{"id":2600296,"date":"2026-05-08T09:21:56","date_gmt":"2026-05-08T13:21:56","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-bureaucrats-improperly-paid-out-186-billion-in-taxpayer-money-in-2025\/"},"modified":"2026-05-08T09:29:20","modified_gmt":"2026-05-08T13:29:20","slug":"report-bureaucrats-improperly-paid-out-186-billion-in-taxpayer-money-in-2025","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-bureaucrats-improperly-paid-out-186-billion-in-taxpayer-money-in-2025\/","title":{"rendered":"Bureaucrats Improperly Paid Out $186 Billion In Tax Money In 2025"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Freport-bureaucrats-improperly-paid-out-186-billion-in-taxpayer-money-in-2025%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2600296&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Recent reporting argues that while <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inspector-general-46-billion-in-covid-unemployment-subsidies-probably-went-to-fraudsters\/\" title=\"Inspector General:  Billion In \u2018Covid... Unemployment Subsidies Probably Went To ...sters\">anti-fraud efforts<\/a> in government programs have intensified over the past year, corruption and poor controls keep emerging-like repeated problems that never fully get solved.<\/p>\n<p>At the federal level, improper payments (not always direct fraud, but also payments lacking documentation or made in incorrect amounts) rose sharply in fiscal year 2025, reaching $185.8 billion-an increase of over $24 billion. The article notes this figure likely understates the problem because types of improper payments tied to Medicaid eligibility may grow as <a href=\"https:\/\/amzn.to\/3YuVZYV\" >pandemic-era eligibility check suspensions<\/a> are brought back into state estimates. It also points out that some major programs do not even provide estimates for improper payments. Examples cited include very high improper payment rates in the Earned Income Tax Credit and in Affordable Care Act marketplace insurance subsidies. The piece further says many agencies fail to comply with reporting and reduction requirements under the Payment Integrity Details Act-such as not publishing estimates or not having plans to reduce improper payments-which the author ties to weak oversight and implementation gaps flagged by inspectors general.<\/p>\n<p>The article then shifts to states, arguing compliance with Medicaid fraud-prevention rules is also inadequate. Under the ACA, states are required to revalidate Medicaid providers every five years, including checking licensure, addresses, and whether providers are excluded for prior misconduct. Using Freedom of Information Act requests, the Foundation for Government Accountability allegedly found large backlogs: many Illinois providers had not been revalidated, while Georgia and Michigan reportedly revalidated onyl a small fraction within the last year-falling far short of the mandate.<\/p>\n<p>it suggests a key reason for lax enforcement is that states may have less incentive to aggressively police fraud because federal funding often increases with spending. The author closes by emphasizing that taxpayers\u2019 money is limited and should be protected through better measurement and accountability, especially as inflation strains households.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>The past year-plus has seen a <a href=\"https:\/\/thefederalist.com\/2026\/04\/24\/how-trumps-big-beautiful-bill-is-reversing-rampant-state-waste-and-fraud\/\" target=\"_blank\" rel=\"noreferrer noopener\">focus on fighting fraud<\/a> within government programs seemingly unprecedented in recent history. Yet, like the mythical Sisyphus pushing his rock uphill or the many-headed ancient Hydra, each success is seemingly matched by yet another scandalous source of government corruption.<\/p>\n<p>Multiple reports in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/watch-john-fettermans-wife-rushes-in-to-shield-him-from-a-question-about-debating-oz\/\" title=\"WATCH: John Fetterman...s Wife \u2018Rushes In To Shield Him From A Question About Debating Oz...\">recent weeks show<\/a> how reformers have their work cut out for them. On the federal level, improper payments continued to grow (although the most recent fiscal year examined included the final months of the Biden administration). Meanwhile, state Medicaid programs have not fully complied with a federal requirement designed to guard against program scams. It\u2019s enough to make one wonder when the public sector will finally come to grips with the scale of the problem.<\/p>\n<h2><strong>Rising Improper Payments<\/strong><\/h2>\n<p>Late in April, the Government Accountability Office (GAO) released its annual <a href=\"https:\/\/www.gao.gov\/assets\/gao-26-108694.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">compilation<\/a> of agencies\u2019 improper payment estimates. The GAO report found that those payments increased by more than $24 billion in fiscal year 2025 (which went from Oct. 1, 2024, through Sept. 30, 2025), to $185.8 billion.<\/p>\n<p>Improper payments do not necessarily equate to fraud. In addition to outright fraud and embezzlement, improper payments also include payments made in the incorrect amount or without appropriate documentation. To borrow a religious phrase relating to sin, think of improper payments as a \u201cnear occasion\u201d of fraud \u2014 i.e., the lack of attention to detail that allows fraud to fester and grow.<\/p>\n<p>And even though improper payments increased in fiscal year 2025, the higher number still understates the scope of the problem. For one, Medicaid improper payments \u2014 many of which are linked to ineligible individuals receiving coverage \u2014 <a href=\"https:\/\/thefederalist.com\/2025\/03\/06\/politico-stealth-edits-error-filled-hit-piece-on-gop-spending-bill\/\" target=\"_blank\" rel=\"noreferrer noopener\">will increase<\/a> <a href=\"https:\/\/www.gao.gov\/assets\/gao-25-107743.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">in the coming years<\/a>, as eligibility checks suspended during the Covid pandemic gradually get reincorporated into states\u2019 Medicaid estimates. Moreover, programs such as Temporary Assistance for Needy Families (originally called welfare) do not even estimate improper payment levels and amounts.<\/p>\n<p>Many prominent programs have unacceptably high rates of improper payments. For instance, the Earned Income Tax Credit had a 32.7 percent improper payment rate in 2025, and the Refundable Premium Assistance Tax Credit (aka, insurance subsidies on the Obamacare Exchanges) had a 31.6 percent improper payment rate. The latter number, coming on top of numerous reports of Exchange fraud, provides <a href=\"https:\/\/thefederalist.com\/2026\/01\/05\/10-reasons-house-republicans-shouldnt-extend-enhanced-obamacare-subsidies\/\" target=\"_blank\" rel=\"noreferrer noopener\">yet more support<\/a> for Congress\u2019s correct decision to let the Biden-era <a href=\"https:\/\/thefederalist.com\/2021\/03\/02\/how-democrats-covid-bill-gives-welfare-to-the-wealthy\/\" target=\"_blank\" rel=\"noreferrer noopener\">enhanced subsidies<\/a> expire as scheduled last December.<\/p>\n<p>Yet despite nearly $200 billion (at least) in improper payments, GAO also reported that in 2024, 12 of 24 agencies had not complied with all the relevant criteria under the Payment Integrity Information Act. For instance, four agencies\u2019 inspectors general noted that their agency did not develop a plan to meet a target for reducing improper payments, and eight agencies did not publish improper payment estimates at all.<\/p>\n<p>The failure of many agencies to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/task-force-arrests-eight-in-illegal-drivers-license-scheme-washington-examiner\/\" title=\"Task force arrests eight in illegal driver&#039;s license scheme - Washington Examiner\">meet statutory requirements<\/a> regarding information reporting shows a lack of attention to and interest in the problem. After all, as the saying goes, you can\u2019t manage what you don\u2019t measure. The dozens of inspector general recommendations not yet implemented likewise provide a clear explanation for the increase in improper payments GAO reported. Individually and collectively, these data points illustrate the scope of the problem the Trump administration must act to remedy throughout the federal government.<\/p>\n<h2><strong>States Not Acting<\/strong><\/h2>\n<p>Meanwhile, a recent Wall Street Journal <a href=\"https:\/\/www.wsj.com\/opinion\/medicaid-providers-fraud-foundation-for-government-accountability-obamacare-89c00e2c?mod=editorials_article_pos14\" target=\"_blank\" rel=\"noreferrer noopener\">editorial<\/a> finds the situation little better in the states, many of which have also not complied with <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-committee-probing-minnesota-fraud-targets-medicaid-funds\/\" title=\"House committee probing Minnesota ... targets Medicaid funds\">anti-fraud requirements<\/a>. Specifically, Section 6401 of Obamacare required state Medicaid programs to validate providers every five years, checking their license status and address and verifying that the medical entities are not on a list of providers excluded from government programs due to fraud, negligence, or patient abuse.<\/p>\n<p>The Foundation for Government Accountability (FGA) made Freedom of Information Act requests of state Medicaid programs about the status of their required checks. As the Journal noted in its editorial, the information received by FGA to date was far from encouraging:<\/p>\n<blockquote>\n<p>Some 58,306 of Illinois\u2019 (26%) providers haven\u2019t been revalidated in five years. One Illinois provider hadn\u2019t been reviewed in more than nine years. Georgia has revalidated only 11.4% of its providers in the last year, so it\u2019s unlikely to meet the five-year mandate. Ditto Michigan, which has reviewed 26,308 [10.2%] of its 257,722 providers in the last year.<\/p>\n<\/blockquote>\n<p>The Journal notes (as <a href=\"https:\/\/thefederalist.com\/2026\/04\/24\/how-trumps-big-beautiful-bill-is-reversing-rampant-state-waste-and-fraud\/\">I have in these pages<\/a>) one obvious reason for the lax performance: \u201c[S]tates have little incentive to police fraud \u2026 because they get more federal funds the more they spend.\u201d Of course, that rationalization would prove little comfort to any patients subjected to substandard care because a state Medicaid program failed to comply with a statutory mandate. <\/p>\n<p>Just as important: preserving the efficient use of public funds. Particularly with families suffering from the <a href=\"https:\/\/thefederalist.com\/2025\/12\/01\/the-middle-class-cant-keep-up-with-persistent-inflation-forever\/\" target=\"_blank\" rel=\"noreferrer noopener\">effects of inflation<\/a>, governments at all levels should view the dollars taxpayers contribute to government coffers as a scarce, precious resource that all public servants treasure and spend wisely. If individuals in those governments can\u2019t or won\u2019t abide by that principle, then they shouldn\u2019t let the door hit themselves on the way out.<\/p>\n<hr>\n<div>\n<p>      Chris Jacobs is founder and CEO of Juniper Research Group and author of the book &#8220;<a href=\"https:\/\/www.amazon.com\/dp\/1645720020\">The Case Against Single Payer<\/a>.&#8221; He is on Twitter: <a href=\"http:\/\/twitter.com\/chrisjacobsHC\">@chrisjacobsHC<\/a>.<\/p>\n<\/div><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the past year, anti-fraud efforts in government have intensified, but each win is met by new scandals. Recent reports show reformers face major challenges on both federal and state levels<\/p>\n","protected":false},"author":521,"featured_media":2600297,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2026\/05\/Heap-of-Dollars.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[15016,32412,79322,50934],"class_list":["post-2600296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-bureaucracy","tag-government-spending","tag-mismanagement-2","tag-taxation-2"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2026\/05\/Heap-of-Dollars.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2600296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/521"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2600296"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2600296\/revisions"}],"predecessor-version":[{"id":2600303,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2600296\/revisions\/2600303"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2600297"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2600296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2600296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2600296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}