The report, Managing Risks in Federally Funded, State-Administered Programs, reviewed the 20 largest federally funded, state-administered programs, which accounted for approximately $1.1 trillion in federal obligations in fiscal year 2025. The GAO found in the report released Thursday that most agencies have not completed documented fraud risk assessments. The watchdog urged federal agencies to implement them to better safeguard taxpayer funds, particularly in state-administered programs. GAO reiterated the enormous financial toll that federal fraud takes on taxpayers. "The decentralized nature of state-administered programs – in which states, local governments, contractors, sub-recipients, and beneficiaries all play roles in administering federal funds – can create opportunities for fraud," GAO said.