Treasury Department Blocks $99 Million in Fraudulent Payments to Deceased Recipients

The Treasury Department on Tuesday unveiled a new verification system designed to intercept and block government payments destined for deceased individuals, marking what officials characterized as a major step in combating federal waste and fraud. The safeguards have already halted approximately $99 million in improper payments while screening 885 million federal transactions against expanded death records, ultimately auditing payments worth nearly $2.7 trillion.

Treasury Secretary Scott Bessent credited the initiative to President Trump’s March 2025 Executive Order 14249, which specifically targets fraud, waste, and abuse in federal spending. “Treasury has delivered on a key promise of President Trump’s mandate to stop improper payments and fraud before money leaves the Treasury,” Bessent said in a statement, noting the system strengthens the integrity of the federal payment network and ensures taxpayer dollars reach legitimate recipients.

The verification system relies heavily on Treasury’s expanded access to the Social Security Administration’s Full Death Master File, a database containing mortality information used to identify ineligible recipients before payments are disbursed. Congress initially authorized temporary access to the database in 2021 through a three-year pilot program, projecting $330 million in net benefits through 2026 by reducing improper payments.

Access was made permanent in February 2026 when Congress passed the Ending Improper Payments to Deceased People Act, introduced by Sen. John Kennedy, R-La., and signed by Trump. Treasury has returned more than 4,900 payments linked to deceased payees to originating federal agencies for further review and plans to continue expanding the verification system government-wide.

The effort reflects ongoing concerns about database integrity that surfaced earlier in the Trump administration. Elon Musk, leading the Department of Government Efficiency, previously flagged more than 20 million Social Security recipients listed as aged 100 or older, including 3.9 million between ages 130 and 139.

Vice President Vance’s Task Force to Eliminate Fraud is coordinating broader anti-fraud efforts across federal agencies. Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz were scheduled to announce additional protective measures at a Tuesday morning news conference.