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Treasury stops payments to dead people, screens $2.7 trillion in federal funds

(Patrick Semansky, Copyright 2019 The Associated Press. All rights reserved.)

The U.S. Department of the Treasury and the Bureau of the Fiscal Service say they have successfully launched a new government-wide payment verification process designed to prevent federal payments from being sent to dead people.

Officials say they announcement, made July 21, fulfills a key requirement of Executive Order 14249, Protecting America’s Bank Account Against Fraud, Waste, and Abuse.

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Screening catches nearly $99 million in improper payments

Since the new process launched, the Treasury says it has screened more than 885 million federal payments totaling approximately $2.77 trillion. Of those, more than 4,900 payments — worth roughly $99 million — were flagged as associated with deceased payees.

Those payments were returned to their originating federal agencies for review before any funds were disbursed.

“Treasury has delivered on a key promise of President Trump’s mandate to stop improper payments and fraud before money leaves the Treasury, and strengthen the integrity of the federal payment system,” said Treasury Secretary Scott Bessent.

“Together with Vice President Vance’s Task Force to Eliminate Fraud, this new safeguard addresses a longstanding vulnerability and helps ensure every dollar the federal government spends reaches its intended recipient. Treasury will continue efforts to modernize the federal payment system, strengthen safeguards against fraud and improper payments, and protect taxpayer dollars,” Bessent said.

Death Master File access drives new capability

The screening capability is built on Treasury’s expanded access to the Social Security Administration’s Full Death Master File, which enables more comprehensive identification of deceased payees before payments are issued.

Access to the file was originally granted through the Consolidated Appropriations Act of 2021, which allowed Treasury a temporary, three-year pilot program. During the pilot’s first year, Treasury projected an estimated $330 million in net benefits between 2024 and 2026 through reduced improper payments.

In February 2026, Congress passed the Ending Improper Payments to Deceased People Act, which President Trump signed into law, granting Treasury permanent access to the Full Death Master File.

The Treasury said it will continue implementing payment verification capabilities required under the Executive Order to further strengthen safeguards against fraud, waste, and improper payments across the federal government.