PolicyBrief
H.RES. 1335
119th CongressJun 11th 2026
Condemning actors seeking to defraud the United States Government, and expressing the sense of the House of Representatives that governmentwide fraud and improper payment prevention reforms will meaningfully improve the financial prosperity of the United States, and that Federal program eligibility should be verified before payment.
HOUSE PASSED

This resolution condemns government fraud and urges the House to prioritize pre-payment verification and government-wide reforms to improve U.S. financial prosperity.

Patrick "Pat" Fallon
R

Patrick "Pat" Fallon

Representative

TX-4

PartyTotal VotesYesNoDid Not Vote
Democrat
2122317712
Republican
21921207
LEGISLATION

House Resolution Targets $3 Trillion in Waste: New Push for Pre-Payment Verification to End Taxpayer-Funded Fraud.

The federal government has a massive leak in its bucket, and this resolution is the first step toward plugging it. Since 2003, Uncle Sam has accidentally or fraudulently paid out roughly $3 trillion in improper payments. To put that in perspective for those of us paying taxes every April, that is roughly $1,000 to $3,000 per tax filer going toward fraudulent spending rather than schools, roads, or debt reduction. The resolution calls for a fundamental shift in how the government handles our money: moving away from the 'pay now, ask questions later' model to a system where eligibility must be verified before a single dollar leaves the building.

The Pandemic Price Tag

While fraud has always been a thorn in the side of the Treasury, the pandemic relief efforts between 2020 and 2021 acted like an accelerant. Because the government prioritized speed over security, over $4.6 trillion was pushed out with relaxed eligibility requirements. This created a gold mine for scammers. For example, the resolution notes that a single child nutrition program lost $250 million to fraudsters who used the cash to buy luxury cars and overseas real estate. Whether you’re a contractor playing by the rules or a parent trying to navigate rising grocery costs, seeing that kind of waste is a tough pill to swallow. The resolution makes it clear that self-attestation—basically the honor system—is no longer a viable way to manage federal funds.

Closing the State-Level Loopholes

The resolution doesn't just look at D.C.; it shines a light on how state-level oversight failures hit the federal wallet. It points to specific issues like California hospice providers billing for patients who didn't even know they were enrolled, and Ohio’s Medicaid system paying for home-care services that were never actually performed. For a healthcare worker or a small business owner who has to document every hour and expense to get paid, these stories of unchecked billing are particularly frustrating. By pushing for government-wide reforms, the House wants to ensure that state agencies are held to the same 'verify first' standard as federal ones, preventing your tax dollars from being siphoned off by bad actors in local programs.

Verification vs. Velocity

The big shift here is the move toward 'pre-payment prevention.' We’ve already seen some of this in action with the Task Force to Eliminate Fraud, which recently blocked $60 million in fraudulent student loan applications using new risk assessment tools. However, for the average person, this shift could be a double-edged sword. While it’s great that scammers are being blocked, the challenge will be ensuring that the new verification layers don't create a bureaucratic nightmare for honest people. If you’re a student applying for a loan or a senior trying to access benefits, you want the system to be secure, but you also need it to be fast. The resolution argues that the 'national fiscal emergency' caused by these losses justifies the extra scrutiny, aiming to protect the financial prosperity of the country by making sure the money actually reaches the people it was intended for.