This bill requires agencies to develop and implement plans for preventing fraud and improper payments relating to federal emergency spending (e.g., providing funding relating to disasters or pandemics).

The Office of Management and Budget (OMB) must issue, and review every three years, guidance to agencies for developing plans with appropriate internal controls. The guidance must incorporate the current Government Accountability Office frameworks for managing fraud risk in federal programs and managing improper payments in federal emergency assistance.

Within one year after the bill’s enactment, agencies must submit to OMB plans required by the guidance. Each plan must include procedures to (1) evaluate the risk of financial loss to the federal government caused by improper payments and fraud relating to the agency’s federal emergency spending; (2) develop risk reduction strategies that are, to the extent possible, implemented prior to expenditure; and (3) adopt payment monitoring to identify and reduce improper and fraudulent payments (e.g., anomaly detection). Agencies must revise and resubmit plans, as necessary, at least every three years.

OMB must annually submit the plans to Congress along with information relating to helping agencies implement the plans and legislative recommendations for emergency appropriations.