New Law Stops Government Payments to People Who Have Died

A new law has been signed to stop the U.S. government from sending money to people who have already passed away. This law will help make sure taxpayer money is used wisely and only goes to living people. It allows government groups to share information about deaths to stop these wrong payments.
By Newsroom | Government, United States |

A new law, the Ending Improper Payments to Deceased People Act, has been signed by President Donald Trump, aiming to prevent federal funds from being disbursed to individuals after their death. This action follows the bill's passage through both chambers of Congress with bipartisan support. The core of the legislation allows the Social Security Administration (SSA) to share its Death Master File, a record of deceased individuals, with the U.S. Department of the Treasury. This information will be used to update the Treasury's "Do Not Pay" system, thereby stopping payments that are erroneously sent to deceased persons.

This measure is presented as a significant step towards curbing government waste and ensuring taxpayer money is allocated to living citizens. The legislation was championed by Senator John Kennedy (R-LA) and Congressman Clay Higgins (R-LA), with support from a range of other senators across the political spectrum.

Background and Legislative Journey

The issue of improper payments to deceased individuals has been a recurring concern. Previously, sharing the SSA's death records with other government agencies was restricted, necessitating separate, often temporary, measures to address the problem. Senator Kennedy has reportedly worked on this issue for several years, identifying a communication gap between government branches as a key impediment.

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  • Initial Concern: Senator Kennedy noted a lack of coordination between government agencies regarding death records.

  • Legislative Effort: Senator Kennedy and Congressman Higgins spearheaded the Ending Improper Payments to Deceased People Act.

  • Congressional Passage: The bill received unanimous support in the Senate and passed the House of Representatives.

  • Presidential Action: President Trump signed the bill into law, making the sharing of death records a permanent practice.

Key Provisions of the Act

The Ending Improper Payments to Deceased People Act introduces a permanent framework for preventing payments to deceased individuals.

  • Data Sharing Authorization: The SSA is now permanently authorized to share its Death Master File with the Department of the Treasury.

  • "Do Not Pay" System Enhancement: The Treasury Department will integrate this data into its "Do Not Pay" system to identify and halt improper payments.

  • Fiscal Impact: Proponents suggest the act will save taxpayers billions of dollars annually by eliminating wasteful spending.

Bipartisan Support and Endorsements

The legislation garnered widespread support from lawmakers of both major parties, underscoring a shared objective to reduce government inefficiencies.

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  • Co-Sponsors: The bill had co-sponsors including Senators Gary Peters (D-Mich.), Ron Wyden (D-Ore.), Joni Ernst (R-Iowa), Maggie Hassan (D-N.H.), and Mark Warner (D-Va.).

  • Congressional Statements:

  • Congressman Higgins stated the bill is a "simple fix to address government waste" and appreciated Senator Kennedy's efforts.

  • Senator Kennedy expressed gratitude to President Trump for signing the bill, calling it a "common-sense bill to end this outrageous abuse."

  • Fiscal conservatives have emphasized the need to end "waste, fraud, abuse, and theft of hard-earned taxpayer dollars."

Analysis of Improper Payments

The existence of improper payments to deceased individuals highlights systemic issues within government payment processes.

  • Root Cause: A lack of data integration between the SSA and other federal agencies was identified as a primary reason for continued payments.

  • Scope of the Problem: Reports suggest that billions of dollars in improper payments have been made.

  • Legislative Solution: The new law aims to provide a permanent, structural solution by enabling continuous data exchange.

Implications and Future Impact

The enactment of the Ending Improper Payments to Deceased People Act is expected to have a significant effect on government financial management.

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  • Cost Savings: The primary anticipated outcome is substantial savings for taxpayers.

  • Government Efficiency: The act promotes better coordination and data utilization within federal agencies.

  • Permanent Solution: Unlike previous temporary measures, this legislation provides a lasting fix to a persistent problem.

Sources

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Frequently Asked Questions

Q: What does the new law do?
The new law stops the U.S. government from sending money to people after they have died. It helps save money for taxpayers.
Q: How does the law work?
The law lets the Social Security Administration share death records with the Treasury Department. This helps stop payments that are sent by mistake to people who are no longer alive.
Q: Why is this law important?
This law is important because it stops government waste. It makes sure that money meant for people is only given to those who are alive.