States need data tools and incentives to stop improper federal payments

A policy report calls on Congress and the Trump administration to combat federal benefit fraud by requiring states to use three key federal databases to verify recipient eligibility. The recommendation stems from growing concerns about improper payments across federal benefit programs, which represent a significant source of government waste. Mandating database access and providing states with data tools and financial incentives would create a standardized system to prevent ineligible individuals from receiving benefits. The proposal targets a longstanding challenge in federal spending: benefit programs spanning Social Security, Medicare, Medicaid, and unemployment insurance have historically struggled with fraud and payment errors. Implementing such verification requirements would require coordination between federal agencies and state administrators who manage these programs.