Washington blocks $99 million in improper federal payments
PUBLISHED Jul 21, 2026, 3:06 PM ET
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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.
By Yusra M. | JQJO News
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
News Intelligence
- 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.
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