Payment Integrity: Agencies' Estimated Improper Payments Increased to $186 Billion in Fiscal Year 2025
Fast Facts
In this Q&A, we report on improper payments—those that shouldn't have been made or were made in the incorrect amount.
In FY 2025, 15 federal agencies reported a total estimate of about $186 billion in improper payments across 64 programs, an increase of $24 billion from the prior fiscal year. Most of these improper payments were a result of overpayments.
Improper payments have been a government-wide issue for more than 20 years, with estimates since FY 2003 at about $3 trillion.
A United States Treasury check with a one-hundred-dollar bill.
Highlights
What GAO Found
For fiscal year 2025, 15 agencies’ estimated improper payments totaled about $186 billion across 64 programs. This represented about $24 billion more in improper payment estimates in fiscal year 2025 than in the prior fiscal year. Agencies reported that about $153 billion (approximately 82 percent) of this total was the result of overpayments. However, these estimates do not represent the full extent of government-wide improper payments. For instance, the $186 billion does not include certain programs that agencies have determined are susceptible to significant improper payments, such as the Department of Health and Human Services’ Temporary Assistance for Needy Families. Of the programs reporting improper payment estimates for fiscal year 2025, 19 reported improper payment rate estimates of at least 10 percent, including six programs whose rates exceeded 25 percent.
Programs Reporting the Largest Percentage of Government-Wide Improper Payments Estimates for Fiscal Year 2025
Note: For more details, see fig. 2 in GAO-26-108694. Percentages in the figure do not sum to 100 percent due to rounding.
The Payment Integrity Information Act of 2019 (PIIA) requires the inspector general (IG) at each executive branch agency to annually report on the agency’s compliance with applicable PIIA criteria. According to these IGs, half of the 24 agencies reporting the majority (99 percent) of the federal government’s improper payment estimates in fiscal year 2024 fully complied with PIIA criteria and related Office of Management and Budget requirements. The IGs found that the other 12 agencies did not comply with at least one criterion in fiscal year 2024. IGs made recommendations to address noncompliance related to inadequate risk assessments for five agencies and unreliable estimates for seven agencies.
Why GAO Did This Study
Improper payments—those that should not have been made or were made in incorrect amounts—have consistently been a government-wide issue. Since fiscal year 2003, cumulative improper payment estimates by executive branch agencies have totaled about $3 trillion, though the actual amount may be much higher. Reducing improper payments is critical to safeguarding federal funds. GAO performed this audit in connection with the statutory requirement for GAO to audit the U.S. government’s consolidated financial statements. This report provides an overview of federal agencies’ improper payment estimates for fiscal year 2025. Additionally, it discusses agencies’ compliance with requirements for reporting and managing improper payments in fiscal year 2024 as well as the recommendations that IGs made to the agencies to improve compliance.
Recommendations
GAO has previously made numerous recommendations to Congress and agencies to help reduce improper payments government-wide. For example, in March 2022, GAO recommended 10 matters for congressional consideration to enhance transparency and accountability of federal spending. As of April 2026, nine of these 10 matters remain open.