Treasury Blocks $99 Million in Payments to Deceased Individuals

The U.S. Department of the Treasury blocked approximately $99 million in federal payments intended for deceased individuals between March 2025 and July 2026. The Bureau of the Fiscal Service identified over 4,900 questionable disbursements after screening 885 million payments totaling roughly $2.77 trillion. These funds were returned to their originating agencies for review to determine if they were outdated, improper, or fraudulent.

This initiative follows Executive Order 14249, issued by President Donald Trump on March 25, 2025, and the Ending Improper Payments to Deceased People Act passed in February 2026. The system leverages the Do Not Pay program and permanent access to the Social Security Administration's Full Death Master File to verify recipient status before money is disbursed. Treasury Secretary Scott Bessent stated the effort coordinates with Vice President JD Vance’s Task Force to Eliminate Fraud and expects to block up to $350 million by the end of the year.

In a related effort to prevent waste, the Centers for Medicare & Medicaid Services deferred over $1 billion in Medicaid payments to California and Minnesota for further review. CMS Administrator Mehmet Oz emphasized a shift in strategy, stating the agency is finished attempting to recover funds after they have already been disbursed.