Improper Payments Cost the Government Billions
Improper payments cost the federal government $236 billion in Fiscal Year (FY) 2023, according to testimony from the Government Accountability Office (GAO)’s Chief Operating Officer Orice Williams Brown. Improper payments, or payments that should not have been made or were made incorrectly, have cost the federal government $2.7 trillion over the past twenty years.
The cost of improper payments spiked at $281 billion in 2021 due to trillions in federal spending during the pandemic that enhanced or established new federal programs. While the cost has decreased in 2022 and 2023, it is still nearly seven times higher than $35 billion recorded in FY 2003.
Six federal program areas are responsible for 85 percent of the $236 billion in improper payments including Medicare, Medicaid, Unemployment Insurance, Paycheck Protection Program, Earned Income Tax Credit, and Supplemental Security Income.
GAO has recommended that Congress take actions to enhance oversight and accountability of federal agencies such as new reporting, fraud analytics, data sharing, and improved internal control plans.
