As reported by the House Committee on Oversight and Government Reform on June 3, 2026
By Fiscal Year, Millions of Dollars | 2026 | 2026-2031 | 2026-2036 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Direct Spending (Outlays) | 0 | a | a | ||||||||
Revenues | 0 | 0 | 0 | ||||||||
Increase or Decrease (-) in the Deficit | 0 | a | a | ||||||||
Spending Subject to Appropriation (Outlays) | 0 | 0 | 18 | ||||||||
Increases net direct spending in any of the four consecutive 10-year periods beginning in 2037? | No | Statutory pay-as-you-go procedures apply? | No | ||||||||
Mandate Effects | |||||||||||
Increases on-budget deficits in any of the four consecutive 10-year periods beginning in 2037? | No | Contains intergovernmental mandate? | No | ||||||||
Contains private-sector mandate? | No | ||||||||||
a. CBO does not have a basis to determine the magnitude of the decrease in fraudulent payments or the recoveries of such payments under the bill, relative to current law. | |||||||||||
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H.R. 8312 would establish the Office of the Inspector General (IG) for Fraud, Accountability, and Recovery that would assume the responsibilities and resources of the Pandemic Response Accountability Committee (PRAC) starting in 2029. The PRAC currently monitors spending related to relief programs for the coronavirus pandemic. The bill would transfer those responsibilities and existing balances to the new office. H.R. 8312 also would grant the new IG the authority to permanently monitor certain payments across the federal government. Beginning in 2035, the bill would authorize the appropriation of $10 million each year for those activities.
The Department of the Treasury and existing Inspectors General are authorized under current law and Executive Order 14249 to monitor federal payments using activities similar to those required under H.R. 8312. Other federal statutes, including the Prompt Payment Act and program-specific benefit payment deadlines, limit the universe of payments that could be paused under H.R. 8312 while the government investigates the validity of the payment. Establishing the Office of the Inspector General for Fraud, Accountability, and Recovery could result in savings by increasing the recovery of fraudulent payments and improving oversight across federal agencies. However, CBO does not have sufficient information about how the executive order would change payment behavior or how the bill would be implemented relative to that executive order to determine the magnitude of any savings that could result from implementing H.R. 8312.
In 2025, the PRAC was appropriated $88 million, which is available until expended. The balances from that appropriation would be transferred to the new Office of the Inspector General when it is established in 2029. Those transferred funds would be available until expended.CBO expects that the timing of spending of those funds could change in response to the permanent and expanded authority for the IG under the bill. Because the funds have already been appropriated, any change in the timing of outlays would be classified in the budget as direct spending. The magnitude and direction of any change in spending is uncertain and could increase or decrease outlays in any given year but because CBO expects all of the money will spend under current law, CBO estimates that enacting the bill would have no net effect on direct spending over the 2026-2036 period.
Beginning in 2035, the bill would authorize the appropriation of $10 million each year for the activities of the Office of the Inspector General. Based on historical spending patterns and assuming appropriation of the specified amounts, CBO estimates that implementing H.R. 8312 would cost $18 million over the 2026-2036 period.
The CBO staff contact for this estimate is Emma Uebelhor. The estimate was reviewed by H. Samuel Papenfuss, Deputy Director of Budget Analysis.
Phillip L. Swagel
Director, Congressional Budget Office