Social Security Must Share Data with 'Do Not Pay' System by Late 2026 to Stop Improper Payments

The “Ending Improper Payments to Deceased People Act” is exactly what it sounds like: a bill designed to stop the government from accidentally sending checks to people who have passed away. This first section, called “Improving coordination between Federal and State agencies and the Do Not Pay working system,” focuses on making sure the Social Security Administration (SSA) talks to the right people in government.

The Data Handshake: SSA Meets Do Not Pay

This bill requires the Commissioner of Social Security to share information the SSA already has with the agency running the government’s “Do Not Pay” system. Think of the Do Not Pay system as the government’s central fraud prevention database, designed to catch improper payments across all federal agencies. For this data sharing to happen, a formal agreement must be put in place between the SSA and the Do Not Pay agency. Crucially, the bill specifies that this agreement must still follow existing privacy rules, meaning the data can only be used for the purposes it was collected for and must be protected just like it is now. This is a procedural move aimed at efficiency, not a big change to privacy.

Why This Matters for Your Wallet

For most people, this change won’t directly affect your day-to-day life, but it’s a big deal for government accountability. When the government sends out billions of dollars in benefits—whether it’s Social Security, veterans’ benefits, or other payments—mistakes happen. Sometimes, those mistakes are checks going to deceased individuals because one agency didn’t know what another agency knew. By forcing the SSA to share its mortality data with the central Do Not Pay system, the government is trying to plug a major leak. The idea is that better data coordination equals less waste, which ultimately saves taxpayer money.

The Catch and the Clock

While this sounds like a straightforward fix, there are a couple of things to note. First, the bill only requires the SSA to share data “to the extent it’s possible,” which gives the agency some wiggle room. If the SSA claims it’s technically impossible or too costly to share certain data, they could limit the scope of cooperation. Second, don’t expect this change to happen tomorrow. The bill sets a clear deadline: these amendments, including the required data sharing, won’t officially take effect until December 28, 2026. So, while the goal is efficiency, the implementation timeline is measured in years, not months.