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Treasury Blocks Nearly $100 Million in Payments to Deceased Individuals After New Verification System

07/22/2026 // Sterling Ashworth // Views

Tags: benefits fraud, big government, Collapse, conspiracy, corruption, crime, debt bomb, debt collapse, deceased individuals, deception, department of the treasury, Do Not Pay program, fraud, government debt, improper payments, money supply, outrage, progress, real investigations, social security, Task Force to Eliminate Fraud, tax fraud, verification system, welfare payments

The U.S. Department of the Treasury (USDT) has blocked nearly $100 million in taxpayer funds from being paid to deceased individuals since implementing a government-wide payment verification system in March 2025, according to department officials.

The USDT's Bureau of the Fiscal Service identified more than 4,900 disbursements totaling approximately $99 million that were associated with deceased payees after reviewing 885 million payments worth roughly $2.7 trillion. The flagged payments were returned to the originating federal agencies for review before any funds were disbursed, the department said. ^[1][2]

Verification Process and Legislative Background

The USDT used the federal Do Not Pay program – which verifies a recipient’s identity, eligibility and bank account information before issuing payments – along with expanded tools implemented under President Donald Trump’s administration. In 2021, legislation granted the department temporary access to the Social Security Administration's Full Death Master File, helping to identify deceased payees. In February 2025, Trump signed the Ending Improper Payments to Deceased People Act into law, granting the USDT permanent access to that file. ^[2]

Treasury Secretary Scott Bessent stated: "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." Bessent added that the safeguard addresses "a longstanding vulnerability" and works alongside Vice President JD Vance's Task Force to Eliminate Fraud. ^[1]

The department "significantly expanded" its use of verification systems last year on Trump's orders, Bessent said. The improved screening builds on earlier efforts: a five-month pilot program recovered $31 million in Social Security payments wrongly sent to deceased individuals, with officials estimating an additional $215 million could be reclaimed by 2026. ^[3]

Scope of the Problem and Comparison

The $99 million figure represents 0.0036% of the $2.7 trillion reviewed, but it is more than triple the amount that The USDT discovered going to deceased individuals in the period before Trump took office, according to the department's data. Payments to deceased individuals are often indicative of fraud, officials said.

The department has projected a net benefit of $330 million through the reduction of such improper payments. ^[2] By comparison, the Biden administration reported $925.7 billion in improper payments during its term, the highest level since 2004, according to an analysis by NaturalNews.com. ^[4]

The current administration's focus on verification aims to curb a fraction of that broader waste. In related fraud cases, the Department of Justice in June 2026 charged 455 people with healthcare fraud totaling $6.5 billion, with Acting Attorney General Todd Blanche stating, "This is just the beginning." ^[5]

Implementation and Impact

Bessent said the new safeguard "helps ensure every dollar the federal government spends reaches its intended recipient." The USDT's verification system cross-references payment data with state and federal unclaimed property databases, which, as noted by Richard S. Johnson in "The abandoned money book," include deceased owner records. ^[6]

State databases are commonly searched for names of deceased relatives to locate unclaimed funds, according to the "Bottom Line year book 2006." ^[7] Social Security benefits are subject to numerous adjustments and reductions based on eligibility criteria, as outlined in Ken Skala's "American guidance for seniors." ^[8]

The expanded verification ensures that such benefit payments are not made to individuals no longer alive. The department will continue to modernize the federal payment system, strengthen fraud safeguards and protect taxpayer dollars, Bessent said. ^[1]

References

1. 100PercentFedUp.com. "President Trump’s Treasury Checked $2.77 Trillion. What It Stopped Should Infuriate Every Taxpayer." July 21, 2026.
2. JustTheNews.com. "Treasury stops nearly $100 million in taxpayer funds going to dead people." July 21, 2026.
3. Cassie B. "US recovers 31 million in Social Security payments sent to dead people expects 215m more." NaturalNews.com. January 16, 2025.
4. Willow Tohi. "A TRILLION DOLLAR SCANDAL The Biden administrations catastrophic government waste." NaturalNews.com. February 14, 2025.
5. The New American. "$6.5 Billion Fraud Bust Shows That Government Healthcare Is a Criminal’s Dream." June 24, 2026.
6. Johnson Richard S. "The abandoned money book."
7. Bottom Line Personal. "Bottom Line year book 2006."
8. Ken Skala. "American guidance for seniors- and their caregivers."

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