Why It Matters

Federal agencies are sitting on opportunities to save between $132 billion and $251 billion in measurable future financial benefits, according to a recent Q&A report released by the U.S. Government Accountability Office (GAO).

It estimates that implementing its open recommendations could produce these substantial financial benefits to the federal government. Federal agencies typically implement over 75 percent of all GAO recommendations, yet most open recommendations do not have individual benefit estimates, often because the necessary data are not yet available.

Broader Context

Since 2002, GAO estimates its work has resulted in approximately $1.51 trillion in financial benefits and almost 30,800 program and operational benefits that helped change laws, improve public safety and other services, and promote better management throughout the government. In fiscal year 2025 alone, GAO says these changes yielded $62.7 billion in financial benefits for the federal government.

During fiscal year 2025, GAO issued more than 1,800 new recommendations to federal agencies and Congress. The agency identified 24 recommendations with potential financial benefits of $1 billion or more each.

Two sectors stand out as having outsized potential savings. Congress could equalize payment rates between physician offices and hospital outpatient departments for evaluation and management office visits, which could save the Medicare program $156.9 billion over 10 years, according to the report.

Reauthorizing management of the broadband network for first responders and ensuring key statutory and contract responsibilities are addressed before current authorities sunset in 2027 could save $15 billion over 15 years. GAO says the Navy could save billions of dollars by improving its acquisition practices and ensuring that ships can be efficiently sustained.

According to GAO's simulation of potential financial benefits, a 10-percentage-point increase in the share of recommendations implemented annually could increase financial benefits by billions of dollars in a typical year. Many GAO recommendations produce valuable benefits that cannot be quantified credibly, such as improved national security.

The Bottom Line

The Senate report accompanying the Legislative Branch Appropriations Act, 2026, includes a provision directing GAO to provide additional detail on the potential financial benefits associated with its open recommendations.

With one hundred billion dollars or more potentially available through implementing GAO recommendations, the opportunity for substantial financial savings and reduced mismanagement, fraud, waste, and abuse depends on whether, how, and when federal agencies and Congress act on these findings.

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