Full Breakdown
Treasury Blocks $175 Million in Payments to Deceased Recipients
By Drooid · · How we work
Core Action in Fiscal Year 2026
The U.S. Treasury Department halted $175 million in federal payments that were slated for individuals who had died, according to Treasury screening of more than 1.1 billion payments totaling roughly $3.7 trillion in fiscal year 2026. The effort prevented about 13,500 improper disbursements that would otherwise have gone to dead recipients.
Legislative Background and Data-Sharing Program
The crackdown builds on a 2020 law that temporarily allowed the Social Security Administration to share its full Death Master File with Treasury. That three-year data-sharing program began in December 2023. In February 2026, President Donald Trump signed the Ending Improper Payments to Deceased People Act—championed by Republican Senator John Kennedy of Louisiana—making permanent the Treasury’s access to death-record data.
Scale of Screening and Reported Savings
Treasury’s “Do Not Pay” tool now covers more than 99 percent of federal programs, up from roughly 4 percent at the end of fiscal year 2025. The agency screened over 2.3 billion records against Do Not Pay sources in FY 2026, nearly four times the 641 million records screened the prior year. Earlier in the year, Treasury reported flagging 4,900 payments worth about $99 million tied to deceased recipients; the later figure of $175 million reflects the expanded scope of the program.
Official Statements & Responses
Senator Kennedy praised the law, saying it stops “fraudsters from gaming the system” and protects taxpayer dollars. Treasury Secretary Scott Bessent described the initiative as a shift from “pay and chase” to prevention, emphasizing the use of better data, stronger controls, and advanced technology to safeguard federal payments.
Verbatim Quotes
- “Treasury continues to transform how the federal government protects taxpayer dollars by using better data, stronger controls, and advanced technology to stop fraud and improper payments before money goes out the door,” — Treasury Secretary Scott Bessent
- “In the past year alone, Treasury built and deployed new safeguards that verified more than $3.7 trillion in federal payments and increased Do Not Pay access from 4 percent of programs to 99 percent, ensuring agencies have access to the data they need,” — Scott Bessent, treasury secretary
