Musk's DOGE Initiative at Treasury Sparks Controversy and Legal Challenges

Created: JANUARY 22, 2025

Elon Musk's Department of Government Efficiency (DOGE) is making waves at the U.S. Treasury, aiming to simplify audits, enhance accountability, and crack down on fraudulent payments. Musk highlighted the need for more frequent updates to the congressional "do not pay" list and criticized previous Treasury management for prioritizing complaint minimization over fraud prevention.

He emphasized that career government employees are implementing these "super obvious and necessary changes," expressing astonishment that such measures weren't already in place. A key concern raised by Musk involves over $100 billion in annual entitlement payments to individuals lacking Social Security numbers or even temporary IDs. He estimates that roughly half of this amount, a staggering $50 billion annually, could be fraudulent.

These efforts are not without resistance. A recent lawsuit filed by 19 Democratic attorneys general temporarily blocked DOGE's access to Treasury payment systems, citing concerns about data privacy and Congressional authority over federal payments. The lawsuit alleges that providing DOGE with "full access" to systems containing sensitive information on Social Security, Medicare, veterans' benefits, and tax refunds violates the law. New York Attorney General Letitia James argues that President Trump lacks the authority to grant access to such private data or to interfere with Congressionally approved payments.

This legal challenge follows a federal judge's decision to restrict DOGE's access to Treasury systems, a ruling Musk deemed "insane." Despite the controversy, U.S. Treasury Secretary Scott Bessent has previously voiced support for Musk and DOGE's objectives, echoing concerns about government spending. Bessent clarified that DOGE's activities are focused on improving accountability and traceability within the existing payment system, not altering its core functionality. He confirmed that a study is underway to explore these improvements.

Musk at Trump inauguration

Billionaire Elon Musk's DOGE is targeting the Treasury Department. (Kenny Holston-Pool/Getty Images)

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A federal judge intervened to block DOGE from accessing treasury department systems. (ROBERTO SCHMIDT/AFP via Getty Images)

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