WASHINGTON, D.C. – Yesterday, Senator Jim Banks (R-Ind.) introduced Timely Access to Benefits(TAB) Act. This legislation requires states to implement a real-time income verification system to detect unreported or underreported income for individuals receiving federal benefits. It applies to any federal program where eligibility or benefit amounts depend on income. The system must use automated data matching and applicant-permissioned bank data to reduce fraud, prevent improper payments, and ensure only eligible individuals receive benefits.
Senator Jim Banks (R-Ind.): “Hardworking Americans want a government that delivers benefits quickly to those who qualify. This legislation protects taxpayer dollars and modernizes outdated systems to stop waste, fraud, and abuse.”
Senator Cynthia Lummis (R-Wyo.): “The TAB Act is much-needed, commonsense legislation that will streamline federal benefit services and save Wyoming’s taxpayer dollars. From Medicare to Social Security, this bill cuts red tape to deliver faster, more efficient service, while cracking down on waste, fraud, and abuse from antiquated IT systems.”
Key Provisions of the Timely Access to Benefits Act are:
- Requires federal benefits programs to use a third-party income verification system within one year.
- Creates a system to track all sources of income, including gig work and other government benefits.
- Improves access and accuracy for programs like Medicaid, Medicare, SNAP, Social Security, and unemployment benefits.
Full bill text can be found here.
Background:
An April 2025 GAO report found at least $162 billion in improper federal payments in 2024, mostly within a few major safety-net programs. More than 18 federal benefit programs had improper payment rates over 20%.
Missouri launched an online system to verify income for public benefits, making applications easier for eligible recipients and cutting improper payments. Early results show savings of over 17%.