The U.S. government wastes hundreds of billions of dollars annually, according to Treasury Secretary Scott Bessent.
In an interview with journalist Christopher Rufo that premiered Sunday, Bessent said federal “waste, fraud, and abuse” totals $300 billion to $600 billion a year — a figure he emphasized is based on the Government Accountability Office‘s estimate of fraud losses equal to about 10% of the federal budget and 1% to 2% of gross domestic product.
Bessent argued that shrinking that number would free up resources to strengthen national defense without piling on more debt, pointing to President Donald Trump’s push for a major military rebuild after years of strain.
“If we can get rid of this waste, fraud, and abuse, we can finance a safer, sounder U.S. … without taking on more debt,” he said in the Rufo interview.
The GAO estimate that Bessent referenced found the federal government likely loses between $233 billion and $521 billion annually to fraud, based on data from fiscal 2018 through 2022.
Separately, the GAO has estimated that “improper payments” — a broader category that can include errors and overpayments — have cost taxpayers trillions over time, highlighting the scale of weak controls in Washington.
Bessent also addressed the administration’s Department of Government Efficiency effort to cut waste, saying he shared Elon Musk’s goal but differed on method.
While Musk’s Silicon Valley mantra is “move fast and break things,” Bessent told Rufo his approach is “move deliberately and fix things,” signaling that Treasury’s investigations will prioritize building airtight cases.
That prosecutorial mindset is increasingly reflected across the administration.
During a White House briefing on Thursday, Vice President JD Vance announced the creation of a new assistant attorney general role focused on combating fraud involving taxpayer dollars, with nationwide jurisdiction.
Vance’s announcement followed heightened scrutiny of alleged large-scale fraud networks in Minnesota, which has become a national flashpoint in the broader debate over accountability in blue-state governance.
Bessent said the administration intends to use Minnesota as a model and “take this … map to the other 49 states,” as he described it in the interview — a direct warning that federal investigators plan to follow the money wherever it leads.
Beyond spending abuse, the interview pointed to another massive drain on public finances: unpaid taxes.
IRS projections show a net “tax gap” of about $606 billion for tax year 2022, the difference between taxes owed and taxes collected on time.
Bessent’s message is simple: Before Washington demands new taxes or embraces new debt, it should first prove it can stop hemorrhaging hundreds of billions through fraud, mismanagement, and lax enforcement, then reinvest those recovered dollars in core priorities like defense and border security.
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“This is Fraud!” – BREAKING: Nick Shirley Releases His Latest Investigation Into Somali Welfare Fraud in Minnesota (VIDEO)
Journalist Nick Shirley dropped part two of his investigation into rampant Somali fraud in Minnesota on Wednesday.
Last month Nick Shirley exposed more than $110 million in Somali fraud in one day.
On Wednesday, Nick Shirley released his second video exposing more than $16 million in Somali welfare fraud.
“In this 51 minute video David and I expose another $16 Million in fraud as Minnesota welfare programs continue to operate fraudulently and steal from law-abiding taxpayers,” Nick Shirley said.
WATCH:
Last month an angry Somali woman ‘working’ at a daycare – with no children inside – slammed the door as journalist Nick Shirley asked some simple questions about the so-called children’s center.
Minnesota Childcare Center claims it takes care of 102 children, however, the facility is empty.
“We’re just wondering where the children are,” David, a man who has been investigating the Somali fraud for years, asked. “It says you have 102 children here, and you got $2.66 million this year in funding. And $2.5 million last year. We’re just wondering where the kids are.”
“And who are you?” the Somali asked.
Another Somali learning center couldn’t even spell ‘learning’ correctly.
“We uncovered over $110,000,000 in ONE day. Like it and share it around like wildfire! Its time to hold these corrupt politicians and fraudsters accountable,” Nick Shirley said.
WATCH:
Minnesota Governor Tim Walz announced he won’t be seeking reelection after Nick Shirley’s investigative reporting exposing the Somali fraud.
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