Federal Agencies Failed To Stop Nearly $186 Billion In Improper Payments

By Christopher Jacobs | The Federalist

The past year-plus has seen a focus on fighting fraud within government programs seemingly unprecedented in recent history. Yet, like the mythical Sisyphus pushing his rock uphill or the many-headed ancient Hydra, each success is seemingly matched by yet another scandalous source of government corruption.

Multiple reports in recent weeks show how reformers have their work cut out for them. On the federal level, improper payments continued to grow (although the most recent fiscal year examined included the final months of the Biden administration). Meanwhile, state Medicaid programs have not fully complied with a federal requirement designed to guard against program scams. It’s enough to make one wonder when the public sector will finally come to grips with the scale of the problem.

Rising Improper Payments

Late in April, the Government Accountability Office (GAO) released its annual compilation of agencies’ improper payment estimates. The GAO report found that those payments increased by more than $24 billion in fiscal year 2025 (which went from Oct. 1, 2024, through Sept. 30, 2025), to $185.8 billion.

Improper payments do not necessarily equate to fraud. In addition to outright fraud and embezzlement, improper payments also include payments made in the incorrect amount or without appropriate documentation. To borrow a religious phrase relating to sin, think of improper payments as a “near occasion” of fraud — i.e., the lack of attention to detail that allows fraud to fester and grow.

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