Commentary

We Could Cover 10 Percent of the Entire Deficit if Gov't Stopped Accidentally Making Improper Payments

A new report by the Government Accountability Office indicates that approximately 10 percent of the federal deficit could be erased just by ending improper payments.

Further, when coupled with a crackdown on outright fraud, the federal deficit could be cut by hundreds of billions more.

The GAO said that in fiscal year 2025, 15 federal agencies made approximately $186 billion in improper payments across 64 programs, an increase of $24 billion from the previous fiscal year.

The federal deficit was $1.8 trillion last year, and is projected to be $1.9 trillion this fiscal year, according to the Congressional Budget Office, so $186 billion represents about 10 percent of that total.

Last year, the biggest offender programs for improper payments were Medicare, coming in at $57 billion, followed by Medicaid at $37 billion, the earned income tax credit at $21 billion, and the Supplemental Nutrition Assistance Program (SNAP) with $10 billion.

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“Improper payments have been a government-wide issue for more than 20 years, with estimates since FY 2003 at about $3 trillion,” the GAO added.

The agency contrasted improper payments with fraudulent ones, explaining, “Fraud is obtaining something of value through willful misrepresentation.”

Meanwhile, “Improper payments are payments that should not have been made or that were made in the incorrect amount; typically they are overpayments. While all fraudulent payments are considered improper, not all improper payments are due to fraud.”

Kristen Kociolek, the managing director of GAO’s Financial Management and Assurance team, noted that the worst period for improper payments was during the COVID pandemic from 2020 to 2023, because the new spending programs rolled out at the time meant an increased likelihood of significant amounts of money going to the wrong place, The Washington Times reported.

She added regarding the $24 billion increase in improper payments last year that it is “concerning to see the amounts of improper payments starting to increase again with the federal government not facing these emergency risks.”

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President Donald Trump recently placed Vice President J.D. Vance in charge of the administration’s efforts to root out fraud.

During a task force meeting at the White House Tuesday, Deputy Chief of Staff Stephen Miller argued that government programs have been set up based on an honor system.

“They are set up based on the idea that you could trust the average person, through their own morality, to abide by the rules and comply with the law,” he said, arguing that people have taken advantage of that trust to the tune of hundreds of billions of dollars.

“I believe, based on what I’ve seen, from what I’ve heard, that we could balance the federal budget if the only dollars that went out of the Treasury went to individuals who were properly, lawfully, correctly eligible to receive them,” Miller concluded.

SpaceEx CEO Elon Musk, who oversaw the Department of Government Efficiency last year, estimated at the time that roughly 20 percent of all federal government spending goes toward fraud and waste, presumably including improper payments.

So Godspeed to Vance’s task force. The future financial stability of the country relies on controlling spending, in large part by rooting out waste and fraud.

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Randy DeSoto has written more than 4,000 articles for The Western Journal since he began with the company in 2015. He is a graduate of West Point and Regent University School of Law. He is the author of the book "We Hold These Truths" and screenwriter of the political documentary "I Want Your Money."
Randy DeSoto wrote and was the assistant producer of the documentary film "I Want Your Money" about the perils of Big Government, comparing the presidencies of Ronald Reagan and Barack Obama. Randy is the author of the book "We Hold These Truths," which addresses how leaders have appealed to beliefs found in the Declaration of Independence at defining moments in our nation's history. He has been published in several political sites and newspapers.

Randy graduated from the United States Military Academy at West Point with a BS in political science and Regent University School of Law with a juris doctorate.
Birthplace
Harrisburg, Pennsylvania
Nationality
American
Honors/Awards
Graduated dean's list from West Point
Education
United States Military Academy at West Point, Regent University School of Law
Books Written
We Hold These Truths
Professional Memberships
Virginia and Pennsylvania state bars
Location
Phoenix, Arizona
Languages Spoken
English
Topics of Expertise
Politics, Entertainment, Faith




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