CRIME & LAW

Washington blocks $99 million in improper federal payments

▪

Read, Watch or Listen

Washington, United States – The U.S. Treasury Department said on Tuesday, July 21, 2026, that a new government-wide payment verification system has blocked nearly $99 million in federal payments that had been scheduled for deceased individuals. Developed in coordination with the Bureau of the Fiscal Service, the automated safeguard screens outgoing federal disbursements before they leave government accounts and compares them against death records and other data sources. Treasury officials said the initiative fulfills a core mandate of Executive Order 14249, “Protecting America’s Bank Account Against Fraud, Waste, and Abuse,” signed by former President Donald Trump to clamp down on government waste, systemic fraud, and financial mismanagement across federal programs. During its initial deployment, the verification system reviewed more than 885 million transactions with a total value of about $2.77 trillion, covering Social Security benefits, veterans’ pensions, federal retirement annuities, and tax refunds. The screening process identified and halted more than 4,900 improper payments that were directly associated with deceased recipients, preventing funds from being sent to inactive or potentially fraudulent bank accounts. The blocked payments, totaling nearly $99 million, were returned to the originating federal agencies for further administrative review. Treasury Secretary Scott Bessent announced the results on Fox Business, saying the system delivers on the administration’s goal of stopping improper and fraudulent payments before taxpayer money is disbursed.

Prepared by Emily Rhodes and reviewed by editorial team.

Timeline of Events

Executive Order 14249 signed targeting federal payment fraud
Following order, Treasury begins designing verification system
Early 2026 system pilots across major benefit programs
Initial screening covers 885 million federal transactions
Screened transactions total approximately $2.77 trillion
System flags over 4,900 payments to deceased recipients
Nearly $99 million in improper disbursements intercepted
July 21 2026 Treasury publicly announces system results

Why This Matters to You

This new system safeguards your tax dollars. It stops money meant for public services from going to the wrong places. You can check how your tax dollars are spent at USAspending.gov.

The Bottom Line

The Treasury's new system is working. It's blocked $99 million in improper payments to deceased individuals. This is a win for taxpayers. Send this to someone who cares about government efficiency.