Millions saved by blocking dead people payouts as Trump Treasury drops hammer on federal fraud

FIRST ON FOX: The Treasury Department blocked $175 million in federal payments tied to deceased recipients in fiscal year 2026, up sharply from the $99 million identified just months earlier as the Trump administration expanded government-wide screening for improper payments.

"I applaud Secretary [Scott] Bessent for slamming the door on these fraudsters before they can pick taxpayers’ pockets," Republican Louisiana Sen. John Kennedy told Fox News Digital.

"Unless you were playing Frisbee in the quad during Econ 101, you know the federal government shouldn’t be sending taxpayer money to dead people," Kennedy went on. "I fought for years to pass my common-sense bill to stop fraudsters from gaming the system, and now it’s the law."

Kennedy has for years pushed to give Treasury greater access to Social Security death records, helping pass a 2020 law that temporarily authorized the Social Security Administration to share its full Death Master File with the department. That three-year data-sharing program began in December 2023. Trump then signed Kennedy’s Ending Improper Payments to Deceased People Act into law in February 2026, making access permanent.

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Trump has tasked his administration with rooting out fraud, waste and abuse across the federal government and tightening safeguards around taxpayer dollars — the latest effort to stop federal benefit payments to dead people is just another initiative within that broader effort.

Treasury screened more than 1.1 billion federal payments totaling roughly $3.7 trillion in FY2026, identifying and returning about 13,500 payments worth $175 million that otherwise would have been distributed to individuals no longer eligible for payments due to death.

"Treasury continues to transform how the federal government protects taxpayer dollars by using better data, stronger controls, and advanced technology to stop fraud and improper payments before money goes out the door," Treasury Secretary Scott Bessent said in a press release shared with Fox News Digital.

"In the past year alone, Treasury built and deployed new safeguards that verified more than $3.7 trillion in federal payments and increased Do Not Pay access from 4 percent of programs to 99 percent, ensuring agencies have access to the data they need," Bessent added. "We are moving beyond ‘pay and chase’ and making prevention the federal government’s first line of defense."

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More than 99% of federal programs now have access to the "Do Not Pay" tool, up from roughly 4% at the end of FY2025.

The expansion fulfills key requirements of a March 2025 executive order from Trump directing his administration to strengthen safeguards against fraud, waste and abuse involving federal payments.

Treasury also screened more than 2.3 billion records against Do Not Pay data sources in FY2026, nearly four times the 641 million records screened the previous fiscal year.

The jump comes as the program has expanded across the federal government, alongside new payment verification efforts and additional screenings for states.

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Treasury also tested new safeguards aimed at verifying that bank accounts belong to the intended recipients and checking Taxpayer Identification Numbers tied to federal payments.

The checks became fully operational Sept. 30 and allow Treasury to flag and return payments that fail verification before the money is sent.

The latest figures build on Treasury’s July announcement that it had screened more than 885 million payments worth roughly $2.77 trillion and flagged more than 4,900 payments worth about $99 million tied to deceased recipients.