Federal Government Wasted Almost $200 Billion on Improper Payments

The federal government spent a shocking $186 billion on “improper payments” in the last fiscal year, marking an increase in reported levels.

The Government Accountability Office said in an April 27 release that the $186 billion was a result of “overpayments, fraud, or other causes.”

Overpayments accounted for $153 billion alone.

There was an increase of $24 billion in improper payments from fiscal year 2024.

The increase was primarily driven by programs that reported improper payments for fiscal year 2025, but did not report it for the previous year.

There was also a notable increase in improper payments from Medicaid.

“Federal agencies must do more to protect taxpayer dollars from the errors that drive improper payments,” Acting Comptroller General of the United States Orice Brown said in the release.

“This $186 billion problem demands urgent action — agencies need stronger controls, better data, a commitment to accountability, as well as