Federal agencies distributed approximately $186 billion in improper payments during fiscal year 2025, according to a new analysis by the Government Accountability Office, with Medicare, Medicaid, and welfare-related programs making up the overwhelming majority of the losses.

The total represented an increase of roughly $24 billion compared to the previous fiscal year, according to a report by the New York Post. The GAO found that 15 federal agencies reported improper payments across 64 separate government programs, with nearly 82% of the questionable payments classified as overpayments.

Among all federal programs, Medicare recorded the highest amount of improper payments, totaling $57 billion.

Medicaid ranked second, with an estimated $37 billion improperly distributed, while the Earned Income Tax Credit accounted for another $21 billion that went to recipients who were not eligible.

The Supplemental Nutrition Assistance Program, better known as food stamps, saw nearly $10 billion in improper payments.

Another $10 billion was linked to the Shuttered Venue Operators Grant Program, a pandemic-era initiative created to help theaters, museums, and entertainment venues survive the economic fallout of COVID-19 restrictions.

All other federal programs combined were responsible for an additional $51 billion in improper payments, according to the report.

The GAO noted that improper payments have plagued the federal government for decades, estimating that agencies have improperly distributed nearly $3 trillion since 2003.

The agency warned that the true number may actually be significantly larger, explaining that several programs viewed as highly vulnerable to payment errors were not included in the latest calculations.

The findings were released as a federal anti-fraud initiative spearheaded by Vice President JD Vance pressures states to tighten monitoring of federally funded assistance programs or face the possibility of losing federal dollars.

Kristen Kociolek, managing director of the GAO’s Financial Management and Assurance division, told The Washington Times that the sharpest jump in improper payments occurred during the COVID-19 years between 2020 and 2023, when emergency spending programs rapidly expanded.

The GAO said it has repeatedly called on Congress and federal agencies to strengthen oversight systems and accountability safeguards aimed at curbing fraud, payment errors, and abuse throughout the federal government.

{Matzav.com}