The War on Waste: Stamping Out the Scourge of Improper Payments and Fraud

Benefits Fraud and Improper PaymentsHouse Oversight and Government Reform Subcommittee on Delivering on Government Efficiency · 2025-02-12 · 119th Congress
The newly formed House Oversight Subcommittee on Delivering on Government Efficiency held its first hearing to examine improper payments and fraud in federal benefit programs, framed by Chair Marjorie Taylor Greene as part of a "war on waste" tied to the $36+ trillion national debt [0:12:37]. Begins at 0:12:07
Transcript
Highlights

Title

House hearing on federal improper payments and Doge subcommittee launch

Purpose

The newly formed House Oversight Subcommittee on Delivering on Government Efficiency held its first hearing to examine improper payments and fraud in federal benefit programs, framed by Chair Marjorie Taylor Greene as part of a "war on waste" tied to the $36+ trillion national debt0:12:37. Witnesses from the Foundation for Government Accountability, United Council on Welfare Fraud, LexisNexis Special Services, and the Project on Government Oversight testified on identity verification, Medicaid/SNAP eligibility rules, and inspector general oversight, while Democrats used the hearing to press Elon Musk and DOGE's access to Treasury payment systems and the firing of inspectors general. Begins at0:12:07

Who spoke

Chairwoman Marjorie Taylor Green (R-GA)0:12:07: Opened by citing $36 trillion in national debt and projected $952 billion in 2025 interest payments0:13:38, framed the hearing as launching a "war on waste"0:19:13, and later questioned witnesses on private- vs. public-sector fraud rates0:55:38 and closed citing $2.7 trillion in improper payments since 2003 [0:06:52 / 2:06:52].

Ranking Member Melanie Stansbury (D-NM)0:19:44: Said the hearing was overshadowed by DOGE "recklessly and illegally dismantling" agencies and firing inspectors general0:22:45, and invited Elon Musk to testify under oath before the committee0:25:17; in closing cited a New York Times report of rising inflation and a new GOP debt-limit plan to raise the ceiling by $4 trillion2:03:202:04:21.

Chairman James Comer (R-KY)0:26:17: Said Trump won a mandate to eliminate waste and cited $2.7 trillion lost to improper payments since 20030:26:48.

Rep. Gerry Connelly (D-VA), Oversight Ranking Member0:27:48: Said improper payments have grown from $35 billion to $280 billion a year0:28:18, noted roughly $500 billion/year in uncollected taxes0:28:48, and criticized the firing of 19 inspectors general, including the USAID IG who warned of losing $500 million in food aid0:29:19.

Haywood Talcove, LexisNexis Special Services CEO0:33:24: Said $1 trillion was stolen during the pandemic with 70% going overseas0:33:24, that public-sector fraud runs about 20% versus under 3% in the private sector0:35:56, and proposed front-end identity verification, ending self-certification, and updating the 1974 Privacy Act0:36:260:36:57.

Dawn Royal, United Council on Welfare Fraud0:38:28: Described a prosecuted case of a mother concealing a co-parent's six-figure income while receiving Medicaid/SNAP/LIHEAP benefits0:39:58; said SNAP fraud-prevention spending is under 1/120th of 1% of the program's budget despite bureaucrats claiming fraud is under 1%0:41:29.

Stewart Whitson, Foundation for Government Accountability0:43:59: Cited $59 million spent on luxury hotels for migrants and other DOGE-flagged spending0:44:30; said repealing the Biden Medicaid "streamlining rule" would save $164 billion over 10 years by restoring eligibility checks0:46:310:47:01; explained the rule limits eligibility checks to once a year and can bar action for up to 90 days or longer0:59:100:59:40.

Dylan Hedtler-Gaudette, Project on Government Oversight0:49:33: Distinguished waste, fraud, and abuse as separate concepts0:50:04; said IGs identified over $93 billion in potential savings in FY20230:51:04; said firing IGs "completely undermines" the ability to root out waste1:04:12.

Rep. Stephen Lynch (D-MA)1:00:10: Said his purpose on the subcommittee was to "defend our democracy"1:01:11, cited 55 pending lawsuits against Musk/Trump actions1:02:11, and noted the fired Afghanistan reconstruction IG had uncovered $4 billion in savings1:04:42.

Rep. Michael Cloud (R-TX)1:05:13: Asked Talcove for examples of transnational fraud, eliciting an account of a $50 million Medicaid theft in a western state in under four months1:09:45.

Rep. Robert Garcia (D-CA)1:10:46: Criticized Musk's role and warned DOGE efforts threaten the Department of Education, NIH, CFPB, and Social Security1:12:171:13:48.

Rep. William Timmons (R-SC)1:14:49: Cited $15 trillion added to the debt in six years1:15:19 and asked Talcove how much a Missouri identity-verification pilot saved Medicaid (nearly 20%, roughly $200 billion nationally)1:17:21.

Rep. Greg Casar (D-TX)1:19:53: Elicited from witnesses that at least five inspectors general investigating Musk's companies (Labor, Transportation, DOD, USDA, EPA) were fired1:20:23; said Musk's contracts pay him $8 million a day versus $65/day average Social Security benefits1:22:551:23:25.

Rep. Tim Burchett (R-TN)1:25:56: Asked Talcove about improving identity verification using private-sector-style tools1:25:56 and Whitson about outdated federal IT, citing a 10,000-page, 6.2-million-word USDA rulebook1:29:59.

Rep. Jasmine Crockett (D-TX)1:30:59: Noted Chairwoman Green had missed prior improper-payment hearings1:31:30, and highlighted the Pentagon's six consecutive failed audits versus proposed federal workforce cuts1:33:321:34:02.

Rep. Eric Burlison (R-MO)1:36:03: Warned the national debt could soon exceed $37 trillion (about $323,000 per citizen)1:36:33 and played a video of past presidents (Clinton, Gore, Obama) endorsing waste-cutting efforts1:39:34.

Del. Eleanor Holmes Norton (D-DC)1:41:35: Asked Hedtler-Gaudette whether workforce attrition would increase or decrease fraud (he said it would increase it)1:42:37, and read tributes to specific federal employees such as mine-safety expert Chris Mark and IRS investigator Jared Koopman1:44:081:44:38.

Rep. Brian Jack (R-GA)1:45:39: Cited a CBS News poll showing 70% of Americans feel Trump is doing the job he was elected to do1:47:10; entered a CRS report on IG-firing procedures into the record1:51:12 and separately asked about relocating agencies outside D.C.1:49:41.

Rep. Craig Goldman (R-TX)1:57:45: (Note: introduced as "Mr. Gill" in transcript) Criticized Democrats for focusing on Musk rather than waste, and cited approval polling for Trump (53%) and DOGE (49%)2:00:172:00:47.

Key moments

Talcove testified $1 trillion was stolen from pandemic programs, with 70% sent overseas, and said public-sector fraud runs about 20% versus under 3% in the private sector0:33:240:35:56.

Casar's questioning established that at least five inspectors general who were investigating Musk-linked companies (Tesla, SpaceX, Neuralink) were fired by the Trump-Musk administration, including one with 17 open Tesla/SpaceX investigations at the Department of Labor1:20:23.

Connelly disputed the firing approach, saying inspectors general — not a "wrecking ball" — are the right mechanism to address the $280 billion/year in improper payments, and noted the USAID IG was fired after warning of a $500 million food-aid loss0:27:480:29:19.

Whitson said the Biden-era Medicaid streamlining rule limits eligibility rechecks to once a year and can bar action on ineligible enrollees for 90 days or longer, in some states up to 13 years, and that repealing it could save $164 billion over 10 years0:59:101:00:100:46:31.

Stansbury alleged a 25-year-old DOGE staffer sought and was reportedly given access to Treasury's payment system source code in violation of a court order, after a senior civil servant with 30 years' tenure was asked to stand down1:54:141:55:15.

Timmons and Talcove cited a Missouri pilot program using identity/income verification tools that saved nearly 20% of Medicaid spending, projecting roughly $200 billion in nationwide savings1:17:211:17:51.

Crockett noted the Department of Defense has failed its last six consecutive audits while consuming about 50% of discretionary spending, contrasting this with proposed federal workforce cuts1:33:321:34:02.

Royal said fraud-prevention spending in SNAP is less than 1/120th of 1% of the program's budget, disputing bureaucrats' claims that SNAP fraud is under 1%0:41:29.

Green closed by citing a federal judge's ruling blocking Treasury Secretary Scott Bessent and DOGE from accessing Treasury payment systems, calling the decision unconstitutional2:08:232:08:53.

Jack cited a CBS News poll (Feb. 5–7, 2025) showing 70% of Americans believe Trump is doing the job he was elected for and 62% want Democrats to work with Republicans on his priorities1:47:10.

Metadata

CommitteeHouse Oversight and Government Reform Subcommittee on Delivering on Government Efficiency
Chamber / CongressHouse · 119th Congress
Date2025-02-12
TypeHearing
Witnesses
Stewart Whitson — Senior Director of Federal Affairs, Foundation for Government Accountability
Dawn Royal — Director, United Council on Welfare Fraud
Haywood Talcove — Chief Executive Officer, LexisNexis Special Services Inc.
Mr. Dylan Hedtler-Gaudette — Director of Government Affairs, Project on Government Oversight
Videoyoutube
Transcript239 caption blocks · 18,857 words · 2:11:53 runtime
EventCongress.gov 117887