The U.S. government is wasting hundreds of billions of dollars annually, according to U.S. Treasury Secretary Scott Bessent.

In a recently released interview with journalist Christopher Rufo, Secretary Bessent stated that federal government "waste, fraud, and abuse" amounts to between $300 billion and $600 billion per year. 

He emphasized that these figures are based on estimates from the Government Accountability Office (GAO), which suggest that losses due to fraud account for roughly 10% of the federal budget or 1-2% of the gross domestic product (GDP).

Bessent argued that reducing these numbers would free up resources needed to strengthen national defense without increasing the national debt, citing President Donald Trump's push for a massive military rebuild after years of burdens.

"If we can eliminate this waste, fraud, and abuse, we'll be able to finance a safer and sounder America without taking on more debt," he told Rufo.

According to the GAO estimates Bessent referenced, based on data from fiscal years 2018 to 2022, the federal government likely loses between $233 billion and $521 billion annually due to fraud.

Separately, the GAO estimates that taxpayers have lost trillions of dollars due to "improper payments"—a broader category that includes errors and overpayments—illustrating the scale of Washington's poor oversight systems.

Bessent also spoke about the government's efforts to curb waste, the Office of Government Efficiency, saying that while he agreed with Elon Musk's goals, their methods differed.

While Musk's Silicon Valley motto is "move fast and break things," Bessent told Rufo his approach would be to "move deliberately and fix things," suggesting that Treasury investigations would prioritize building airtight cases.

That prosecutor-centric mindset is increasingly being reflected across the administration.

At a White House briefing on Thursday, Vice President JD Vance announced the creation of a new Assistant Attorney General position dedicated to combating fraud involving taxpayer funds. The position will have nationwide jurisdiction.

The Vice President's announcement comes amid increased scrutiny of alleged large-scale fraud networks in Minnesota. Minnesota has become a national talking point in a broader debate about the accountability of Democratic Party-aligned governance.

Secretary Bessent stated in the interview that the administration plans to "use Minnesota as a model to replicate this across the other 49 states," a move that is being interpreted as a direct warning to federal investigators to follow the money trail to its end.

Beyond spending abuse, the interview also pointed to unpaid taxes as another massive drain on public finances.

According to the IRS's own projections, the net "tax gap" for the 2022 tax year is approximately $606 billion, meaning the difference between taxes owed and taxes collected on time.

Newsmax reported, "Bessent’s message is simple: Before Washington demands new taxes or takes on new debt, it must first prove it can stop hundreds of billions of dollars from being wasted through fraud, mismanagement, and lax enforcement, and reinvest those recovered funds into core priorities such as national defense and border security."

By Hong Sung-goo, Chief Editor, U.S. NNP / Special Correspondent for this newspaper NNP info@newsandpost.com