Federal Improper Payments Surge to $186B

GAO Report Reveals Staggering $186 Billion in Federal Improper Payments in FY 2025

The Government Accountability Offices latest report uncovers a significant surge in federal improper payments, totaling $186 billion in fiscal year 2025. This marked a 24 billion dollar increase from the previous year, primarily due to several major programs that had previously skipped reporting.

The majority of these errors occurred in five key areas, accounting for 73% of the total from 64 programs across 15 agencies. Medicare programs alone accounted for $57 billion in errors, with Medicaid adding $37 billion, the Earned Income Tax Credit at $21 billion, and both SNAP and the Shuttered Venue Operators Grant at $10 billion each.

Officials are urging agencies to implement stricter controls and improve data management to protect taxpayer money. The high error rates, with 19 programs exceeding 10% and 6 topping 25%, highlight the urgent need for action.

The report is not comprehensive, as some vulnerable programs like Temporary Assistance for Needy Families did not report, potentially underestimating the true figure. The GAO has long advocated for enhanced transparency and risk assessment for new programs over $100 million.

With the public purse at risk, the GAO is calling for immediate action to mitigate these losses.

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