GAO Says Federal Improper Payments Total $2.7 Trillion Over Two Decades
The Government Accountability Office estimates that from 2003 to 2023 the federal government made $2.7 trillion in improper payments, a sum comparable to major national budget items.
A recent Government Accountability Office analysis finds that the United States federal government disbursed $2.7 trillion in improper payments from 2003 through 2023, encompassing errors, overpayments and undocumented disbursements. The Cicero Institute cited this number in a report on government accountability, noting its size would rank it among the world’s largest economies if it were a country. Treasury Secretary Scott Bessent has estimated that fraud could account for as much as ten percent of the federal budget, referencing GAO figures for 2018-2022 that show annual losses between $233 billion and $521 billion.
When inflation is applied, the cumulative improper payments climb to roughly $3.9 trillion through 2026, a level the constant-dollar federal budget did not reach until 2017. While the magnitude is striking, analysts point out that the federal deficit and new debt, exceeding $33 trillion, dwarf the fraud losses. Critics contend that the core issue is public demand for ever-greater spending and political reluctance to enforce fiscal restraint.
Why it matters
It reveals how much taxpayer money is wasted, highlighting challenges in federal budgeting and accountability.
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