Subcommittee on Government Operations Chairman Pete Sessions announced on Apr. 8 a hearing to address fraud in federally funded programs managed by state governments. The hearing, titled “Fraud Prevention: Understanding Fraud in Federally Funded Programs Run by the States,” is part of a broader investigation by the House Committee on Oversight and Government Reform into reducing federal and state-level fraud.
The issue is significant because many states use unlimited or matching federal funding to maximize their own resources, which can make it difficult to detect, prevent, and address fraudulent activities within these programs. The committee aims to understand why such fraud occurs and examine how current practices may inadvertently encourage inefficiency or misuse of funds.
During the upcoming hearing, members will review the outdated methods and technology that states currently use for detecting fraud. They will also discuss strategies for increasing awareness among states about improved tools, techniques, and data that could help combat fraudulent activity more effectively.
“Fraud runs rampant when states are inadequately prepared to detect and prevent it in federal programs. Many state governments are poorly equipped to use new and improved technologies and data systems that will help them prevent fraud, and they often face a multitude of administrative hurdles when attempting to do so. The House Oversight Committee has been dedicated to rooting out waste, fraud, and abuse in state-run federal programs, and this hearing will build on the innovation and progress made in this investigation. Fraud is a non-partisan issue that countless Americans are engaged on, and I look forward to discussing with witnesses the actions that can be taken to realign states’ incentives to prevent fraud in federal programs and how Congress can help strengthen those efforts in a bipartisan manner,” said Subcommittee Chairman Sessions.
The hearing is scheduled for Wednesday, April 15 at 10:00 A.M. EDT at Room 2154 of the Rayburn House Office Building. Witnesses include Dr. O.J. Oleka from the State Financial Officers Foundation; Allison Ball from Kentucky’s Auditor of Public Accounts; and Seto Bagdoyan from the U.S. Government Accountability Office’s Forensic Audits division.
The session is open to the public with an option for livestream viewing.
