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GAO: FY2025 Federal Overpayments Reach $186 B, Medicare Leads

5/26/2026

Summary

Story summary

GAO reported the federal government overpaid welfare and social-services recipients $186 billion in fiscal year 2025.
The overpayment amount increased by $24 billion compared with fiscal year 2024.
Fifteen federal agencies paid benefits through 64 programs, with about 82 % of excess payments classified as overpayments.
Medicare, Medicaid and Earned Income Tax Credit accounted for $57 billion, $37 billion and $21 billion of the overpayments.
GAO noted only one recommendation had been acted on by April 2026.

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Story summary

GAO reported the federal government overpaid welfare and social-services recipients $186 billion in fiscal year 2025.
The overpayment amount increased by $24 billion compared with fiscal year 2024.
Fifteen federal agencies paid benefits through 64 programs, with about 82 % of excess payments classified as overpayments.
Medicare, Medicaid and Earned Income Tax Credit accounted for $57 billion, $37 billion and $21 billion of the overpayments.
GAO noted only one recommendation had been acted on by April 2026.