The Treasury Department says it has prevented nearly $100 million in federal payments from being sent to deceased individuals after launching a government-wide payment verification system, marking another step in the Trump administration’s campaign to curb fraud and improper spending.

According to information obtained by The New York Post, Treasury’s Bureau of the Fiscal Service uncovered the questionable payments while reviewing roughly 885 million federal transactions with a combined value approaching $2.7 trillion.

Since the screening process began in March 2025, officials have flagged more than 4,900 payments totaling about $99 million that were linked to recipients who had already died, Treasury said.

Rather than allowing the money to be distributed, Treasury returned those payments to the federal agencies that initiated them so they could be examined before any taxpayer funds were released. Officials noted that payments directed to deceased individuals can often be a warning sign of fraud.

Although the blocked payments represented only about 0.0036% of the $2.7 trillion reviewed, Treasury emphasized that the amount was more than three times higher than what had been detected before President Trump took office last year as part of the administration’s broader effort to eliminate waste, fraud, and abuse.

“Treasury has delivered on a key promise of President Trump’s mandate to stop improper payments and fraud before money leaves the Treasury, and strengthen the integrity of the federal payment system,” Treasury Secretary Scott Bessent said in a statement.

“Together with Vice President Vance’s Task Force to Eliminate Fraud, this new safeguard addresses a longstanding vulnerability and helps ensure every dollar the federal government spends reaches its intended recipient,” Bessent added. “Treasury will continue efforts to modernize the federal payment system, strengthen safeguards against fraud and improper payments, and protect taxpayer dollars.”

To identify the improper payments, Treasury relied on the federal Do Not Pay program, which verifies a recipient’s identity, eligibility, and banking information before federal funds or awards are issued. Officials also employed additional verification technologies that helped detect the nearly $99 million in payments intended for deceased recipients.

Treasury said it dramatically broadened the use of these verification tools last year in response to directives issued by President Trump.

A law enacted in 2021 temporarily gave the department access to the Social Security Administration’s Full Death Master File, enabling officials to identify many of the deceased individuals listed as payment recipients.

That authority became permanent in February when President Trump signed the Ending Improper Payments to Deceased People Act into law, ensuring Treasury retains ongoing access to the federal death records database.

Looking ahead, Treasury estimates that the expanded safeguards will generate approximately $330 million in net savings by preventing improper payments from being issued to deceased individuals.

{Matzav.com}