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The Treasury pays out $5 trillion per year, and previously, payments lacked budget codes, obscuring their purpose. A $4 billion COVID fund in the Department of Education had no receipt requirements, leading to funds being used to rent Caesars Palace and stadiums for parties. When a receipt upload requirement was implemented, fund drawdowns ceased, even though the receipts were not verified. Fraud often starts small and hidden, but escalates over time if unchecked, eventually becoming brazen, such as renting out stadiums.

The Treasury's main payment system, PAM, handles about $5 trillion a year, roughly a billion dollars an hour. When we first looked at it, payments could be processed with no categorization or description – basically, untraceable blank checks. If this were a public company, it would be delisted, and the executives would be in jail. We recommended making payment categorization codes mandatory with some explanation required for each payment. This radical change is being implemented now, and I think it probably saves $100 billion a year. Where was that money going? It's hard to say what was waste and what was fraud. If the government sends money to someone who doesn't deserve it, is that waste, or fraud?

We found that the government was essentially sending untraceable blank checks. If a public company did this, they'd be delisted and executives would go to prison, but it's normal in the government. We recommended to the Treasury and Federal Reserve that payment categorization codes be mandatory, not optional, and that every payment need some explanation, even if we don't judge the quality of it. This is a radical change that's now being implemented. I'm guessing it probably saves about $100 billion a year. Where was that money going? It's hard to say if it was waste or fraud. Many payments were just approved and kept going even after the approving officer changed jobs, retired, or died. It's like forgetting to cancel a gym membership, but instead of $20 a month, it's $20 billion a year.

Governments lack the incentive to adapt and improve because they can't fail like private sector organizations. The technology revolution has transformed private sector organizations, but government organizations have not fully adapted. Government financial systems are decades old. It is claimed that $2.3 trillion in transactions cannot be tracked. Information cannot be shared within a single building because it's stored on dozens of different, inaccessible, and incompatible technological systems.

Our financial systems are antiquated. We're unable to track trillions of dollars in transactions. Information sharing is severely limited by outdated and incompatible technological systems.

Twitter, at least, was breaking even and passing audits. The federal government, however, is losing trillions annually and failing its audits. Senator Collins mentioned giving the Navy billions for submarines, only to find out the money disappeared without any new submarines. This level of waste is enabled because they're accustomed to operating this way without accountability. As Milton Friedman said, money is most poorly spent when you're spending someone else's money on people you don't know, which perfectly describes the federal government's situation.

A $4 billion COVID fund in the Department of Education had no receipt requirements, allowing people to draw money freely. Upon investigation, it was found that the money was used to rent Caesar's Palace and stadiums for parties. The only change made was requiring recipients to upload a receipt before drawing funds. After this change, nobody requested money anymore. Although the receipts were not checked and could be fake, the mere request for documentation stopped the requests. Initially, fraud starts small and is hidden, but if unchecked, it grows more brazen each year until they are renting out stadiums.

Waste, fraud, and abuse are distinct from one another. Improper payments are related to all three, but are not the whole story. Improper payments can be caused by a variety of things, including poor record keeping, outdated IT systems, human error, and negligence. It is not simply a matter of malicious actors intentionally doing wrong. There are many reasons why they happen.

I discovered that 20 million dead people are marked as alive in the social security database. Most fraud doesn't come directly from social security payments, but from disability, unemployment, and fake medical payments because these individuals are incorrectly marked as alive. We need to implement a simple "are you alive" check to prevent these fraudulent payments. This type of negligence would result in a public company being immediately delisted, and its executives imprisoned, but it's considered normal within the government. Therefore, I recommend that the Treasury and Federal Reserve make payment categorization codes mandatory, requiring an explanation for each payment, even if it's basic. This change would significantly improve the current system and potentially save hundreds of billions of dollars annually.

A basic search of the Social Security database revealed 20 million dead people marked as alive. While it's unclear if they're directly receiving Social Security payments, their "alive" status allows them to fraudulently obtain disability, unemployment, and fake medical payments. The fraud occurs because government databases don't communicate well. For example, the Treasury's main payments computer, PAM, handles $5 trillion in payments annually, roughly a billion dollars an hour. We discovered payments lacked categorization codes and descriptions, essentially untraceable blank checks. If a public company operated this way, it would be delisted, and executives would face imprisonment.

The US Treasury Department has been flagged for potential waste and abuse of taxpayer funds, with about 23% of entitlements, roughly $50 billion annually, going to recipients without known Social Security numbers or IDs. This equates to about a billion dollars a week in potential fraud. Adding to the concern, the Treasury Department hasn't been keeping itemized records of their payouts, making it impossible to track where the money is actually going. Fortunately, an agreement has been made where the Treasury Department will start itemizing all payments, detailing where the money is going and to whom. It's unbelievable that the Treasury hasn't had to provide accountability for where taxpayer money is being spent, especially when individual taxpayers are held to a much higher standard.

For over a decade, I’ve been exposing egregious Washington waste with my monthly SQUEAL awards. Some examples are too outrageous to believe. I’m talking about bureaucrats approving PPP loans for applicants who used pictures of dolls for IDs. Imagine giving Barbie or Ken a taxpayer funded loan. Not only that, but they also believe folks claiming to be over 115 years old were alive and well enough to be approved for 3,095 PPP and idle loans worth $333,000,000 including $36,000 to a 157 year old. That’s pure hogwash. But this is only the tip of the iceberg. Instead of boosting Main Street, millions of your tax dollars were wasted through USAID to fund Iraqi Sesame Street. And this one is unacceptable. Improper payments or the government tossing cash into the wrong trough have become commonplace. In fiscal year twenty twenty four, federal agencies shoveled out $162,000,000,000 in improper payments. The most frustrating part is how simple it is to stop this waste. A report by the Pandemic Response Accountability Committee found that $79,000,000,000 in potential COVID fraud could have been prevented if four basic questions were asked. One, is the applicant's social security number valid? Two, if valid, does the name connected to that number match the name on the application? Three, does the birthday match? And lastly, is the individual alive? Seriously, folks, that could have saved $79,000,000,000 right there. The good news is that we can prevent nearly all improper payments in the future with my Doge in Spending Act that enacts common sense guardrails like those four simple questions.

Waste, fraud, and abuse are all distinct, and improper payments are a subset of these categories. However, this doesn't provide a complete understanding. Improper payments can stem from issues like poor record keeping, outdated IT systems, human error, or negligence. It's inaccurate to assume that improper payments are solely the result of malicious intent or actions. There are various underlying reasons why these payments occur.

The Treasury pays out $5 trillion per year, and previously, payments lacked budget codes, obscuring their purpose. A $4 billion COVID fund in the Department of Education had no receipt requirements, leading to funds being used to rent Caesars Palace and stadiums for parties. When a receipt upload requirement was implemented, fund drawdowns ceased, even though the receipts were not verified. Fraud often starts small and hidden, but escalates over time if unchecked, eventually becoming brazen, such as renting out stadiums.

Chairman Marcia Taylor Green's subcommittee discovered $2.7 trillion in improper payments to Medicare, Medicaid, and overseas recipients. These payments went to individuals who should not have received them. Doge is identifying fraud, waste, and abuse daily. Elon Musk mentioned Social Security payments being sent to deceased individuals. There are also contracts where, for example, a million dollars was allocated, but only $500,000 was disbursed, raising questions about the missing funds. Doge is actively addressing these issues. President Trump campaigned on this and is delivering on that promise.

Since 2012, the government has wasted nearly $3 trillion in taxpayer money. Last year alone, improper payments totaled $247 billion. This includes payments to deceased individuals; over $530 million in pension payments went to dead people. Medicare improperly paid out $47 billion, and Medicaid, $81 billion. Fraudulent payments under the Biden administration reached $764 billion in just three years. These improper payments add up to $2.8 trillion – enough to cover five years of US foreign aid. This amounts to $850 per person in the country.

Speaker 0 stated that people on LinkedIn take themselves too seriously and avoid risk, so they decided to do the opposite. Currently, they are working on payment computer initiatives to root out fraud and waste. Speaker 0 found that there is no accounting of where payments actually go within the payment computer. When looking at a specific line item, like $20,000,000, it is often unknown where the money is going. Speaker 0 believes this lack of accountability is a huge cause for concern because the upstream entity distributing the money has no checks and balances, making it a significant vector for fraud, waste, and abuse. They claim there is no incentive to respect taxpayer money when working in the government, and incentives determine outcomes.

The Treasury pays out $5 trillion per year, and previously, payments lacked budget codes, obscuring their purpose. A $4 billion COVID fund in the Department of Education had no receipt requirements, leading to funds being used to rent Caesars Palace and stadiums for parties. When a receipt upload requirement was implemented, fund drawdowns ceased, even though the receipts were not verified. Fraud often starts small and hidden, but escalates over time if unchecked, eventually becoming brazen, such as renting out stadiums.

The Pentagon has failed its financial audit for the eighth consecutive year, highlighting ongoing transparency and accountability challenges within the Department of Defense. Despite controlling nearly $4.65 trillion in assets, the Department of Defense again could not fully account for where its money, equipment, and resources go. Auditors issued a disclaimer of opinion, indicating that the financial records were so incomplete that they could not judge their accuracy. The latest report identified 26 major weaknesses, ranging from missing inventory tracking to outdated accounting systems, underscoring persistent gaps in fiscal controls. Billions worth of equipment, weapons, and military supplies remain difficult to trace across U.S. bases worldwide, illustrating the scale of traceability problems across the department’s global footprint. Officials emphasize that progress is being made, noting that several smaller defense agencies have passed their audits, while the department as a whole has not achieved a clean result since audits began in 2018. Critics point to the paradox of approving record defense budgets while failing basic transparency tests, suggesting a disconnect between funding levels and verifiable financial stewardship. In response, Pentagon leaders say they aim to finally pass a clean audit by 2028, framing the goal as a concrete target to address the long-standing deficiencies identified by auditors. The eight-year streak of not receiving a clean audit result continues to draw attention to the structural and systemic issues within the DoD’s financial management. The combination of a vast asset base, incomplete records, and weaknesses in tracking and accounting systems contributes to ongoing uncertainty about the precise allocation and status of resources. While improvements at some smaller agencies are acknowledged, the overarching conclusion remains that comprehensive, department-wide accountability has not yet been demonstrated through a complete and auditable financial statement. The push to reach a clean audit by 2028 reflects a prioritization of enhanced transparency and financial accuracy, even as the department maintains that steps toward better controls and improved record-keeping are underway.

The latest financial audit of the Pentagon highlights persistent accounting and asset-tracking problems for the Department of Defense. Despite controlling nearly $4,650,000,000,000 in assets, the department once again could not fully account for where its money, equipment, and resources go. Auditors issued a disclaimer of opinion, meaning the financial records were so incomplete that they couldn't even judge their accuracy. This marks the eighth consecutive year in which the department has failed to achieve a clean audit result. The audit identified 26 major weaknesses, including missing inventory tracking and outdated accounting systems. As a result, billions worth of equipment, weapons, and military supplies remain difficult to trace across U.S. bases worldwide. These gaps indicate that substantial portions of the department’s physical and financial assets cannot be confidently accounted for within the current record-keeping and oversight frameworks. Officials stressed that progress is being made, noting that several smaller defense agencies have passed their audits. However, the department as a whole has never received a clean result since audits began in 2018, underscoring a persistent, systemic challenge rather than isolated incidents. While some sub-agencies have achieved compliance, the overarching department still relies on processes and controls that do not meet the standards required for a complete and verifiable financial statement. Critics point to the broader context, arguing that the United States continues to approve record defense budgets while failing basic transparency tests. The continued lack of a consolidated, auditable financial picture for such a large and critical sector raises questions about how funds, equipment, and resources are allocated, tracked, and reported at the national level. In response, Pentagon leaders have stated a goal of finally passing a clean audit by 2028, signaling an intent to address the identified weaknesses and achieve full financial accountability within the stated timeframe. The tension between ongoing budgetary approvals and progress toward comprehensive audit compliance remains a central theme of the discussion surrounding the department’s financial management.

We're uncovering massive fraud, waste, and abuse daily. Recently, it was discovered that there were $2.7 trillion in improper payments to Medicare, Medicaid, and overseas. Social Security payments are even going to deceased individuals. We're also seeing contracts where the full amount wasn't delivered. For example, a million-dollar contract might only see $500,000 distributed, and we're working to find where the rest of the money went. This is exactly what I campaigned on, and what 77 million people elected me to do.

A lot of Americans' money has been stolen through fraud and improper payments. In one of my first hearings, we discovered criminals using social security numbers of dead people or people over 115 years old to get small business loans and steal money from federal programs. We need to work to fix these issues in our legislation, budgets, and appropriations. This is a bipartisan issue; we're addressing money being fraudulently used and stolen. The American people are being robbed blind through improper payments, fraud, and outdated systems. Some federal agencies hire third-party vendors to hold data instead of communicating within the government. We are currently $36 trillion in debt, and we can't afford to keep losing money this way.

We've found some odd things, like bureaucrats with modest salaries somehow accumulating millions while in their positions. It makes you wonder where that money comes from. It seems taxpayers are footing the bill for this wealth. Basic controls that any company would have are missing at Treasury, like payment categorization codes or comments explaining payments. The "do not pay" list, meant for terrorists and fraudsters, takes up to a year to get on and isn't even used. Departments fail audits because of these missing controls. It boils down to complaint minimization. Approving all payments avoids complaints, even from fraudsters. But we need to complain when money is misspent and demand taxpayer dollars are used wisely. It's just common sense. We even see people claiming Social Security who are 50 years old!

Twitter, at least, was breaking even and passing audits. The federal government, however, loses $2 trillion a year and fails its audits. For example, Senator Collins mentioned giving the Navy $12 billion for submarines, but they got no extra submarines, and the Navy couldn't account for the money. It's like, only the federal government could get away with this level of waste because they've been doing it for so long and have become accustomed to it. As Milton Friedman said, money is most poorly spent when you're spending someone else's money on people you don't know, which is exactly what the federal government does.

Governments need to find incentives for bureaucracy to adapt and improve, unlike individuals or businesses that can fail and die. The technology revolution has transformed organizations in the private sector, but not the government. Our financial systems are outdated, with an estimated $2.3 trillion in untrackable transactions. Additionally, information cannot be shared within this building due to incompatible and inaccessible technological systems.