Curbing Federal Fraud: Examining Innovative Tools to Detect and Prevent Fraud in Federal Programs

The GOP Oversight subcommittee on government operations held a hearing on January 14, 2026, focused on innovative tools to detect and prevent fraud in federal programs. Key discussions centered on the use of artificial intelligence and data analytics by the Pandemic Response Accountability Committee (PRAC), the Department of Treasury's Do Not Pay system, and the Government Accountability Office (GAO) to identify and prevent improper payments and fraud before funds are disbursed. Witnesses highlighted the importance of data sharing, cross-agency collaboration, and legislative support to enhance fraud detection capabilities, including permanent authorization and expanded data access for analytic tools. The hearing also addressed challenges such as data privacy, the need for reliable data to train AI systems, and the role of states in administering federal funds. Members emphasized bipartisan cooperation and legislative action to strengthen fraud prevention efforts and improve oversight of federal spending, noting that billions of dollars are lost annually to fraud and improper payments.