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, thefederal deficitcould be cut by hundreds of billions more.
The GAOsaidthat 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 trillionthis 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.
There were an estimated $186 billion in improper payments made last year by the federal government, with the Medicare and Medicaid programs being the top offenders.pic.twitter.com/eHHzSwzJ2s
— Randy DeSoto (@RandyDeSoto)May 26, 2026
“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.”
Source: VidNews » Feed
