Trump administration touts billions in identified waste with much more work to be done

WASHINGTON (TNND) — As the Trump administration marks one year back in power, officials are pointing to aggressive efforts to root out government waste, fraud and abuse as a central accomplishment of President Donald Trump’s second term — even as new watchdog findings underscore the scale of the challenge ahead.

Trump administration touts billions in identified waste with much more work to be done (TNND)

Administration officials say they have identified waste across multiple federal agencies, from housing programs to health care and food assistance, while moving to recover funds and tighten oversight.

At the Department of Housing and Urban Development, officials say an early review uncovered nearly $1.9 billion in what they described as misplaced funds. “We want to be good stewards of taxpayer money — American taxpayer money,” HUD Secretary Scott Turner said.

Health care spending remains a major focus. At the Centers for Medicare and Medicaid Services, Chief of Staff Stephanie Carlton said the agency has established a centralized “war room” bringing together lawyers, policy experts and technology specialists to analyze billing data and intervene earlier in cases of suspected fraud.

“The goal is not just to catch fraudsters after the money goes out the door,” Carlton said. “It’s to stop the fraud before it ever leaves.”

Despite those efforts, a new report from the Department of Health and Human Services’ inspector general highlights persistent vulnerabilities. The semiannual watchdog report identified roughly $19 billion in waste, fraud and questionable spending within federal health care programs over a six-month period that includes much of President Trump’s second term.

Carlton acknowledged the scale of the issue, calling fraud and abuse in Medicaid a “systemic problem” and estimating that as much as 10 percent of spending may fall into that category.

One of the largest drivers flagged in the report was a 640 percent surge in Medicare payments for high-tech skin substitutes — bioengineered bandages used to treat chronic wounds. In response, Medicare moved to cap reimbursement rates for the products, a change officials say is expected to save more than $9 billion.

Outside watchdogs caution that fraud has long been a reality in federal programs. “The unfortunate truth is that fraud in government programs is a fact of life,” said Dylan Hedtler Gaudette, acting vice president of government affairs at the Project on Government Oversight, during a congressional hearing this week.

The administration and congressional Republicans have also targeted the Supplemental Nutrition Assistance Program, or SNAP. Agriculture Secretary Brooke Rollins said reforms are aimed at ensuring benefits go to those who truly qualify while protecting taxpayers.

The Foundation for Government Accountability estimates nearly six million SNAP recipients may not meet income or asset requirements, citing cases involving high-value assets and duplicate benefits across states.

The White House says, taken together, its government efficiency initiatives have saved taxpayers an estimated $215 billion in the first year of President Trump’s second term — roughly $1,335 per taxpayer.