On Friday, Just the News posted an article about the fraud in the federal government and the reluctance of the federal government to follow the recommendations of the Government Accountability Office.
The article reports:
The federal government continues to lose an estimated $233 billion to $521 billion each year to fraud, while most agencies overseeing the nation’s largest federally funded programs have yet to implement one of the Government Accountability Office’s top recommendations for preventing those losses, according to a new GAO report.
The report, Managing Risks in Federally Funded, State-Administered Programs, reviewed the 20 largest federally funded, state-administered programs, which accounted for approximately $1.1 trillion in federal obligations in fiscal year 2025.
The GAO found in the report released Thursday that most agencies have not completed documented fraud risk assessments. The assessments are instrumental in identifying where fraud is most likely to occur and how to prevent it.
“Federal and state agencies can better manage fraud risks and prevent fraud by applying GAO frameworks for managing fraud risks and improper payments, as well as other leading practices; leveraging available federal analytic resources, such as Do Not Pay, to verify recipient identity and eligibility before issuing federal funds; and implementing recommendations from GAO and other oversight entities that would address existing program vulnerabilities,” the report read.
The watchdog said there are currently 22 open recommendations that are focused on enhancing fraud prevention practices across the programs covered in the report.
The watchdog urged federal agencies to implement them to better safeguard taxpayer funds, particularly in state-administered programs.
The article concludes:
Among the examples cited were a consultant convicted of submitting falsified permits tied to a $4.3 million airport improvement project, landlords receiving housing-assistance payments for vacant units while tenants underreported income, and an alleged student financial aid fraud scheme involving more than 1,200 applicants at over 100 schools across 24 states.
GAO said that the consequences of fraud extend beyond financial losses.
“Every dollar or resource diverted to fraudsters hinders the federal government’s ability to achieve its goals and provide needed services,” the report said.
Fraud in federal spending impacts all Americans. We pay a price in higher taxes and less services. Government agencies who do not follow effective anti-fraud guidelines need to be penalized.