GSA Flags $1.22 Billion in Suspected COVID Contract Fraud

The General Services Administration and the Department of Health and Human Services say they identified $1.22 billion in suspected fraud across five COVID-era contracts that continued receiving funds after pandemic emergency authorities ended in 2023. The agencies say they stopped an additional $41 million in payments and suspended contractor payments while they review the contracts; GSA estimates that about 93% of the funding had not yet been distributed. Officials say the findings have not resulted in criminal charges, and the agencies plan to refer suspected wrongdoing to law enforcement and seek recovery of funds where appropriate. The review is part of the Trump administration’s broader federal procurement fraud crackdown.