US Treasury Stopped $99M in Payments to Dead People Before Money Left Government Accounts

The US Treasury Department says it has blocked nearly $99 million in federal payments linked to deceased individuals before any money left government accounts, after introducing a new verification process that screens transactions against government records before they are issued.

The new safeguard reviewed more than 885 million federal payments worth almost $2.77 trillion, identifying more than 4,900 payments associated with deceased payees.

Rather than being processed, the transactions were returned to the originating federal agencies for review, making the programme one of the government's biggest recent efforts to prevent improper payments before taxpayer money is disbursed.

Treasury said the system fulfils a key requirement of President Donald Trump's Executive Order 14249, Protecting America's Bank Account Against Fraud, Waste, and Abuse, which directed agencies to strengthen payment verification and reduce fraud across the federal government.

How Treasury's New Payment Verification System Works

Treasury's new payment verification process screens federal payments before funds are released, comparing recipient information against government databases that identify deceased individuals and other high-risk records.

If a payment appears to match a deceased payee, it is not automatically cancelled. Instead, the transaction is returned to the originating federal agency for further review to determine whether it represents an improper payment, an administrative error or a legitimate transaction requiring additional verification.

'Treasury has delivered on a key promise of President Trump's mandate to stop improper payments and fraud before money leaves the Treasury, and strengthen the integrity of the federal payment system,' Treasury Secretary Scott Bessent said.

He said the safeguard addresses 'a longstanding vulnerability' while helping ensure taxpayer money reaches its intended recipients.

885 Million Payments Were Screened, 4,900 Were Flagged

Treasury said the verification programme has examined more than 885 million payments with a combined value of approximately $2.77 trillion since the system was introduced.

Of those, just over 4,900 payments, worth around $99 million, were identified as being associated with deceased payees and referred back to federal agencies before any money was disbursed.

The figures do not mean $99 million was paid to dead people. Instead, Treasury said the transactions were intercepted during the verification process before payments were completed.

The department described the programme as part of wider efforts to prevent fraud, waste and abuse across federal payment systems by identifying high-risk transactions before taxpayer funds leave government accounts.

Permanent Access to Death Records Expanded Treasury's Screening

Treasury said the verification system relies on expanded access to the Social Security Administration's Full Death Master File, allowing officials to identify deceased recipients more accurately before payments are issued.

The department first received temporary access to the database under a three-year pilot programme created by the Consolidated Appropriations Act of 2021. Treasury said the pilot substantially improved payment screening and projected roughly $330 million in net savings between 2024 and 2026 through fewer improper payments.

Congress later passed the Ending Improper Payments to Deceased People Act, which President Trump signed into law in February 2026, giving Treasury permanent access to the database and allowing the verification programme to continue indefinitely.

Officials said permanent access significantly strengthens the government's ability to identify deceased payees before payments are released.

Why Improper Payments Remain a Persistent Federal Problem

Improper payments have remained a longstanding issue across the US government, affecting programmes ranging from tax refunds and unemployment benefits to healthcare, pensions and other federal assistance.

According to the Government Accountability Office, federal agencies report hundreds of billions of dollars in improper payments each year. Not all represent fraud; many result from administrative mistakes, outdated records, missing documentation or eligibility verification failures.

Treasury said the new payment verification process shifts the government's focus from recovering taxpayer money after it has been incorrectly paid to preventing those payments from being made in the first place.

The department said it will continue expanding verification tools required under Executive Order 14249 as part of broader efforts to modernise federal payment systems and strengthen safeguards against fraud, waste and improper payments.