The Treasury Department blocked $175 million in federal payments that were incorrectly slated for deceased recipients in fiscal year 2026. This is a significant increase from the $99 million identified earlier, due to an expanded screening process by the Trump administration targeting improper payments.
Republican Senator John Kennedy from Louisiana expressed his approval for these measures. ‘I applaud Secretary Scott Bessent for halting these fraudsters before they can misuse taxpayer money,’ Kennedy stated. He emphasized that the federal government should not send money to deceased individuals, highlighting his efforts to stop fraud through a recent common-sense bill.
Kennedy has long advocated for Treasury’s access to Social Security death records which led to a temporary law in 2020. This allowed the Social Security Administration to share its Death Master File with the department. The three-year data-sharing program initiated in December 2023. Trump’s endorsement of the Ending Improper Payments to Deceased People Act in February 2026 made this access permanent.
Treasury Secretary Scott Bessent discussed further sanctions against actors linked to Maduro, in line with the administration’s efforts. The Trump administration aims to address fraud and improper payments, ensuring taxpayer dollars are safeguarded. ‘President Trump is delivering results for Americans, setting new records to prevent fraud and improper payments,’ White House spokesperson Taylor Rogers told Fox News Digital.
Screening over 1.1 billion federal payments, Treasury identified and returned approximately 13,500 payments totaling $175 million, which were mistakenly intended for deceased individuals. ‘Treasury is revolutionizing how the government protects taxpayer funds with better data, stronger controls, and advanced technology,’ Secretary Bessent stated. The ‘Do Not Pay’ program now involves over 99% of federal programs, up from 4% in FY2025, to prevent fraud before it occurs.
Treasury has scrutinized over 2.3 billion records against Do Not Pay data in FY2026, compared to the previous year’s 641 million. This expansion reflects increased efforts across the federal government and state levels, coupled with new payment verification steps and extended screenings.
Additionally, Treasury tested new mechanisms to ensure bank accounts match intended recipients and verified Taxpayer Identification Numbers connected to federal payments. These checks are fully operational as of September 30, effectively flagging and stopping incorrect payments before distribution.
The latest initiatives build on past measures announced in July, which revealed the screening of 885 million payments worth $2.77 trillion, and over 4,900 improper payments worth $99 million flagged for deceased recipients.