Legis
Finance
Executive order · Tuesday 25 March 2025

Protecting America’s Bank Account Against Fraud, Waste, and Abuse

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  • Purpose: Enhance financial integrity, operational efficiency, and accountability within the Federal Government's financial transactions.

  • Background:

    • The Federal Government disburses and receives trillions annually.
    • In FY 2024, $33.9 trillion was deposited into the General Fund; $33.6 trillion was disbursed.
    • The Department of the Treasury manages the General Fund but lacks necessary controls to track transactions.

  • Challenges:

    • Financial fraud undermines trust and integrity in federal programs, with estimated losses of $233 - $521 billion annually.
    • Agencies' outdated technology and data access problems hinder fraud prevention.

  • Key Provisions:

    • Treasury to conduct fraud screening before disbursements.
    • Agencies required to provide detailed financial information to Treasury for tracking.
    • Disbursing functions to be centralized under the Treasury where feasible.

  • Specific Actions:

    • Pre-Certification Verification:

      • Treasury to enhance systems to mandate verification processes before payments are made.
      • Emphasize compliance with the Do Not Pay Working System.

    • Agency Cooperation:

      • Agencies must support Treasury in determining payment eligibility.
      • Heads of agencies must review and modify record systems to enable data sharing for fraud prevention.

    • Consolidation of Financial Systems:

      • OMB to direct consolidation of core financial systems within agencies.
      • Non-CFO Act agencies to also consolidate under approved providers.

    • Disbursing Authority:

      • Treasury to assess and potentially revoke delegated disbursing authority from agencies.
      • Transition of disbursing activities to Treasury’s Chief Disbursing Officer, where feasible.

  • Reporting Requirements:

    • Agencies must submit compliance plans detailing their transition strategies.
    • Treasury to report progress on implementation within 180 days.

  • Security Measures: Ensure that classified information and personal data are protected during execution of the order.

  • Legal Considerations:

    • The order does not change existing legal authorities or create enforceable rights against the U.S. government.