Government Watchdog Exposes $162 Billion in Improper Payments: GAO Report Reveals Massive Federal Payment Errors in Fiscal Year 2024

The U.S. Government Accountability Office (GAO) has revealed significant payment errors made by the federal government during the 2024 fiscal year. According to a new report from the congressional watchdog, the total value of these "improper payments" reached a staggering $162 billion. The GAO defines payment errors as a broad category ranging from unintentional administrative mistakes to outright fraud. These errors include overpayments, underpayments, and instances where agencies cannot determine the propriety of a payment due to documentation issues. Technically improper payments, where recipients receive the correct amount but the payout fails to meet government requirements, also fall under this umbrella. The GAO stated, "The fiscal year 2024 government-wide total of reported improper payment estimates was $162 billion, but it did not include estimates for certain government programs. Twelve of the 24 agencies covered by the Chief Financial Officers Act of 1990 reported material weaknesses or significant deficiencies in information system controls." Given that the federal government spent $1.8 trillion more than it earned in the 2024 fiscal year, the GAO emphasizes that these improper payments represent a critical weakness that must be addressed. The watchdog is urging federal agencies to overhaul their bookkeeping protocols to help mitigate the country's severe financial problems. The report highlights the urgent need for improved financial oversight and accountability within federal agencies.