Sen. Rand Paul, R-Ky., discusses the federal government’s fiscal year 2025 report on improper payments, his bill to authorize the construction of a White House ballroom and the indictment of former Fauci counsel at Varney & Co.
A new report by a non-partisan group Government Accountability Office (GAO) found that improper payments to the federal government will increase to $186 billion in fiscal year 2025.
The GAO found that the average federal agency’s improper payments an increase of $24 billion in fiscal year 2025 from the previous fiscal year. The increase is largely due to plans that did not report in fiscal year 2024 but reported improper payment rates last year.
It assessed that overpayments accounted for $153 billion, or about 82%, of the $186 billion in overpayments for the previous fiscal year.
“Government agencies must do more to protect taxpayer dollars from errors that lead to improper payments,” said Orice W. Brown, acting administrator general and head of the GAO. “This $186 billion crisis requires urgent action — agencies need stronger controls, better data, a commitment to accountability, and stronger congressional oversight.”
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The GAO estimates that the federal government made $186 billion in improper payments in fiscal year 2025. (Elizabeth Frantz/File Photo/Reuters/Reuters)
The GAO’s estimate of improper payments in fiscal year 2025 was based on reports from 64 federal programs across 15 federal agencies, although only 73% of improper payments were concentrated in five program areas.
A number of payments that are not eligible for Medicare, Medicaid, the Earned Income Tax Credit (EITC), Nutrition Assistance Program (SNAP) and the Closed Space Grant program.
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The Treasury Department’s Earned Income Tax Credit program has been flagged for billions in improper payments. (Getty Images)
A trio of programs below Medicare accounted for $57 billion in improper payments, while Medicaid added another $37 billion. The EITC is estimated to generate $21 billion in unfair payments, while SNAP and the Shuttered Venue Operators Grant program each cost $10 billion in assessments.
The majority of programs reported a high rate of improper payment, with 19 programs reporting rates above 10%, while six programs’ rates reached 25%.
The GAO report is not a comprehensive measure of improper payments by all government agencies and programs because some did not provide ratings.
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The Department of Health and Human Services oversees the Medicaid and Medicare programs flagged in the report. (Kayla Bartkowski/Getty Images)
The GAO said the government-wide estimate “does not include other programs that were determined to be unable to pay inappropriately.”
“For example, the $186 billion estimate does not include improper payments made under Temporary Assistance for Needy Families (TANF) program,” the GAO noted.
The report noted that the GAO “made a number of recommendations to agencies and Congress to help reduce payment errors by improving transparency and accountability of federal spending.”
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“This includes designating all new federal programs that make payments of more than $100 million in any fiscal year as non-improper payments and requires agencies to develop internal control systems that can be implemented quickly to fund future emergencies,” the GAO said.
