Federal Government Wasted Almost $200 Billion on Improper Payments
The federal government spent a shocking $186 billion on “improper payments” in the last fiscal year, marking an increase in reported levels.
The Government Accountability Office said in an April 27 release that the $186 billion was a result of “overpayments, fraud, or other causes.”
Overpayments accounted for $153 billion alone.
There was an increase of $24 billion in improper payments from fiscal year 2024.
The increase was primarily driven by programs that reported improper payments for fiscal year 2025, but did not report it for the previous year.
There was also a notable increase in improper payments from Medicaid.
“Federal agencies must do more to protect taxpayer dollars from the errors that drive improper payments,” Acting Comptroller General of the United States Orice Brown said in the release.
“This $186 billion problem demands urgent action — agencies need stronger controls, better data, a commitment to accountability, as well as robust Congressional oversight.”
The improper payments were reported from 64 programs across 15 agencies.
Nearly three-quarters of the improper payments came from just five areas — Medicare, Medicaid, the Earned Income Tax Credit, the Supplemental Nutrition Assistance Program, and the Shuttered Venue Operators Grant.
The release added that 19 programs “reported improper payment rates of over 10 percent, and six programs reported rates of over 25 percent.”
The $186 billion figure does not even represent the total amount of improper payments from the federal government.
“The government-wide estimate does not include some programs that were determined to be susceptible to significant improper payments,” the Government Accountability Office said.
“For example, the $186 billion estimate does not include improper payments made under the Temporary Assistance for Needy Families program.”
Government Executive reported that the Trump administration has been seeking to address fraud with Medicare and Medicaid.
Mehmet Oz, who leads the Centers for Medicare and Medicaid Services, announced one week before the report that the administration would start requiring states to revalidate Medicaid providers.
President Donald Trump also recently appointed Vice President J.D. Vance to lead an anti-fraud task force.
The latest report from the Government Accountability Office comes as the federal budget deficit nears $1.2 trillion.
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