The federal government reported an estimated $236 billion in “improper payments” during the most recently completed fiscal year (FY 2023). Such payments are essentially payment errors that can be the result of many things—including overpayments, inaccurate recordkeeping, or even fraud.Payment errors are a long-standing issue for the federal government. Over the last 20 fiscal years, it has made an estimated $2.7 trillion in such improper payments.