The government lost $186 billion in improper payments by 2025.
Government Accountability Office he says this figure represents an increase of nearly $24 billion from the previous year and brings the total lost since fiscal year 2003 to nearly $3 trillion.
Most of these payments came from overpayments to ineligible individuals.
About 73% occurred in five program areas including Medicare, Medicaid, the Earned Income Tax Credit, SNAP and the Small Business Administration’s Shuttered Venue Operators Grant program.
The increase was due to improved reporting and better verification of Medicaid after the COVID-19 expansion, as well as better reporting by agencies.
However, several organizations are not known.
“The government-wide estimate does not include other programs that have been determined to be susceptible to significant payment errors. For example, the estimate of $186 billion does not include improper payments that may be provided under Temporary Assistance for Needy Families (TANF). About $16.5 billion was spent under TANF in FY 2025 by the Department of Health and Human Services (H 2025). TANF as it does with other programs that it administers, such as Medicare and Medicaid.
Another reason is that HHS does not have the authority to require states to report the data needed to estimate improper payments. But we think it should. And we’ve asked Congress to consider something that would give HHS more authority. “
In all, the GOA audited 15 organizations and 64 programs to account for improper payments.
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