Federal agencies made $186B in improper payments in FY26: GAO
Federal agencies made an estimated $186 billion in improper payments in the 2026 fiscal year, totaling about $3 trillion in payment errors since 2003, according to a new report.
Improper payments — ones that should not have been made or were made in the incorrect amount — rates of 10% or higher for two or more consecutive years from 2021 through 2024 were made by seven agencies, according to a recent Government Accountability Office report.
“Given the magnitude of these estimates, it is imperative that agencies prioritize reducing improper payments,” the report reads. “One way to help ensure that they do so, and thereby save taxpayer dollars, is by requiring they timely report to Congress, the Office of Management and Budget (OMB), and GAO.”
The Payment Integrity Information Act of 2019 requires agencies found noncompliant to provide annual reports, and the Office of Management and Budget issues guidance to agencies on how to implement that law. However, it does not direct agencies to submit a required separate annual report with a list of each noncompliant program and plans to bring programs into compliance.
As a result, six of the seven agencies that made high improper payments also failed to fully meet annual reporting requirements — a gap the GAO flagged and recommended OMB address by updating its guidance.
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