Page 1 GAO-25-107753 Improper Payments
Improper payments—those that should not have been made or were made in the
incorrect amount—have consistently been a government-wide issue. Since fiscal
year 2003, cumulative improper payment estimates by executive branch
agencies have totaled about $2.8 trillion, and the actual amount of improper
payments may be significantly higher. Reducing improper payments is critical to
safeguarding federal funds.
The Payment Integrity Information Act of 2019 (PIIA) requires agencies to
manage improper payments by identifying risks, taking corrective actions, and
estimating and reporting on improper payments in programs they administer.
PIIA also requires each agency’s inspector general (IG) to issue an annual report
on compliance with applicable PIIA criteria. We have reported on improper
payments in our audit reports on the U.S. government’s consolidated financial
statements since fiscal year 1997, and we have found that these payments
represent a material deficiency or weakness in internal controls. Specifically, we
have noted that the federal government is unable to determine the full extent of
its improper payments or to reasonably assure that it takes appropriate actions to
reduce them.
House Report 117-389, which accompanied the Legislative Branch
Appropriations Act, 2023, includes a provision for GAO to provide quarterly
reports on improper payments. This is our ninth such report, and it provides an
overview of federal agencies’ improper payment estimates for fiscal year 2024.
Additionally, we discuss agencies’ compliance with requirements for reporting
and managing improper payments in fiscal year 2023.
• In fiscal year 2024, federal agencies’ estimates totaled about $162 billion in
improper payments, a decrease of about $74 billion from the prior fiscal year.
The reduction in estimated improper payments is largely attributable to the
termination or winding down of certain COVID-19 programs. About $135
billion (approximately 84 percent) of the estimates represent overpayments.
• The improper payment estimates do not represent the full extent of
government-wide improper payments. The total of fiscal year 2024 improper
payment estimates represent a small subset of all federal programs. For
example, some programs that agencies have determined are susceptible to
significant improper payments, such as the Department of Health and Human
Services’ (HHS) Temporary Assistance for Needy Families (TANF), do not
estimate improper payments. In addition, IGs have reported that agencies'
improper payment estimates are unreliable for some programs.
U.S. Government Accountability Office
: Information on Agencies’
2024 Estimates
-25-107753
Report to the Subcommittee on Legislative Branch, Committee on Appropriations, House of
11, 2025
