The U.S. Department of the Treasury halted $175 million in federal payments that were slated for individuals listed as deceased, according to data released this week.
During the fiscal year, Treasury staff screened 1.1 billion federal transactions,totaling $3.7 trillion. Automated checks flagged 13,500 disbursements tied to names on death registries before any money left government accounts. While the flags prevented the funds from being paid out, officials stressed that an initial flag doesn’t automatically mean every blocked payment was fraudulent.
The screening process leans on the Treasury’s “Do Not Pay” database, which cross‑references outgoing disbursements with the Social Security Administration’s Death Master File under congressional authority. Under this system, the government releases funds only after confirming that both the recipient’s Taxpayer Identification Number (TIN) and the linked bank account are active and valid.
The expanded safeguards went live on September 30, shifting the department’s approach from clawing back misallocated money after the fact to stopping questionable transactions at the point of processing. Access to the verification portal surged dramatically over the past year, growing from roughly 4 % of federal programs at the close of fiscal year 2025 to 99 % in fiscal year 2026.
Treasury Secretary Scott Bessent credited the upgraded screening architecture with modernizing oversight. “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,” Bessent said.
The payment controls stem from Executive Order 14249, titled “Protecting America’s Bank Account Against Fraud, Waste, and Abuse,” signed by President Donald Trump in March 2025. The directive instructed agencies to broaden data‑sharing networks to spot irregular transactions across federal benefit systems.
These transaction blocks sit alongside several other administrative measures aimed at tighter oversight. The Department of Government Efficiency (DOGE) reviews federal leases, commercial contracts, and grants, while a dedicated national fraud‑enforcement arm tackles larger schemes.
In addition, the Task Force to Eliminate Fraud coordinates efforts between federal departments and state agencies to verify recipient eligibility across housing support, healthcare funding, and direct cash‑assistance programs.
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