The government loses hundreds of billions of dollars every year to improper payments and fraud. However, critics of the current system say the data is confusing because it lumps together a $1 million fraud case with a $100 payment that simply had a missing date on a form. By forcing agencies to separate 'paperwork mistakes' from 'actual lost money,' the government can better target where money is actually being stolen or wasted.

If this becomes law, agencies will have to justify their spending more clearly in their annual budgets and use tools like the 'Do Not Pay' list more aggressively. This could lead to more efficient government spending, though it might also mean more rigorous (and potentially slower) verification processes for people applying for federal benefits.