Improper Payments Elimination and Recovery Act to Become Law

Blue Dogs make headway in effort to reduce wasteful government spending

Washington, DC – On July 22, 2010, President Obama signed into law the Improper Payments Elimination and Recovery Act, bipartisan legislation to eliminate $110 billion in waste, fraud and abuse resulting from poor oversight and accountability on the part of federal government agencies.  This legislation, championed by Representative Patrick Murphy of Pennsylvania, is a major element of the Blue Dog Blueprint for Fiscal Reform. 

“The best way to prevent wasteful spending is to stop it from happening in the first place,” said Murphy. “This bipartisan law holds the federal government to the same standard of fiscal responsibility as families across America hold themselves.”

“At a time when American families are tightening their belts, there is no excuse for taxpayer dollars to be wasted on overpayments or careless accounting mistakes,” said Representative Jim Matheson, Blue Dog Co-Chair for Communications. “This is a great example of the type of bipartisan, commonsense legislation that will help restore much needed fiscal discipline to the federal government.”

Enactment of the Improper Payments Elimination and Recovery Act (IPERA) will reduce the estimated $110 billion in improper payments – those that occur when a federal agency pays too much or pays twice for a product or service.  Specifically, this law will increase government transparency by lowering the improper payment threshold for agencies, requiring them to develop action plans to avoid future waste and recover overpayments.