- Elon Musk commented on entitlement spending on Monday, focusing on waste and fraud, suggesting eliminating up to $700 billion in federal spending. His statement caused concerns about potential cuts to Social Security, Medicare and Medicaid.
- The White House clarified that Musk did not call for cutting benefits but highlighted the issue of fraud.
- Sen. Bernie Sanders warned that Musk’s remarks could signal a push toward privatizing Social Security.
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Elon Musk’s recent comments on entitlement spending prompted a flurry of headlines and posts over fears that the Trump administration may cut Social Security, Medicare and Medicaid.
“The waste and fraud in entitlement spending — most of the federal spending is entitlements, that’s the big one to eliminate. That’s the sort of half trillion, maybe six, $700 billion,” Musk said in an interview with Fox Business on Monday, March 10.
The Department of Government Efficiency leader’s remarks also raised the question of where he came up with a figure as high as $700 billion.
What did Musk mean by ‘big one’ to eliminate?
The White House defended Musk in a statement released on Tuesday, March 11, and said he did not call for cutting benefits. Instead, they said he was focused on the waste and fraud within those programs.
The statement also pointed to an estimate from the U.S. Government Accountability Office that said taxpayers lose as much as $521 billion annually to fraud — most of that within entitlement programs.
But, according to the Social Security Administration’s inspector general, the agency made about $72 billion in improper payments from 2015 to 2022 — less than 1% of the $8.6 trillion the agency handed out in benefits during that time.
Musk did, at one point in Monday’s interview, cite the Government Accountability Office report estimating the government may lose up to $521 billion yearly to fraud, but that report covered the entire federal government.
Sen. Bernie Sanders responds to Musk’s remarks
Numbers aside, Sen. Bernie Sanders, I-Vt., said Musk’s call for cuts in mandatory federal spending is a step in the direction of Social Security privatization.
“Well, he has called Social Security a Ponzi scheme. They have already laid off 2,500 employees of the Social Security Administration,” Sanders said in an interview with CNN on Monday. “If you ask me, I think this is a prelude not only to cutting benefits, but to privatizing Social Security itself. I think that’s in the back of their mind.”
President Trump’s pledge to protect benefits
President Donald Trump has repeatedly said he will not cut Social Security, Medicare or Medicaid benefits, most recently during an interview on “Fox News Sunday” on March 9.
In another recent interview with NBC News, Speaker of the House Mike Johnson, R-La., talked about reforming Social Security and Medicare benefits for future retirees while protecting those already receiving benefits.
The nonpartisan Congressional Budget Office said in a report released on March 5 that Republicans can’t achieve their goal of cutting $2 trillion in federal spending over the next decade without cutting Medicaid.
The current federal budget deficit for fiscal year 2024 is approximately $1.8 trillion.