November 20, 2009

Executive Order 13520: Reducing Improper Payments

In 2009, the federal government wasted $98 billion in improper payments; in 2008, improper payments were $72 billion. The increase was largely driven by improved detection of improper payments and the large amount of federal spending associated with the economic downturn. Improper payments include overpayments to individuals or firms and benefits provided to ineligible program participants. To combat improper payments, on November 20, 2009, President Obama signed Executive Order 13520 to boost transparency, hold agencies accountable, and create incentives for compliance.