The Your
Oct 09, 2026
HyperLocal Loop
The Your

Close to home. Always in the loop.

Treasury Reports $175 Million Blocked from Deceased Payees After New Safeguards

The U.S. Department of the Treasury announced Tuesday that new federal payment safeguards screened more than 1.1 billion payments, totaling roughly $3.7 trillion, in fiscal year 2026. The expanded “Do Not Pay” tools helped identify and return about 13,500 payments worth $175 million that would have gone to deceased individuals.

Broader Access for Federal Programs

According to the Treasury, approximately 99% of federal programs can now access all authorized Do Not Pay data sources, up from about 4% at the end of fiscal year 2025. Agencies screened more than 2.3 billion records against Do Not Pay data sources during FY 2026, nearly four times the 641 million records screened the previous year.

New Data Sets and Verification Checks

The department added nine new data sets to the Do Not Pay system, including company‑registration information, select Social Security Numident verification, and grantee audit findings. Treasury also began checking bank‑account ownership and the format of Taxpayer Identification Numbers. These capabilities became fully operational on September 30.

Executive Order Implementation

The enhancements implement portions of Executive Order 14249, which President Donald Trump signed on March 25, 2025. The order directs Treasury to establish pre‑certification checks that verify whether a payee is deceased and whether a listed financial account is valid and belongs to the payee or an authorized designee.

Context and Prior Results

The latest figures build on a July update in which Treasury reported screening more than 885 million payments worth about $2.77 trillion and returning more than 4,900 payments worth roughly $99 million tied to deceased payees, as previously reported by The Dallas Express.

Improper Payments Nationwide

The Government Accountability Office (GAO) found that federal agencies estimated about $186 billion in improper payments across 64 programs in fiscal year 2025. GAO notes that improper payments include amounts that should not have been made or were made in the wrong amount, and not all improper payments result from fraud.

Secretary Bessent’s Remarks

Treasury Secretary Scott Bessent said in the department’s release that Treasury is “moving beyond ‘pay and chase’ and making prevention the federal government’s first line of defense.” He emphasized that the new safeguards protect taxpayer dollars and help ensure that legitimate beneficiaries receive their entitlements promptly.

The Treasury’s expanded screening tools represent a significant step toward reducing waste, fraud, and abuse in federal spending, aligning with the administration’s broader effort to strengthen fiscal responsibility and protect American families from erroneous payments.


Original reporting: WBAP News/Talk (Dallas-Fort Worth) — read the source article.

OBBM Network Editorial Staff

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Editorial team behind OBBM Network — independent, hyper-local journalism syndicated through HyperLocalLoop and OBBM Network TV.

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