Every year, hundreds of billions of taxpayer dollars are lost to waste, fraud, and mismanagement—leaving essential programs like universal pre-K, teacher salary increases, and healthcare access underfunded. At a time when schools struggle to retain teachers and families need affordable childcare, these failures drain resources that could transform lives.

The Problem: Billions Lost in Waste and Fraud

The federal government has struggled with financial oversight for decades, with billions slipping through the cracks every year.  In FY 2023 alone, improper payments across government programs totaled $236 billion across programs like Medicare, Medicaid, and unemployment insurance.

Mismanagement and outdated systems aren’t just an inconvenience—they’re a direct threat to public services. With resources funneled into fraudulent claims, essential programs remain underfunded. While child hunger persists and teacher salaries stagnate, billions disappear into bureaucratic black holes.

1. Department of Defense (DoD) Asset Management

The DoD manages over $3.8 trillion in assets, yet over half remain unaccounted for due to inadequate tracking systems. The department has failed six consecutive audits, leading to billions lost through procurement inefficiencies and missing equipment.

Even worse, in 2016, the Washington Post reported that the Pentagon buried evidence of $125 billion in bureaucratic waste over fears its budget would be slashed.

2. Medicare and Medicaid Overpayments

In 2023, Medicare and Medicaid programs issued $137 billion in improper payments, including payments to ineligible providers and fraudulent claims.

The Center for Medicare and Medicaid Services estimates that even a 5% reduction in improper payments could save $7 billion annually.

3. Small Business Administration’s Paycheck Protection Program (PPP)

The PPP loan forgiveness program faced significant fraud, with billions flowing to ineligible businesses under the guise of “relief.”

More Money, More Waste

No agency is immune from financial waste. Here are just a few examples:

Without modern financial tools, these losses will continue. That’s where blockchain comes in.

How to Fix It: The Blockchain

Blockchain offers a straightforward way to track government spending without introducing new risks. When the government collects revenue—from taxes, fees, or tariffs—blockchain ensures that every dollar is traceable and accounted for in real time.

How Blockchain Works:

• Tamper-Proof Ledger: Every transaction is recorded on a transparent, secure ledger.

• Smart Contracts: Payments are automated and released only when specific conditions are met. If contractors miss a milestone, the funds pause automatically—no more paychecks for half-baked projects.

• No New Financial Risk: Blockchain tracks spending; it’s not a speculative asset like Bitcoin.

Imagine This: Blockchain in Action

Here’s an email you could get from Uncle Sam after payday:

Hey Bentley,

Thanks for your recent tax payment of $973.52, we really appreciate it.

Here’s where your money went:
• $450.12 | Social Security – Supporting retirees and disabled workers
• $217.89 | Medicare – Funding healthcare for the elderly and disabled
• $305.51 | Federal Income Tax
• $150.00 | Part of a tire for Navy aircraft
• $55.51 | Sweet treats for Arches National Park staff
• $100.00 | Reducing the national debt

We appreciate your support in keeping things running smoothly! See you next payday!

❤️ Uncle Sam & Aunt Columbia

This level of transparency builds public trust and civic engagement. When people know how their contributions are used, they feel more connected to the system—and more inclined to hold it accountable.

Real-time Financial Data

One of blockchain’s most valuable features is its ability to provide real-time financial data. This empowers government agencies to manage budgets proactively, spot inefficiencies, and prevent duplication of efforts.

Public transparency would be unprecedented—citizens, auditors, and policymakers could access live reports on spending, restoring accountability and trust in government finances.

Eliminating Fraud with Smart Contracts

The F-35 fighter jet program, known for delays and overpayments, is a poster child for why we need blockchain. With smart contracts, payments would pause automatically if deadlines or quality benchmarks weren’t met.

This automation reduces the need for manual oversight, minimizes human error, and limits the potential for corruption across federal procurement systems. Smart contracts offer a streamlined, secure way to enforce accountability across government agencies.

The same principle applies across sectors:

• A $10 million infrastructure project? Payments can roll out in phases—20% after design approval, 30% when construction starts, etc. No work, no payment. Simple.

• Healthcare? Funds are released only after services are verified—no more fraudulent billing.

By combining real-time tracking, smart contracts, and public transparency, blockchain could eliminate billions in waste and rebuild trust in government finances.

Why This Matters

If the U.S. government adopts blockchain, the savings would be massive. Here’s what we could fund:

• Currently, mammograms are only free as a screening for women without symptoms. We MUST fix this.

Why Hasn't It Been Fixed?

Blockchain adoption will require significant investment and political will, but the long-term savings far outweigh the costs.

• Outdated Leaders: Many elected officials lack familiarity with blockchain technology, or... well...any technology, leading to resistance. Our elected officials banned TikTok while leaving Facebook untouched, because, clearly, one app full of cat videos is more dangerous than election misinformation.
  
• Technical Upgrades: Some government systems are so old they make floppy disks look futuristic. Fixing them isn’t just necessary—it’s cheaper than watching billions in taxpayer dollars go poof.
  
• Political Resistance: Transparency scares those who benefit from the status quo. Public pressure is the only way to make them realize that accountability isn’t a buzzword—it’s their job.

Privacy? Don’t Worry

Blockchain’s encryption and limited-access nodes keep sensitive data secure. Don't worry, even the CIA can keep its “special projects” buried deep in the NASA, DoE, or DoT budget—just like they always have.

Why This Plan Works

Blockchain technology isn’t just a trendy upgrade—it’s a real solution to the deep-rooted problems of government waste and fraud. With real-time tracking, smart contracts, and public transparency, the U.S. can cut billions in waste and redirect those savings into essential public services like education, healthcare, and hunger relief.

This isn’t just modernization for modernization’s sake. It’s about restoring public trust—ensuring that every dollar serves the people, not get lost in red tape or fraud. Citizens deserve a government that works for them, not against them.

Countries like Estonia and Singapore have already proven blockchain's potential, reducing fraud, boosting efficiency, and rebuilding public confidence. It’s time for us to do the same.

We Must Act Now

Deploying blockchain technology across government spending offers a clear path to accountability and efficiency. With real-time tracking and automated payments, the government can eliminate billions in waste and redirect savings toward critical public programs. This isn’t just about technology—it’s about rebuilding trust and ensuring every tax dollar serves the public good.

Every day we delay, billions slip through the cracks—money that could fund universal pre-K, teacher salaries, or free childcare. This isn’t just about tech—it’s about trust, accountability, and building a better future.

Bold leadership and public pressure are the keys to making this vision a reality. Together, let’s demand blockchain accountability and ensure every taxpayer dollar serves the public good.

Additional Resources

• Singapore's TradeTrust Network
• Estonia's Blockchain
• Federal Government 2023 Improper Payments
• Horrific DoD Accounting Costs America Billions
• DoD Fails Fifth Audit
• DoD Fails Sixth Audit
• Additional Action Needed to Audit DoD
• 2023 Improper Payments - Overview
• Federal Government Payment Integrity
• Health School Meals for All
• Childcare Costs in US
• Another Worthy Cause to Fund
• What does good child care reform look like?
• Universal Pre-K