Government Basement Hoards Unused Computers, Lamps as Federal Waste Runs Wild
U.S. Attorney Jeanine Pirro exposes thousands of unused computers and lamps rotting in a government basement, spotlighting a federal spending culture that has squandered billions through fraud and waste.
Thousands of brand-new computers sit wrapped in plastic. Stacks of unused lamps gather dust. Taxpayer dollars bought them all, yet a government basement holds the evidence that Washington never intended to use them. The physical waste captures a larger truth about a federal spending system that has squandered more than $100 billion in pandemic funds alone.
U.S. Attorney Jeanine Pirro exposed the scene in a video walkthrough of an unmarked government storage facility this week. The footage reveals at least 50 boxes of lamps and between 1,000 and 2,000 unused computers still sealed in their original packaging. All were purchased with federal funds, then abandoned.
"When public items are purchased with taxpayers' dollars are no longer used, you don't throw them away and put them in the basement, you sell them," Pirro stated. "Even if you only make pennies on the dollar, at least the American taxpayer gets some benefit from it."
The basement waste offers a tangible symptom of a systemic culture of unaccountable government spending that has cost taxpayers hundreds of billions. During the pandemic, Washington's Pandemic Unemployment Assistance program posted a 36 percent improper payment rate, according to a Department of Labor report. The Office of Management and Budget estimates at least $43 billion in misspent funds from that program alone. Some experts place total pandemic unemployment fraud losses above $200 billion.
Former federal Inspector General Robert Westbrooks testified before Congress last month that the crisis stems from structural failures. "Why are federally funded, state-run programs susceptible to fraud?" Westbrooks asked. "Because of the moral hazard created when Washington provides the funding and the states control disbursement."
That arrangement may diminish accountability and weaken incentives, he explained. The result creates conditions where fraudsters do not sufficiently fear getting caught and punished.
The problem extends far beyond pandemic programs. Westbrooks cited $31 billion in Medicaid overpayments and $10.5 billion in Supplemental Nutrition Assistance Program fraud as evidence of systemic failure. "It is an eye-watering kind of fraud, there's no doubt about it," Westbrooks told Federal News Network in August 2023. "The number doesn't surprise me. It actually saddens me, and confirms, I think, what we've known for some time."
In response to this epidemic of waste, the Justice Department established the National Fraud Enforcement Division last month. Assistant Attorney General Colin M. McDonald announced the new unit has already thwarted or recovered over $1 billion in fraudulent claims within its first week of operation.
"Because of this administration's leadership, fraudsters, scammers, tax cheats or anyone who lies to get rich off the generosity of the American people should be on notice," McDonald declared.
Experts warn these problems stem from decades of neglect. Linda Miller, former deputy executive director of the Pandemic Response Accountability Committee, noted that warnings about outdated government systems went unheeded for years.
"GAO had put reports out for 10 years or more warning that these unemployment programs, these systems were highly out of date," Miller said. "They were in bad need of modernization. Many of them operating on COBOL and were legacy IT systems, and nobody heeded those warnings."
Miller said the pandemic unemployment program's self-certification process left the system wide open to fraud. The approach allowed applicants to claim benefits without verification for most of 2020. States like Colorado reported 75 percent of early PUA claims were fraudulent. Illinois found half of all PUA benefits distributed in 2021 were stolen. California officials confirmed 95 percent of identified unemployment fraud involved the PUA program.
Pirro's discovery highlights how government waste manifests in both physical and financial forms. The General Services Administration maintains established surplus property programs that allow agencies to sell or donate unused equipment. Yet the computers and lamps she documented remained untouched.
"Just because we're in D.C. doesn't mean that people here can waste your dollars," Pirro asserted in her video. "I'm going to make sure some of that money is returned to the taxpayers."
The Justice Department's fraud division has scored early victories. Prosecutors convicted a HealthSplash founder for a $1 billion Medicare fraud scheme. Another case landed an Illinois tax preparer in jail for defrauding the PUA program of $11 million. McDonald emphasized the division's broad mandate, noting recent enforcement actions ranged from $54,000 to over $100 million in losses.
"No matter the amount, we are steadfast in our effort to eliminate fraud," McDonald stated.
Westbrooks described the pandemic fraud as unprecedented in scale. "During the pandemic, hundreds of billions in public monies were plundered by impulsive novices, experienced opportunists, and professional criminals from around the world," he testified. The Acting Attorney General warned that more than $1 trillion in federal funds remains vulnerable to fraud annually without systemic reform.
As authorities ramp up enforcement, the physical evidence of waste continues to accumulate in government basements nationwide. Pirro's video serves as a stark reminder that bureaucratic indifference extends from multi-billion dollar fraud schemes to simple surplus disposal. The same culture that allowed $100 billion in pandemic funds to vanish also leaves taxpayer-funded equipment to rot in storage. Without strict accountability and fiscal restraint, government spending will inevitably breed waste.