Audit reveals $1 billion waste in federal government inefficiencies

In the United States, the Government Accountability Office (GAO) has published its 2025 High-Risk List, which highlights significant waste and inefficiencies across various federal government sectors. The report, titled 'Heightened Attention Could Save Billions and Improve Government Efficiency and Effectiveness', was released on Tuesday, February 25, 2025. The report identifies key issues such as improper payments, underutilized federal buildings due to increased telework, and a fragmented approach to disaster response. It emphasizes that the areas listed on the High-Risk List present a considerable financial risk to taxpayers, with losses potentially exceeding $1 billion in certain instances. Among the notable findings in the 321-page report, the GAO pointed out that teleworking arrangements have resulted in costly underuse of federal properties as many federal employees have continued remote work since the pandemic. The growing deferred maintenance of federal buildings has also raised concerns, with the costs escalating from $170 billion in 2017 to an alarming $370 billion projected for 2024. Additionally, the report highlighted that improper payments, which can occur for various reasons including incompetence or bureaucracy, play a significant role in the financial inefficiencies of programs such as Medicare, Medicaid, and unemployment insurance. This year, while 10 of the 38 high-risk areas improved, three regressed, illustrating the need for ongoing scrutiny and action. GAO reports reveal that these problem areas account for approximately 80% of the total reported improper payment estimates across the federal landscape. The House Oversight and Government Accountability Committee is set to hold a hearing on the High-Risk List, underscoring the urgency for federal agencies to address these issues. Chairman James Comer has expressed his concerns about the rampant waste, fraud, and abuse within the federal system, asserting that despite the wealth of reports highlighting these deficiencies, decisive action is still required to mitigate financial losses and improve overall government efficiency. The hearing coincides with Trump’s Department of Government Efficiency efforts aimed at tackling such disparities.