This Week In Waste – October 9, 2026
Welcome to This Week in Waste, a series by Citizens Against Government Waste (CAGW) that highlights how taxpayer dollars are being wasted in the federal, state, and local levels of government and efforts to fight back against this spendthrift behavior.
United in Exposing Waste and Eliminating CMMI
In 2025, the Council for Citizens Against Government Waste (CCAGW) took a significant step in the effort that the organization began in 2016 to eliminate the waste and abuse stemming from the Center for Medicare and Medicaid Innovation (CMMI) and its impact on patients, seniors, families and taxpayers. It included a multi-media campaign and the creation of a coalition of organizations that share concerns about CMMI and its impact on taxpayers and patients. The coalition members signed two letters to Congress including one that urges the enactment of H.R. 8293, the Abolish the CMMI Act, introduced by Rep. Aaron Bean (R-Fla.). Read more here.
New Report Finds 340B Hospitals Pocket $142.2 Billion
The 340B Drug Discount Program was created in 1992 with the goal of helping federally funded hospitals that serve a large uninsured population cover the costs of drugs and provide discounts to patients. However, due to a lack of a clear definition of an eligible patient and poor oversight, the program has drifted from its mission and been exploited by hospitals and covered entities. An October 1, 2026, Berkley Research Group report found that 340B hospitals received $244.3 billion in total payments from payers and patients in 2025, a 125 percent increase from the 2021 reimbursement total of $108.4 billion. They spent $102.1 billion to acquire drugs at the 340B discounted price, giving them a margin of $142.2 billion, which they can retain as net revenue or use to pay contract pharmacies. Read more here.
The Railroad Merger that Deserves a Ticket to Ride
The Surface Transportation Board is considering the approval of Union Pacific-Norfolk Southern (UP-NS) merger, which would create America’s first transcontinental freight railroad, eliminating costly handoffs between separate rail networks and potentially saving shippers an estimated $3.5 billion annually. The UP-NS merger will encourage competition, innovation, efficiency, and long-term economic growth. A stronger rail network will help businesses move goods more reliably, strengthen supply chains, and keep the U.S. globally competitive. Read more here.
Preventing Improper Payments Before They Happen
The Department of the Treasury’s expanded Do Not Pay system screened more than 2.3 billion records in fiscal year (FY) 2026, helping verify $3.7 trillion in federal payments and return $175 million to taxpayers that otherwise would have gone to deceased individuals. Treasury aims to give 99 percent of federal programs access to Do Not Pay by the end of FY 2026, up from just 4 percent identified by the Government Accountability Office in FY 2025. Read more here.
The Real Cost of Socialism in America
On October 2, 2026, the White House released a report, “The Real Cost of Socialism in America,” that analyzed the cost of the Democratic Socialists of America’s (DSA) wasteful and ineffective economic platform. According to the report, the adoption of DSA policies would cost taxpayers $49 trillion over the next 10 years, costing each household $355,000. They would also result in an estimated 28.4 percent reduction in after-tax hourly wages and a 130 to 160 percent increase in consumer prices. Read more here.
Contracting and Security Controls Were Not Followed While Expediting the Procurement Hub
A September 29, 2026, Treasury Inspector General for Tax Administration report found that the Internal Revenue Service (IRS) spent $4.5 million to acquire a new procurement hub in April 2025. The contract lacked clear milestones and deliverables and was paid in full upfront. The IRS discontinued the platform in September 2026 and plans to transition its functions to an existing system by December 31, 2026. Read more here.
