House Budget Committee Chairman Jodey Arrington (R-TX) has expressed concern over what he termed as "rampant fraud" and a "bloated bureaucracy" in Washington. This comes in the wake of a report by the Government Accountability Office (GAO) that estimated financial losses due to fraud ranging from $233 billion to $521 billion. Arrington made these remarks in a press release issued by the House Budget Committee on April 17.
"To restore fiscal responsibility to Washington, we must root out the rampant fraud and abuse of a wasteful and bloated bureaucracy," said Rep. Jodey Arrington (R-TX). "GAO's latest alarming report, which found that up to half a trillion in taxpayer dollars are squandered annually, underscores the urgency of the work the House Budget Committee and United States House is conducting to rein in waste, fraud, and abuse."
"We estimated that the federal government could lose between $233 billion and $521 billion annually to fraud," stated a report from the U.S. Government Accountability Office (GAO). The GAO suggested several strategies to mitigate this issue, including enhanced agency oversight. It recommended that the Office of Management and Budget, working with the Council of the Inspectors General on Integrity and Efficiency, should "develop guidance on the collection of Office of Inspector General (OIG) data to support fraud estimation," while using "consistent data elements and terminology" within an appropriate timeline. Furthermore, it advised that the Department of the Treasury, in consultation with the Office of Management and Budget, should "develop guidance on the collection of executive agency data to support fraud estimation."
The GAO explained that their estimate was calculated using a probabilistic method to account for uncertainties and limitations in available data. This did not include fraud loss associated with federal revenue or instances of fraud at state, local, or tribal levels unless investigated by federal authorities. While this estimate is unprecedented, there are uncertainties tied to its model and data application, such as applying it to specific agencies or programs or interpreting pandemic-related fraud. The GAO underscored the need for improved program integrity and fraud risk management within agencies but acknowledged that completely eradicating fraud is nearly impossible.
Representative Jodey Arrington represents Texas' 19th Congressional District and serves as the Chair of the House Budget Committee, as stated on his official House website. His primary focus is on managing the $31 trillion national debt.
