GAO Finds Fraud-Risk Gaps Across $1.1 Trillion in Federal Programs
A July 23 GAO review found that 15 of 20 major state-administered federal programs lacked documented evidence of fully assessing and prioritizing fraud risks.
A Government Accountability Office review released July 23, 2026, found that 15 of 20 major federally funded programs administered by states and other government entities lacked documented evidence that they had fully identified, assessed and prioritized fraud risks.
The programs accounted for approximately $1.1 trillion in federal obligations during fiscal year 2025, representing nearly 90% of obligations among qualifying state-administered programs. They support services including health care, food assistance, housing, disaster aid and education.
What GAO found
Only five of the 20 programs documented evidence consistent with identifying fraud risks, assessing their likelihood and prioritizing action. The other 15 did not provide that documented evidence.
GAO’s finding does not mean the 15 programs were found to have experienced fraud, or that benefits were broadly misused. It reflects gaps in documented fraud-risk management: how agencies identify possible schemes, evaluate their likelihood and decide which controls deserve attention.
The structure of these programs can make that work harder. Federal money may pass through state agencies, local governments, contractors, subrecipients, landlords, consultants and other organizations before reaching a beneficiary or service provider. Eligibility, payment and oversight decisions may also be spread across multiple systems and jurisdictions, making data sharing and accountability more difficult.
Where risks can arise
The report identified potential risks involving beneficiaries, landlords, consultants, contractors, subrecipients and organized fraud groups. Examples discussed by GAO included housing voucher cases involving underreported household income and payments to landlords for vacant units. The review also described a student-aid fraud case involving applications for more than 1,200 people at more than 100 schools in 24 states.
Those examples illustrate the types of vulnerabilities GAO examined. They do not show that every program in the review had the same problem, and the $1.1 trillion figure does not represent confirmed fraudulent losses.
What GAO wants agencies and Congress to do
GAO called for stronger fraud-risk frameworks, better use of data analytics and greater transparency about fraud-prevention activities. It also pointed to federal tools such as Do Not Pay, which can support screening related to recipient identity, eligibility and other payment-integrity checks.
The watchdog urged agencies to act on existing recommendations. GAO said 22 agency recommendations related to fraud-risk management remained open among the programs it reviewed. Those open recommendations are separate from the broader oversight actions and congressional considerations discussed in the new review.
For taxpayers and beneficiaries, the next accountability question is whether agencies improve data sharing and screening without disrupting legitimate access to services. Congress and federal agencies will also face questions about whether they provide the resources, reporting requirements and oversight needed to manage programs delivered through multiple layers of government.
Sources
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