Treasury Flags $99 Million in Payments Linked to Deceased Payees

Improper federal payments have long exposed a gap between government disbursement systems and timely death records. The U.S. Treasury’s Bureau of the Fiscal Service uses the Do Not Pay system to check recipient eligibility against the Social Security Administration’s Full Death Master File before funds are released. Congress made Treasury’s access permanent in February 2026, moving a three-year pilot into an enduring control. The case highlights why banks and public agencies increasingly treat pre-payment identity and status verification as core defenses against fraud, waste and costly recovery efforts.

On July 21, 2026, the Treasury said its government-wide verification process had screened more than 885 million federal payments worth about $2.77 trillion. The checks identified more than 4,900 payments totaling roughly $99 million that were linked to deceased payees. The funds were returned to the originating agencies for review before disbursement, rather than sent and later clawed back. The rollout follows President Donald Trump’s March 25, 2025 executive order directing broader use of Do Not Pay and other tools to stop improper payments before money leaves the Treasury.