White House Approaches Stricter Supplier Payment Law

New legislation aimed at making payments to government suppliers and vendors more accurate and secure has just taken a significant step forward.

Reports published Wednesday (Dec. 9) by Federal News Radio said the House of Representatives has passed the Federal Improper Payments Coordination Act of 2015, and the bill will now head to the desk of President Barack Obama.

The legislation would connect government officials and contractors to the Treasury Department’s Do Not Pay platform, a database the government uses to verify vendors. The effort would look to ensure that the federal government is issuing accurate payments to these suppliers.

“Taxpayers expect the federal government to ensure that it is paying the right people, in the right amount, for the right reason,” said Sen. Ron Johnson (R-WI). Johnson introduced the bill earlier this year, alongside Sen. Tom Carper (D-DE).

Johnson added that, last year, the federal government saw $19 billion more in improper payments compared to the year prior, making it clear that “efforts to stop improper payments have failed.”

According to the Government Accountability Office, the federal government issued $125 billion worth of payments to ineligible recipients in 2014, representing a 14 percent increase from the year before.

[bctt tweet=”The federal government issued $125B to ineligible recipients in 2014.”]

“Despite agencies’ efforts, improper payments continue to cost agencies billions of taxpayer dollars and, ultimately, undermine the effectiveness of the service that Americans rely upon,” said Sen. Carper.

The bill was introduced last February, with the Senate unanimously approving the legislation in July, according to reports. It includes private requirements and guidance on how to enter the Do Not Pay program, reports said.