Treasury Department Clamps Down on Fraudulent Payments to Deceased Individuals

The U.S. Treasury Department has blocked $175 million in federal payments related to deceased recipients in fiscal year 2026. This marks a significant increase from the $99 million identified in previous months, as part of a broader effort by the Trump administration to combat improper payments.

Senator John Kennedy from Louisiana praised Treasury Secretary Scott Bessent’s actions against fraudulent activities. He emphasized that sending taxpayer money to deceased individuals is a misuse of funds and lauded the passage of legislation he supported to prevent such fraud.

Senator Kennedy has long advocated for the Treasury to have greater access to Social Security death records. In 2020, a law was passed allowing temporary access for a three-year data-sharing initiative that started in December 2023. The subsequent Ending Improper Payments to Deceased People Act, signed into law by President Trump in February 2026, made this access permanent.

According to White House spokesperson Taylor Rogers, President Trump has taken decisive steps to prevent abuse of taxpayer money. The administration has set new standards to detect and stop fraud before it occurs.

In fiscal year 2026, the Treasury screened over 1.1 billion payments, totaling approximately $3.7 trillion. This effort identified around 13,500 payments worth $175 million that could have been improperly allocated to deceased individuals.

Treasury Secretary Scott Bessent stated, “Treasury is transforming how the federal government protects taxpayer dollars through better data, stronger controls, and advanced technology.”

The “Do Not Pay” program, a crucial component in preventing improper payments, now covers more than 99% of federal programs, a dramatic increase from 4% at the close of fiscal year 2025. This expansion aligns with a March 2025 executive order from President Trump aimed at fortifying fraud prevention measures.

Throughout fiscal year 2026, the Treasury screened over 2.3 billion records against the Do Not Pay database, a substantial rise from 641 million records the previous fiscal year. These efforts have been complemented by enhanced payment verification and screening procedures for bank accounts and Taxpayer Identification Numbers.

As of September 30, these verification checks are fully operational, enabling the Treasury to intercept and return payments that fail verification.

The Treasury’s initiatives build on a July announcement, where it was reported that the department had screened over 885 million payments, flagging more than 4,900 potential improper transactions tied to deceased individuals.

Ashley J. DiMella covers political news for Fox News Digital.