Multibillionaire Elon Musk and his Department of Government Efficiency have been scrutinizing federal agencies for potential cost savings. However, many of Musk’s claims about government spending have been misleading or entirely false. From exaggerated reports of fraud to unfounded accusations against various agencies, Musk’s statements have sparked controversy and misinformation. This article delves into the validity of these claims and provides a clearer understanding of the actual financial practices within U.S. federal agencies.
Musk has made several claims regarding excessive or fraudulent spending by federal agencies such as USAID and FEMA. These assertions, often lacking evidence, have spread rapidly on social media platforms, fueled by influential figures like Musk and Bill Ackman. For instance, Musk acknowledged that some of his statements might be incorrect while speaking at the White House with President Trump, highlighting the speculative nature of his claims. Despite this admission, he continued to propagate unverified information, such as the supposed $50 million spent on condoms in Gaza by USAID.
One of the most significant misrepresentations involves DOGE's purported savings. The department claimed an $8 billion savings from canceling a technical support contract for Immigration and Customs Enforcement (ICE). However, the initial $8 billion figure was later revised to $8 million, with only $2.5 million actually spent. Similarly, Musk's claim that DOGE closed Jimmy Carter's office in Atlanta to save $128,233 is inaccurate. The funds were part of an allowance for former presidents, which would have ended regardless of the office closure. Additionally, Musk's assertion that Social Security is riddled with mass fraud is unsupported by evidence. The Inspector General found that erroneous payments accounted for less than 1% of total disbursements between 2015 and 2023. While there are instances of improper payments, they do not occur at the scale Musk suggested.
Several specific claims made by Musk and others have been thoroughly debunked. For example, the idea that Fort Knox's gold reserves are missing is baseless. Musk questioned the presence of the gold, suggesting a need for a live video walkthrough. However, there is no indication that the gold is not secure. Another claim involved a supposed $9 million payment by the Department of Defense to Reuters for "social deception." In reality, the payment went to Thomson Reuters Special Services for research on automated defense against social engineering attacks, not to deceive society.
Musk also falsely alleged that FEMA spent $59 million on housing migrants in luxury hotels in New York City. The $59 million was part of a broader allocation approved by Congress for migrant housing assistance, with only $19 million spent on hotel fees, and not on luxury accommodations. Furthermore, Musk amplified unproven claims that anti-DOGE protests were funded by NGOs, despite no evidence supporting this. The protests, organized under hashtags like #buildtheresistance, appear to be grassroots movements without external funding from NGOs.
Musk's claims about bureaucrats profiting from taxpayer money and USAID engaging in money laundering lack substantiation. There is no evidence that USAID has engaged in criminal activities or that Samantha Power earned $23 million as its chief. Similarly, the claim that Chelsea Clinton received $84 million from USAID is false; it refers to her family's Clinton Foundation. Lastly, the notion that USAID paid celebrities to visit Ukraine or funded research leading to COVID-19 is equally unfounded. USAID has supported legitimate programs, but the scale and nature of Musk's allegations do not align with the facts.