Welfare Abuse and Laundering Zillions Act; WALZ Act
Summary
The Welfare Abuse and Laundering Zillions Act (WALZ Act) directs the Inspector General of the Department of Health and Human Services (HHS) to investigate increases in payments under state programs funded by HHS. Specifically, it mandates an investigation if payments to service providers and suppliers increase by 10% or more within a 6-month period compared to the previous 6-month period.
The bill aims to ensure accountability and prevent potential fraud or misuse of federal funds within state-administered programs. The focus is on programs receiving federal financial assistance through HHS.
This act is introduced in the Senate and referred to the Committee on Finance for further consideration.
Expected Effects
The WALZ Act would increase oversight of state programs receiving HHS funding. This could lead to the detection and prevention of fraudulent activities or inefficient spending. It may also create additional administrative burdens for state programs.
Potential Benefits
- Increased accountability in state programs funded by HHS.
- Potential reduction in fraud and misuse of federal funds.
- Improved efficiency in the allocation of resources.
- Greater transparency in state program spending.
- Deterrent effect on potential abusers of the system.
Most Benefited Areas:
Potential Disadvantages
- Increased administrative burden for state programs.
- Potential delays in payment processing due to investigations.
- Possible chilling effect on legitimate program expansions.
- Risk of politically motivated investigations.
- Potential for increased costs associated with investigations.
Constitutional Alignment
The bill aligns with the Constitution's general welfare clause (Preamble), which promotes the well-being of citizens. Article 1, Section 8, Clause 1 grants Congress the power to lay and collect taxes to provide for the general welfare of the United States. The act falls under Congress's power to oversee how federal funds are spent by the states, ensuring they are used appropriately and effectively.
However, the act's implementation must respect the Tenth Amendment, which reserves powers not delegated to the federal government to the states, or to the people. Overly intrusive investigations could potentially infringe upon state sovereignty.
Additionally, investigations must adhere to due process and equal protection principles, ensuring fairness and preventing arbitrary or discriminatory enforcement.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).