Biden Administration Improperly Paid $236 Billion to Federal Programs in 2023
By The Blog Source
President Donald Trump's drive to overhaul government spending through DOGE was fueled by the $236 billion in illegal payments made by the Biden administration across 71 federal agencies in 2023.
The Biden administration made $236 billion in illegal payments across 71 federal programs in 2023, according to a new Government Accountability Office (GAO) analysis. This amount highlights worries about government waste, fraud, and inefficiency, according to a recent yourNEWS report.
Three-quarters of these payments were overpayments, indicating that beneficiaries received more money than they were legally entitled to under federal regulations, according to the research, which was first brought to light by The New York Times. The unlawful payments contributed significantly to the $1.8 trillion federal deficit under the Biden administration, bringing financial monitoring shortcomings and government incompetence to the public's attention once again.
An estimated $236 billion in inappropriate payments—payments that should not have been made, that were paid in the wrong amount, or that lacked any supporting documentation—were reported by federal agencies in FY 2023. A crucial first step in assisting agencies in determining the reasons for and strategies for minimizing incorrect payments is estimating them.
Unfortunately, fraud, waste, and abuse are prevalent issues in programs run by the federal government. Improper payments have been a major problem for years, totaling close to $2.7 trillion since fiscal year 2003, according to recent testimony from the U.S. Government Accountability Office (GAO) before the Subcommittee on Government Operations and the Federal Workforce, Committee on Oversight and Accountability, House of Representatives. In FY 2023, agencies assessed that inappropriate payments of $236 billion were made across 71 government programs. Billions of incorrect payments are a terrible issue for both agencies and taxpayers, even though FY 2023 improper payments are around $11 billion less than FY 2022.
The GAO determined that six programs were responsible for $200 billion, or 85% of the estimated $236 billion in improper payments for fiscal year 2023.
Medicare (Department of Health and Human Services)
Medicaid (Department of Health and Human Services)
Unemployment Insurance (Department of Labor)
Paycheck Protection Program (Small Business Administration)
Earned Income Tax Credit (EITC) (Department of the Treasury)
Supplemental Security Income (Social Security Administration)
Previously, the GAO identified these programs as "high-risk" for fraud, waste, and abuse (some as far back as 1990—Medicare, EITC). The GAO provides each agency or department with solutions and suggestions, as well as recommendations for improving the monitoring of the agencies' implementation of their recommendations.
In 2021, the cost of improper payments increased to $281 billion as a result of trillions in federal expenditure during the pandemic, which either established new federal programs or enhanced existing ones. Although the cost has decreased in 2022 and 2023, it remains nearly seven times higher than the $35 billion recorded in FY 2003.
GAO has advised Congress to implement measures to improve the oversight and accountability of federal agencies, including the implementation of new reporting systems, fraud analytics, data exchange, and enhanced internal control plans.
Officials anticipate that more steps will be taken to stop illegal payments, strengthen fiscal accountability, and enforce financial discipline across federal agencies as DOGE continues its investigation of government spending.
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