STEP Act

The STEP Act requires federal agencies to identify programs likely to have significant improper payments (those with over $100 million in annual spending during their first three years). Agencies must annually estimate improper payment rates using approved methods and report these findings to Congress. The bill also mandates annual reports on agency progress in implementing fraud controls, monitoring payment risks, and tracking 11 specific fraud management practices. These reports must include a chief financial officer's certification of the agency's process for identifying high-risk programs. The law does not authorize new funding but updates existing reporting requirements under federal payment oversight rules.