13 States Failed Basic Financial Audits—Here Are the 7 Biggest Red Flags
7th June 2026
State auditors across the country were unable to verify billions of dollars in unemployment spending, Medicaid payments, and pension obligations in federally-funded programs, according to a new report by a government watchdog group.
The findings in the 2026 Financial Transparency Score report, released by the government watchdog Truth in Accounting, found that 13 states failed to earn clean audit opinions. The report comes as the Trump administration is cracking down on how states are spending federal dollars.
The organization used data from annual comprehensive financial reports, or ACFRs, produced by each state as a requirement for getting federal funding.