S.80 - Safeguarding the Transparency and Efficiency of Payments Act; STEP Act (119th Congress)
Summary
The Safeguarding the Transparency and Efficiency of Payments Act (STEP Act) aims to amend Title 31 of the United States Code to improve the prevention of improper payments within federal agencies. It focuses on enhancing financial and administrative controls, particularly concerning fraud risks and vulnerabilities related to payroll, beneficiary payments, grants, large contracts, and purchase/travel cards.
The bill requires agencies to identify programs susceptible to significant improper payments, especially new programs with substantial outlays. It also mandates annual reports to Congress on the progress of implementing financial controls and fraud risk management strategies.
Notably, the Act specifies that no additional funds are authorized for carrying out its provisions, indicating that agencies must implement these changes within their existing budgets.
Expected Effects
The STEP Act is likely to lead to increased scrutiny and accountability regarding federal payments. Agencies will be required to enhance their internal controls and reporting mechanisms to prevent improper payments and fraud.
This could result in a reduction of waste and misuse of taxpayer dollars. However, it may also place additional administrative burdens on federal agencies, requiring them to allocate resources to comply with the new requirements.
Potential Benefits
- Enhanced transparency and accountability in federal spending.
- Reduced improper payments and potential fraud, leading to cost savings for taxpayers.
- Improved financial controls and risk management practices within federal agencies.
- Increased oversight by Congress regarding agency efforts to prevent improper payments.
- Better identification of programs and activities susceptible to improper payments.
Most Benefited Areas:
Potential Disadvantages
- Increased administrative burden on federal agencies, potentially diverting resources from other priorities.
- Potential for agencies to struggle with implementing the new requirements without additional funding.
- Risk of agencies focusing on compliance rather than addressing the root causes of improper payments.
- Limited impact if agencies lack the capacity or resources to effectively implement the required controls and strategies.
- The lack of additional funding may hinder the effectiveness of the Act.
Constitutional Alignment
The STEP Act aligns with the Constitution's emphasis on government accountability and responsible use of taxpayer funds. Article I, Section 9, Clause 7 states that "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time." The STEP Act reinforces this principle by seeking to improve the accuracy and transparency of government payments.
Furthermore, the Act's focus on preventing fraud and improper payments supports the general welfare clause of the Constitution, as it aims to ensure that government resources are used effectively and efficiently for the benefit of the American people.
There are no apparent conflicts with specific constitutional provisions. The Act falls within the legislative powers granted to Congress under Article I.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).