Elon Musk Targets Federal Entitlements and Credit Cards in Cost-Cutting Crusade

Elon Musk Targets Federal Entitlements and Credit Cards in Cost-Cutting Crusade

March 11, 2025 — Billionaire entrepreneur Elon Musk, now a key figure in President Donald Trump’s administration, has set his sights on slashing federal entitlement programs and government credit card usage as part of his aggressive push to streamline U.S. government spending. Leading the Department of Government Efficiency (DOGE), Musk has ignited a firestorm of debate with his latest proposals, which he claims are aimed at rooting out waste and fraud. His remarks, made during a Monday interview with Fox Business, underscore a radical approach that has both supporters and critics on edge as the nation grapples with the implications of his influence.

Musk, whose role in DOGE has given him unprecedented sway over federal operations, argued that entitlement programs like Social Security and Medicare—cornerstones of American social policy—are riddled with fraudulent spending. “Most of the federal spending is entitlements,” Musk stated, estimating that between $500 billion and $700 billion in annual waste could be eliminated. “That’s the big one to eliminate.” His comments echo earlier sentiments where he labeled Social Security “the biggest Ponzi scheme of all time,” a provocative claim that has drawn sharp rebukes from Democrats and even some Republicans who fear political backlash.

The numbers Musk cites dwarf official estimates. The Social Security Administration’s inspector general, for instance, reported $71.8 billion in improper payments over seven years (2015–2022), a fraction of Musk’s assertions. Critics argue his figures lack evidence, pointing out that $500 billion represents nearly a third of the $1.5 trillion Social Security paid out last year. Nonetheless, Musk has dispatched DOGE teams to scrutinize databases at agencies like the Centers for Medicare and Medicaid Services, flagging minor discrepancies as proof of systemic issues. Detractors, including former Transportation Secretary Pete Buttigieg, have accused Musk of exaggerating isolated errors to justify sweeping cuts, warning that such moves threaten benefits millions rely on.

Parallel to his entitlement overhaul, Musk has spearheaded a dramatic reduction in government credit card usage. Just last week, DOGE shut down 146,000 federal credit cards across 16 agencies, part of an audit targeting unused or excessive spending. These cards, handling $30 billion annually for routine expenses like office supplies, legal fees, and travel, have been a lifeline for federal workers. Musk also slashed many remaining card limits to $1, a move he defends as a step toward “zero-based budgeting”—a tactic he employed after acquiring Twitter in 2022. “There are still almost twice as many credit cards as people in the government, and the limits are $10,000!” Musk tweeted, hinting at “shady expenditures.”

The fallout has been immediate and chaotic. Social Security employees can no longer ship documents via UPS, while Treasury lawyers have lost access to PACER, the federal court filing system. National park staff worry internet services could be cut off next, hampering basic operations. Federal workers, barred from using personal cards for job expenses, say they’re paralyzed. “We rely on email and Teams to issue work orders,” one parks employee told WIRED. “This isn’t efficiency—it’s a breakdown.”

Musk’s defenders, including Trump’s communications team, insist he’s targeting waste, not benefits. “Lying hacks,” they posted on X, claiming the focus is on “$500+ billion” in annual fraud—a figure experts dispute. Yet, Trump has distanced himself slightly, assuring Cabinet secretaries on March 6 that they—not Musk—control staffing cuts, though he added, “If they don’t cut, Elon will.” This tension reflects growing unease among Republicans, some of whom worry about alienating voters, including veterans reliant on federal jobs and services.

As Musk doubles DOGE’s staff and digs deeper into federal agencies, his chainsaw-wielding approach—symbolized at a February CPAC event—continues to polarize. Supporters hail him as a disruptor; opponents see a reckless ideologue risking economic stability. With lawsuits mounting and agencies grinding to a halt, the nation watches to see if Musk’s vision will reshape government—or unravel it.