HR 8489
HUD Payment Integrity and Accountability Act of 2026
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Bill overview
The HUD Payment Integrity and Accountability Act of 2026 requires the Department of Housing and Urban Development (HUD) to conduct assessments of improper payments for project-based and tenant-based housing assistance programs. The bill mandates a detailed plan for testing and reporting these payments, and establishes a process for identifying significant increases in assistance amounts or recipients. It also directs the HUD Inspector General to conduct audits and fraud risk assessments to ensure program compliance and detect potential fraud, specifically focusing on a substantial portion of annual rental assistance spending.
Key provisions
- Requires HUD to conduct an improper payment assessment for project-based and tenant-based assistance.
- Establishes a timeline for the Secretary to include the assessment in the agency’s financial report.
- Directs the Inspector General to notify the Department of any determination of significant increases in assistance payments.
- Mandates an audit by the Inspector General to identify programs with significant payment increases and ensure compliance.
- Requires the Inspector General to conduct a fraud risk assessment of approximately $50 billion in annual rental assistance spending.
- Calls for a data draw from relevant systems to reconcile payments at the eligibility tier.
- Addresses barriers to computer matching agreements with the Do Not Pay database.
- Requires the Inspector General to assess the statistical soundness of the assessment methodology.
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119th CONGRESS — 2d Session
H. R. 8489
IN THE HOUSE OF REPRESENTATIVES
A BILL
To require the Secretary of Housing and Urban Development to conduct an improper payment assessment for project-based and tenant-based assistance, and for other purposes.
This Act may be cited as the HUD Payment Integrity and Accountability Act of 2026
.
In this Act:
The term Department means the Department of Housing and Urban Development.
The terms project-based assistance and tenant-based assistance have the meanings given those terms in section 8(f) of the United States Housing Act of 1937 (42 U.S.C. 1437f(f)).
Not later than December 1, 2027, the Secretary shall include, as part of the agency financial report for fiscal year 2027 required under OMB Circular No. A–36, a compliant improper payment assessment for project-based assistance and tenant-based assistance.
The Secretary shall develop and execute a detailed plan and timeline for testing and reporting improper payment estimates in the Office of Public and Indian Housing’s Tenant-Based Rental Assistance program and the Office of Multifamily Housing's Project-Based Rental Assistance program, in full compliance with Federal law and applicable guidance issued by the Office of Management and Budget.
Not later than 60 days after making a determination described in paragraph (2), the Secretary shall notify the Inspector General of the Department of the determination.
A determination described in this paragraph is a determination that—
the aggregate amount of housing assistance payments or grants paid under the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) for a ZIP Code and county or county equivalent increased by more than 100 percent in a single year; or
the number of owners, landlords, or public housing agencies receiving Federal rental assistance or operating subsidies increased in a ZIP Code and county or county equivalent by more than 100 percent in a single year.
Not later than 60 days after making a determination described in paragraph (2), the Secretary shall notify the Inspector General of the Department of the determination.
A determination described in this paragraph is a determination that—
the aggregate amount paid under the Community Development Block Grant program under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 3601 et seq.) or funds paid under the Community Development Block Grant program for Disaster Recovery for a specific project or within a ZIP Code and county equivalent increased by more than 100 percent in a single year; or
the number of sub-recipients or contractors receiving payments under the programs described in subparagraph (A) in a specific jurisdiction increased by more than 100 percent in a single year.
Not later than 2 years after the date of enactment of this Act, and annually thereafter, the Inspector General of the Department shall—
identify, based on the results of notifications received under subsection (a)(1) or (b)(1), any program or geographic area in which the aggregate amount paid or the number of participating housing providers increased by not less than 400 percent during the preceding 5-year period; and
audit any such program, agency, or recipient to ensure compliance with improper payment testing requirements and to detect potential fraudulent activity.
Not later than 180 days before the deadline described in section 3(a), the Inspector General of the Department shall certify whether or not—
the Secretary made a serious effort to conduct a data draw and receive supporting documents needed to conduct the assessment described in section 3(a).
The Inspector General of the Department shall conduct, and submit to the Committee on Banking, Housing, and Urban Affairs and the Committee on Homeland Security and Governmental Affairs of the Senate a report on, a separate fraud risk assessment specifically for the approximately $50,000,000,000 expended annually for rental assistance, including tenant-based ad project-based assistance under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)), to identify high-risk nodes in the payment chain.
In conducting the assessment under paragraph (1), the Inspector General shall of the Department shall—
execute a comprehensive data draw from all relevant departmental and third-party contract administrator systems to reconcile payments at the eligibility tier;
identify specific barriers preventing the Department from reestablishing computer matching agreements with the Do Not Pay
database of the Department of the Treasury; and
include in the report an analysis on how system enhancement funding provided in previous fiscal years has been utilized to specifically address noncompliance with subchapter IV of chapter 33 of title 31, United States Code, and other provisions of law related to improper payments.