This Week In Waste – September 18, 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.
340B Reforms Introduced in Congress
The 340B Drug Pricing Program has grown exponentially, surpassing $100 billion in 2025. The lack of a clear patient definition and inadequate accountability and transparency have allowed hospitals and contract pharmacies to profit at patients’ and taxpayers’ expense. Three legislative reform proposals were introduced during the 119th Congress that would establish clearer patient definitions and strengthen transparency and oversight. CCAGW will continue to promote reforms that prioritize patient savings and rein in abuses of the program. Read more here.
EPA Gives Energy Sector a Breath of Fresh Deregulation
Environmental Protection Agency Administrator Lee Zeldin announced that the agency is repealing Biden-era carbon standards that would have required baseload energy facilities to reduce carbon emissions by 90 percent by 2032, saving taxpayers $310 billion. Meanwhile, the House of Representatives passed two Congressional Review Act resolutions targeting California’s costly maritime emissions rules, highlighting joint efforts to roll back burdensome environmental regulations. Read more here.
Proposed Fourth Quarter 2026 Universal Service Contribution Factor
On September 14, 2026, the Universal Service Administrative Company announced that the contribution factor for the Universal Service Fund (USF) in the fourth quarter of 2026 will be 42 percent. This is the highest percentage in the history of the USF and 14 percent greater than the top federal income tax marginal rate of 37 percent, demonstrating a clear need for Congress to reform the program. Read more here.
House Passes Major Bills to Codify Trump Administration’s $250 Billion Fraud Crackdown
On September 16, 2026, the House of Representatives passed H.R. 9576, the National Fraud Enforcement Division Act, and H.R. 10326, the Preventing Rip-offs and Obtaining Oversight of Funds (PROOF) Act, which would codify several aspects of the Trump administration’s efforts to combat fraud. The National Fraud Enforcement Division Act codifies the permanent anti-fraud division within the Department of Justice (DOJ), while the PROOF Act requires states to share more information with the DOJ to combat fraud in federal assistance programs like SNAP and Medicaid. Read more here.
August Amassed $167 Billion Deficit, $1.97 Trillion Deficit so far in FY2026
The Senate Joint Economic Committee reported on September 14, 2026, that as of September 1, 2026, the federal deficit for the fiscal year (FY) 2026 reached $1.966 trillion, $7 billion lower than the $1.973 trillion to date for the same period in FY 2025. However, the Congressional Budget Office projects net outlays in FY 2026 will be $7.449 trillion, $439 billion more than the $7.010 trillion in FY 2025. The growing federal deficit further emphasizes the need to continue to combat government waste, fraud, and abuse. Read more here.
