Treasury Blocks $175M in Payments to Deceased in FY2026

Key points

• Treasury blocked 13,500 improper payments worth $175 million to deceased recipients in FY2026.
• The 'Do Not Pay' program screened over 1.1 billion payments totaling $3.7 trillion in FY2026.
• Access to the 'Do Not Pay' tool expanded from 4% to 99% of federal programs.
• Treasury screened 2.3 billion records against Do Not Pay data sources, nearly four times the previous year's 641 million.
• New safeguards verifying bank accounts and Taxpayer Identification Numbers became fully operational on September 30, 2026.

Background

The Treasury Department has been under scrutiny for various issues, including a recent case involving the death of an employee, Chloe Moffat, which highlighted concerns about safeguarding and duty of care. Additionally, the U.S. Treasury market has experienced volatility, with the 10-year yield breaching 5% in September 2026 due to inflation fears and a global bond sell-off. These events underscore the broader challenges and scrutiny facing the Treasury Department as it implements new fraud-prevention measures.

Why it matters

The expansion of the 'Do Not Pay' program and the blocking of $175 million in improper payments to deceased individuals demonstrate the Trump administration's commitment to reducing federal fraud and waste. This initiative, supported by new legislation and enhanced data-sharing agreements, aims to protect taxpayer dollars and improve the efficiency of federal payments. The significant increase in the number of payments screened and the expansion of the program's coverage highlight the administration's efforts to modernize and strengthen federal financial controls.

What to watch

The Treasury Department will continue to expand its fraud-prevention efforts, including the implementation of new safeguards for verifying bank accounts and Taxpayer Identification Numbers. The administration is also expected to push for further legislative action to combat fraud, waste, and abuse in federal payments, as indicated by the White House's recent convening of a task force with Congress. Additionally, the Treasury will likely continue to monitor and report on the effectiveness of its 'Do Not Pay' program in preventing improper payments.