HB 2091 — An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, providing for Federal funds oversight.

PRINTER'S NO.   2687

                  THE GENERAL ASSEMBLY OF PENNSYLVANIA



                      HOUSE BILL
                      No. 2091
                                             Session of
                                               2025

     INTRODUCED BY GROVE, GREINER, STAMBAUGH, HAMM, KAUFFMAN AND
        ZIMMERMAN, DECEMBER 9, 2025

     REFERRED TO COMMITTEE ON APPROPRIATIONS, DECEMBER 9, 2025


                                  AN ACT
 1   Amending the act of April 9, 1929 (P.L.343, No.176), entitled
 2      "An act relating to the finances of the State government;
 3      providing for cancer control, prevention and research, for
 4      ambulatory surgical center data collection, for the Joint
 5      Underwriting Association, for entertainment business
 6      financial management firms, for private dam financial
 7      assurance and for reinstatement of item vetoes; providing for
 8      the settlement, assessment, collection, and lien of taxes,
 9      bonus, and all other accounts due the Commonwealth, the
10      collection and recovery of fees and other money or property
11      due or belonging to the Commonwealth, or any agency thereof,
12      including escheated property and the proceeds of its sale,
13      the custody and disbursement or other disposition of funds
14      and securities belonging to or in the possession of the
15      Commonwealth, and the settlement of claims against the
16      Commonwealth, the resettlement of accounts and appeals to the
17      courts, refunds of moneys erroneously paid to the
18      Commonwealth, auditing the accounts of the Commonwealth and
19      all agencies thereof, of all public officers collecting
20      moneys payable to the Commonwealth, or any agency thereof,
21      and all receipts of appropriations from the Commonwealth,
22      authorizing the Commonwealth to issue tax anticipation notes
23      to defray current expenses, implementing the provisions of
24      section 7(a) of Article VIII of the Constitution of
25      Pennsylvania authorizing and restricting the incurring of
26      certain debt and imposing penalties; affecting every
27      department, board, commission, and officer of the State
28      government, every political subdivision of the State, and
29      certain officers of such subdivisions, every person,
30      association, and corporation required to pay, assess, or
31      collect taxes, or to make returns or reports under the laws
32      imposing taxes for State purposes, or to pay license fees or
33      other moneys to the Commonwealth, or any agency thereof,
34      every State depository and every debtor or creditor of the
 1      Commonwealth," providing for Federal funds oversight.
 2      The General Assembly of the Commonwealth of Pennsylvania
 3   hereby enacts as follows:
 4      Section 1.     The act of April 9, 1929 (P.L.343, No.176), known
 5   as The Fiscal Code, is amended by adding an article to read:
 6                               ARTICLE XIV-A
 7                          FEDERAL FUNDS OVERSIGHT
 8   Section 1401-A.    State agency Federal funding requirements.
 9      Prior to accepting Federal funding, the Office of the Budget
10   and the agency which will be charged with accepting the Federal
11   funding shall provide a report to the Governor, General
12   Assembly, Auditor General, State Treasurer and the Independent
13   Fiscal Office, which includes:
14          (1)    A summary of the program accepting the Federal
15      funding, including a citation to the statutory authority for
16      the program.
17          (2)    The compelling reasons to accept the Federal
18      funding.
19          (3)    The performance metrics and achievable goals of the
20      Federal funding.
21          (4)    The amount of new Federal funding the agency
22      anticipates receiving.
23          (5)    The time frame for the receipt of funds and when the
24      Federal funding ends.
25          (6)    The Federal requirements, mandates and maintenance
26      of effort requirements attached to the Federal funding and
27      their impacts on the program, State funding and goals of the
28      program.
29          (7)    A fiscal note disclosing the total cost of Federal
30      funding, including an analysis of the cost of the Federal


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 1      mandates for the current fiscal year and the proceeding four
 2      fiscal years. The fiscal note shall clearly delineate:
 3                 (i)    Acquisition costs.
 4                 (ii)    Personnel costs.
 5                 (iii)    Maintenance costs.
 6                 (iv)    Advertising costs.
 7                 (v)    Cost-per-person for which the Federal funding
 8          will assist.
 9                 (vi)    Salvage costs.
10          (8)    A statement as to whether the anticipated funding is
11      allocated through an existing or new Federal program and, if
12      an existing program, the current amount of General Fund or
13      State dedicated fund or account committed to the program.
14          (9)    A statement as to whether additional State employees
15      are necessary to oversee or administer the Federal funds.
16          (10)    The requirements associated with spending the
17      Federal funds, including any State match or cost share
18      requirements, percentage limitations and time frames.
19          (11)    An analysis of internal controls used to prevent
20      and eliminate improper payments and fraud.
21          (12)    The process by which the agency will operate and
22      distribute Federal funds to meet the performance metrics and
23      goals in paragraph (3).
24   Section 1402-A.       Requirements on agencies.
25      State agencies receiving Federal funds shall:
26          (1)    To the extent allowable under law, leverage the new
27      Federal funding to offset existing State General Fund
28      obligations rather than apply the Federal funds to new or
29      expanded programs.
30          (2)    Only hire new employees in connection with or as a

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 1      result of the new Federal funding to limited-service
 2      employees whose employment shall not last beyond the
 3      expenditure of the Federal funds.
 4            (3)   Financially manage Federal funding to ensure that
 5      the loss of Federal funding does not result in a budget
 6      deficit for the program.
 7            (4)   Provide complete access for the Independent Fiscal
 8      Office to provide a quarterly update on Federal funding and
 9      how it is meeting the performance metrics and goals as stated
10      in this article.
11            (5)   Provide complete access for the Auditor General to
12      perform audits on the agencies' internal control processes.
13            (6)   Report alleged or potential improper payments or
14      fraud to the:
15                  (i)    Attorney General.
16                  (ii)    Auditor General.
17                  (iii)    Office of Inspector General.
18                  (iv)    United States Attorney.
19                  (v)    United States Inspector General with oversight
20            of the Federal funds.
21   Section 1403-A.        Transparency portal.
22      (a)   Establishment.--An agency shall establish a transparency
23   portal on the agency's publicly accessible Internet website. The
24   transparency portal shall provide current information about
25   expenditures of Federal funding that is updated from the close
26   of the prior business day.
27      (b)   Contents.--The transparency portal shall include all of
28   the following information:
29            (1)   The eligible entities that received a portion of the
30      Federal funding.

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 1            (2)   The amount of Federal funding each eligible entity
 2      received.
 3            (3)   The total dollar amount of Federal funding
 4      disbursed.
 5            (4)   The amount of Federal funding that remains not
 6      disbursed.
 7            (5)   How the agency is meeting the performance metrics
 8      and goals under this article.
 9            (6)   An analysis and summary of improper payments under
10      the Improper Payments Elimination and Recovery Act of 2010
11      (Public Law 111-204, 124 Stat. 2224) for Federal and State
12      funds.
13      (c)   Submission.--Documents submitted to an agency by
14   eligible entities pertaining to Federal funding shall be posted
15   on the agency's publicly accessible Internet website under
16   section 1702 of the act of February 14, 2008 (P.L.6, No.3),
17   known as the Right-to-Know Law.
18   Section 1404-A.    Report.
19      After the final disbursement of Federal funding received by
20   an agency, the agency shall submit a report to the General
21   Assembly, Inspector General and Auditor General on all of the
22   following:
23            (1)   The final disbursement of the Federal funding.
24            (2)   The use of the Do-Not-Pay Pilot Program established
25      under section 1405-A.
26            (3)   The number of entities that were eligible and
27      ineligible to receive the Federal funding.
28            (4)   The savings to the State Treasury as a result of the
29      identification of entities that are ineligible to receive
30      money from the Federal funding.

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 1            (5)   The results of the single audits of the program and
 2      how the agency addressed the findings of each single audit.
 3            (6)   The results of any other Federal or State audit and
 4      how the agency addressed the findings of each audit.
 5            (7)   The total amount of Federal funding received in each
 6      county.
 7            (8)   The total improper payments under the Improper
 8      Payments Elimination and Recovery Act of 2010 (Public Law
 9      111-204, 124 Stat. 2224) for Federal and State funding.
10   Section 1405-A.    Do-Not-Pay Pilot Program.
11      (a)   Establishment.--The Do-Not-Pay Pilot Program is
12   established in the Treasury Department. As part of the program,
13   the State Treasurer shall enter a memorandum of understanding
14   with the United States Department of the Treasury that satisfies
15   the requirements of this section.
16      (b)   Use.--Before issuing a reimbursement for eligible
17   expenses under this article to an entity, the State Treasurer
18   shall utilize the Do-Not-Pay Pilot Program to ensure that the
19   entity is eligible to receive the reimbursement.
20   Section 1406-A.    Improper payments and misuse of funds.
21      (a)   Improper payments.--An eligible entity that receives
22   money from the fund and makes improper payments shall be held
23   liable by the Commonwealth under the Improper Payments
24   Elimination and Recovery Act of 2010 (Public Law 111-204, 124
25   Stat. 2224) for the total amount of any disallowance of Federal
26   funds as a result of the improper payments.
27      (b)   Misuse of funds.--An eligible entity that misuses
28   Federal funds shall be subject to civil action under the False
29   Claims Act (Public Law 97-258, 31 U.S.C. §§ 3729-3733).
30      (c)   Notice.--The State Treasurer shall provide notice of the

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 1   penalties specified under subsections (a) and (b) to each
 2   eligible entity that receives Federal funding from the State
 3   Treasury.
 4   Section 1407-A.     Nonacceptance of Federal funds.
 5      (a)     General rule.--If acceptance by an agency of Federal
 6   funding is expected to cause a budget deficit within the General
 7   Fund within five fiscal years, the Governor and the agency shall
 8   not accept the Federal funding.
 9      (b)     School mandates.--The Governor, Department of Education
10   and school districts shall not accept Federal funding that
11   mandates a public school in this Commonwealth to teach a
12   specific program, topic, subject, curriculum or standard.
13      (c)     Contrary to State law.--If Federal funding requirements,
14   mandates or maintenance of effort by an agency contradict State
15   law, the Governor and agency may not accept the Federal funding.
16      (d)     Negative impact on enforcement of internal controls.--If
17   Federal funding requirements, mandates or maintenance of effort
18   by an agency does not allow, bans or hinders the agency to
19   enforce internal controls to prevent fraud and improper
20   payments, the Governor and agency may not accept the Federal
21   funding.
22      (e)     New programs.--If Federal funding requires an agency to
23   establish a new program, the Governor and agency may not accept
24   the Federal funding.
25   Section 1408-A.     Fiscal review of current and previous fiscal
26                  year Federal funding.
27      The Independent Fiscal Office shall review current Federal
28   funding received by State agencies under the direct control of
29   the Governor and shall identify:
30            (1)   Mandates, requirements and maintenance of effort

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 1      requirements.
 2          (2)   Cost of the mandates, requirements and maintenance
 3      of effort identified in paragraph (1), including:
 4                (i)    The prior five fiscal years' costs by fiscal
 5          year.
 6                (ii)    The current fiscal years' costs.
 7                (iii)    The estimated costs over the next four fiscal
 8          years for each fiscal year.
 9          (3)   Improper payments for each Federal program,
10      including:
11                (i)    The total amount of Federal and State improper
12          payments over the previous five fiscal years.
13                (ii)    The estimated improper payments for the current
14          fiscal year.
15                (iii)    The estimated improper payments for the next
16          four fiscal years.
17                (iv)    The improper payment error rate under
18          subparagraphs (i), (ii) and (iii).
19                (v)    The reasons for the improper payments.
20          (4)   If the agency that accepts the Federal funding has
21      met the Federal requirements and performance measures of the
22      Federal Government.
23   Section 1409-A.      Applicability.
24      This article shall only be applicable to Federal funding
25   received by the Commonwealth after January 21, 2025.
26      Section 2.      This act shall take effect immediately.




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