Fraud and Abuse
LIHEAP Fraud
The Low-Income Home Energy Assistance program provides $5 billion annually to the states, which distribute the funds to businesses, nonprofits, and homeowners. Unfortunately, the states do a poor job making sure the money isn’t lost to fraud and abuse. Read more
Homebuyer Tax Credit Follies
When the 2008 economic stimulus bill created an $8,000 homebuyer tax credit to prop up the ailing housing market, the outcome was predictable: fraud and economic distortions. Read more
Food Subsidies Are No Free Lunch
We are being bombarded with sensationalist stories in the press about state and local governments having to “slash” programs because of a lack of revenues. These stories typically revolve around the question of whether the federal government will continue supplementing “essential services” provided by state and local government. Read more
Gangster-care
Earmarks vs. Bureaucrats: Both Wasteful
One of the justifications members of Congress offer for earmarking is that the Constitution gives the legislative branch the “power of the purse.” Congressional earmarkers often denigrate the executive branch’s inability to effectively allocate funds. But just because the federal bureaucracy does an abysmal job of spending taxpayer money, it doesn’t mean lawmakers would do any better. Read more
FHA Chases Its Tail
When it comes to fraud and abuse, government programs are always chasing their tail. In the private sector, businesses have a financial incentive to stop abuses before they happen. No such incentive exists with government programs. Instead, government officials usually uncover abuses after the fact. Read more
Food Subsidies Overkill
The Government Accountability Office recently reviewed 18 federal programs that provide food and nutrition assistance to low-income households, a subset of the nearly 70 programs that provide food and related subsides. Read more

