State financial officers report $28 billion returned to taxpayers in 2025

State financial officers recovered $28 billion for taxpayers in 2025, according to the State Financial Officers Foundation's first Oversight Report. The same report identified $5.7 billion in waste, fraud and abuse and recorded an additional $22.3 billion from investment earnings and unclaimed property programs.

O.J. Oleka, CEO of the State Financial Officers Foundation, said controls were reduced during the prior administration, allowing broader access to benefits. He stated that some states operated under the view that expanded government access was beneficial and that eligibility requirements were sometimes absent.

Fraud patterns identified across states Oleka described fraud as embedded in certain programs rather than isolated incidents. He cited examples in California, Maine and Ohio involving hospice services, Medicaid funds and home health billing. In Ohio, officials found hundreds of home health companies operating from shared or vacant addresses that billed more than $250 million in Medicaid payments.

A Maine health services company faced accusations from a whistleblower of misusing millions in Medicaid funds.

Coordination with federal and state efforts Oleka said state financial officers are working with members of Congress, including House Oversight Committee Chairman James Comer, to address fraud beyond the current administration. He also referenced a February letter to the White House offering assistance on fraud reduction.

Oleka stated that lasting reductions would require continued oversight across future administrations and that some changes could be formalized through executive order. He added that the goal is to remove ineligible recipients and restore program integrity for eligible beneficiaries.