US federal improper payments reach $2.7 trillion since 2003

The Government Accountability Office (GAO) estimates that between 2003 and 2023, executive agencies reported $2.7 trillion in improper payments. These funds consist of payments made in error, in the incorrect amount, or without proper documentation.

According to a report by the Cicero Institute titled ‘Rebuilding Public Trust by Ensuring Accountability in Government Spending,’ this total is nearly double the annual combined spending on Medicare, Medicaid, and Social Security. The figure also represents triple the previous year's defense budget and is roughly equivalent to the total amount collected in personal income taxes last year.

The scale of these improper payments is significant; if they represented a single economy, they would rank as the eighth largest in the world, surpassing the GDP of nations such as Italy, Canada, or Russia.