Study: CARES Act Wasted $26 Billion on Improper Payments
The $2.2 trillion CARES Act will have been both the biggest stimulus package (in nominal dollars) in U.S. history, and owed to its sheer size, will have resulted in the most waste.
As is practically a guarantee for government designed spending program, the system will be exploited by some, and government incompetence will create costs elsewhere. “Improper” payments from the CARES Act account for most of the waste, which refers to over-payments of eligible individuals, sending checks to the wrong people, and fraud.
According to Fox Business:
An estimated $26 billion will be lost to improper spending of Coronavirus Aid, Relief and Economic Security Act unemployment benefits, a new study shows.
The entire U.S. unemployment system, by contrast, paid out slightly more than $26 billion in 2019, according to research, which cites estimates from the Department of Labor’s Inspector General, from The Foundation for Government Accountability, a public policy think tank based in Naples, Florida.
“This is a program that’s only existed for a few months, and the amount of potential fraud and waste is 10 times what the entire 50-state system sees [annually], so the $26 billion is … about the same as what the entire nation generally spends on unemployment for an entire year,” Joe Horvath, an accountability foundation policy fellow, told FOX Business.
And despite all this, Democrats still trust a government that mailed stimulus checks to 1.1 million dead people to successfully implement and carry out mail-in voting.