Chairman Arrington Statement on New GAO Report Citing $162 Billion in Improper Payments
WASHINGTON, D.C. – Today, the Government Accountability Office (GAO) released its report, “Improper Payments: Information on Agencies’ Fiscal Year 2024 Estimates.” According to GAO, 16 federal agencies reported about $162 billion in improper payments across 68 federal programs in Fiscal Year (FY) 2024. This brings cumulative improper payment totals since 2003 to at least $2.8 trillion.
In response to the report, House Budget Committee Chairman Jodey Arrington (R-TX) released the following statement:
“In order to restore the fiscal health of our nation and ensure we are good stewards of American’s hard-earned tax dollars, we must root out the rampant waste and fraud that plagues our federal balance sheet.
“Today's staggering GAO report estimates $162 billion in improper payments in 2024 alone and underscores what we already know: waste, fraud, and abuse remain a massive drain on this nation’s finite financial resources, which are already spread thin. In fact, since 2003, improper payments have exceeded $2.8 trillion.
“Republicans – under President Trump’s leadership - are committed to protectingtax dollars and preserving safety net programs for America’s most vulnerable by reining in wasteful and unnecessaryspending through the budget reconciliation process.”
Background:
Improper payments are the quintessential example of government inefficiency. Dollars spent improperly represent an abuse of taxpayer dollars that can jeopardize the stability of government programs that Americans rely on.
According to GAO, improper payments are payments that should not have been made or that were made in the incorrect amount. Typically, they are overpayments.
$135.2 billion, or 84 percent, of reported FY24 improper payments were overpayments. This is an increase of 10 percent from FY2023.
About 75 percent, or $121 billion, of the total estimated improper payments for FY2024 was concentrated in five program areas:
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HHS’s Medicare ($54 billion)
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HHS’s Medicaid ($31 billion)
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Treasury’s Earned Income Tax Credit ($16 billion)
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USDA’s Supplemental Nutrition Assistance Program ($11 billion)
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SBA’s Restaurant Revitalization Fund ($9 billion)
Last year, GAO?released a first-of-its-kind report on fraud across the federal government. While all fraudulent payments are considered improper, not all improper payments are due to fraud. GAO estimated in their fraud report that the federal government loses an estimated $233 billion to $251 billion annually due to fraud.
Improper payments and fraud represent a gross misuse of taxpayer dollars and led by Chairman Arrington, the House Budget Committee is committed to protecting the integrity of federal funds and reducing government-wide waste, fraud, and abuse.
Information on FY2024 improper payments can be found here.
The government-wide fraud estimate report can be found here.
