GAO Urges Attention to 2025 “High Risk List” to Save Billions and Improve Government Efficiency and Effectiveness
WASHINGTON, DC (STL.News) The U.S. Government Accountability Office (GAO) on February 5, 2025, issued its updated High Risk List, which identifies 38 areas of government operations with serious vulnerabilities to fraud, waste, abuse, and mismanagement or in need of transformation. The updated list, produced every 2 years at the start of each new Congress, describes the status of high-risk areas, outlines actions that are needed to ensure progress, and identifies a new area in need of attention by the executive branch and Congress. Progress was seen in ten areas, resulting in approximately $84 billion in financial benefits since the last update 2 years ago. One new area was added, and three regressed.
“GAO’s High Risk List is a blueprint for quickly identifying opportunities to improve program management and save federal funds. Efforts to address high-risk issues have totaled nearly $759 billion in savings—an average of $40 billion per year,” said Gene L. Dodaro, Comptroller General of the United States and head of the GAO. “Congress and executive agencies need to work together to address the thousands of open recommendations that, if implemented, will lead to lasting solutions to these high-risk areas, billions more in cost-savings for Americans, and a more efficient and effective government.”
Several high-risk areas are critical to better managing the cost of government. GAO’s High Risk List identifies billions of dollars in potential savings among federal government programs. Since 2003, federal agencies have reported $2.8 trillion in estimated improper payments, about 80 percent of which are addressed in programs on the High Risk List. Such programs include Medicaid and Medicare, the two fastest-growing federal programs, and the Unemployment Insurance program. Additionally, GAO’s High Risk List suggests closing gaps in revenue owed to the government. In 2024, the IRS projected that the net tax gap, or the difference between taxes owed and taxes paid on time, was $606 billion for 2022.
This year, GAO added one new area, Improving the Delivery of Federal Disaster Assistance, to its High Risk List. In 2024, there were 27 disasters that cost at least $1 billion in economic damages, the most disasters of that size in a single year. The frequency and severity of these disasters demonstrate the need for federal agencies to deliver assistance as efficiently and effectively as possible and reduce the fiscal exposure to disasters.
Several high-risk areas persist due to emerging issues requiring government response, large and rapidly growing costs, or a failure to make progress in the past several years. Examples of areas in need of significant attention include:
- Harnessing Modern Information Technology to Improve Services and Programs. The government spends over $100 billion annually on IT, with the vast majority spent on operations and maintenance of existing systems rather than new technology. Many attempts to implement new systems have too often run far over budget, experienced significant delays, and delivered far fewer improvements than promised.
- Expediting the Pace of Cybersecurity and Critical Infrastructure Protections. Government and private sector systems are under attack thousands of times daily, putting systems supporting Americans’ daily lives at risk, such as safe water, energy supplies, reliable and secure telecommunications, and financial networks. Cybersecurity threats require greater federal efforts to understand better the status of technological developments with security implications, such as artificial intelligence, to continue to enhance public and private sector coordination.
- Better Protecting Public Health and Reducing Risks. Several of GAO’s high-risk areas address critical weaknesses in public health efforts. Recommendations focus on coordinating public health emergencies, improving federal oversight of medical products and food safety, and addressing persistent drug shortages.
- Addressing Human Capital Management Challenges. Human capital challenges are cross-cutting issues that intersect with many items on GAO’s High Risk List. Twenty areas are included in the list partly due to skills gaps or an inadequate number of staff. Moreover, the government-wide personnel security clearance process, which ensures adequate screening to handle sensitive information, is not effectively managed.
In the 2 years since our last report, three areas regressed against GAO’s criteria. These include DOD Weapon Systems Acquisition, Improving IT Acquisitions and Management, and Managing Federal Real Property.
Executive branch agencies must address thousands of open GAO recommendations to bring lasting solutions to the 38 high-risk areas. In some cases, legislation is necessary. Continued congressional oversight is essential to save costs and improve program management. Congress should also consider forming interagency groups to address high-risk challenges and use GAO’s leading practices for collaboration.
Additionally, read the warning published by the GAO on February 5, 2025.
