The U.S. Treasury Department announced that a newly expanded payment verification system has successfully prevented approximately $99 million in federal funds from being erroneously distributed to deceased individuals. This significant development comes as part of a comprehensive push by the Trump administration to identify and stop improper payments and potential fraud before taxpayer money is released from government accounts.
"Treasury has delivered on a key promise of President Trump’s mandate to stop improper payments and fraud before money leaves the Treasury, and strengthen the integrity of the federal payment system." — Scott Bessent, Treasury Secretary
The Treasury Department’s Bureau of the Fiscal Service, utilizing its enhanced screening processes, identified more than 4,900 attempted disbursements linked to deceased individuals. This discovery was made during a review of approximately 885 million federal payments, which collectively totaled nearly $2.7 trillion. The identified $99 million was subsequently prevented from being issued and returned to the federal agencies that initiated them for further review and reconciliation. Treasury officials emphasized that payments connected to deceased recipients often signal improper payments that warrant additional scrutiny to determine if administrative errors or outright fraud are at play.
This verification process is strategically designed to intercept issues proactively, preventing the transfer of taxpayer funds rather than engaging in the often-difficult and costly process of attempting to recover money after it has already been disbursed. While the $99 million represents a relatively small percentage—approximately 0.0036 percent—of the total $2.7 trillion in transactions examined, Treasury officials highlighted its importance. The amount discovered is more than triple the payments to deceased recipients identified before the Trump administration significantly expanded the screening process in 2025.
Treasury Secretary Scott Bessent underscored the department's commitment to strengthening the integrity of federal payment systems. “Treasury has delivered on a key promise of President Trump’s mandate to stop improper payments and fraud before money leaves the Treasury, and strengthen the integrity of the federal payment system,” Bessent stated, according to the New York Post. He further elaborated that these verification efforts are crucial for ensuring that government payments reach only eligible recipients while concurrently improving safeguards against waste and fraud. Bessent also acknowledged the collaborative efforts with Vice President JD Vance’s Task Force to Eliminate Fraud, which is working on modernizing federal payment systems and enhancing oversight of taxpayer-funded programs.
A key tool in this expanded review is the federal Do Not Pay program, which verifies recipient identity, eligibility, and bank account information before federal payments or awards are issued. The Treasury Department augmented its use of payment screening systems in 2025 under directives from the Trump administration, introducing additional verification methods. A critical enhancement to the department's capabilities was strengthened access to the Social Security Administration’s “Full Death Master File.” Legislation passed in 2021 initially provided Treasury with temporary access to this vital database, allowing officials to cross-reference payment records with death information during the verification process. Building on this, in February, President Donald Trump signed the Ending Improper Payments to Deceased People Act, which granted the Treasury Department permanent access to these death records. This legislative action ensures the department can continuously identify and prevent payments improperly directed to individuals who are no longer living.
This ongoing effort aligns with a broader initiative by the Trump administration to meticulously examine federal spending and reduce improper payments across various government programs. Treasury officials project that these expanded safeguards, specifically targeting payments to deceased individuals, could generate approximately $330 million in net benefits through the reduction of improper payments. The department has affirmed its commitment to continuing these efforts to bolster payment security and enhance fraud prevention measures across all federal programs, aiming to protect taxpayer funds and ensure government efficiency.
