Elon Musk recently discussed the high costs of federal entitlement programs. His remarks reflect an ongoing effort to reduce the size of the federal government, raising concerns about potential cuts to Social Security, Medicare, and Medicaid.
In a Fox Business interview, Musk stated, “Most of the federal spending is entitlements. That’s the big one to eliminate. That’s around half a trillion, maybe six or seven hundred billion.” His comments came after a question about identifying waste in federal spending.
Some critics suggest Musk’s comments hint at an administration push to target Social Security. In response, President Trump’s team defended Musk, claiming he was addressing legitimate issues like waste and fraud, which they estimate costs the government over $500 billion annually.
Musk raised concerns specifically about Social Security and loans from the Small Business Administration, questioning why millions of deceased individuals are still listed as alive in government databases. He also wondered how funds had been disbursed to children as young as 11 through these loan programs.
Trump recently echoed similar claims, suggesting that millions of centenarians are still receiving benefits. However, public data indicates that only about 89,000 people aged 99 and above were receiving Social Security benefits as of December 2024. The Social Security Administration’s acting commissioner clarified that many individuals listed in their records do not necessarily receive benefits and lack confirmed dates of death.
Musk pointed to issues of fraud as justification for cuts, highlighting that many people misuse Social Security numbers for various benefits. He stated, “There’s a huge amount of fraud with people using stolen or fake Social Security numbers.”
These remarks clash with promises from top Republican leaders who vowed not to cut Social Security. Trump has repeatedly assured Americans that Social Security benefits will remain untouched. Recently, House Speaker Mike Johnson emphasized that Republicans are committed to protecting these programs while still looking for ways to eliminate waste.
The Social Security Administration is currently restructuring, aiming to reduce its workforce by around 7,000 employees, or about 12%. These cuts are part of a broader effort to streamline operations in line with the administration’s goal of reducing the federal government’s size.
