John Kennedy’s Anti-Fraud Law Helps Trump Treasury Block $99 Million in Payments to Dead People

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The Treasury Department says a major anti-fraud safeguard authorized by legislation from Republican Louisiana Senator John Kennedy has stopped approximately $99 million in federal payments associated with deceased individuals. Treasury officials screened roughly 885 million proposed payments, representing nearly $2.7 trillion, against expanded federal death records before the money could be distributed. More than 4,900 payments connected to deceased payees were returned to the agencies that initiated them for further examination.

The new process is supported by the Ending Improper Payments to Deceased People Act, introduced by Kennedy and signed into law by President Donald Trump. The legislation gave the Treasury Department permanent access to the Social Security Administration’s Full Death Master File, a broader collection of death information that can be used to identify recipients who may no longer be eligible for federal payments. The law converted what had been a temporary data-sharing arrangement into a permanent safeguard for the federal payment system.

Details & Background

The federal government distributes enormous sums through Social Security, tax refunds, retirement benefits, grants, contracts and other programs. When agencies rely on incomplete or outdated records, payments can be approved for recipients who have died. Some of those payments may result from processing delays or reporting errors, while others can create opportunities for fraud when another person attempts to obtain money intended for the deceased. Kennedy’s legislation addresses that vulnerability by allowing Treasury officials to check payments against more complete death information before funds are released.

Congress had previously granted the Treasury Department temporary access to the Full Death Master File through a three-year pilot program. During the pilot, Treasury expanded its ability to detect questionable payments and projected approximately $330 million in net benefits from reduced improper payments over the program’s operating period. An earlier five-month phase prevented or recovered more than $31 million, giving lawmakers evidence that broader access to death records could protect substantially more taxpayer money if continued permanently.

Reactions

Treasury Secretary Scott Bessent described the latest results as part of the Trump administration’s commitment to stopping fraud before public money leaves federal accounts. “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 said. He added that the safeguard addresses a longstanding weakness while helping ensure government funds reach their intended recipients.

The Treasury Department said it plans to continue modernizing federal payment systems and expanding protections against waste, fraud and improper distributions. The effort also supports President Trump’s broader directive to protect the nation’s finances from abuse. Vice President JD Vance has taken a leading role in the administration’s anti-fraud initiative, which is examining vulnerabilities across federal agencies rather than waiting until questionable money has already been spent and attempting to recover it afterward.

Why This Matters to You

The $99 million identified by Treasury is not abstract government money. It comes from taxpayers whose earnings fund federal programs and who expect agencies to verify that payments are legitimate. Every dollar mistakenly sent to an ineligible recipient increases pressure on the federal budget and weakens confidence in programs relied upon by seniors, veterans, working families and people with disabilities. Preventing improper payments at the beginning is generally more effective than attempting to locate and recover the money after it has entered another account.

The government should continue requiring agencies to use accurate, regularly updated records before authorizing payments. It should also investigate whether stopped payments resulted from ordinary administrative errors, identity theft or organized fraud, while protecting legitimate beneficiaries from unnecessary interruptions. Kennedy’s law gives Treasury a permanent mechanism to conduct that work, and the early results show how congressional oversight and executive enforcement can combine to protect the public purse. With trillions of dollars moving through federal systems, maintaining that vigilance is essential to preserving both taxpayer resources and trust in government.