New Bill Aims to Stop Payments to Deceased Individuals by 2026: Boosts Federal-State Data Sharing

The "Ending Improper Payments to Deceased People Act" is pretty much what it sounds like—it's designed to, well, stop sending government payments to people who are no longer alive. This bill, effective December 28, 2026, tackles the issue by requiring the Social Security Administration (SSA) to share its death data with the federal "Do Not Pay" system (Section 2).

Plugging the Leaks

The core of the bill is about tightening up data sharing between federal and state agencies. Right now, there can be gaps in communication, which sometimes leads to payments going out to deceased individuals. This legislation mandates the SSA to share its full death data with the "Do Not Pay" system, a database managed by another federal agency, designed to flag and prevent improper payments. Think of it as a much-needed system update to prevent these costly errors, ensuring that payments only go to those who are actually eligible.

Real-World Rollout

So, how might this play out in the real world? Imagine a small business owner who relies on accurate government records for various transactions. With better data sharing, they can have more confidence in the system's integrity. Or consider a family dealing with the loss of a loved one—this bill helps ensure they won't also have to deal with the added stress of misdirected government payments. The changes from this bill are designed to streamline the process and reduce the administrative burden on both agencies and families (Section 2).

Guarding the Data

Of course, with increased data sharing comes the need for strong data protection. The bill specifically requires that all data shared must adhere to strict security measures (Section 2). This is crucial to prevent data breaches and protect sensitive personal information. It's like making sure your online banking has top-notch security—essential for keeping things running smoothly and safely. The delayed effective date of December 28, 2026, gives agencies time to upgrade their systems and implement these protections, ensuring that the rollout is as smooth and secure as possible.

The Bottom Line

This bill addresses a specific, yet significant, problem: reducing improper payments and improving government efficiency. It's not a massive overhaul, but rather a targeted fix to a system that needs better coordination. By ensuring accurate and secure data sharing, the legislation aims to save taxpayer money and reduce the risk of fraud. It fits within the broader context of existing laws aimed at financial accuracy and data security, providing an incremental but important improvement.