Many Americans feel like they’re taxed way too much to begin with. But once they find out where it’s going, they’re livid.
And the federal government is accused of embezzling billions in one alarming report.
A congressional investigative organization calculated that the federal government made about a quarter of a trillion dollars in “improper payments” during the previous fiscal year.
According to a report released this week by the Government Accountability Office (GAO), 14 agencies reported $236 billion in mishandled payments in fiscal year 2023.
In this case, “improper payments” are defined as “those that should not have been made or were made in the incorrect amount.”
The GAO said that departments said overpayments made up $175 billion, which is more than 74% of the total.
The sum marked a $11 billion decline from fiscal year 2022, but the GAO highlighted in graphs how “improper payments” have, on average, increased over the preceding two decades.
The federal government has made an estimated $2.7 trillion in improper payments in the last 20 fiscal years—including $236 billion in FY23.
Today’s WatchBlog post looks at our new report on what is causing these errors & what can be done to prevent them: https://t.co/tbSrZG882J pic.twitter.com/axpRrhNNtr
— U.S. GAO (@USGAO) March 26, 2024
Since fiscal year 2003, the total amount has reached $2.7 trillion. The GAO stated that inappropriate payments have “consistently” been an issue throughout the government.
The $236 billion number for fiscal year 2023 is only an estimate, according to the GAO, and it excludes some programs that agencies have identified as “susceptible” to misdirected payments.
The GAO cited the Health and Human Services Department’s Temporary Assistance for Needy Families program as an example.
A review revealed that improper expenditures were “concentrated” in five program areas, including $51.1 billion for Medicare and $50.3 billion for Medicaid.
There was also $43.6 billion for Federal Pandemic Unemployment Assistance, $21.9 billion for the Earned Income Tax Credit, and $18.7 billion for Paycheck Protection Program Loan Forgiveness.
All other programs for which data was available accounted for $50.1 billion in “improper payments.”
Sen. Rick Scott (R-FL) responded to the top-line $236 billion forecast for fiscal year 2023 by criticizing the Biden administration.
“We need accountability here! This is YOUR money the Biden admin took out of your wallet and wasted,” he said in a post to X.
The GAO stated that it submitted a draft of the report to the Office of Management and Budget (OMB) for review and comment, but “OMB did not have any comments on the report.”
In fiscal year 2022, 14 of the 24 agencies covered by the Chief Financial Officers Act of 1990 “complied with applicable improper payment criteria, as reported by their agency inspectors general,” according to the GAO.
That figure increased from 2021, when the GAO said inspectors general indicated 10 agencies were compliant.
The GAO said it has made “numerous” recommendations and proposals to Congress on how to eliminate payment problems.
Stay tuned to the DC Daily Journal.
