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FIRST ON FOX: House Republicans say they are ready to advance legislation that would crack down on widespread fraud in states like Minnesota and California.
House Oversight Committee Chairman James Comer, R-Ky., introduced legislation Thursday that would address fraud in federal programs by restricting early payments to “high-risk” recipients, Fox News Digital has learned.
His panel will mark up the two bills — the Stop Fraudulent Payments Act and the Payment Fraud Prevention and Access to Financial Data Act — as soon as next Wednesday, a House Oversight Committee spokesperson told Fox News Digital.
“The American people are fed up with this abuse and they expect the government to take action,” Comer said in a statement. “These long-overdue integrity measures will strengthen the government’s payment system, and I look forward to advancing these bills next week in the Oversight Committee.”
Rep. James Comer, R-Ky., chairman of the House Oversight and Accountability Committee, unveiled legislation on April 23, 2026, to end fraud following his panel’s investigation into the welfare programs of Minnesota and California. (Graeme Sloan/Bloomberg via Getty Images)
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Comer’s anti-fraud campaign comes after the watchdog launched a major investigation into state-run social services programs in Minnesota and California.
The committee presented an interim report in March that found Gov. Tim Walz, D-Minn., and Minnesota Attorney General Keith Ellison. he knew for years that their government-sponsored welfare programs are full of fraud, but they say they ignore the concerns of the bad guys when they try to bring about the problem.
Fraudsters could have stolen at least $9 billion from Minnesota welfare programs, according to Comer’s investigation. Federal prosecutors have charged at least 92 people in connection with the fraud schemes, most of whom are of Somali origin, and have received more than 60 cases so far.
Monitor panel too opened an investigation into “rampant taxpayer fraud” in California hospice programs in March.
Comer’s legislation would seek to better protect taxpayer dollars in advance by stopping “pay and chase” procedures, which are used by some fraudsters as a way to slip under the radar as fraud is discovered only after benefits have been paid.
House Oversight Chairman James Comer launched an investigation into alleged hospice fraud in California and urged Gov. Gavin Newsom to answer as the magnitude of the case may exceed a similar investigation in Minnesota. (Kevin Dietsch/Getty Images; Ayfun Coskun/Anadolu via Getty Images)
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If the Kentucky Republican bills are enacted, federal agencies would be barred from sending payments if they find the recipient to be a “high risk of fraud,” or the transfer is suspected of being an improper payment.
The law will also direct the Ministry of Finance to verify payments and recipient information to catch counterfeit funds before they are issued. The treasury will also be equipped with a new authority to block payment requests from government agencies if it suspects fraud.
Sheila Clark, CEO of a hospice advocacy group, told House lawmakers Wednesday that fraud is rampant among some providers in the state.
“You’d be surprised how many hospices there are… a door you can walk into in California and there’s nobody there,” Clark said at a House Ways and Means Committee hearing, adding that “there are months’ worth of books you can see stacked up.”
“And that passed the poll. How did that happen?” he asked.
“How do you put a hospice in a burrito place in California?” Clark continued, probably referring to a particular incident he encountered. “How do you put hospice in every store in California? All of that had to go through licensing and certification and approval.”
House Budget Committee Chairman Jodey Arrington, R-Texas, expressed support for Comer’s plans for anti-fraud legislation.
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“Instead of hunting down stolen money after the fact, these bills prevent improper payments and fraud in the first place,” Arrington, a sponsor of two bills, told Fox News Digital.
“If we are serious about restoring financial stability in Washington, we must be serious about eliminating waste, fraud, and abuse wherever they exist,” he added.
