Protecting America’s Bank Account Against Fraud, Waste, and Abuse
Summary
Executive Order 14249 of March 25, 2025, Protecting America's Bank Account Against Fraud, Waste, and Abuse, published in the Federal Register, Vol. 90, No. 59, Friday, March 28, 2025. Section 1 states that in Fiscal Year 2024, $33.9 trillion flowed into the General Fund and $33.6 trillion flowed out, and that the Government Accountability Office estimates the Federal Government loses between $233 and $521 billion annually to fraud. Section 3 directs the Secretary of the Treasury, in consultation with the OMB Director, to update guidance and enhance systems so that payments made by the Department of the Treasury are subject to pre-certification verification, and directs agency heads within 90 days to review and modify their system of records notices.
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“Protecting America’s Bank Account Against Fraud, Waste, and Abuse.”
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Federal Register / Vol. 90, No. 59 / Friday, March 28, 2025 / Presidential Documents 14011
Presidential Documents
Executive Order 14249 of March 25, 2025
Protecting America’s Bank Account Against Fraud, Waste,
and Abuse
By the authority vested in me as President by the Constitution and the
laws of the United States of America, it is hereby ordered:
Section 1. Purpose. Promoting financial integrity and operational efficiency
are critical responsibilities of the Federal Government. The Federal Govern-
ment processes trillions of dollars annually in disbursements to individuals,
businesses, and organizations, and in receipts from taxes, fees, and other
payments to finance daily and long-term Government operations. These trans-
actions flow into and out of the United States General Fund (General Fund),
which might be thought of as America’s bank account. In Fiscal Year 2024,
$33.9 trillion flowed into the General Fund and $33.6 trillion flowed out
of the account, including $5.87 trillion (less net interest) in benefits, grants,
loans, vendor payments, and other disbursements.
The Department of the Treasury is the largest financial payment manager
of the Federal Government and is responsible for safeguarding the General
Fund, but lacks sufficient controls to track transactions flowing through
the General Fund to determine if they were proper. To enforce sufficient
controls and ensure accountability to American taxpayers, the Department
of the Treasury requires financial information from executive departments
and agencies (agencies) beyond what they currently provide.
Financial fraud threatens the integrity of Federal programs and undermines
trust in Government. Agencies’ past underinvestment in technology and
longstanding challenges with access to accurate data has prevented them
from more fully safeguarding taxpayer dollars against fraud and improper
payments. The Government Accountability Office estimates that the Federal
Government loses between $233 and $521 billion annually to fraud.
In addition to being an efficient steward of taxpayer funds, the Federal
Government, on behalf of the American public, must seek to ensure that
financial information is accurate and that there is transparency with respect
to how taxpayer dollars are being used. Today, Federal funds are disbursed
both by the Department of the Treasury and various Federal Government
entities that are authorized to issue their own disbursements known as
Non-Treasury Disbursing Offices (NTDOs). In Fiscal Year 2024, NTDOs were
estimated to be responsible for 181 million payments totaling over $1.5
trillion (approximately 22 percent of all Federal Government dollars dis-
bursed). This fragmentation of disbursing authority, together with the pro-
liferation of non-standard financial management systems across the Federal
Government, leads to expensive, disjointed, and duplicative financial report-
ing, lack of financial traceability, complicated financial management, opacity,
increased operational risks, and decreased ability of the Department of the
Treasury to provide centralized oversight.
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This order promotes financial integrity by enabling the Department of the
Treasury to more easily conduct improper payment and fraud prevention
screening prior to disbursing funds on behalf of agencies. This order increases
transparency and accountability by requiring agencies to provide the Depart-
ment of the Treasury with the information needed to track transactions
through the General Fund in greater detail. This order also promotes oper-
ational efficiency by returning disbursing functions to the Department of
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14012 Federal Register / Vol. 90, No. 59 / Friday, March 28, 2025 / Presidential Documents
the Treasury when possible and consolidating and standardizing core Federal
financial systems.
Sec. 2. Policy. It is the policy of the United States to defend against financial
fraud and improper payments, increase transparency and accountability
around the Federal Government’s operations and financial condition, increase
efficiency, reduce costs, and enhance the security of Federal payments.
Sec. 3. Treasury Verification of Agency Payments Information. (a) The Sec-
retary of the Treasury, in consultation with the Director of the Office of
Management and Budget (OMB Director), shall update guidance and enhance
systems to ensure that all payments made by the Department of the Treasury
on behalf of agencies pursuant to the Secretary of the Treasury’s disbursing
authority, including 31 U.S.C. 3321, are subject to pre-certification
verification processes established by the Secretary of the Treasury and con-
ducted by agencies and the Department of the Treasury for the purposes
of defending against financial fraud and improper payments, to the greatest
extent permitted by law. Such guidance shall set forth guidelines for compli-
ance with the Do Not Pay Working System as described in 31 U.S.C. 3351
et seq., and such other payment, account, and payee validation programs
and services that the Secretary of the Treasury and the OMB Director deter-
mine to be beneficial for reducing financial fraud and improper payments.
(b) In accordance with 31 U.S.C. 3354, the heads of all agencies shall
cooperate with the Secretary of the Treasury to fulfill their obligations to
determine payment or award eligibility through pre-certification and pre-
award procedures, as determined by the Secretary of the Treasury, including
pursuant to subsection (a) of this section and section 4 of this order to
prevent fraud and improper payments.
(c) The Secretary of the Treasury is directed to minimize administrative
barriers to accessing and using data to prevent fraud and improper payments
by exercising the authority in 31 U.S.C. 3351 et seq. to waive the requirements
of 5 U.S.C. 552(o), in consultation with the OMB Director, in any case
or class of cases for computer matching activities, to the extent permissible
by law.
(d) Within 90 days of the date of this order, agency heads shall review
and modify, as applicable, their relevant system of records notices under
the Privacy Act of 1974 to include a ‘‘routine use’’ that allows for the
disclosure of records to the Department of the Treasury for the purposes
of identifying, preventing, or recouping fraud and improper payments, to
the extent permissible by law.
(e) The Secretary of the Treasury, in consultation with the OMB Director,
shall issue guidance to agency heads on the circumstances in which agency
heads, to the extent permissible by law, may provide the Secretary of the
Treasury with access to data necessary for the purposes of detecting and
preventing fraud and improper payments, as well as data for payment infor-
mation verification (and not, for example, data such as health records).
Sec. 4. Implementation and Compliance of Payment Verification. (a) Agency
heads, through designated agency officials (Certifying Officers or COs), who
are responsible for verifying that disbursements made by the Federal Govern-
ment are legal, proper, and correct, and for performing the duties in 31
U.S.C. 3528, shall comply with the disbursement requirements and instruc-
tions, including pre-certification requirements, published by the Secretary
of the Treasury.
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(b) The Secretary of the Treasury shall consider, as appropriate, issuing
instructions to agencies to enforce the following pre-certification criteria
for disbursement requests submitted by COs (Vouchers) before they are
certified for payment by the CO:
(i) Funds are available at the time the obligation is incurred. If an obligation
is incurred when funds are not available, then the CO shall not certify
the payment.
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Federal Register / Vol. 90, No. 59 / Friday, March 28, 2025 / Presidential Documents 14013
(ii) The amount of the payment and the name of the payee on the Voucher
are correct, in conformance with the Department of the Treasury’s pre-
scribed standard format.
(iii) A proper Social Security Number, Taxpayer Identification Number,
Employer Identification Number, Individual Taxpayer Identification Num-
ber, or Payee ID Number is provided for each payee on the Voucher,
as applicable.
(iv) The appropriation or fund from which the payment will be made
is available for the purpose set forth in the Voucher and indicated with
the appropriate Treasury Account Symbol/Business Event Type Code.
(v) Payees are not deceased individuals, to the greatest extent permitted
by law.
(vi) The account number provided on the Voucher is held at a financial
institution and is open, valid, and belongs to the payee or valid designee
of payee.
(vii) Contracts or agreements are referenced on the Voucher by providing
the contract number, referred to as the Procurement Instrument Identifier,
where applicable.
(viii) Financial assistance awards (non-aggregate) are referenced on the
Voucher by providing the award number, referred to as the Federal Award
Identification Number, where applicable.
(ix) For summary schedules, the payments on the Voucher are submitted
in conformance with the Department of the Treasury prescribed standard
formats for such schedules.
(c) Agency heads shall submit payment files other than with respect
to same-day payments to the Secretary of the Treasury or the Secretary’s
designee with sufficient lead time prior to the date of disbursement as
determined by the Department of the Treasury and provided in the require-
ments and instructions issued pursuant to subsections (a) and (b) of this
section, to allow for fraud and improper payment screening, to the extent
permissible by law. With respect to same-day payments, agency heads shall
submit payment files to the Secretary of the Treasury or the Secretary’s
designee as much in advance as reasonably practicable.
(d) In issuing requirements and instructions pursuant to subsection (a)
of this section, the Secretary of the Treasury shall consider whether it
would be appropriate to provide that the Department of the Treasury’s
Chief Disbursing Officer return to the relevant agency for reconciliation
any payments that do not pass the pre-certification verification processes
established pursuant to section 3(a) of this order and notify the designated
CO.
(e) The Secretary of the Treasury shall include in the guidance issued
pursuant to subsection (a) of this section, or in other regulations or guidance,
a transparent process for agencies to request exemptions from some or all
of the payment verification requirements for specific payments or categories
of payments.
Sec. 5. Core Financial System Consolidation. (a) Within 180 days of the
date of this order, the OMB Director shall issue guidance that directs agencies
described in 31 U.S.C. 901(b) (CFO Act agencies) to consolidate their core
financial systems.
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(b) As soon as practicable, but not later than 180 days of the date of
this order, the OMB Director, in consultation with the Secretary of the
Treasury, shall issue guidance directing all non-CFO Act agencies to consoli-
date transactional financial management services under a single provider
approved by the Department of the Treasury.
(c) As soon as practicable, all heads of CFO Act agencies shall use standard
financial management solutions available through the Financial Management
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14014 Federal Register / Vol. 90, No. 59 / Friday, March 28, 2025 / Presidential Documents
Marketplace, administered by the Financial Management Quality Service
Management Office.
(d) Agency heads shall ensure that core financial systems comply with
Federal accounting and financial reporting standards and relevant regulations,
orders, guidance documents, policy statements, and other agency actions
published by the Department of the Treasury from time to time.
Sec. 6. Reduction of NTDOs. (a) Within 30 days of the date of this order,
the Secretary of the Treasury shall assess whether to maintain disbursing
authority that it has delegated to agencies pursuant to 31 U.S.C. 3321(b)
and issue notices to revoke such delegations, as appropriate, in accordance
with applicable law.
(b) The heads of agencies with disbursing authority under 31 U.S.C.
3321(c), including the Secretary of Defense, the Secretary of Homeland Secu-
rity, and the Attorney General (but excluding, for the avoidance of doubt,
the Supreme Court and other entities of the Federal Government outside
the Executive Branch) will work with the Secretary of the Treasury to
delegate the performance of their disbursing activities, other than with respect
to classified payments, to the Department of the Treasury’s Chief Disbursing
Officer in accordance with applicable law.
(c) Notwithstanding subsections (a) or (b) of this section, the Secretary
of the Treasury may continue to delegate disbursing authority to NTDOs
at other agencies when doing so would align with significant Government
priorities. Any remaining NTDOs are required to report daily to the Depart-
ment of the Treasury’s centralized accounting and reporting system in accord-
ance with then-current Department of the Treasury guidance and applicable
law.
(d) The Secretary of the Treasury shall develop a plan to centralize and
manage all payments previously disbursed by NTDOs, ensuring seamless
continuity of Government payments.
(e) The Secretary of the Treasury, in coordination with agency heads,
shall establish a transition plan for agencies currently operating as NTDOs,
including staffing adjustments, system integrations, and legal or regulatory
modifications necessary for full consolidation.
(f) The heads of agencies with disbursing authority delegated to the agency
under 33 U.S.C. 3321(b) shall decommission all internal payment systems
and use the Department of the Treasury’s disbursement systems, except
and to the extent authorized by the Department of the Treasury or otherwise
required by applicable law.
Sec. 7. Reporting and Implementation Requirements. (a) The heads of all
agencies shall submit a compliance plan to the OMB Director within 90
days of the date of this order detailing their strategy for:
(i) transitioning disbursing authority to the Department of the Treasury,
as applicable and as contemplated by this order;
(ii) updating and integrating systems with Department of the Treasury
platforms;
(iii) procedures to verify payment information as contemplated by this
order; and
(iv) transmitting information associated with improper payments to the
Department of the Treasury in accordance with standards and reporting
specifications established by the OMB Director in coordination with the
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Secretary of the Treasury as contemplated by this order.
(b) The Secretary of the Treasury shall submit an implementation report
to the President through the Assistant to the President for Economic Policy
within 180 days of the date of this order detailing progress on the matters
set forth in this order.
(c) The Secretary of the Treasury and agency heads shall take all necessary
steps to protect classified information and systems, as well as personally
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Federal Register / Vol. 90, No. 59 / Friday, March 28, 2025 / Presidential Documents 14015
identifiable information and tax return information, through the implementa-
tion of this order.
Sec. 8. General Provisions. (a) Nothing in this order shall be construed
to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency,
or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and
subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit,
substantive or procedural, enforceable at law or in equity by any party
against the United States, its departments, agencies, or entities, its officers,
employees, or agents, or any other person.
THE WHITE HOUSE,
March 25, 2025.
[FR Doc. 2025–05524
Filed 3–27–25; 8:45 am]
Billing code 3395–F4–P
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