Government Audit and Accountability of Federally Funded State-Administered Programs Act in plain language
1: Short title
This section would give the Act the short title "Government Audit and Accountability of Federally Funded State-Administered Programs Act."
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1. Short title This Act may be cited as the Government Audit and Accountability of Federally Funded State-Administered Programs Act .
2: Federally-funded State-administered programs vulnerability assessment
This section would require the Comptroller General of the United States to submit to Congress, no later than 2 years after the date this Act becomes law and periodically after that, an assessment of the program areas and administrative practices that present the greatest risk to the integrity of Federal funds that State and local governments and pass-through entities administer and that are subject to audit under chapter 75 of title 31 of the United States Code. Each assessment would have to identify Federal, State, and local program areas and administrative practices that create systemic vulnerabilities in how State and local governments administer Federal funds, including practices more susceptible to waste, fraud, abuse, and improper payments; assess evidence-based best practices and strategies that have strengthened the integrity of Federal funds administered by State and local governments and reduced waste, fraud, and abuse in federally funded programs; assess Federal, State, and local program areas and administrative practices that have either demonstrated effectiveness in mitigating waste, fraud, abuse, and improper payments or shown limited effectiveness in reducing those risks; identify Federal tools, resources, and technical assistance available to State and local governments and how those could be improved to prevent and mitigate the vulnerabilities identified; and include recommendations to Federal agencies and matters for Congress to consider to address and improve the identified program areas and practices, including recommendations to improve eligibility determination and enrollment processes to mitigate risk. In preparing each assessment, the Comptroller General would have to rely, to the extent practicable, on existing oversight, audit, and investigative materials, which could include any finding by a Federal, State, or local auditor, comptroller, treasurer, inspector general, attorney general, or similar official regarding the administration of such funds; any audit required under section 7502 of title 31 of the United States Code; and any other publicly available Federal, State, or local oversight and program integrity data. Where those materials are not sufficient to assess the program areas and practices required to be assessed, the Comptroller General could supplement them with additional analysis and new audit work, including by drawing on prior and ongoing work. The Comptroller General would determine the appropriate form and methodology for preparing and submitting each assessment. For purposes of this section, "improper payment" would have the meaning given that term in section 3351(4) of title 31 of the United States Code, and "State" would have the meaning given that term in section 6720(a)(4) of title 31 of the United States Code.
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2. Federally-funded State-administered programs vulnerability assessment (a) In general Not later than 2 years after the date of the enactment of this Act, and periodically thereafter, the Comptroller General of the United States shall submit to Congress an assessment of program areas and administrative practices that present the greatest risk to the integrity of Federal funds administered by State and local governments and pass-through entities subject to audit under chapter 75 of title 31, United States Code. (b) Contents Each assessment required by subsection (a) shall— (1) identify program areas and administrative practices at the Federal, State, and local level that present systematic vulnerabilities in the administration of Federal funds by State and local governments, including practices that are more susceptible to waste, fraud, abuse, and improper payments; (2) assess evidence-based best practices and strategies that have strengthened the integrity of Federal funds administered by State and local governments and reduced waste, fraud, and abuse in Federally-funded programs; (3) assess program areas and administrative practices at the Federal, State, and local level that— (A) have demonstrated effectiveness in mitigating waste, fraud, abuse, and improper payments; or (B) have shown limited effectiveness in reducing such risks; (4) identify Federal tools, resources, and technical assistance available to State and local governments and how such tools may be improved to prevent and mitigate the systemic vulnerabilities identified under paragraph (1); and (5) include recommendations to Federal agencies and matters for consideration to Congress to address and improve the program areas and administrative practices identified under paragraph (1), including recommendations to improve eligibility determination and enrollment processes to mitigate risks. (c) Sources (1) Audit and related materials In carrying out the preparation of the assessment under subsection (a), the Comptroller General shall rely, to the extent practicable, on existing oversight, audit, and investigative materials to conduct an analysis of Federal funds administrated by State and local governments, which may include— (A) any finding of a Federal, State, or local auditor, comptroller, treasurer, inspector general, attorney general, or any other similar official with respect to the administration of such funds; (B) any audit required under section 7502 of title 31, United States Code; and (C) any other publicly available Federal, State, or local oversight and program integrity data. (2) Additional materials In preparing each assessment required by subsection (a), the Comptroller General may supplement the materials described in paragraph (1) with additional analysis and new audit work, including by drawing on prior and ongoing work, where such materials are insufficient to assess the program areas and administrative practices identified under subsection (b)(1). (d) Form and methodology The Comptroller General shall determine the appropriate form and methodology for preparing and submitting each assessment required by subsection (a). (e) Definitions In this section: (1) Improper payment The term improper payment has the meaning given that term in section 3351(4) of title 31, United States Code. (2) State The term State has the meaning given that term in section 6720(a)(4) of title 31, United States Code. Passed the House of Representatives June 8, 2026. Kevin F. McCumber, Clerk.