Davin News Server

On Wed, 19 Feb 2025 11:33:50 -0800
Alan <nuh-uh@nope.com> wrote:

> anything they listed is actually waste

https://oversight.house.gov/release/hearing-wrap-up-doge-subcommittees-firs=
t-hearing-uncovers-billions-lost-to-fraud-and-improper-payments-launches-wa=
r-on-waste/

Hearing Wrap Up: DOGE Subcommittee=E2=80=99s First Hearing Uncovers Billion=
s Lost to Fraud and Improper Payments, Launches =E2=80=9CWar on Waste=E2=80=
=9D
WASHINGTON=E2=80=94The Subcommittee on Delivering on Government Efficiency =
(DOGE) held its inaugural hearing today titled =E2=80=9CThe War on Waste: S=
tamping Out the Scourge of Improper Payments and Fraud=E2=80=9D to investig=
ate the hundreds of billions of taxpayers=E2=80=99 dollars wasted annually =
on improper payments and fraud. Expert witnesses shared step-by-step plans =
to improve payment systems, close loopholes, decrease fraud, and save Ameri=
can taxpayers billions of dollars every year. Members explained how the DOG=
E Subcommittee will aid President Trump and Elon Musk in their efforts to r=
ein in the runaway bureaucracy. Majority members also cited potential legis=
lation that would help facilitate DOGE=E2=80=99s efforts to improve payment=
 accuracy and eliminate improper payments and fraud across federal agencies=
. The DOGE Subcommittee=E2=80=99s =E2=80=9CWar on Waste=E2=80=9D will help =
ensure Americans see their tax dollars spent efficiently and effectively.

Key Takeaways:

The DOGE Subcommittee will actively work with President Trump=E2=80=99s Dep=
artment of Government Efficiency to root out waste, shore up vulnerable pay=
ment systems, and fully investigate schemes to defraud taxpayers.

Dawn Royal, a certified welfare investigator and the Director of United Cou=
ncil on Welfare Fraud, explained how career bureaucrats, currently facing s=
crutiny from President Trump and Elon Musk, play down problems in the syste=
m in an effort to protect their political interests: =E2=80=9CInvestigators=
 have also found themselves at odds with the career bureaucrats who recite =
watered down facts about fraud in order to promote their political agendas.=
 Specifically, we can look to the career bureaucrats who have historically =
claimed that the fraud rate in SNAP is less than 1%. The disregard for the =
value of integrity is evidenced by the less than 1/20 of 1% of the SNAP bud=
get spent on the prevention, detection, and prosecution of fraud=E2=80=A6Sa=
dly, it is already apparent that career bureaucrats are not being totally t=
ransparent as they attempt to protect spending and broken programs.=E2=80=9D
Rep. Michael Cloud (R-Texas) celebrated the success of President Trump, Elo=
n Musk, and their Department of Government Efficiency in swiftly rooting ou=
t government waste and also thanked Subcommittee Chairwoman Greene for her =
efforts to bring the DOGE agenda to Congress: =E2=80=9CThankfully with DOGE=
, we have a president bringing the leadership needed and a focused effort, =
along with the talent, technology, tools, and transparency to this waste, f=
raud and abuse. And to those who would stand opposed to this effort, I woul=
d just point out, while it=E2=80=99s understandable to find waste, fraud an=
d abuse that has grown and metastasized in the government even over decades=
, certainly accelerated in the last few years, to continue to protect it is=
 corruption. I want to thank the Chair for beginning this war on waste on t=
his side of Pennsylvania Avenue and bringing together this Committee. This =
effort is so important as we work to relieve the American people of this bu=
rden of waste, fraud and abuse.=E2=80=9D
Fraud and abuse of federal taxpayer dollars can be curbed dramatically by c=
losing eligibility loopholes, improving identity verification, and refining=
 payment tracking mechanisms at both the federal and state level.

Haywood Talcove, the Chief Executive Officer of LexisNexis Risk Solutions f=
or Government, laid out a three-step plan for reclaiming control of federal=
 payment systems: =E2=80=9CThere=E2=80=99s no excuse for the government to =
lag if we do the following. Number one, implement identity verification on =
the front end. Criminals should never receive a dime. Eliminate self-certif=
ication. No more honor system for billion-dollar programs. And continuous a=
uditing. Keep verifying because criminals never stop adapting.=E2=80=9D
Ms. Royal detailed commonsense solutions to closing loopholes, improving te=
chnology, and reducing fraud across all payment systems: =E2=80=9CThere are=
 things this Committee can do to help the investigators fighting the war on=
 fraud. Number one, eliminate self-attestation in the application process f=
or all programs. Number two, funding for technology that includes identity =
verification tools that will help prevent fraud. The current pay and chase =
model is not sustainable. Number three, immediately implement the National =
Accuracy Clearinghouse, the NAC will provide data to states to prevent dupl=
icate participation in all of the social welfare programs. And four, alloca=
te direct funding with mandates restricting the use of the funding to the p=
revention, detection, and prosecution of fraud.=E2=80=9D
The Biden-Harris Administration exacerbated an already massive improper pay=
ment problem by expanding faulty welfare programs without proper oversight =
mechanisms in place and by failing to hold America=E2=80=99s bureaucracy ac=
countable.

Stewart Whitson, the Senior Director of Federal Affairs at the Foundation f=
or Government Accountability, described how policies pushed by the Biden Ad=
ministration exacted a cost on Americans: =E2=80=9CCongress can strengthen =
the Medicaid program through legislative action. That would include repeali=
ng Biden=E2=80=99s disastrous Medicaid streamlining rule, which ties the ha=
nds of states trying to remove ineligible release=E2=80=A6.Congress can hel=
p President Trump=E2=80=99s DOJ=E2=80=99s effort by ensuring that entrenche=
d partisan bureaucrats don=E2=80=99t stand in the way of reform so much as =
DOJ=E2=80=99s team of 30 found hundreds of billions of dollars funneled int=
o wasteful, fraudulent and flat-out insane projects. But they=E2=80=99ve on=
ly scratched the surface if this much fraud has been exposed in just a few =
weeks. Imagine what else is buried under layers of red tape and government =
excuses.=E2=80=9D
Rep. William Timmons (R-S.C.) slammed former President Joe Biden for abusin=
g federal payment systems and contributing to the dangerously high national=
 debt: =E2=80=9CJoe Biden signed his name and wanted the American people to=
 believe he had the ability to forgive $250 billion with a signature. Guess=
 what? The Supreme Court ruled he did not. That=E2=80=99s our system of che=
cks and balances. The President, Biden, he clearly was experiencing cogniti=
ve decline. He didn=E2=80=99t even have the ability to be charged with a cr=
ime as determined by his own Department of Justice. But he signs his name, =
and he thinks it gives a quarter of trillion dollars away, redistributes ta=
xpayer dollars. It=E2=80=99s just crazy that we can=E2=80=99t come together=
 to address the greatest national security threat facing this country, our =
debt.=E2=80=9D
Member Highlights:

DOGE Subcommittee Chairwoman Marjorie Taylor Greene (R-Ga.) shed light on a=
 striking disparity in fraud rates between the public and private sectors, =
noting that while private sector businesses experience fraud at a rate of a=
round 3 percent, the federal government=E2=80=99s fraud rate is about 20 pe=
rcent.



Subcommittee Chairwoman Greene: =E2=80=9CMr. Talcove, do private sector com=
panies have a lower rate of improper payments than the federal government?=
=E2=80=9D

Mr. Talcove: =E2=80=9CYes. The fraud rate, that the criminals are taking ad=
vantage of the public sector is around 20%. In the private sector, it=E2=80=
=99s around 3%. And it=E2=80=99s really because the tools that are used in =
the private sector, aren=E2=80=99t used in the public sector. Front end ide=
ntity verification, self-certification, and then finally, making sure that =
individuals are who they say they are. If we start using these tools, you w=
ill see the fraud rate go down dramatically because for the most part, this=
 fraud isn=E2=80=99t taking place by individuals. It=E2=80=99s individuals =
whose identities have been stolen on the dark web.=E2=80=9D

Subcommittee Chairwoman Greene: =E2=80=9CWe would say the private companies=
 that pretty much have to exist on a 20% profit rate. They can=E2=80=99t co=
ntinue to be successful if they were to allow their customers data to be so=
mething like that and used by criminals. However, the federal government, w=
ho can continue printing checks and continue an operation, never fixes its =
problems because it can=E2=80=99t be forced to go out of business. Would yo=
u agree with that, Yes or no?=E2=80=9D

Mr. Talcove: =E2=80=9CYes.=E2=80=9D

Rep. Tim Burchett (R-Tenn.) blasted DOGE Subcommittee Democrats for defendi=
ng schemes to defraud American taxpayers. He also pointed out that self-ver=
ification systems at local doctors=E2=80=99 offices are more secure than fe=
deral payment systems.



Rep. Burchett: =E2=80=9CThe gravy train for a lot of these folks, it=E2=80=
=99s been on biscuit wheels. It=E2=80=99s about to run off the dadgum track=
s. It=E2=80=99s about done. Could you imagine standing up here and defendin=
g waste, fraud, and abuse? But I think that=E2=80=99s what we=E2=80=99re se=
eing. When people squeal and don=E2=80=99t ask questions, I think it shows =
the American public what the heck=E2=80=99s going on and that little gravy =
train is getting ready to run out. The spigot is getting ready to be turned=
 off.=E2=80=9D

=E2=80=A6

Mr. Whitson: =E2=80=9CRather than accepting self-attestation, states should=
 have to be required to actually verify people=E2=80=99s identities and, he=
re=E2=80=99s the key part, before they get enrolled. They shouldn=E2=80=99t=
 get enrolled and then eventually come later on down the road.=E2=80=9D

Rep. Burchett: =E2=80=9CIncluding at a doctor=E2=80=99s appointment back in=
 Knoxville, and the verification process is very extensive. It=E2=80=99s mo=
re so than the federal government requires for any of this.=E2=80=9D

Rep. Eric Burlison (R-Mo.) detailed how the Department of Government Effici=
ency is well-positioned within the Executive Office of the President to ens=
ure federal payment systems are protected from future abuses.



Rep. Burlison: =E2=80=9CMr. Whitson, the formation of agencies, via the exe=
cutive action, is not new. Right? The formation of DOGE is not new. Are you=
 familiar with any other previous presidencies where they formed organizati=
ons like DOGE via executive action?=E2=80=9D

Mr. Whitson: =E2=80=9CYes. So actually the agency that DOGE is occupying is=
 one that was created in a previous administration. So it is something that=
 happens routinely.=E2=80=9D

Rep. Burlison: =E2=80=9CYeah, the Office of Management and Budget was creat=
ed, Environment Protection Agency was created, the US Digital Service, whic=
h is now DOGE, was created, all by executive order.=E2=80=9D

Rep. Brian Jack (R-Ga.) described technological inefficiencies, established=
 by the 1974 Privacy Act, that must be updated to allow federal payment sys=
tems to use AI and other cutting-edge technologies to reduce improper payme=
nts.



Rep. Jack: =E2=80=9COne of the things that I found very interesting from yo=
ur opening testimony is you talked, and I think you engaged with Mr. Burche=
tt, on the 1974 Privacy Act. And I had some interesting folks visit my offi=
ce yesterday who noted that one third of all prior authorizations are still=
 done manually by phone, fax, or direct post mail. I would love your commen=
ts on that. And I=E2=80=99d also like you to expand upon some of the soluti=
ons that we can deliver to this Congress in modernizing the 1974 Privacy Ac=
t.=E2=80=9D

Mr. Talcove: =E2=80=9CThese aren=E2=80=99t people problems. These are techn=
ology problems. You can=E2=80=99t process the number of individuals that ar=
e accessing our systems person by person. It just takes too much time. So, =
by updating the 1974 Privacy Act and allowing for digital matching, you wou=
ld very quickly realize that a large portion of the PPP loan funds were goi=
ng to the wrong person. You would have been quickly able to match, I think =
the number was 20%, and were on the do not pay list. You can=E2=80=99t expe=
ct people to do what a machine and especially AI can do today.=E2=80=9D

Rep. Brandon Gill (R-Texas) held the Biden Administration accountable for a=
iding abuses of taxpayer dollars and weaponizing the administrative state a=
gainst the American people.



Rep. Gill: =E2=80=9CThe Democrat Party has for decades systematically grown=
 and weaponized the administrative state against the American people. And t=
he American people have had enough of it. Right now, we=E2=80=99re talking =
about $2.7 trillion in improper payments since 2003. We are uncovering what=
 could be the biggest money laundering scandal in American history and the =
other side of the aisle could care less. They have no concern about where t=
his money went to, what entities it went to, what government, and what peop=
le or groups. Nothing=E2=80=A6So it does make me wonder if they don=E2=80=
=99t care about where it=E2=80=99s going, do they have no idea?

=E2=80=9CBecause what we=E2=80=99ve uncovered so far is that so much of the=
 waste, fraud, and abuse of our federal government is actually funding thei=
r side of the aisle. It=E2=80=99s funding media outlets that are running co=
ver for Democrats routinely, NPR, PBS, BBC, Politico. It=E2=80=99s going to=
 fund left wing NGOs that are facilitating the invasion of our country. It =
is going to fund left wing transgender activism and sex changes all over th=
e globe. This is money that=E2=80=99s being used, taken from the American p=
eople and used against their interests. If you care about rooting out waste=
, fraud, and abuse, we should be serious about this.=E2=80=9D

###