Federal Payments to Deceased Recipients Blocked by Treasury

The Treasury Department has halted $175 million in federal payments associated with deceased individuals for the fiscal year 2026, a significant increase from $99 million just a few months prior. This change comes as the Trump administration has intensified screening measures against improper payments across the government.

Republican Senator John Kennedy from Louisiana expressed his approval, stating, “I applaud Secretary Scott Bessent for closing the door on these fraudsters before they can take low-income taxpayers’ money.” He continued, “Unless you were completely out of touch during Economics 101, it’s obvious that taxpayer money shouldn’t be sent to those who are deceased. I’ve been pushing for years for sensible legislation to prevent fraudsters from exploiting the system, and now, that’s finally the law.”

Kennedy has long advocated for the Treasury to have greater access to Social Security death records, which led to the passing of a 2020 law allowing the Treasury to temporarily utilize the complete Death Master File from the Social Security Administration. This data-sharing program commenced in December 2023, and in February 2026, Trump’s administration enacted Kennedy’s Ending Improper Payments to Deceased People Act, granting permanent access.

Trump’s Ongoing Fight Against Fraud

Trump has directed his administration to combat fraud, waste, and abuse in federal spending, and the current initiative to prevent payments to deceased individuals is just one aspect of this broader strategy.

For fiscal year 2026, the Treasury reviewed over 1.1 billion federal payments valued at roughly $3.7 trillion, identifying and stopping about 13,500 payments totaling $175 million that would have gone to ineligible recipients due to death.

“The Treasury is continually enhancing how we safeguard taxpayer dollars by employing improved data, robust controls, and advanced technologies to prevent fraud before funds are disbursed,” said Secretary Bessent in a press release. He added that in the last year, the Treasury has implemented new measures that verified more than $3.7 trillion in payments and increased access to the “Do Not Pay” list from 4% of programs to 99%. This transformation is intended to make prevention the primary line of defense for the federal government.

Legislative Progress and Future Actions

More than 99% of federal programs now utilize the “Do Not Pay” tool, a notable increase compared to about 4% at the end of fiscal year 2025. This enhancement aligns with a March 2025 executive order from Trump that focused on bolstering protections against fraud in federal payments.

Additionally, Treasury screened over 2.3 billion records against Do Not Pay data sources in fiscal year 2026, which is nearly four times the amount screened in the prior year. This increase coincides with the program’s expansion and new verification processes implemented throughout the federal government, including additional checks for state payments.

Furthermore, the Treasury has been trialing new measures to verify that bank accounts are correctly assigned to intended recipients and to validate Taxpayer Identification Numbers linked to federal payments. These measures became fully operational on September 30, allowing payments that fail these checks to be flagged and returned before distribution.

In conclusion, the recent figures build upon the Treasury’s earlier announcement in July, revealing that it had already screened over 885 million payments amounting to around $2.77 trillion and had flagged more than 4,900 payments worth about $99 million related to deceased recipients.