Top line: According to a recent report from OpenTheBooks.com, the Biden-Harris administration’s improper payments totaled more than $1 trillion, setting a new record for waste during a four-year term.
Important facts: Improper payments, or money sent by the federal government to the wrong person for the wrong reason or in the wrong amount, totaled more than $800 billion from 2021 to 2023, adjusted for inflation.
That’s $450,000 per minute. In the approximately 5 seconds it takes to read this sentence, the government has wasted $37,500 in incorrect payments.
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Medicaid and Medicare accounted for 43% of improper payments last year, but problems were found across the board. The deceased received $295 million, most of which was pension benefits sent to deceased former federal employees by the Office of Personnel Management. Prisoners were paid $171 million.
The Internal Revenue Service spends $25 billion on fraudulent and erroneous tax credits, with some IRS programs reporting miscalculation rates exceeding 30%.
This problem is not new, but it is gradually getting worse. Barack Obama wasted about 4% of his spending on improper payments during his second term. Donald Trump wasted about 5% and Biden is closer to 6%.
background: Even the California Democratic Party recognizes that the error rate is out of control. The bipartisan Improper Payments Transparency Act was introduced out of committee with four sponsors, including Rep. Jimmy Panetta and Rep. Scott Peters. The President’s budget will be needed to identify ways to reduce unfair payments.
Opposition has also come from within Biden’s own administration. When the Environmental Protection Agency received bonus funds from the Inflation Control Act, Inspector General Sean O’Donnell told Congress it would be difficult to spend the required $27 billion in one year without making payment mistakes. In any case, no funds were spent on surveillance.
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Important quote: Representative Summer Lee (D-PA) washington times I shared with her about OpenTheBooks.com’s improper payment investigation. “Good, that was more than I expected.”
Supporting quotes: Some lawmakers have objected to the government’s efforts to recover overpayments after they are mailed.
“It’s unfair for residents to receive a letter within a year of making a mistake,” Rep. Rashida Tlaib (D-Mich.) told the Washington Times. “They’ve already spent the money. They’re living paycheck to paycheck. They don’t deserve to be punished.”
summary: As it stands, the parliamentary budget continues to grow and expand year by year. There is no room for $1 trillion to be wasted due to a careless mistake.
#WasteOfTheDay is brought to you by Forensic Auditors at OpenTheBooks.com.
Syndicated with permission From Real Clear Wire.
