Notice2025-11557
Proposed Designation of Database to the Do Not Pay Working System
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 24, 2025
Issuing agencies
Management and Budget Office
Abstract
The Payment Integrity Information Act of 2019 (PIIA) authorizes the Office of Management and Budget (OMB) to designate databases for inclusion in the U.S. Department of the Treasury (Treasury) Do Not Pay Working System under the Do Not Pay Initiative. PIIA requires OMB to provide public notice and an opportunity for comment prior to designating databases. In fulfillment of this requirement, OMB is publishing this Notice of Proposed Designation to provide the public an opportunity to comment on the proposed designation of the U.S. Department of Veterans Affairs (VA) Benefits Enterprise Platform (BEP) database for use in the Do Not Pay Working System with the Public Assistance Reporting Information System (PARIS). This notice has a 15-day comment period.
Full Text
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<title>Federal Register, Volume 90 Issue 119 (Tuesday, June 24, 2025)</title>
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[Federal Register Volume 90, Number 119 (Tuesday, June 24, 2025)]
[Notices]
[Pages 26831-26833]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-11557]
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OFFICE OF MANAGEMENT AND BUDGET
Proposed Designation of Database to the Do Not Pay Working System
AGENCY: Office of Management and Budget.
ACTION: Notice of proposed designation.
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SUMMARY: The Payment Integrity Information Act of 2019 (PIIA)
authorizes the Office of Management and Budget (OMB) to designate
databases for inclusion in the U.S. Department of the Treasury
(Treasury) Do Not Pay Working System under the Do Not Pay Initiative.
PIIA requires OMB to provide public notice and an opportunity for
comment prior to designating databases. In fulfillment of this
requirement, OMB is publishing this Notice of Proposed Designation to
provide the public an opportunity to comment on the proposed
designation of the U.S. Department of Veterans
[[Page 26832]]
Affairs (VA) Benefits Enterprise Platform (BEP) database for use in the
Do Not Pay Working System with the Public Assistance Reporting
Information System (PARIS). This notice has a 15-day comment period.
DATES: Comments must be in writing and must be received on or before
July 9, 2025. At the conclusion of the 15-day comment period, if OMB
decides to finalize the designation, OMB will publish a notice in the
Federal Register to officially designate the database.
ADDRESSES: Comments on this proposal must be submitted electronically
before the comment closing date to <a href="http://www.regulations.gov">www.regulations.gov</a>. In submitting
comments, please search for recent submissions by OMB to find docket
OMB-2025-[XXXX] and follow the instructions for submitting comments.
Public comments are valuable, and they will inform OMB Do Not Pay
database designation; OMB, however, will not respond to individual
submissions.
Privacy Act Statement: OMB is issuing this notice pursuant to PIIA.
Submission of comments in response to this Notice of Proposed
Designation is voluntary. Comments may be used to inform sound
decision-making on topics related to this Notice of Proposed
Designation. Please note that submissions received in response to this
notice may be posted on <a href="http://www.regulations.gov">www.regulations.gov</a> or otherwise released in
their entirety, including any personal information, business
confidential information, or other sensitive information provided by
the commenter. Do not include in your submissions any copyrighted
material; information of a confidential nature, such as personal or
proprietary information; or any information you would not like to be
made publicly available. Comments are maintained under the OMB Public
Input System of Records, OMB/INPUT/01; the system of records notice is
accessible at 88 FR 20913 (<a href="https://www.federalregister.gov/documents/2023/04/07/2023-07452/privacy-act-of-1974-system-of-records">https://www.federalregister.gov/documents/2023/04/07/2023-07452/privacy-act-of-1974-system-of-records</a>) and
includes a list of routine uses associated with the collection of this
information.
FOR FURTHER INFORMATION CONTACT: Office of Federal Financial
Management, OMB (telephone: 202-395-3080; email:
<a href="/cdn-cgi/l/email-protection#87f7e6feeae2e9f3eee9f3e2e0f5eef3fec7e8eae5a9e2e8f7a9e0e8f1"><span class="__cf_email__" data-cfemail="3e4e5f47535b504a57504a5b594c574a477e51535c105b514e10595148">[email protected]</span></a>).
SUPPLEMENTARY INFORMATION: PIIA recodified the Do Not Pay Initiative in
Title 31 of the U.S. Code. The Do Not Pay Initiative includes the use
of databases described in Title 31 of the U.S. Code and the use of
other databases designated by the Director of OMB, or the designee of
the Director, in consultation with executive agencies. The Do Not Pay
Initiative is designed to help Federal agencies in the executive branch
(hereinafter ``Federal agencies''), the judicial and legislative
branches of the Federal government, and states, as well as any
contractor, subcontractor, or agent of a state, review payment and
award eligibility for purposes of identifying and preventing improper
payments. As part of the Do Not Pay Initiative, OMB designated Treasury
to host the Do Not Pay Working System, which is a centralized portal
through which users can search multiple databases to obtain information
about potential payees and awardees. PIIA \1\ authorizes OMB to
designate additional databases for inclusion in the Do Not Pay
Initiative if the database substantially assists in preventing improper
payments.
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\1\ Codified at 31 U.S.C. 3351-58.
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Do Not Pay Working System Privacy, Security, and Legal Implications
Treasury reports that all Do Not Pay Working System (hereinafter
``Do Not Pay'') users and administrators are required to sign rules of
behavior stipulating their responsibilities to minimize risks
associated with the use of specific data. Treasury also reports that it
has dedicated resources to establish a privacy program based on
applicable requirements, the Fair Information Practice Principles, and
industry best practices. Treasury reports that its privacy program
supports various internal controls in collaboration with Treasury
leadership and legal counsel and that projects are reviewed by Treasury
through a data usage governance process. Treasury has responsibility
for compliance with privacy restrictions and manages risks associated
with the use of specific data to reduce improper payments for Do Not
Pay users.
Treasury risk mitigation measures for Do Not Pay include
maintaining a current and compliant Security Accreditation and
Authorization package, in accordance with Federal Information Security
Modernization Act of 2014 requirements. Additionally, to reduce the
likelihood of unauthorized access, login to Do Not Pay requires
Personal Identity Verification credentials, <a href="http://Login.gov">Login.gov</a> account
management, or ID.ME.
Overview of Designating BEP
OMB has reviewed the recommendation of Treasury to designate the VA
BEP database to Do Not Pay for use with PARIS.
The designation of BEP to Do Not Pay for use with PARIS will
provide State Public Assistance Agencies (SPAAs) with VA compensation
and pension data on a periodic basis to use in determining the
eligibility of public assistance applicants and recipients for benefits
under Medicaid, Temporary Assistance for Needy Families (TANF),
Supplemental Nutrition Assistance Program (SNAP), and other general
assistance programs. Through this proposed designation, BEP will only
be available for use with PARIS and SPAAs; it will not be available for
use by other Do Not Pay users.
PARIS, as a data matching service, involves interstate matching and
the use of other relevant databases to establish client eligibility for
benefits and supports state identification of potentially improper
payments. The U.S. Department of Health and Human Services (HHS)
Administration for Children and Families (ACF) is the Facilitating
Agency for PARIS. The Treasury Bureau of the Fiscal Service (Fiscal
Service) is the Technical Service Provider for PARIS conducting the
match and providing associated support. Fiscal Service became the
Technical Service Provider for PARIS in 2024, and this role was
previously fulfilled by the Defense Manpower Data Center (DMDC) at the
U.S. Department of Defense (DOD). Fiscal Service reports that they are
able to perform this work through the Do Not Pay authorities to work
with states and others for the purpose of verifying payment or award
eligibility for payments. The use of VA data by SPAAs began in 1993 and
has, for over 30 years, supported program integrity and substantially
assisted in the prevention of improper payments.
OMB proposes to designate BEP for inclusion in Do Not Pay for use
with PARIS because this database will continue to substantially assist
in preventing improper payments. In making this determination, OMB
considered the following: (1) statutory or other limitations on the use
and sharing of specific data; (2) privacy restrictions and risks
associated with specific data; (3) likelihood that the data will
strengthen program integrity across programs and agencies; (4) benefits
of streamlining access to the data through Do Not Pay; (5) costs
associated with expanding or centralizing access, including
modifications needed to system interfaces or other capabilities in
order to make data accessible; and (6) other policy and stakeholder
considerations, as appropriate.
[[Page 26833]]
Considerations for Designating BEP
1. Statutory or other limitations on the use and sharing of
specific data:
The use and sharing of the BEP data would be subject to the Privacy
Act of 1974, as amended (5 U.S.C. 552a) and the requirements outlined
in a matching agreement and memorandum of understanding between VA,
DOD/DMDC, Treasury/Fiscal Service, HHS/ACF, and the SPAAs. PIIA
authorizes access to, and use of, Do Not Pay by states and any
contractor, subcontractor, or agent of a state, for the purpose of
verifying payment or award eligibility for payments. In this case,
however, as discussed above, OMB is proposing a limited designation of
BEP, which will only be available for use with PARIS and SPAAs; it will
not be available for use by other Do Not Pay users.
2. Privacy restrictions and risks associated with specific data:
In evaluating potential privacy risks and compliance measures
associated with the designation, Fiscal Service conducted a privacy
risk assessment for BEP. The privacy risk assessment for BEP aimed to:
ensure conformance with applicable legal, regulatory, and policy
requirements for privacy, including the Privacy Act of 1974; determine
the risks and effects; and evaluate protections and alternative
processes to mitigate potential privacy risks.
DMDC will provide Fiscal Service a file containing data on
individuals' compensation and benefits, as well as identifying
information, for VA benefit and compensation recipients. SPAAs
participating in PARIS will also provide Fiscal Service with a non-
Federal file containing identifying information, including Social
Security numbers (SSNs), about public assistance applicants and
clients. Fiscal Service Do Not Pay will compare the SPAA file to the VA
file and will provide the SPAA with match results.
The SPAAs are responsible for verifying and determining if the data
in the match results output file is consistent with the data in SPAAs
public assistance files and for resolving any discrepancies or
inconsistencies as to positive identification on an individual basis.
If a SPAA intends to reduce, suspend, terminate, or deny benefits
as a result of information provided by Fiscal Service, the SPAA must
provide appropriate notice and the opportunity to respond in accordance
with 42 CFR 431.200-250 for the Medicaid Program, 7 CFR 273.15 for
SNAP, state-established procedures for TANF, and other applicable
program procedures.
Fiscal Service will only maintain the information necessary for
processing and matching purposes. The SPAAs will retain the
identifiable records (hits) resulting from the match only for the
period of time required for any processing related to the matching
program and will then destroy the records unless the information must
be retained in individual files to meet evidentiary requirements.
3. Likelihood that the data will strengthen program integrity
across programs and agencies:
The BEP database will strengthen program integrity at VA, HHS, and
the U.S. Department of Agriculture (USDA), at a minimum, through its
use to assist in the determination of applicant and recipient
eligibility for public assistance benefits under Medicaid, TANF, SNAP,
and other general assistance programs.
The designation of BEP to Do Not Pay for PARIS will strengthen
program integrity across programs and agencies by facilitating: (A)
income verification (a process by which States compare income reported
to the State by the client to income the client is actually receiving
according to the BEP database) and (B) the coordination of benefits
(e.g., between Medicaid and VA benefits).
4. Benefits of streamlining access to the data through Do Not Pay:
Fiscal Service Do Not Pay became the Technical Service Provider for
PARIS in 2024 and began conducting the PARIS interstate matching in
Fall 2024 (identifying individuals who may be applying for or receiving
benefits in more than one participating state or territory). The
designation of BEP for use with PARIS will allow Do Not Pay to
supplement the interstate matching with additional data important for
SPAAs and the determination of applicant and recipient eligibility for
assistance programs.
5. Costs associated with expanding or centralizing access,
including modifications needed to system interfaces or other
capabilities in order to make data accessible:
Do Not Pay is already receiving the SPAA files from 45 states and
the District of Columbia for interstate matching. The additional
activity to occur through the designation of BEP to Do Not Pay for
PARIS is the comparison of the participating state and territory data
files against the BEP database. Costs associated with centralizing
access to VA BEP may be absorbed into the scope of regular development.
6. Other policy and stakeholder considerations:
Sec. 1137 and 1903(r) of the Social Security Act [42 U.S.C. 1320b-7
and 42 U.S.C. 1396b] discuss how state agencies administering certain
programs shall exchange with each other information for use in
establishing or verifying eligibility or benefit amounts. Sec. 1903(r)
references PARIS and how states must have in operation an eligibility
determination system which provides for data matching through PARIS or
any successor system as a condition of receiving Medicaid funding for
automated data systems.
Russell T. Vought,
Director, Office of Management & Budget.
[FR Doc. 2025-11557 Filed 6-23-25; 8:45 am]
BILLING CODE 3110-01-P
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