US government overpaid welfare and Medicare recipients by $186 billion last year — after a shocking surge
The US government overpaid welfare and Medicare recipients by $186 billion in fiscal year 2025, marking a $24 billion increase from the previous year. The Government Accountability Office reported that 15 federal agencies contributed to these improper payments across 64 programs, with the majority stemming from overpayments. The findings have prompted a fraud task force led by Vice President JD Vance to address the issue and encourage states to combat fraud.
- ▪The federal government overpaid $186 billion in welfare and social services in fiscal year 2025.
- ▪Medicare accounted for the largest share of overpayments at $57 billion.
- ▪The total overpaid since 2003 is estimated at $3 trillion, with significant increases during the pandemic.
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US News US government overpaid welfare and Medicare recipients by $186 billion last year — after a shocking surge By Chris Nesi Published May 25, 2026, 2:09 p.m. ET See more of our coverage in your search results. Add The New York Post on Google The federal government overpaid welfare and social services recipients by a stunning $186 billion in fiscal year 2025, a startling surge of $24 billion from the previous year’s total. According to the Government Accountability Office (GAO), 15 federal agencies made up the massive improper payments overage spanning 64 programs, with approximately 82% of the overages the result of overpayments. And these are just the mistakes that the government caught — usually not outright fraud, like the billions alleged in Minnesota.
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