Senate passes bill to end federal payments to deceased Americans

The U.S. Senate passed last week bipartisan legislation that would prevent government payments to Americans who have died.

© Shutterstock

The Ending Improper Payments to Deceased People Act, introduced by U.S. Sens. Ron Wyden (D-OR), John Kennedy (R-LA), and Gary Peters (D-MI), is based on a law that established a provision to curb erroneous government payments to deceased individuals for a three-year period. The new legislation would make those temporary bans permanent.

“This bipartisan bill fixes our federal government’s payment systems so that millions of taxpayer dollars are saved every year. As Ranking Member of the Senate Finance Committee, I am committed to ensuring that Americans’ hard-earned benefits are protected. That’s why I’m supporting this bill to ensure Americans’ personal data and earned benefits from Social Security are protected,” Wyden said.

The legislation would amend the Social Security Act and allow the Social Security Administration to share the Death Master File – a record of Americans who have passed away – with the Treasury Department’s Do Not Pay system. Advocates say the change would give the federal government the ability to stop paying dead people in the future.

“It is unconscionable that hardworking Americans are forced to foot the bill for the government’s wasteful payments to dead people. I applaud the U.S. Senate for taking bold action by passing my crucial bill to eliminate waste, fraud and abuse from our federal budget. Now, the U.S. House of Representatives ought to step up and pass this vital reform without delay,” Kennedy said.

The legislation would also allow the Treasury’s Do Not Pay working system to compare death information from the Social Security Administration with personal information from other federal entities, and to share this information with any paying or administering agency that is authorized to use it.

The legislation is co-sponsored by U.S. Sens. Ashley Moody (R-FL), Maggie Hassan (D-NH), Joni Ernst (R-Iowa), and Mark Warner (D-VA).