This mess could have been avoided if the federal government did not give out hundreds of billions indiscriminately during the COVID pandemic. The government lowered fraud checks during the pandemic, which allowed fraudsters and even foreign entities to rake in taxpayer money. Emergency aid should never rely on self-reporting and should be tied to payroll taxes, as criminals abused the system to add billions to the ballooning national debt.
It is always easy to armchair quarterback after a crisis, which obscures the fact that COVID aid averted a financial disaster that could have been worse than the Great Depression. Most of the money went into the pockets of people who desperately needed it, and it was third-party lenders, rather than the government, that were responsible for most of the improper loans. While fraud should always be prosecuted, the furor over pandemic aid is largely misplaced.