GAO Reports an Estimated $162 billion in Improper Payments Across the Federal Government in Fiscal Year 2024

WASHINGTON (March 11, 2025) GAO today issued its report on federal agencies’ improper payments estimates for fiscal year 2024, reporting that agencies identified $162 billion in payment errors. Improper payments are those that should not have been made or were made in the incorrect amount. A longstanding, government-wide issue, improper payments are a result of overpayments, inaccurate recordkeeping, fraud, or other causes. $135 billion of this year’s improper payments estimate, or roughly 84 percent, were due to overpayments. While today’s report shows a $74 billion decrease in improper payments from the previous fiscal year, GAO continues to make recommendations aimed at reducing these payment errors and safeguarding federal funds.

“Federal agencies need to tackle the massive problem of improper payments to be responsible stewards of taxpayer dollars,” said Gene L. Dodaro, Comptroller General of the United States and head of the GAO. “This issue needs heightened attention and additional actions by federal departments and agencies as well as strong Congressional oversight.”

The fiscal year 2024 improper payments estimate is based on reporting from 68 federal programs across 16 federal agencies, though 75 percent of improper payments recorded were concentrated in just five program areas. Those include Medicare, Medicaid, the Earned Income Tax Credit, Supplemental Nutrition Assistance Program, and the Restaurant Revitalization Fund. Eighteen programs reported improper payment rates of over 10 percent and six programs reported rates of over 20 percent.

The $74 billion decrease in improper payments from fiscal year 2023 is attributed to terminating or winding down certain programs, such as those specific to the COVID-19 pandemic. Eight program areas saw substantial declines in improper payments this past year. For example, payment errors under the Department of Labor’s Pandemic Unemployment Assistance program decreased by $44 billion because of the program’s termination.

Improper payments are different than fraud because they can be the result of payments made in error or for the wrong amount. Payments that are considered fraudulent involve an actor, or “fraudster,” who willfully misrepresents themselves to unfairly benefit from a government program. All fraudulent payments are considered improper, though not all improper payments are the result of fraudulent activity.

GAO has made numerous recommendations to federal agencies to help reduce payment errors, calling for better monitoring of federal programs and planning that would help identify improper payments. We’ve also raised matters for Congress to help agencies better identify susceptible programs, develop reliable methods for estimating errors, and implement effective corrective action. These include designating all new federal programs making more than $100 million in payments in any one fiscal year as susceptible to improper payments and establishing a permanent data analytics center of excellence to aid the oversight community in identifying improper payments and fraud.

The full report is available on GAO’s website. If you have further questions, please contact Hannah Padilla, Director of Financial Management and Assurance, at padillah@gao.gov or Sarah Kaczmarek, Managing Director of Public Affairs, at media@gao.gov.

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The Government Accountability Office, known as the investigative arm of Congress, is an independent, nonpartisan agency that exists to support Congress in meeting its constitutional responsibilities. GAO also works to improve the performance of the federal government and ensure its accountability to the American people. The agency examines the use of public funds; evaluates federal programs and policies; and provides analyses, recommendations, and other assistance to help Congress make informed oversight, policy, and funding decisions. GAO provides Congress with timely information that is objective, fact-based, nonideological, fair, and balanced. GAO’s commitment to good government is reflected in its core values of accountability, integrity, and reliability.