STEP Act

Senate Bill

S. 80

119th Congress

STEP Act

In Committee

Introduced:Jan 13, 2025

Primary Sponsor

James Lankford

Senator

Republican

OK

Cosponsors

0

Quick Stats

Policy Area

Government Operations and Politics

Summary

The STEP Act strengthens requirements for federal agencies to prevent improper payments. It requires agencies to identify new programs as susceptible to significant improper payments and allows CFO-approved estimation methodologies. Agencies must report progress on fraud prevention for 10 years after enactment.

Latest Action

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

SponsorJames Lankford (R-OK)

Introduced1/13/2025

StatusRead twice and referred to the Committee on Homeland Security and Governmental Affairs.

ChamberSenate

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Vote Prediction

STEP Act

The STEP Act strengthens requirements for federal agencies to prevent improper payments. It requires agencies to identify new programs as susceptible to significant improper payments and allows CFO-approved estimation methodologies. Agencies must report progre

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The STEP Act strengthens requirements for federal agencies to prevent improper payments. It requires agencies to identify new programs as susceptible to significant improper payments and allows CFO-approved estimation methodologies. Agencies must report progress on fraud prevention for 10 years after enactment.

Bill Number: 80
Sponsor: James Lankford (R-OK)
Introduced: 1/13/2025
Status: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Policy Area: Government Operations and Politics

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: STEP Act
Bill Number: 80
Sponsor: James Lankford (R-OK)
Status: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Introduced: 1/13/2025
Summary: The STEP Act strengthens requirements for federal agencies to prevent improper payments. It requires agencies to identify new programs as susceptible to significant improper payments and allows CFO-approved estimation methodologies. Agencies must report progress on fraud prevention for 10 years afte

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

The STEP Act strengthens requirements for federal agencies to prevent improper payments. It requires agencies to identify new programs as susceptible to significant improper payments and allows CFO-approved estimation methodologies. Agencies must report progress on fraud prevention for 10 years after enactment.

Last updated: 1/5/2026

Official Summary

Congressional Research Service summary

Safeguarding the Transparency and Efficiency of Payments Act or the STEP ActThis bill requires federal agencies to take certain actions to prevent improper payments (i.e., payments that should not have been made or were made in an incorrect amount).   The bill requires agencies to annually identify as susceptible to significant improper payments any new program or activity that is in its first four years of operation and has, or is expected to have, outlays exceeding $100 million in any of its first three fiscal years of operation, with exceptions for activities that are not susceptible to significant improper payments. (Agencies must report estimates of improper payments for activities identified as susceptible.)   The bill allows agencies, when estimating improper payments, to use an estimation methodology approved by the agency's chief financial officer (CFO). (Currently, only methodologies approved by the Office of Management and Budget may be used.)An agency’s annual financial statement must include certain reports related to the agency’s improper payments. Such reports must also include a certification by the agency CFO that the identification of programs and activities susceptible to significant improper payments is reliable as well as a description of the CFO's actions to monitor required corrective action plans.   Each agency must report to Congress for each of the 10 fiscal years after enactment on certain matters, including progress in managing fraud risks and implementing financial controls.

Key Points

Main provisions of the bill

Requires identification of programs susceptible to improper payments
Allows agency CFO-approved estimation methodologies
Mandates CFO certification of payment risk assessments
Requires 10 years of congressional reporting on fraud prevention
Strengthens financial controls and corrective action plans

How This Impacts Americans

Potential effects on citizens and communities

Federal agencies would face stricter requirements to identify and reduce improper payments. Taxpayers could benefit from reduced waste as agencies implement better financial controls and fraud prevention measures.

Policy Areas

Primary Policy Area

Government Operations and Politics

Related Subjects

Congressional oversight

Executive agency funding and structure

Fraud offenses and financial crimes

Government information and archives

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

80, 119th Congress (2025). "STEP Act". Source: Voter's Right Platform. https://votersright.org/bills/118-s-80

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