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GAO: Fraud Risk High in $1.1 Trillion of State-Run Federal Programs

Government Accountability Office finds distribution methods leave major state-administered federal programs exposed to fraud.

Published Jul 25, 2026, 7:22 AM EDT | WFMZZ

A Government Accountability Office report warns that 20 federal programs that channel nearly $1.1 trillion through state governments — including Medicaid, SNAP and disaster relief — are vulnerable to fraud because of how funds are distributed. The GAO highlights weaknesses in distribution practices that increase fraud risk across these state-administered federal programs.