Elon Musk and DOGE: Uncovering Waste and Fraud in U.S. Government Spending

Elon Musk and DOGE: Uncovering Waste and Fraud in U.S. Government Spending

In early 2025, billionaire entrepreneur Elon Musk took on a prominent role in President Donald Trump’s administration as the leader of the Department of Government Efficiency (DOGE), a temporary advisory group tasked with slashing federal spending and rooting out waste, fraud, and abuse. Musk’s high-profile involvement, coupled with his bold claims of uncovering billions in improper spending, has sparked intense debate. Supporters praise his aggressive approach to streamlining government, while critics argue that his claims are exaggerated, lack transparency, or conflate policy disagreements with fraud. This article explores the specific instances where Musk and DOGE claimed to have found waste and fraud, evaluates the evidence behind these claims, and tallies the reported savings to the United States, while acknowledging the complexities and uncertainties involved.

Background: The Creation of DOGE

On January 20, 2025, following Trump’s second inauguration, DOGE was established to conduct a “complete financial and performance audit” of the federal government. Musk, co-leading with Vivek Ramaswamy, aimed to cut $1 trillion from the federal budget, initially targeting $2 trillion. The group operates outside traditional government structures as a special advisory team, granting it broad access to agencies but raising concerns about oversight and accountability. DOGE’s mission focuses on eliminating inefficiencies, terminating contracts, reducing the federal workforce, and addressing fraudulent payments, with Musk frequently citing a 2024 Government Accountability Office (GAO) report estimating $233 billion to $521 billion in annual fraud across federal programs.

Instances of Claimed Waste and Fraud

Musk and DOGE have highlighted several areas where they allege waste and fraud, ranging from specific contracts to systemic issues in major programs. Below is a detailed breakdown of the most prominent examples reported through April 2025, based on public statements, DOGE’s website, and media analyses.

1. Social Security Administration (SSA) Improper Payments

• Claim: Musk repeatedly pointed to Social Security as a source of significant fraud, alleging payments to deceased beneficiaries and even joking about “150-year-olds” or “vampires” receiving benefits. He cited a 2024 SSA inspector general report claiming $71.8 billion in improper payments from 2015 to 2022 and a 2021 report identifying $298 million in payments to deceased beneficiaries from 1998 to 2019.

• Details:

  • The 2021 SSA inspector general report found $298 million paid to approximately 24,000 deceased beneficiaries over two decades, with $84 million recovered. The report noted these were due to procedural errors (e.g., failure to update death records) rather than deliberate fraud.

  • A 2023 SSA inspector general report flagged 18.9 million records of individuals born in 1920 or earlier without death data, but only 44,000 were receiving payments, totaling a small fraction of the budget. Musk’s claim of “20 million dead people marked as alive” receiving payments was debunked as an exaggeration, as most records did not correspond to active payments.

  • The 2024 report’s $71.8 billion figure referred to “improper payments” (overpayments or underpayments due to errors, not necessarily fraud), equating to less than 1% of SSA’s $7.2 trillion in payments over the period.

• Reported Savings: DOGE claimed $232 million in savings from SSA reforms, though specifics (e.g., terminated contracts or recovered payments) were not detailed. No evidence confirms recovery of the full $71.8 billion or $298 million, as these were historical estimates, not active fraud uncovered by DOGE.

• Analysis: Experts, including Robert Westbrooks of the Pandemic Response Accountability Committee, noted Musk conflated improper payments with fraud. The SSA’s issues stem more from outdated systems than criminal intent, and savings are likely modest compared to Musk’s claims.

2. U.S. Agency for International Development (USAID)

• Claim: Musk targeted USAID as a major source of waste, alleging inefficiencies, corruption, and misallocated funds, including claims of $50 million spent on condoms for Gaza (later clarified as possibly Mozambique) and DEI initiatives abroad. DOGE claimed to have cut $6.5 billion from USAID’s budget.

• Details:

  • USAID, with an annual budget of approximately $40 billion, faced significant DOGE intervention, including the firing or furloughing of 7,000 employees and temporary shutdown of its website. Musk criticized spending on programs like $1.5 million for DEI in Serbia and $2 million for LGBTQ+ rights in Guatemala, labeling them wasteful.

  • The $50 million condom claim was debunked; records showed an $83.5 million HIV-prevention program in Gaza, Mozambique, with no condom procurement. Other allegations, like USAID funding celebrity trips to Ukraine, were traced to fabricated videos, possibly from Russian disinformation campaigns.

  • DOGE’s $6.5 billion cut included terminated contracts and grants, though detailed breakdowns were vague. Critics argued these cuts disrupted humanitarian aid, risking spoilage of $489 million in food assistance.

• Reported Savings: DOGE claimed $6.5 billion, primarily from canceled contracts and reduced staffing. However, no evidence confirms these funds were fraudulent; many cuts targeted programs Musk ideologically opposed.

• Analysis: While USAID has faced historical criticism for inefficiencies, DOGE’s actions appear driven by policy priorities (e.g., reducing foreign aid) rather than uncovering criminal fraud. The $6.5 billion figure is substantial but lacks transparency, and disruptions raised concerns about long-term costs.

3. Federal Emergency Management Agency (FEMA)

• Claim: Musk alleged FEMA misspent $59 million to house migrants in luxury New York City hotels, violating laws and diverting disaster relief funds. DOGE prompted the firing of four FEMA officials on February 11, 2025.

• Details:

  • The Washington Post reported DOGE accessed FEMA’s sensitive data, including disaster survivor information, without proper clearances. The $59 million claim lacked corroboration, and FEMA’s budget for migrant housing is separate from disaster relief funds.

  • No inspector general report confirmed fraud in this instance, and Musk’s allegations aligned with Trump’s campaign criticisms of FEMA’s Hurricane Helene response.

• Reported Savings: DOGE did not specify a dollar amount saved from FEMA but implied $59 million was redirected. No evidence confirms recovery or reallocation of these funds.

• Analysis: The claim appears exaggerated, with no documented fraud. DOGE’s actions may reflect political targeting rather than systemic waste reduction.

4. Federal Employee Retirement Processing

• Claim: Musk highlighted a limestone mine in Boyers, Pennsylvania, where 700 workers process 10,000 federal retirement applications monthly using paper records, calling it a “time warp” and citing inefficiencies like elevator breakdowns limiting retirements.

• Details:

  • The Iron Mountain facility, operated by the Office of Personnel Management (OPM), handles physical records for federal pensions. Musk’s description matched known inefficiencies, as audits have long criticized OPM’s manual processes.

  • No specific fraud was alleged, only waste due to outdated technology. DOGE proposed digitization but did not report implemented changes by April 2025.

• Reported Savings: No direct savings were claimed, though DOGE suggested modernizing could save millions annually. Historical estimates (e.g., 2015 OPM reports) projected $100 million in potential savings from digitization, but DOGE provided no figures.

• Analysis: This is a valid example of inefficiency, but savings remain speculative without concrete action. The issue predates DOGE and requires long-term investment, not quick cuts.

5. Diversity, Equity, and Inclusion (DEI) and Climate Change Programs

• Claim: DOGE terminated numerous DEI and climate-related contracts across agencies, labeling them wasteful. Examples included $502 million from the Department of Education and unspecified cuts from the Environmental Protection Agency (EPA).

• Details:

  • DOGE’s website listed 1,000+ terminated contracts totaling $8.6 billion, with many tied to DEI training, accessibility programs, or climate initiatives. Specifics were sparse, but the Department of Education cuts targeted grants for equity-focused education.

  • EPA Administrator Lee Zeldin praised DOGE for identifying a “scheme” to rush funds with reduced oversight, though no fraud was proven. GAO reports from 2023 estimated $236 billion in improper payments government-wide, but DOGE did not link these to DEI or climate programs.

• Reported Savings: $502 million from Education, part of $8.6 billion in total contract terminations. Additional savings were claimed but not itemized.

• Analysis: These cuts reflect ideological priorities rather than evidence of fraud. Improper payments exist across programs, but DOGE’s focus on DEI and climate suggests selective targeting, with savings overstated as immediate budget reductions.

6. General Contract Terminations and Workforce Reductions

• Claim: DOGE boasted of canceling 2,300 contracts and reducing the federal workforce by 100,000 (25,000 firings, 75,000 buyouts), claiming $55 billion in total savings.

• Details:

  • DOGE’s website initially listed savings like an $8 billion contract later corrected to $8 million, revealing errors. By March 2025, 941 of 2,300 canceled contracts reportedly saved $0, per Reuters.

  • Workforce reductions targeted agencies like USAID, VA, and Treasury. The Veterans Affairs (VA) cut 875 contracts worth $2 billion, including some tied to the PACT Act for veterans’ benefits, raising concerns about service impacts.

  • Other examples included $192 million from the General Services Administration (GSA) and $128,233 from closing a Carter Center office, though the latter was redundant as funding ended with Jimmy Carter’s death.

• Reported Savings: DOGE claimed $55 billion overall, but itemized savings totaled $16 billion, per TIME. Budget experts estimated actual savings at $2 billion, covering specific cuts like those above.

• Analysis: Errors and deletions on DOGE’s website undermine credibility. While some contracts were likely inefficient, zero-dollar savings for many suggest exaggeration. Workforce cuts may yield short-term savings but risk long-term costs in expertise and services.

Total Savings: What’s the Final Tally?

Musk and DOGE claimed $55 billion in total savings by mid-February 2025, with Trump suggesting figures as high as $500 billion to $1 trillion. However, a critical review of itemized claims and expert analyses paints a different picture:

• Itemized Savings:

  • USAID: $6.5 billion

  • Department of Education: $502 million

  • SSA: $232 million

  • GSA: $192 million

  • Other contracts (e.g., Carter Center, VA): ~$2 billion

  • Total itemized: ~$9.4 billion (TIME’s $16 billion estimate includes broader cuts)

• Verified Savings: Budget experts, including Jessica Riedl of the Manhattan Institute, estimated actual savings at $2 billion, accounting for verified contract terminations and minor recoveries. This represents 0.03% of the $6.75 trillion federal budget for fiscal year 2024.

• Context: Even the GAO’s high-end fraud estimate ($521 billion) is an annual projection across all programs, not a recoverable sum. DOGE’s $55 billion claim lacks substantiation, and errors (e.g., triple-counting a $655 million contract as $1.8 billion) suggest inflation.