Pa. Blocks $61 Million in Benefit Fraud as Oversight Expands

Pennsylvania capitol

HARRISBURG, PA — Pennsylvania investigators stopped more than $61 million in improper public assistance payments last year by reviewing nearly 20,000 benefit applications flagged for potential fraud, according to the Office of State Inspector General.

What This Means for You

  • State investigators reviewed thousands of public benefit applications before payments were issued.
  • More than $61 million in taxpayer funds were prevented from being paid to ineligible applicants in 2025.
  • Residents can report suspected public assistance fraud through the state tipline or online.

The Office of State Inspector General (OSIG) said the reviews are part of a coordinated effort with the Pennsylvania Department of Human Services (DHS) to prevent fraud in programs such as the Supplemental Nutrition Assistance Program (SNAP), which helps low-income households buy food, and Medicaid, the public health insurance program for eligible residents.

Since the start of Governor Josh Shapiro’s administration, OSIG investigators have reviewed 62,626 applications referred for possible fraud, preventing about $178,827,990 in public benefits from being distributed to applicants determined not to qualify.

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“Preventing fraud and protecting taxpayer dollars are at the heart of our mission,” State Inspector General Michelle A. Henry said in a statement. “When we stop fraud before it happens, we’re making sure that public funds go where they’re truly needed, to support Pennsylvanians who rely on these vital programs.”

How the Fraud Reviews Work

The fraud detection process begins when DHS identifies an application that requires additional scrutiny. Those cases are then referred to OSIG for investigation.

After investigators review the case, the office provides DHS with an investigative report. DHS then determines whether the applicant qualifies for benefits and, if so, how much assistance they should receive.

DHS Secretary Dr. Val Arkoosh said protecting public benefits programs is essential to maintaining resources for residents who legitimately rely on them.

“DHS takes seriously our responsibility to protect essential programs and services by being careful stewards of taxpayer dollars and to ensure that public benefits programs like the Supplemental Nutrition Assistance Program and Medicaid are available to eligible Pennsylvanians,” Arkoosh said.

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2025 Fraud Prevention Figures

According to the state, DHS processed 1,099,740 applications for public benefits in 2025.

Of those applications, 19,800 were referred to OSIG for further review. Investigators determined that 7,965 applicants — about 0.72 percent of the total applicants — required reductions to their benefits after the investigations were completed.

The review process prevented $61,032,360 in taxpayer-funded benefits from being distributed to applicants who were determined not to qualify.

Proposed New Fraud Enforcement Tool

Governor Shapiro has also proposed new legal tools to strengthen fraud enforcement. In his 2026–27 budget address, the governor called for the creation of a Pennsylvania False Claims Act.

Such a law would allow the state to pursue additional damages from individuals or entities that defraud government programs and recover taxpayer funds lost to fraud.

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How Residents Can Report Suspected Fraud

State officials said members of the public can report suspected public assistance fraud anonymously through the Office of State Inspector General.

Online reports can be submitted at:
https://www.pa.gov/services/osig/public-assistance-fraud-recipient-complaint-form.html

Tips can also be reported by phone through the Public Assistance Fraud Tipline at 1-800-932-0582.

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