The STEP Act amends federal law governing how executive agencies track and report improper payments—meaning payments made in the wrong amount, to the wrong recipient, or for ineligible purposes. It requires agencies to identify new programs or activities as at risk for significant improper payments if they have or expect outlays exceeding $100 million within their first three years of operation, and it strengthens annual reporting requirements by having each agency's chief financial officer certify the accuracy of improper payment estimates and identify entities responsible for managing fraud risks. Agencies must submit these reports for ten consecutive fiscal years starting the year after the law takes effect, detailing progress on fraud prevention controls, risk profiles, and antifraud strategies, following leading practices established by the Government Accountability Office. The bill primarily affects federal agencies and their financial management offices, aiming to improve transparency and accountability in how taxpayer dollars are spent. Notably, the legislation explicitly states that no additional funding is authorized to implement these changes, meaning agencies must absorb these new reporting and oversight responsibilities within existing budgets.
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