Elon Musk has estimated fraud in entitlement programs to be between $500 billion and $700 billion, far exceeding official watchdog reports. Data from the Social Security inspector general placed improper payments at $71.8 billion between 2015 and 2022 — less than one percent of total benefits paid during that time. Musk further argued that as many as 20 million deceased individuals remain listed as alive in federal records, though Social Security officials have rejected claims of widespread payments to the dead.
The remarks triggered a wave of criticism from Democrats, including former Transportation Secretary Pete Buttigieg, who accused Musk of signaling plans to dismantle Social Security. Michigan Democrat Rep. Elissa Slotkin also claimed Musk was openly threatening the future of Medicare and Social Security, while political commentators amplified similar warnings across social media.
The White House and its communications team swiftly pushed back, clarifying that Musk’s comments were directed at eliminating fraud and waste — not cutting legitimate benefits. Officials highlighted longstanding bipartisan acknowledgment of inefficiencies within entitlement programs, pointing to the significant sums lost annually through improper payments.
The renewed focus on waste and fraud in Medicare and Social Security has reignited debate in Washington, where both sides now find themselves grappling with past statements and present-day political narratives.