Elon Musk Cites 'Massive' Social Security Fraud Amid Push for Federal Budget Cuts
Billionaire entrepreneur and Tesla CEO Elon Musk has reignited debate over federal entitlement spending, citing what he described as “massive” levels of fraud in Social Security and other programs. Musk, who has emerged as a key figure in President Donald Trump’s Department of Government Efficiency, spoke about potential cost savings during an appearance on Fox Business with host Larry Kudlow.
Musk referenced a 2024 Government Accountability Office (GAO) report, claiming that federal government fraud may total as much as half a trillion dollars annually. “Most of the federal spending is entitlements. So that’s like the big one to eliminate,” Musk said. He suggested that waste, fraud, and abuse in programs like Social Security, Medicare, and Medicaid could account for $600 billion to $700 billion per year.
His remarks sparked criticism, particularly over the use of the word “eliminate” when referring to entitlement programs. Democratic opponents warned that the language could signal cuts to critical benefits. However, White House Press Secretary Karoline Leavitt clarified at a March 11 press briefing that Musk and Trump are focused on rooting out waste and fraud, not cutting benefits. “Trump is going to protect Social Security, Medicare, and Medicaid,” Leavitt stated.
Speaking at a separate Tesla promotional event at the White House on March 11, Musk was asked directly if Social Security benefits were at risk. “We are going to be very careful with any benefits,” Musk responded. “In fact, only by tackling waste or fraud can we actually preserve those programs for the future.”
Musk’s claims stem from the GAO’s findings that fraudulent payments across the federal government range from $233 billion to $521 billion annually. This figure includes improper payments in pandemic relief programs, not solely Social Security, Medicare, and Medicaid — which together make up about half of the government’s mandatory spending.
Despite Musk’s assertions, Social Security fraud accounts for a relatively small portion of that total. A 2021 report from the Social Security Administration’s inspector general found approximately $300 million in payments issued after recipients’ deaths over a span of two decades, with about one-third of that money successfully recovered.
While federal officials acknowledge improper payments as a concern, experts argue they are not the main factor behind the financial challenges facing Social Security.
Musk, who has pledged to cut $1 trillion from federal spending, appears to be leaning on top-end GAO estimates — or even exceeding them — to support his calls for reform.
