Treasury Department Cracks Down on Fraudulent Payments

The Treasury Department blocked $175 million in federal payments tied to deceased recipients in fiscal year 2026. This figure shows a significant increase from the $99 million identified earlier, as the Trump administration expanded efforts to screen for improper payments.

Republican Louisiana Senator John Kennedy praised Treasury Secretary Scott Bessent for stopping these fraudulent activities. “Unless you were neglecting your Economics 101 class, you know the government shouldn’t send money to dead people,” Kennedy stated. He highlighted his long-fought efforts to pass legislation preventing fraud and noted success with a 2020 law that allowed Treasury temporary access to Social Security death records.

President Trump signed the Ending Improper Payments to Deceased People Act into law in February 2026. This made the Social Security Administration’s data-sharing program with the Treasury permanent. Treasury Secretary Bessent recently announced additional sanctions on individuals linked to the Maduro regime.

Trump’s administration has focused on curbing fraud, waste, and abuse of taxpayer funds. Initiatives like stopping payments to deceased individuals are part of this broader effort.

In fiscal year 2026, the Treasury Department screened over 1.1 billion federal payments worth about $3.7 trillion, identifying and returning 13,500 payments totaling $175 million due to recipient ineligibility.

Treasury Secretary Bessent emphasized the agency’s commitment to using improved data, enhanced controls, and advanced technology to prevent fraud before funds are disbursed. Recent advancements have enabled the verification of $3.7 trillion in federal payments, increasing “Do Not Pay” access from 4% to 99% of federal programs.

The Treasury’s “Do Not Pay” program, which screened over 1.1 billion payments, caught 13,500 improper payments to deceased individuals. More than 99% of federal programs now use this tool, vastly improving from the 4% coverage in FY2025.

This expansion meets the goals of a March 2025 executive order to combat fraud, waste, and abuse in government payments. In FY2026, the number of records screened quadrupled, showcasing the program’s growth and newer verification efforts.

Treasury also developed safeguards to verify bank account ownership and check Taxpayer Identification Numbers tied to federal payments. These were fully operational by September 30, allowing the department to flag and return unverified payments before disbursement.

The Treasury’s July data showed it had screened over 885 million payments worth about $2.77 trillion, returning 4,900 payments worth $99 million to deceased recipients.