Addressing Fraud and Improper Payments in Federal Spending

The federal government of the United States is facing significant challenges related to improper payments and fraud, with estimates suggesting that between $233 billion and $521 billion is lost annually. This situation has prompted calls for increased accountability and reform in federal spending practices, particularly in state-administered welfare programs.

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In 2025, the federal government reported approximately $186 billion in improper payments, a figure that surpasses the combined budgets of the Department of State, Department of Justice, and Department of Commerce. These improper payments are primarily associated with federally funded and state-administered welfare programs, such as the Supplemental Nutrition Assistance Program (SNAP) and extended Unemployment Insurance benefits. Critics argue that these programs often operate with inadequate safeguards, leading to rampant fraud and abuse.

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Jodey Arrington, a congressman from Texas’s 19th District and chairman of the House Budget Committee, along with Rachel Greszler, a senior research fellow at Advancing American Freedom, have been vocal advocates for reforming federal spending practices. They emphasize the need for accountability and the implementation of stricter eligibility checks to prevent fraud.

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The One Big Beautiful Bill aims to address these issues by requiring states to cover a larger share of their improper SNAP payments starting in 2028 and limiting waivers for improper Medicaid payments beginning in 2030. Arrington and Greszler argue that these measures are essential for promoting personal responsibility and program integrity.

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While the proposed reforms have garnered support, there are concerns about the potential impact on vulnerable populations who rely on these welfare programs. Critics argue that stringent eligibility checks could inadvertently exclude individuals who genuinely need assistance, raising ethical questions about the balance between preventing fraud and ensuring access to necessary resources.

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The ongoing issue of improper payments not only strains the federal budget, which is already burdened by nearly $39 trillion in debt, but also undermines public trust in government institutions. The call for reform is seen as a critical step towards restoring accountability and ensuring that taxpayer dollars are used effectively.

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• “The power of the purse comes with the obligation to properly steward taxpayers’ dollars, not leave the purse open to pickpockets.” — Jodey Arrington, Congressman

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• “Of course, reducing fraud and improper payments requires knowing how and where they’re happening.” — Rachel Greszler, Senior Research Fellow

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• “With $39 trillion in debt and deficits growing as far as the eye can see, the federal government is barreling towards a fiscal crisis.” — Jodey Arrington, Congressman

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• “Households would never spend thousands of their own dollars per year on improper or fraudulent payments.” — Jodey Arrington, Congressman

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Moving forward, Congress is expected to continue discussions on enhancing accountability measures in federal spending. The emphasis will be on aligning incentives, verifying eligibility, and enforcing consequences to mitigate fraud and restore public confidence in government programs.

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