According to a report released by Open the Books on Monday, in 2022, 17 federal agencies reported an estimated $247 billion in improper payments. This translates to an average of $20.5 billion wasted each month or approximately $683 million squandered every day.
The magnitude of the government’s monthly waste in the previous year was staggering, equivalent to purchasing 10 million 2023 Toyota Corollas or 657,000 homes, as stated in the Open the Books report.
Among the departments that displayed the highest levels of wasteful spending were the Department of Health and Human Services, with $154.3 billion in improper payments, followed by the Small Business Administration’s Paycheck Protection Program, which incurred $37.3 billion in waste, and the Treasury Department, which accounted for $25.9 billion in improper payments.
These excessive expenditures have significantly contributed to the growth of the federal deficit. According to a recent report by the Committee for a Responsible Federal Budget (CRFB), the federal government’s budget deficit has surged to $2.1 trillion over the past 12 months, exceeding twice the size of the pre-pandemic deficit.
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Among the top-ten culprits for overpayments, the Department of Labor ranks second with $19 billion, followed by the Department of Education with $15.7 billion, the Social Security Administration with $7.4 billion, the Department of Veterans Affairs with $3.5 billion, the Department of Defense with $2 billion, the Department of Agriculture with $1.9 billion, and the Department of Transportation with $756 million.
While the government identified a total of $51.7 billion in overpayments, the actual recovery rate stood at a mere 9%.
Mistaken payments totaling $532.5 million were made to deceased individuals in 2022 for federal retirement services, old-age and disability insurance, and social security. Over the span of 2021 and 2022, the cumulative payments to deceased individuals amounted to $974.3 million, according to Open the Books.
The Small Business Administration witnessed the largest surge in overpayments from 2021 to 2022, soaring from $671 million to $37.3 billion. This substantial increase can be attributed to the Paycheck Protection Loan Program and the COVID-Economic Injury Disaster Loan program, which together accounted for $35.9 billion in overpayments.
Conversely, the Department of Labor exhibited a significant decrease in overpayments in 2022 compared to 2021, dropping from $78.2 billion to $19 billion, signifying a notable 75% reduction.
Republican Presidential Candidates Speak Out Against Government Waste
Several Republican candidates vying for the 2024 White House are actively campaigning against government waste and proposing solutions to address the issue.
During an interview on Fox News, presidential candidate and former Vice President Mike Pence emphasized the need to eliminate unnecessary spending. He advocated for freezing non-defense domestic spending at its current levels as a means to curb wasteful expenditures.
Former South Carolina governor Nikki Haley echoed similar sentiments during a town hall event in March. She highlighted the shared bipartisan problem of wasteful spending, stating that both Republicans and Democrats have a tendency to squander taxpayer money.
Florida Governor Ron DeSantis has expressed concerns about the government’s financial trajectory, warning that it is heading towards bankruptcy. Meanwhile, Senator Tim Scott from South Carolina has emphasized the importance of reducing failed government spending, particularly in response to the housing crisis.
These Republican candidates are united in their stance against government waste and aim to address the issue as they campaign for the presidency in 2024.