U.S. federal improper overpayments rise 13% to $153 billion in fiscal 2025

11 articles · Updated · MarketWatch · Apr 29

The U.S. Government Accountability Office reports improper overpayments reached $153 billion, or 2% of total federal spending, in fiscal year 2025, with Medicare accounting for $57 billion.
Despite campaign promises to cut $1 trillion in waste, the Trump administration saw overpayments increase, partly due to improved reporting. The total includes significant sums from Medicaid, SNAP, and the earned-income tax credit.
The figures challenge claims of massive federal fraud, as eliminating all overpayments would not significantly reduce the deficit. Some waste remains unreported, especially in the Department of Defense, and political debate over fraud persists.

With federal debt at $39 trillion, is the $153 billion overpayment problem a major crisis or a distraction?

How much of the government's '$153 billion in waste' is just paperwork errors versus actual fraud?

If AI can find billions in fraud, why did federal overpayments still increase by $18 billion?

Did the much-hyped government efficiency department, DOGE, actually save taxpayers any money in the end?

Can technology truly fix government waste, or does it just create new, expensive problems?

Why has the Department of War failed every single financial audit it has ever undergone?