The US Government Accountability Office (GAO) has reported that the federal government made an estimated $236 billion in improper payments in the year ending September 2023. These payments, which should not have occurred, include overpayments, payments without proper documentation, and other errors. Overpayments alone account for nearly three-quarters of these improper payments, with recovery rates in the low single digits for most programs. The GAO’s findings have sparked interest and debate, particularly among supporters of Elon Musk’s Department of Government Efficiency (DOGE), which aims to cut costs across federal agencies. The six program areas contributing to 85% of these improper payments are Medicare, Medicaid, unemployment insurance, the Paycheck Protection Program, the Earned Income Tax Credit, and Supplemental Security Income. Despite the attention, the GAO clarifies that not all improper payments equate to fraud, as determining the extent of fraudulent activity can take years.
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