A TRILLION-DOLLAR SCANDAL: The Biden administration's catastrophic government waste
By willowt // 2025-02-14
Copy
 
  • The Biden administration has reported an unprecedented $925.7 billion in improper payments, the highest since 2004, marking a significant increase from the Trump era.
  • The Centers for Medicare and Medicaid Services (CMS) leads with $87 billion in improper payments, while the Department of Labor and other agencies also reported substantial errors.
  • The Paycheck Protection Program (PPP) and unemployment insurance programs were major targets for fraud, with estimates of up to $400 billion in fraudulent claims.
  • The timing of the report's release and the lack of comprehensive action highlight concerns about transparency and accountability within the government.
  • Immediate and comprehensive measures are needed to address the systemic failures, including better oversight, communication among agencies, and access to critical databases to prevent improper payments and fraud.
In a damning revelation, the House Committee on Oversight and Reform has exposed a staggering $925.7 billion in improper payments under the Biden administration, marking the worst record of government waste, fraud and abuse since reporting began in 2004. Adjusted for inflation, this figure climbs to an astounding $986.2 billion—nearly a trillion dollars of taxpayer funds lost due to mismanagement and negligence.

The scale of the crisis

Federal agencies reported $161.5 billion in improper payments during fiscal year 2024 alone, according to data released by the Office of Management and Budget in November. This includes payments sent to the wrong entity, for the wrong amount, or for the wrong reason. The enormity of this waste is unprecedented, especially when compared to President Trump′s first term, which saw $846.8 billion in improper payments, adjusted for inflation. The issue of improper payments is not new, but it has reached critical levels under the Biden administration. During the Trump era, the government began efforts to reduce this waste, and by the end of his term, the improper payment rate had dropped to 4.94%. However, the Biden administration's improper payment rate stands at 5.42%, a significant increase that underscores the systemic failures and lack of oversight.

The worst offenders

Centers for Medicare and Medicaid Services (CMS): The CMS leads the list of offenders, having wasted $87 billion in improper payments in fiscal year 2024. This includes a 7.7% mistake rate in Medicare reimbursements to health providers, the highest since percentages were first reported in 2019. The alarmingly high error rate is a clear indicator of the systemic issues within the CMS. Department of Labor: Another $4 billion was improperly distributed, with $824 million in unemployment insurance payments going to individuals with citizenship issues. This highlights the lax verification processes and the failure to cross-check data with other agencies. Payments to dead people: These payments include $3.6 billion in COVID-19 stimulus checks that were sent to dead people, a result of the IRS's failure to consult the Social Security Administration's (SSA) death database. The Treasury Department has since recouped $31 million in five months after gaining access to this database, a small but promising step towards accountability.

The impact of COVID-19 aid

Paycheck Protection Program (PPP): The PPP, designed to help small businesses during the pandemic, saw 25% of its loan forgiveness payments—amounting to $2 billion—go to ineligible recipients. This includes entities on the Treasury Department’s “Do Not Pay” list, a glaring oversight that allowed fraudulent claims to go unchecked. Unemployment insurance fraud: Unemployment aid programs, which cost $888 billion through July 31, 2023, are estimated to have been the target of $191 billion to $400 billion in fraud. Criminals, con artists and syndicates from around the world exploited the system, taking advantage of the rushed and often lax oversight.

A call to action

The release of this data on the Wednesday before Thanksgiving, a time when media attention is typically low, raises questions about transparency and accountability. John Hart, executive director of OpenTheBooks, expressed his frustration: "There are miles to go before we break even. While this should have been a no-brainer for a long time, it’s promising to see some taxpayer funds being recouped with basic communication among executive agencies." Fiscal Assistant Secretary David Lebryk acknowledged the need for sustained efforts: "Congress granting permanent access to the Full Death Master File will significantly reduce fraud, improve program integrity and better safeguard taxpayer dollars."

Looking forward

The Trump administration is working to rectify these systemic issues, and the scale of the problem requires immediate and comprehensive action. The House Committee on Oversight and Reform's hearing, "The War on Waste: Stamping Out the Scourge of Improper Payments," is a step in the right direction, but much more must be done to ensure that taxpayer dollars are not squandered, which is why DOGE is so necessary. As the nation grapples with a growing national debt and the need for fiscal responsibility, the obscene levels of government waste under the Biden administration are a wake-up call. It is imperative that the government implements robust oversight mechanisms and accountability measures to prevent such egregious misuse of taxpayer funds in the future. Sources include: ZeroHedge.com FoxNews.com RealClearInvestigations.com OpenTheBooks.com
Copy