Federal Payments to Deceased Recipients Blocked
The Treasury Department has halted $175 million in federal payments associated with deceased individuals for fiscal year 2026. This marks a significant increase from the $99 million identified just months prior, as the Trump administration significantly expanded screening efforts to identify improper payments.
“I commend Secretary Scott Bessent for addressing this issue head-on and preventing these fraudsters from unfairly taking advantage of taxpayers,” remarked Republican Sen. John Kennedy from Louisiana. He added, “It’s common sense that federal funds should not be going to those who have passed away. For years, I advocated for a bill to close loopholes and outsmart the scammers, and now it’s finally official.”
Kennedy has long sought improved access for the Treasury to Social Security death records. He helped pass a law in 2020 that allowed the Social Security Administration to share its entirety of the Death Master File with the department. This three-year initiative began in December 2023 when Trump signed Kennedy’s Ending Improper Payments to Deceased People Act into law in February 2026, making that access permanent.
The Trump administration has made it a priority to eliminate fraud, waste, and abuse within federal spending, and this latest move concerning payments to deceased individuals aligns with that broader mission. In fiscal year 2026, the Treasury reviewed over 1.1 billion federal payments totaling around $3.7 trillion, uncovering approximately 13,500 payments worth $175 million that were set to go to individuals who were no longer eligible due to death.
Secretary Bessent stated, “The Treasury is transforming the federal government’s approach to protecting taxpayer dollars. Better data and advanced technology are essential tools in halting fraud and improper payments before they go out.” He further noted that new checks have verified over $3.7 trillion in federal payments, vastly expanding access to the Do Not Pay tool from about 4% of programs to 99%, ensuring agencies have the necessary data at their fingertips.
Additionally, the White House is pushing for significant fraud-reduction reforms in Congress. Vance is set to convene a task force to address this issue further. With over 99% of federal programs currently utilizing the Do Not Pay system, this marks a substantial leap from around 4% at the close of the previous fiscal year.
The Treasury also processed over 2.3 billion records against Do Not Pay data sources in fiscal year 2026, which is nearly four times more than the previous year’s amount. This increased scrutiny comes amidst a broader governmental push for improved payment verifications and enhanced fraud prevention measures.
Moving forward, the Treasury is also testing new safeguards aimed at confirming that bank accounts are linked to the correct recipients while double-checking Taxpayer Identification Numbers related to federal disbursements. These checks became fully functional at the end of September, allowing for better oversight before any funds are released.
These developments build on previous announcements from July, which indicated that the Treasury had reviewed over 885 million payments valued at around $2.77 trillion and flagged over 4,900 payments worth approximately $99 million linked to deceased recipients.
