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CBO: Senate’s Improper Payment Law Amendment Would Not Gain ‘Significant’ Savings

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BudgetA new Congressional Budget Office report says there would be no “significant” savings from a Senate bill that aims to amend a law in order to reduce improper payments by federal agencies.

CBO said Thursday the Federal Improper Payments Coordination Act of 2015 seeks to extend the use of the Treasury Department’s Do No Pay Program to legislative and judicial branches and require the departments of Defense and State to submit data on the deaths of individuals.

According to the Office of Management and Budget, the federal government made improper payments worth approximately $125 billion in 2014.

CBO said the bill would not pose considerable savings because it does not recommend any new regulatory bodies to help Medicaid, Medicare, Unemployment Insurance and other federal entitlement initiatives reduce improper payments.

Treasury officials told CBO that both legislative and judicial branches already have access to DNP platform under existing law and both branches’ spending account for less than 1 percent of the federal government’s total spending.

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