FGA Report Estimates $521 Billion Annual Federal Fraud

The Foundation for Government Accountability released a report estimating that federal taxpayers lose up to $521 billion annually to fraud and improper payments. This figure represents approximately 7% of all federal spending. According to the report, improper payments have totaled roughly $3 trillion since 2003, with the most significant losses occurring in Medicare, Medicaid, food stamps, and the Earned Income Tax Credit.

Author Liesel Crocker noted that only 64 of more than 2,200 federal payment programs undergo annual reviews for improper payments. The report also identifies a divide in state-level cooperation regarding food stamp program vetting, stating that 29 states are cooperating with federal efforts while 21 states are refusing to do so.

The organization urges the United States Congress and state governments to expand upon anti-fraud efforts initiated by President Donald Trump to reduce corruption and save taxpayer funds.