New Treasury Rules Block Payouts to Deceased People

A graveyard.

A graveyard.

The Treasury Department blocked $175 million in federal payments meant for deceased individuals in fiscal year 2026. This action was driven by the expanded “Do Not Pay” program, which screened more than 1.1 billion federal payments totaling approximately $3.7 trillion. [1]

The program successfully identified and returned about 13,500 payments that would have otherwise gone to ineligible recipients. Over the past year, the Treasury increased access to the “Do Not Pay” tool from roughly 4% of federal programs to more than 99%. This expansion fulfills requirements from a March 2025 executive order issued by President Trump, which directed his administration to strengthen safeguards against waste and abuse in federal payments.

“President Trump continues to deliver for Americans where previous administrations have fallen short. This Administration is setting new standards in record time to prevent fraud and improper payments before hard-earned taxpayer dollars leave the Treasury. Under President Trump’s leadership, there is no tolerance for waste, fraud, and abuse,” White House spokesperson Taylor Rogers said.

“The Treasury Department blocked $175 million in federal payments meant for deceased individuals in fiscal year 2026.”

The effort builds on a foundation of recent legislative action. Republican Louisiana Sen. John Kennedy pushed to give the Treasury greater access to Social Security death records, helping to pass a 2020 law authorizing a temporary data-sharing program. That access was made permanent when Trump signed Kennedy’s Ending Improper Payments to Deceased People Act into law in February 2026.

“Unless you were playing Frisbee in the quad during Econ 101, you know the federal government shouldn’t be sending taxpayer money to dead people,” Kennedy said.

During FY2026, the Treasury screened more than 2.3 billion records against its data sources, nearly four times the volume screened the previous year. New operational safeguards were implemented on Sept. 30 to verify that bank accounts and Taxpayer Identification Numbers match those of the intended recipients before money is sent.


Leave a Reply

*