Elon Musk pushed debunked theories about Social Security on Monday while describing federal benefit programs as rife with fraud, suggesting they will be a primary target in his crusade to reduce government spending.
The billionaire entrepreneur, who is advising President Donald Trump, suggested that $500 billion to $700 billion in waste needed to be cut.
“Most of the federal spending is entitlements,” Musk told the Fox Business Network. “That’s the big one to eliminate.”
The comments from Musk come as the country's Social Security faces a looming bankruptcy date if it is not addressed by Congress. The May 2024 Social Security and Medicare trustees’ report states that Social Security’s trust funds — which cover old age and disability recipients — will be unable to pay full benefits beginning in 2035. Then, Social Security would be able to pay only 83% of benefits.
In Minnesota, there have been increasing calls to stop taxing Social Security benefits, something Governor Tim Walz says is already in place for most people, but he adds he will not cut taxes for the most wealthy that receive benefits.
"Look, I'm not going to exempt billionaires," says Walz. "We've exempted 80% of Minnesotans on this. This is a talking point, a fake talking point by the Republicans. Ronald Reagan's the one who put in the tax on Social Security. If the federal government wants to do that, we've exempted lower, folks from lower incomes or whatever, but the richest Minnesotans can pay their Social Security tax."
In 2025, the maximum amount of earnings on which you must pay Social Security tax is $176,100 and that is a place Walz says the government should be looking at increasing funding for the struggling program.
"If it were up to me, there wouldn't be a cap on what they stop paying us," Walz explained. "All of us pay on 100% of our wages. I pay on 100% of my wages. You know who doesn't pay 100% of his wages? Elon Musk. So no, I'm not going to sign one that just exempts the richest, but I signed one already that exempted 80% of Minnesotans. So if your listening out there, unless you're in the top, you know, 6-7% of incomes, you've had your Social Security tax reduced to 0% on the Minnesota side. The federal side's still taxing you."
Meanwhile, the comments from Musk on the popular program and other benefits provided to Americans could rattle politicians on both sides of the aisle as Musk and DOGE works to downsize the federal government, especially as he already faces blowback for his chainsaw-wielding approach to laying off workers and slashing programs.
Musk’s estimate for the level of fraud in entitlements far outpaces figures from watchdogs like Social Security’s inspector general, who previously said there was $71.8 billion in improper payments from fiscal years 2015 through 2022. That’s less than 1% of benefits paid out during that time period.
Musk also said there were “20 million people who are definitely dead marked as alive in the Social Security database.” However, the leader of the agency has rejected claims about widespread payments to dead people.
“These individuals are not necessarily receiving benefits,” said Lee Dudek, Social Security’s acting commissioner.
In an episode with podcaster Joe Rogan airing last month, Musk called Social Security “the biggest Ponzi scheme of all time.”
But Trump, who during the presidential campaign vowed to make no changes to the program, has consistently said there would be no changes to benefits. Since his election in November, the Republican has reiterated those comments, saying Social Security benefits “won’t be touched” and “will only be strengthened.”
The Associated Press contributed to this story.