The U.S. Department of the Treasury announced the successful implementation of a new anti-fraud verification system that has prevented nearly $99 million in federal payments from being sent to deceased individuals. This initiative was launched under President Donald Trump's Executive Order 14249, 'Protecting America's Bank Account Against Fraud, Waste, and Abuse' [1][2]. The system screened 885 million federal payments, totaling approximately $2.7 trillion, against expanded death records, specifically the Social Security Administration’s Full Death Master File, to identify and halt improper payments [1][2].
As a result of this screening, more than 4,900 payments linked to deceased payees were flagged and returned to the originating federal agencies for further review before any funds were disbursed [1][2]. Treasury Secretary Scott Bessent stated, 'So far, we've saved about $100 million, payments that didn't go to deceased people… We think that there's up to $350 million that we can stop before the end of this year,' highlighting the ongoing potential for further savings [2]. The Government Accountability Office estimates that improper payments could total up to $500 billion, or about 1.66% of GDP, underscoring the scale of the issue [2].
The verification system was initially authorized as a three-year pilot program under the Consolidated Appropriations Act of 2021, with Treasury projecting $330 million in net benefits from 2024 through 2026 by reducing improper payments [1][2]. In February 2026, Congress made Treasury’s access to the death records permanent through the 'Ending Improper Payments to Deceased People Act,' which was signed into law by President Trump [1][2].
Treasury Secretary Bessent emphasized that the goal is to stop improper payments before they leave federal accounts, as recovering funds after disbursement is significantly more difficult [2]. The Treasury plans to continue expanding the verification system across the federal government as part of broader efforts to modernize payment systems and protect taxpayer dollars [1][2].
CONCLUSION
The Treasury Department's new verification system has already prevented $99 million in improper payments to deceased individuals, with expectations for even greater savings by year-end. This initiative marks a significant step in combating government waste and fraud, with ongoing efforts to further strengthen payment safeguards and protect taxpayer funds.