GSA Flags $1.22 Billion in Suspected COVID Contract Fraud

GSA and HHS said in a Wednesday press release they identified $1.22 billion in suspected fraud across five HHS COVID-era contracts that kept drawing funds after pandemic emergency authorities ended in 2023. GSA estimates about 93% of the funding had not yet gone to vendors and about 6.78% had already been spent. The review also stopped $41 million in further payments and suspended contractor payments. GSA Administrator Edward C. Forst said: "The COVID emergency ended over three years ago, yet fraudsters continue to weaponize outdated emergency contracts to abuse taxpayer dollars." Task Force Executive Director Scott Brady said: "We're not after the honest contractors who did real pandemic work — we're after the leftover contracts hiding behind a crisis that no longer exists. The emergency is over. So is the free pass." Forst pledged to stop improper payments, refer suspected fraud to law enforcement, and seek recovery. HHS Secretary Robert F. Kennedy, Jr. said HHS is tracing payments, exposing suspected wrongdoing, and tightening safeguards. Trump created the Task Force to Eliminate Fraud on March 16 and named JD Vance chairman. Separate from this $1.22 billion finding, GSA said in August it had identified more than $13 billion in suspected contractor fraud since March, and the administration cites about $260.7 billion uncovered government-wide since January 2025. No criminal charges were announced on these five contracts. Right-leaning coverage tied the contracts to Biden-era spending; center outlets led on the task force and GSA figures. Coverage did not dispute the core numbers.