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Soft fraudFederal · 64 federal programsPaid without proof

$186 billion in one year: Paid out in error in fiscal 2025

Federal agencies sent out $186 billion in fiscal 2025 that they shouldn't have, or couldn't prove they should have.

FraudBadPublic receipt
64 federal programs
  1. Improper payments, FY2025$186B1
  2. Of that, overpayments$153B1
  3. Programs reporting64 at 15 agencies1
  4. Programs with error rates over 10%191
  5. Programs with error rates over 25%61
  6. Share in Medicare, Medicaid, EITC, SNAP and the Shuttered Venue grants73%1
  7. How much of it was fraud████████████████
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What happened

Every year agencies estimate how much money went out the door wrong. For fiscal 2025 the total climbed to $186 billion, GAO reported in April 2026. $153 billion of it was overpayments.

Nearly three-quarters of it sat in five programs: Medicare, Medicaid, the Earned Income Tax Credit, SNAP food aid, and a pandemic grant for shuttered venues.

Why nobody caught it

  • An improper payment can be fraud, an error, or a payment nobody can document. Agencies don't report how much is fraud.
  • Some programs known to be at risk aren't in the total at all. GAO names Temporary Assistance for Needy Families as one that's left out.

How sure are we?

Paid without proof

Officially counted as paid in error or without the records to prove it was right. Some is fraud. Nobody has measured how much.

The $186 billion is the government's own estimate. It is not all fraud. It is money paid without proof that it should have been.

Sources

  1. GAO-26-108694: improper payments government-wide, FY2025U.S. Government Accountability Office · Apr 2026

Spot an error? Send the source and we'll fix it.

America.co · The RECEIPTS Act

Want to stop it?Sign the Receipts Act.

Public money should come with a receipt anyone can check. The RECEIPTS Act starts with one rule for federal purchases over $25,000 from GSA's buying catalog: publish the price paid next to what other agencies paid for the same thing.

Sign the Receipts Act ↗

A citizen-authored working draft hosted on America.co. It has not been introduced in Congress.