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Anti-Fraud Fund Act Will Save Billions by Cracking Down on Health Care Fraud

July 24, 2026

The Honorable Blake Moore
1131 Longworth House Office Building
Washington, DC 20515

The Honorable Jodey Arrington
1111 Longworth House Office Building
Washington, DC 20515

Dear Representatives Moore and Arrington,

On behalf of National Taxpayers Union, the nation’s oldest taxpayer advocacy organization, I write to express our strong support for the Anti-Fraud Fund Act of 2026. Scandals involving fraudulent government payments and the widespread misuse of tax dollars routinely make headlines around the country. With the national debt now exceeding $39 trillion, cracking down on fraud in federal health care programs is more important than ever, and taxpayers stand to benefit significantly from this practical, good-government legislation.

According to the Government Accountability Office (GAO), the federal government loses between $233 billion and $521 billion annually to fraud. Because of their growing size and complexity, federal health care programs are particularly vulnerable to fraudulent schemes. Medicare and Medicaid already rank among the top five government programs for improper payments. In fiscal year 2025 alone, the Centers for Medicare and Medicaid Services (CMS) estimated both programs made more than $93 billion in improper payments.

Payment errors are not synonymous with outright fraud. Nevertheless, the federal government’s failure to prevent billions in tax dollars from being routinely misallocated highlights the vast opportunities fraudsters have to exploit federal health programs. Indeed, a new report by the GAO underscores how the decentralized nature of federal health initiatives, which rely on networks of state agencies, contractors, and other entities to deliver services, can make detecting and preventing fraud especially challenging.

Medicare and Medicaid’s burden on taxpayers will only grow as the U.S. population continues to age, and failing to crack down on fraudulent and erroneous payments imperils the viability of these important health programs. As such, we commend you for introducing the Anti-Fraud Fund Act of 2026. By investing $28 billion into the Health Care Fraud and Abuse Control (HCFAC) Program, this legislation significantly bolsters the capacity of the federal government to fight fraud, thereby securing long-term savings for taxpayers. The Congressional Budget Office’s preliminary estimates suggest the net savings for this investment would be at least $168 billion over 10 years.

Strengthening program integrity isn’t just a matter of preserving scarce federal resources for beneficiaries—it’s fundamentally about restoring public trust in government. We appreciate your leadership on this issue and look forward to working with you to help this important legislation become law.

Sincerely,

Alexander Ciccone
Policy and Government Affairs Manager
National Taxpayers Union