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DOGE Caucus Unleashes New Bill to Stop $162 Billion in Fraudulent Government Payments

Elon Musk’s data-driven reforms move closer to law as Trump-aligned lawmakers demand real accountability from bloated agencies.

In a bold step toward restoring fiscal sanity in Washington, the DOGE Caucus just introduced a bill that could finally stop the federal government from hemorrhaging taxpayer dollars through incompetence and fraud.

Backed by President Donald Trump’s executive orders and energized by Elon Musk’s data-driven reforms, the new Delivering On Government Efficiency (DOGE) in Spending Act targets the $162 billion the federal government pays in “improper payments” every single year a staggering figure that almost equals the entire annual budget of Florida.

The legislation, introduced Thursday by Sen. Joni Ernst (R-IA) and Rep. Aaron Bean (R-FL), forces federal agencies to start doing what private banks and everyday Americans do all the time: verify basic identity information before sending out checks.

“Treasury didn’t even bother to put essential information into its disbursement systems,” Ernst said. “They had no idea why payments were made and were not even allowed to double-check agencies. That ends now.”

Here’s what the DOGE in Spending Act will require:

  • All payments must be cross-checked using federal databases to ensure accuracy including Social Security numbers, income data, and employment status.

  • Treasury’s “Do Not Pay” system will screen all payouts for red flags before they’re approved.

  • Agencies will be required to publicly disclose what they’re paying for and why via the USASpending website.

  • Systems must ask yes-or-no questions of IRS data (e.g. “Did this person file a tax return?” or “Was income over $50K?”) to verify claims without compromising privacy.

If this sounds like basic accountability it is. And it’s long overdue.

The DOGE Caucus has been at the forefront of Trump’s mission to clean out the rot in D.C., and this bill is a direct continuation of that effort. With 13 Senate co-sponsors already on board, even some Democrats may be forced to support it or explain why they’re defending fraudulent payouts over taxpayer sanity.

Just this week, the federal pandemic watchdog released a bombshell report showing that $79 billion in COVID fraud could have been prevented with basic data checks, such as validating Social Security numbers or comparing names with government employment records. One USAID employee even got a PPP loan for a fake business a fraud that any cross-check with IRS or state records would have caught in seconds.

The abuse doesn’t stop there:

  • Thousands received unemployment while still employed some by the government itself.

  • IRS welfare programs like the Earned Income Tax Credit have long been plagued by false returns filed using stolen SSNs.

  • The government doesn’t even give its own Treasury Department access to real-time income or employment verification tools, despite offering those tools to private banks.

This is the D.C. swamp in action and DOGE is now going on offense.

President Trump, through the DOGE executive orders, empowered this initiative. Elon Musk, who served as a special advisor for the DOGE program, identified systemic failures in how agencies process payments. Now, thanks to this legislation, those findings could soon become law.

“We’re just asking for the government to act like it’s the 21st century,” Rep. Bean said. “If this stops even a fraction of the fraud, we’re saving billions.”

It’s common sense. And it’s catching on.

Multiple states including Texas, Florida, and Iowa are already exploring similar measures to block fraudulent state-level payouts. As the federal version gains steam, expect to see the swamp rats squeal.

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