and SpaceX CEO Elon Musk has claimed that fraudulent government transactions could be costing taxpayers over $100 billion every year. He criticised the lack of financial oversight in entitlement payments and called for immediate reforms.In a series of posts on X (formerly Twitter), Musk wrote, “Yesterday, I was told that there are currently over $100B/year of entitlement payments to individuals with no SSN or even a temporary ID number. If accurate, this is extremely suspicious.”
— elonmusk ( @elonmusk )
The room was divided into roughly quarter, but USD 50B/year or USD 1B/week, when I asked if someone at Treasury had a rough guess as to what percentage of that number is emphatic and clear scams. “!
Musk referred to the position as “utterly stupid” and called for urgent action to stop further misuse of taxpayer funds.
New Treasury Reforms Afoot
Musk disclosed that important economic oversight reforms have been agreed upon by the Treasury Department and DOGE. He emphasized the value of a “payment categorisation code” for all incoming government payments, stating that it is important for all incoming government payments to pass economic audits. This is often left empty, making audits nearly impossible”.
— elonmusk ( @elonmusk )
Moreover, he highlighted the need for required documentation of transaction rationales, criticising existing practices where comment fields are left vacant. The remark field, which is now empty, may also contain a justification for the payment. Notably, we are not yet applying All view to this rationale, but merely requiring that SOME attempt be made to discuss the payment more than NOTHING”!, Musk explained.
Strengthening the’ Do-Not-Pay’ Record
Musk also addressed issues about the’ Do-Not-Pay ‘ list, which is intended to prevent obligations to false entities, dying individuals, and companies linked to criminal activities. He expressed disappointment with the list’s slower pace of updates, saying that” the of companies known as false or people who are dead or are probable sides for terrorist organizations or do not match Congressional budget should really be implemented and no ignored.” Also, it can currently take up to a year to get on this list, which is far too long. This list should be updated at least weekly, if not daily”.
DOGE’s access to Treasury data is restricted by a legal challenge.
The DOGE’s access to Treasury data is the subject of Musk’s revelations, which come amid legal battles. Following a lawsuit filed by 19 Democratic state attorneys general, a federal judge has temporarily stymied DOGE’s ability to obtain sensitive financial records. They argue that allowing DOGE full access to Treasury payment systems could violate federal laws designed to protect Social Security, Medicare, veterans ‘ benefits, and tax refund information.
The ruling, issued by US District Judge Paul Engelmayer, temporarily limits DOGE’s access until a scheduled court hearing on 20 February.
Musk insists that DOGE has already discovered significant financial irregularities and that necessary reforms must be implemented despite this setback.
Musk Criticises Treasury’s Historical Approach
Musk claimed that former Treasury officials had actively discouraged investigations into financial mismanagement and that previous management had not addressed fraud. He wrote,” Nobody in Treasury management cared enough before. I do want to give credit to the Treasury workers who have worked in this field for many years but had to stop because of prior management.
He further criticised the system’s approach to financial oversight, stating,” Everything at Treasury was geared towards complaint minimisation. People who receive money don’t complain, but people who don’t receive money (especially fraudsters ) complain very loudly, so the fraud was allowed to continue”.
Musk’s comments come amid long-standing concerns about US government spending inefficiencies and fraud. Analysts have repeatedly flagged issues with entitlement programmes, and several reports have highlighted cases of fraudulent claims, duplicate payments, and financial mismanagement.
The implementation of , such as Musk’s suggested categorisation codes and ‘ Do-Not-Pay’ list updates, could mark a significant shift in how government transactions are monitored. The DOGE’s right to access Treasury data will likely have an impact on the pace and scope of these changes.
Further developments are anticipated after the upcoming court hearing, and the US government has yet to issue an official response to Musk’s claims.