• The U.S. government reported $161.5 billion in improper payments in fiscal year 2024, totaling nearly $2.8 trillion since fiscal year 2003.
• The improper payments affect multiple government agencies, including the Department of Agriculture, Defense, Education, Health and Human Services, Homeland Security, Housing and Urban Development, Labor, Treasury, Veterans Affairs and the Small Business Administration.
• Ten out of the agencies identified as having improper payments were noncompliant with the Payment Integrity Information Act of 2019 (PIIA) for fiscal year 2022.
• President Donald Trump’s administration introduced the Department of Government Efficiency (DOGE) initiative to modernize federal technology and software, with a focus on government efficiency and productivity.
• The GAO report highlights the persistent issue of government inefficiency, with challenges including legal opposition to the DOGE initiative and the need for effective oversight to address improper payments. The upcoming fiscal year 2026 President’s Budget is expected to address PIIA compliance proposals.

In a recent report, the U.S. Government Accountability Office (GAO) revealed that the U.S. government made improper payments totaling $161.5 billion in fiscal year 2024.

This staggering figure, which includes payments that should not have been made or were made in incorrect amounts, highlights a persistent problem that has cost taxpayers nearly $2.8 trillion since fiscal year 2003.

The improper payments span multiple government agencies, including the Departments of Agriculture, Defense, Education, Health and Human Services, Homeland Security, Housing and Urban Development, Labor, Treasury, Veterans Affairs and the Small Business Administration.

According to the GAO, these agencies are required to identify risks related to improper payments and take corrective actions under the Payment Integrity Information Act of 2019 (PIIA). However, the report found that 10 of these agencies were noncompliant with PIIA criteria for fiscal year 2022, marking a significant breach in regulatory compliance.

This report, released on Jan. 23, 2024, sheds light on the ongoing issue of government inefficiency. While the total improper payment figure for fiscal year 2024 is lower than the $236 billion estimated for fiscal year 2023, it remains a concern given the cumulative impact on taxpayers over the past two decades. The problem is particularly acute in the context of federal agencies, which are mandated by law to report and correct improper payments.

Historical context and current challenges

The issue of improper payments is not new. Since 2003, the executive branch has reported cumulative improper payment estimates of approximately $2.8 trillion. The PIIA was introduced to address this issue, requiring agencies to identify risks and take corrective actions. However, the recent GAO report reveals that many agencies are still struggling to comply with the PIIA.

According to the GAO report, nine out of the 10 noncompliant agencies were found to have failed to meet PIIA criteria for two consecutive years, fiscal years 2021 and 2022. The Department of Homeland Security was the only exception. This persistent noncompliance underscores the challenges agencies face in implementing effective payment integrity measures.

Amid these challenges, President Donald Trump’s administration introduced the Department of Government Efficiency (DOGE) initiative on his first day in office. The initiative seeks to modernize federal technology and software to maximize governmental efficiency and productivity. The U.S. Digital Service has been renamed as the U.S. DOGE Service (USDS), and a temporary organization called the U.S. DOGE Service Temporary Organization is to be set up to advance the DOGE agenda over the next 18 months.

However, the DOGE initiative has already faced opposition, with four lawsuits being filed against it on January 20 by several groups, including the American Public Health Association, American Federation of Teachers, Minority Veterans of America and the Center for Biological Diversity. Kieran Suckling, executive director of the Center for Biological Diversity, alleged that DOGE will attempt to remove federal protections for the environment. (Related: Deep State sabotage: Lawsuit targets DOGE in an attempt to block government overhaul.)

Despite these challenges, Sen. James Lankford (R-OK) has introduced a bill aimed at making the government more efficient. Lankford’s legislation seeks to prioritize streamlined regulations, rulemaking and record-keeping, aligning with the goals of the DOGE initiative.

The GAO report on improper payments highlights a significant challenge in government efficiency and fiscal responsibility. With cumulative losses of nearly $2.8 trillion since 2003, the issue is urgent and requires immediate attention. While initiatives like the DOGE agenda aim to improve government efficiency, they face legal challenges and public skepticism.

The upcoming fiscal year 2026 President’s Budget, which is expected to address the PIIA compliance proposals, may provide a turning point in addressing these long-standing issues. As the government continues to grapple with improper payments, the need for effective oversight and regulatory compliance remains critical. The success of the DOGE initiative and subsequent government reforms will be crucial in addressing these challenges and restoring public trust in government efficiency.

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Sources include:

TheEpochTimes.com

GAO.gov

Brighteon.com