87 percent of voters say they are concerned about fraud or misuse of taxpayer money, and most say it is already driving up their costs, according to a new Deep Root Analytics survey. Another 83 percent say fraud contributes directly to higher taxes and rising costs for families, while 52 percent say little fraud is being stopped and call for more investigation.
State audits and federal reviews have identified billions in improper payments and fraud, money that ultimately gets absorbed through higher taxes, prices, or both.
In its 2025 oversight report, the State Financial Officers Foundation (SFOF) said officials across 28 states reported major fraud recoveries and safeguards in a single year through audits and oversight actions from state auditors, treasurers, and comptrollers.
SFOF members protected over $28 billion in state funds and stopped approximately $5.7 billion in waste, fraud, and abuse.
In Kentucky, auditors identified over $836 million in Medicaid payments that did not go to eligible recipients. North Carolina found more than $1.04 billion in unused salary allocations across state agencies, while Utah audits identified more than $518 million in fraud, waste, and abuse tied to public programs.
In a March 16 executive order, President Donald Trump directed a nationwide crackdown on fraud in federal benefits programs and said enforcement failures are driving up costs for Americans.
“Fraud and mismanagement in these programs constitutes theft of hard-earned tax dollars and contributes to rising costs for health care, housing, utilities, and groceries.”
The order points to Democrat-run Minnesota as a case study, citing suspected Medicaid fraud that prosecutors estimate could reach into the billions, alongside a $250 million child nutrition scheme built on fraudulent meal claims.
The Feeding our Future scheme stole nearly $250 million intended to feed needy children by submitting fraudulent claims for meals that were never served.
The administration also created a federal task force led by Vice President J.D. Vance, with participation from Treasury, Justice, Health and Human Services, Homeland Security, and other agencies.
Newsom’s Hospice Fraud ‘Crackdown’ Collapses: 197 Agencies Registered to One Address
At an April 1 event, Vance said federal enforcement had ignored fraud below certain dollar thresholds and said the administration would not allow smaller cases to slip through without consequences.
🚨 Zero tolerance for fraud.@VP swears in Colin McDonald to lead the new National Fraud Enforcement Division. Exactly the accountability America needs.
Our state financial officers have fought waste for years. Now it’s time to get every stolen dollar back to taxpayers. pic.twitter.com/744W1WMkCM— State Financial Officers Foundation (@SFOF_States) April 1, 2026
“When you have fraud being committed in this country, the Department of Justice has largely turned a blind eye towards it if it’s under a certain dollar amount. One of the things Colin is going to do is make sure that no fraud, no matter how big or how small, is ignored.”
SFOF CEO OJ Oleka argued that voters are linking fraud directly to the cost of living.
“Americans rightly understand that fraud is the invisible tax worsening the affordability crisis.”
Utah Treasurer Marlo Oaks (R) made the same argument in household terms.
“When accountability weakens, the financial burden ultimately falls on households. Efforts to reduce the cost of living and to strengthen oversight are closely connected.”
70 percent of voters support more aggressive fraud investigations, and a majority point to government spending and policy as drivers of rising costs.
Voters are tying fraud directly to what they pay every month, and they expect it to be stopped.
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