GAO Report Exposes Federal Waste, Improper Payments, and Inefficient Disaster Response

The report begins by identifying several key issues that are driving waste and inefficiency in the federal government. It points to improper payments, underutilized federal properties, and disjointed disaster response efforts as primary sources of financial loss and administrative problems. The Government Accountability Office (GAO) released its 2025 High-Risk List, which outlines these challenges, including various shortcomings in the management of the Federal Emergency Management Agency (FEMA) during disasters.

The document also discusses proposals from President Trump, who has suggested transferring FEMA’s authority to state control and urging federal employees to return to the office to address the high operating costs of empty government buildings. The report underscores that remote work has led to significant underuse of federal facilities, resulting in steep maintenance and operating expenses that add to the growing issue of deferred maintenance.

In addition to these points, the GAO report reviews progress in managing 38 high-risk areas, noting that while some areas showed improvements, others, like federal property management, IT acquisitions, and defense procurement processes, have deteriorated. The report reveals that a large portion of the government’s improper payments—arising from both bureaucratic errors and outright fraud—occurs within major programs such as Medicare, Medicaid, unemployment insurance, and the earned income tax credit.

Furthermore, the report highlights financial challenges beyond just operational inefficiencies, including the U.S. Postal Service’s struggle with substantial liabilities despite generating considerable revenue. It also examines the complications in disaster recovery, where the federal response is spread across multiple agencies, creating confusion for survivors in navigating necessary aid programs. With lawmakers and officials emphasizing the critical need for better data tracking, oversight, and more coordinated efforts, the report calls for action to address long-standing issues of waste, fraud, and abuse in government spending.