Federal Agencies Made Over $161 Billion in Improper Payments Last Year: Watchdog

The U.S. government made billions of dollars worth of improper payments in the most recent fiscal year, with several agencies found to be non-compliant with regulations on the matter, according to a recent report from the U.S. Government Accountability Office (GAO).

An improper payment is one made by the government that “should not have been made or was made in an incorrect amount,” including duplicate payments, money sent to ineligible recipients, and payments made for goods or services not received.

The Payment Integrity Information Act of 2019 (PIIA) mandates that agencies identify risks related to improper payments and take corrective actions, while also reporting improper payments within the programs they administer.

GAO found that 10 agencies under the Chief Financial Officers Act were “noncompliant with PIIA criteria for fiscal year 2022.”

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The 10 agencies are the Departments of Agriculture, Defense, Education, Health and Human Services, Homeland Security, Housing and Urban Development, Labor, Treasury, Veterans Affairs, and Small Business Administration.

Out of the 10, nine were found to be noncompliant with the PIIA criteria for one or more programs or activities for two consecutive years—fiscal years 2021 and 2022. The only exemption was the Department of Homeland Security.

When an agency has been noncompliant for two consecutive years for the same activity or program, they are required to submit proposals on how they plan to become compliant with the PIIA.

These proposals are to be submitted to the Office of Management and Budget (OMB). According to GAO, OMB is expected to provide guidance on the matter in the development of the fiscal year 2026 President’s Budget.

GAO recommended the director of OMB clarify that agencies not in compliance with PIIA explicitly state in their annual financial statements that they will come into compliance.

According to the order, a temporary organization called the U.S. DOGE Service Temporary Organization is to be set up with a lifespan of around 18 months, headed by the USDS administrator. The organization “shall be dedicated to advancing the President’s 18-month DOGE agenda.”

The order mandates every government agency to establish a DOGE team, which coordinates with the USDS and advises agency heads on implementing the DOGE agenda.

One complaint was filed by a coalition of associations including the American Public Health Association, American Federation of Teachers, Minority Veterans of America, and the Citizens for Responsibility and Ethics in Washington.

A second lawsuit was filed by the Center for Biological Diversity, a third by the National Security Counselors, and a fourth one by consumer watchdog group Public Citizen.

Kieran Suckling, executive director of the Center for Biological Diversity, alleged that DOGE will attempt to remove federal protections “for our air, water, and most imperiled wildlife.”

“The American people gave Washington a mandate in November—waste less, save more. Today, I’m introducing a first set of bills to follow through on their mandate by prioritizing streamlined regulations, rulemaking, and record keeping. It’s time to put government waste in the doghouse and let DOGE get to work,” the lawmaker said.