Louisiana Senator John Kennedy (R-LA) recently highlighted a shocking issue plaguing the U.S. federal government: billions of dollars in payments being sent to deceased Americans. The senator’s address shed light on this wasteful practice and called for immediate action to address the problem.
Key Points to Understand
1. Scale of the Issue:
- In fiscal year 2023 alone, the federal government sent $1.3 billion in checks to dead people, according to the Office of Management and Budget.
- These checks are not only being sent but also cashed, indicating widespread fraud.
2. Root of the Problem:
- The Social Security Administration (SSA) maintains a “Death Master File,” a daily updated list of deceased Americans.
- However, the SSA refuses to share this list with other federal agencies that send out checks, such as the Department of Treasury and Small Business Administration.
3. Examples of Fraud:
- During the COVID-19 crisis, $1.4 billion in stimulus checks were paid to dead people.
- The Paycheck Protection Program paid out $38 million to deceased individuals.
- A scam artist received $825,000 in checks from 1997 to 2024 using a deceased veteran’s Social Security number.