By Eric Garland - 10/11/13 12:49 PM EDT
Republicans argued a bill approved by Congress to pay the military during the shutdown should have allowed the death benefits to also be paid out, but the administration disagreed.
On Thursday, however, President Obama signed a new bill quickly approved by Congress that does allow the benefits to be paid during the shutdown.
O'Reilly said Obama should have restored that ability much earlier.
"That is an outrageous scandal," he said. "President Obama could have signed an executive order [earlier], but he did not.
"This should have never happened, it's a huge embarrassment to the nation," he added.
O'Reilly also bashed press secretary Jay Carney for not knowing when the president learned that the government wasn't providing benefits to the troops' families, and accused Obama of stonewalling.
"In the meantime, there is disarray in Washington," he said. "[There's] dishonor directed at military heroes and general chaos all around."