From Study X, Exhibit 12

Medicaid had the largest improper-payment estimate in FY2025: $37.4 billion

Source. PaymentAccuracy.gov (OMB), FY2025 dataset, “All Program Results”. Fiscal year 2025.

Method and data

Method. The sixteen largest FY2025 estimates of improper and unknown payments, with each program’s improper-payment rate (improper and unknown payments over the program’s outlays) and its outlays.

ProgramAgencyImproper payments ($bn)Rate (%)Outlays ($bn)
MedicaidHHS37.46.1611.0
Medicare Fee-for-Service (FFS)HHS28.86.6439.9
Medicare Advantage (Part C)HHS23.76.1388.7
IRS Earned Income Tax CreditTreasury21.132.764.7
Supplemental Nutrition Assistance ProgramUSDA10.210.993.5
Shuttered Venue Operators Grant ProgramSBA10.168.914.6
Supplemental Security Income (SSI)SSA7.311.663.3
Unemployment InsuranceDOL5.614.937.7
IRS Additional Child Tax CreditTreasury4.513.633.4
Project-based rental assistance (Section 8 etc.)HUD4.326.416.5
Medicare Prescription Drug Benefit (Part D)HHS4.24.0105.6
Federal Highway Administration Highway Planning and ConstructionDOT2.43.961.8
CompensationVA2.31.5157.5
Disability Insurance (DI)SSA2.31.6143.4
7(a) Loan Guarantees ApprovalsSBA1.66.126.6
Old-Age and Survivors Insurance (OASI)SSA1.60.11,287.5

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Higgins Strategy. “Medicaid had the largest improper-payment estimate in FY2025: $37.4 billion” Exhibit 12, The Debt, the Waste and the Tax (Study X). October 12, 2026. https://higginsstrategy.com/charts/10-06b-improper-payments-top-programs-fy2025/