GAO Says Fraud Risk High in $1.1T of State-Run Federal Programs
The report says fraud rings are using AI and that 18 of 20 programs reviewed showed severe and persistent control weaknesses.
- The Government Accountability Office reports that 20 federal programs distributing nearly $1.1 trillion through state governments are vulnerable to fraud due to complex distribution chains involving multiple layers of sub-recipients and contractors.
- Fraud rings now use artificial intelligence to file thousands of claims at once, "often reusing information and documentation across multiple applications," leaving officials "one step" behind in detection efforts.
- Federal audits from 2020 to 2024 revealed "severe and persistent findings" in 18 of the 20 programs, with GAO estimating annual fraud losses between $233 billion and $521 billion, or about 3% to 7% of average federal obligations.
- House Oversight Committee Chairman James Comer urged the Senate to pass fraud prevention bills immediately, while Senator Joni Ernst promotes the Protecting American Taxpayers Act, projecting $240 billion in taxpayer savings.
- Agencies have left 22 of 50 GAO recommendations open, and Health and Human Services lacks authority to estimate improper payments for the $16.5 billion Temporary Assistance for Needy Families program despite GAO urging Congress in 2022 to grant it.
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GAO says fraud risk high in $1.1 trillion of state-run federal programs | The Highland County Press
Twenty federal programs that route nearly $1.1 trillion through state governments – including Medicaid, SNAP and disaster relief – are vulnerable to fraud because of how the money is distributed, the Government Accountability Office reports.
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GAO says fraud risk high in $1.1T of state-run federal programs
(The Center Square) – Twenty federal programs that route nearly $1.1 trillion through state governments – including Medicaid, SNAP and disaster relief – are vulnerable to fraud because of how the money is distributed, the Government Accountability Office reports.
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