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The Stopping Fraudulent Payments Act amends federal payment law to authorize federal agencies and the Treasury Department to pause, delay, condition, or segment disbursement requests when they detect elevated fraud risk or improper payments. Agencies must document fraud-risk indicators, notify payees within 2 days, allow payees to contest the pause, and issue payment within 30 days (or 7 days after contestation) unless fraud risk is confirmed. The bill also allows the Treasury to issue corrective action orders based on the Do Not Pay system and requires Treasury to issue regulations within 180 days establishing procedures for implementation.
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