The Government Accountability Office’s 2025 High Risk List

2025-02-25

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Summary

The hearing convened to discuss the Government Accountability Office's (GAO) 2025 High-Risk List, focusing on areas within the federal government vulnerable to waste, fraud, abuse, and mismanagement [ 00:09:56 ] . Comptroller General Gene Dodaro testified for his final time on the list before his retirement, highlighting the GAO's efforts to identify opportunities for efficiency and cost savings [ 00:10:02 ] . The discussion covered various government programs, emphasizing the need for congressional oversight and action to protect taxpayer dollars and improve public services [ 00:10:28 ] .

Themes

GAO's High-Risk List and Recommendations

The GAO's High-Risk List identifies 38 areas posing significant financial, public health, safety, national security, or privacy risks to the federal government [ 00:10:39 ] . These areas include programs with potential losses of at least $1 billion, or those impacting essential services or economic growth [ 00:10:39 ] . The list serves as a tool for Congress to conduct oversight and promote efficient use of taxpayer money [ 00:11:05 ]

. Comptroller General Dodaro noted that the GAO's recommendations have led to over $760 billion in savings through congressional and administrative actions on high-risk areas . He also added "improving the delivery of disaster assistance" as a new high-risk area this year, citing $500 billion in appropriations over ten years and FEMA's strained resources managing over 600 disasters .

Federal Workforce and Efficiency Initiatives

A central theme was the Trump administration's "DOGE" (Department of Government Efficiency) initiative, led by Elon Musk, aimed at eliminating government waste [ 00:12:05 ]

. Supporters argued that these efforts are necessary to curb runaway bureaucracy and recover wasted taxpayer money [ 00:12:05 ] . They pointed to the continued presence of programs on the high-risk list for decades as evidence of systemic failure [ 00:11:42 ] . Critics, however, characterized the approach as a "mindless wrecking ball" that injures the federal workforce and causes unintended harm [ 00:14:18 ] . They raised concerns about mass firings, particularly in critical areas like VA healthcare, FDA inspections, and nuclear security, leading to staffing shortages and potential vulnerabilities [ 00:39:43 ] . Dodaro stated that while change is needed, it must be approached thoughtfully to avoid unintended consequences [ 00:42:24 ] .

Improper Payments and Fiscal Responsibility

Improper payments remain a "very intractable problem," with over $150 billion reported annually in recent years, a figure that is likely incomplete . Major contributors to these payments include Medicaid, Medicare, the Earned Income Tax Credit, and unemployment insurance [ 00:12:31 ]

. GAO highlighted that fraud losses between 2018 and 2022 ranged from $233 billion to $521 billion annually [ 01:08:58 ] . Dodaro suggested improvements such as better provider screening, enrollment screening, and incentives for states to strengthen payment integrity . The broader context of the national debt, at $36 trillion, and rising interest payments underscored the urgency of fiscal responsibility [ 01:21:00 ] .

Specific Program Challenges

The U.S. Postal Service (USPS) continues to face financial unsustainability, losing billions and accumulating significant debt . GAO suggests that Congress must negotiate with USPS to define service expectations and ensure adequate revenue or subsidies, as the current business model is not sustainable . The Department of Defense (DOD) has repeatedly failed its financial audits, remaining on the high-risk list since 1995 [ 00:12:47 ]

. Information Technology (IT) modernization remains a government-wide problem, with over $100 billion spent annually, mostly on maintaining outdated legacy systems, some up to 50 years old, leading to cybersecurity vulnerabilities . A new addition to the list, disaster assistance, faces challenges due to fragmented systems, overlapping regulations, and FEMA being overburdened with numerous, long-standing disaster declarations .

Tone

The meeting's tone was highly contentious and partisan, especially concerning the "DOGE" initiative and federal workforce changes [ 00:57:29 ]

. While there was bipartisan praise for Comptroller General Dodaro's decades of nonpartisan service and the value of GAO's work [ 00:10:04 ] , sharp divisions emerged regarding the methods and motivations behind current government efficiency efforts [ 00:14:18 ] . Democrats largely criticized mass firings and funding freezes as reckless and harmful to public services [ 00:14:18 ] . Republicans defended these actions as necessary steps to "drain the swamp" and combat wasteful spending, linking criticism to "Trump derangement syndrome" [ 00:12:05 ] . The debate often veered into accusations of political motivations and ideological clashes, particularly concerning Medicaid cuts and tax policies .