Elon Musk has accused the U.S. Treasury of failing to prevent massive fraud in entitlement payments, claiming that nearly $50 billion is lost annually. His allegations follow a court ruling that temporarily blocks the Department of Government Efficiency (DOGE) from auditing Treasury systems.
Key Facts:
- A federal judge issued an injunction blocking DOGE from accessing sensitive Treasury Department data, siding with 19 Democratic attorneys general.
- Musk alleged that over $100 billion in annual entitlement payments are sent to individuals without Social Security Numbers or even temporary IDs.
- Treasury officials estimated that about half of these payments—$50 billion per year—are likely fraudulent.
- DOGE had planned reforms, including requiring categorization codes for all outgoing payments to improve audits.
- Musk called the judge’s ruling “insane,” arguing that it hinders efforts to combat government waste.
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The Rest of The Story:
Elon Musk took to X to criticize the ruling, arguing that it prevents much-needed reforms aimed at preventing fraud and misuse of taxpayer dollars.
According to Musk, DOGE had already identified a staggering amount of suspicious transactions before being blocked from further access.
Treasury officials allegedly acknowledged that they had no system in place to properly audit or track certain payments, allowing billions of dollars to flow unchecked.
One of the key issues Musk raised was the lack of a requirement for government payments to include a clear reason for disbursement.
He also pointed out that updates to the “do-not-pay” list, meant to flag fraudsters and illegal entities, often take up to a year.
Under DOGE’s proposed reforms, this list would be updated at least weekly.
Despite the legal setback, Musk insisted that existing career employees at the Treasury are working to implement some of the proposed changes.
He framed the issue as a battle against entrenched bureaucratic inefficiency, stating that prior Treasury management had deliberately ignored these problems.
To be clear, what the @DOGE team and @USTreasury have jointly agreed makes sense is the following:
– Require that all outgoing government payments have a payment categorization code, which is necessary in order to pass financial audits. This is frequently left blank, making…
— Elon Musk (@elonmusk) February 8, 2025
Commentary:
Musk is absolutely right—this lawsuit is nothing more than Democrats trying to shield their corruption from scrutiny.
For years, the left has used taxpayer money as a slush fund, handing out billions in wasteful entitlements and foreign aid while ignoring blatant fraud.
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The fact that they’re fighting so hard to block an audit speaks volumes.
They know what will be uncovered, and they’re desperate to stop it.
This lawsuit also raises a deeper question—if the president can’t control his own executive branch, then what’s the point of elections?
The American people voted for change, yet entrenched bureaucrats and activist judges are trying to block it at every turn.
The deep state is real, and it is fighting tooth and nail to keep its grip on power.
The Bottom Line:
Musk’s allegations of widespread fraud within the Treasury Department add to growing concerns over government waste and inefficiency.
While his proposed reforms could help increase transparency, the legal challenge from Democratic attorneys general suggests a fight ahead.
The outcome of the February 20 court hearing will determine whether DOGE will be allowed to resume its audit efforts.
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