Elon Musk discussed his concerns about federal benefit programs on Monday, describing them as burdened with fraud and wasteful spending, which he views as a major focus in his efforts to reduce government expenditures.
Musk, an advisor to President Donald Trump, suggested that $500 billion to $700 billion in waste should be eliminated. He pointed to entitlements as the largest area of federal spending that needs addressing.
The comments may raise concerns among politicians from both parties as Musk works to shrink the size of the federal government, especially given his controversial approach to layoffs and program reductions in his own businesses.
Musk’s estimation of waste in entitlement programs significantly exceeds figures reported by watchdog organizations. For example, the Social Security Administration’s inspector general reported $71.8 billion in improper payments between 2015 and 2022, which is less than 1% of the total benefits disbursed during that period. Musk also claimed that 20 million deceased individuals are still listed as alive in the Social Security database, but the agency’s leadership has denied such claims, noting that these individuals are not necessarily receiving benefits.
Musk’s skepticism toward Social Security is well-documented. He has previously referred to the program as “the biggest Ponzi scheme of all time” and has criticized its sustainability. Trump, in contrast, has pledged to protect Social Security from cuts, although some of the administration’s actions have raised concerns about the program’s future.
Additionally, Musk suggested that federal entitlement programs are used to attract and retain immigrants, alleging that such policies are aimed at expanding political power. This comment aligns with controversial theories about demographic changes and political influence, though these views remain highly disputed.
During the interview, Musk expressed surprise at his role in advising the administration. “Frankly, I can’t believe I’m here doing this,” he remarked. “It’s kind of bizarre.”
As the world’s richest person, Musk continues to run his private companies while working as an advisor on federal government restructuring. He thanked Trump for his trust, saying, “Without the president’s support, we couldn’t make any progress here.”
Trump has offered Musk significant influence in government matters, although there are indications that the approach may be shifting, with Trump suggesting that Musk’s team would adopt a more measured, “scalpel” approach to reform rather than a broad “hatchet” approach.
Musk has largely kept his public statements limited to social media, where he has made a range of claims and criticisms. These include accusations against Democrats over Tesla dealerships, praising his platform, X, as a top news source, and questioning the actions of Arizona Sen. Mark Kelly.
Musk’s actions and rhetoric have been closely watched, particularly by Republicans, who have long pushed for reducing the size of the federal government. Many have expressed support for Musk’s efforts to eliminate wasteful spending.
However, there has also been some pushback. Republican Rep. Tom Cole of Oklahoma recently praised the decision to keep open three important federal offices in his state, including those related to weather services, Social Security, and Indian health services.
Public opinion on Musk’s role in the Trump administration appears divided. A February survey found that nearly half of Americans view his influence as negative, while a smaller percentage sees it as a positive development. Another poll showed mixed views on whether Musk is cutting unnecessary spending or affecting essential programs, with many unsure of his approach.
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