Lubbock Times

The Government Accountability Office (GAO) has released a report titled “Improper Payments: Information on Agencies’ Fiscal Year 2024 Estimates,” revealing that 16 federal agencies reported approximately $162 billion in improper payments across 68 federal programs during Fiscal Year 2024. This contributes to a cumulative total of at least $2.8 trillion in improper payments since 2003.

In response, House Budget Committee Chairman Jodey Arrington (R-TX) issued a statement emphasizing the need to address waste and fraud in government spending. He stated, “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.”

Chairman Arrington highlighted the significance of the GAO report's findings: “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.”

He further noted the commitment of Republicans under former President Trump’s leadership to safeguard taxpayer dollars and maintain safety net programs for vulnerable Americans by curbing unnecessary spending through budget reconciliation processes.

Improper payments are identified as a key example of governmental inefficiency, where funds are misallocated or overpaid, potentially threatening essential programs. According to GAO data, $135.2 billion—or 84 percent—of reported FY24 improper payments were overpayments, marking a 10 percent increase from FY2023.

Five major program areas accounted for about 75 percent ($121 billion) of these estimated improper payments for FY2024: HHS’s Medicare ($54 billion), HHS’s Medicaid ($31 billion), Treasury’s Earned Income Tax Credit ($16 billion), USDA’s Supplemental Nutrition Assistance Program ($11 billion), and SBA’s Restaurant Revitalization Fund ($9 billion).

A previous GAO report estimated that fraudulent activities cost the federal government between $233 billion to $251 billion annually. While all fraudulent payments qualify as improper, not all improper payments stem from fraud.

Led by Chairman Arrington, the House Budget Committee is dedicated to safeguarding federal funds' integrity and reducing nationwide wasteful practices.

Information regarding FY2024 improper payments is available online.

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