The government made improper payments totaling $234 billion in fiscal year 2023, about $1,800 per U.S. household, according to data released by the White House’s Office of Management and Budget.
The amount and percentage of improper payments edged down slightly from record highs during the COVID-19 pandemic. But even after subtracting pandemic unemployment insurance, the improper payment rate was 5.3% during fiscal year 2023, which ended Sept. 30.
(Note: All calculations in this analysis subtract or “net out” Defense Department compensation payments because they are distinct from other government transfer payments and employee compensation for any other department isn’t included in the data. Also, in keeping with references in the OMB reports, this analysis uses the term “improper payments” for those as figures listed by the government as “improper and…
