal government spending.
- Improved operational efficiency through consolidation of financial systems.
- Enhanced ability of the Department of the Treasury to oversee federal disbursements.
- Standardized financial reporting across federal agencies.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased bureaucracy and administrative burden on federal agencies.
- Possible delays in payment processing due to more stringent verification procedures.
- Risk of data breaches or privacy violations with increased data sharing.
- Potential for resistance from agencies that may lose some autonomy over their disbursing functions.
- Costs associated with updating systems and integrating them with Department of the Treasury platforms.
Constitutional Alignment 4/5
The executive order is based on the President's authority vested by the Constitution and laws of the United States. While the Constitution does not explicitly detail financial management, Article I, Section 9 states that 'No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.'
The order aims to ensure that funds are disbursed properly and legally, aligning with the principle of responsible use of taxpayer money. The order also references specific statutes (31 U.S.C. 3321, 3351 et seq., 3354, 5 U.S.C. 552a(o), 31 U.S.C. 901(b)) which Congress has enacted, and the order is meant to be implemented consistent with applicable law.
However, the expansion of data sharing raises potential privacy concerns, which could implicate the Fourth Amendment if not carefully managed. The order attempts to address this by directing agencies to review and modify their system of records notices under the Privacy Act of 1974.
Impact Assessment: Things You Care About
This action has been evaluated across 19 key areas that matter to citizens. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).