The U.S. Treasury Department has recovered over $31 million in fraudulent and erroneous payments sent to deceased individuals in just five months after gaining access to the Social Security Administration's (SSA) death database. This achievement marks a significant step in addressing a long-standing issue of misdirected funds within the federal government.
The Treasury disburses billions in payments annually, including benefits, federally funded state-administered payments, and other miscellaneous disbursements. Accidentally sending these funds to deceased individuals has been a persistent problem, as highlighted by fiscal watchdog group OpenTheBooks. For instance, the Government Accountability Office estimated that during the initial round of COVID-19 stimulus checks in 2020, $1.4 billion was sent to deceased recipients. This figure climbed to nearly $3.6 billion across all three stimulus rounds, according to OpenTheBooks.
The SSA maintains the sole government database documenting U.S. citizen deaths. In 2023, Congress temporarily granted the Treasury Department access to this database through an omnibus appropriations bill, aiming to curb improper payments. This temporary access is slated to expire in 2026.
Image: A Social Security card and U.S. Treasury checks. (Kevin Dietsch/Getty Images)
John Hart, executive director of OpenTheBooks, commended the recouped funds as a positive development stemming from improved interagency communication. He emphasized the need for better coordination to prevent future misallocation of taxpayer dollars, citing past instances where trillions were lost due to improper payments. Hart attributed the nearly $4 billion in COVID-19 stimulus payments sent to deceased individuals to the IRS's failure to consult the SSA's death database. He also highlighted the Small Business Administration's distribution of over $3 billion in forgivable loans to entities on the Treasury's "Do Not Pay" list.
Fiscal Assistant Secretary David Lebryk stressed the significance of permanent access to the death database for enhanced fraud reduction and program integrity. He believes the recovered funds represent only a small portion of the potential savings. Echoing this sentiment, Hart acknowledged the progress while emphasizing the continued need for improvement.
