Washington, D.C. – Elon Musk’s self-proclaimed Department of Government Efficiency (DOGE) is taking aggressive action to shut down certain federal contractor payments, raising concerns over his influence within the U.S. Treasury Department.
Musk’s DOGE Targets Treasury Payment Systems
Musk announced on X (formerly Twitter) that his team is actively blocking payments deemed wasteful or corrupt. In a controversial move, DOGE recently shut down funding to Lutheran Family Services, a nonprofit supporting refugees.
“The corruption and waste is being rooted out in real-time,” Musk posted, asserting that DOGE officials are “rapidly shutting down” payments.
Treasury Officials Raise Concerns Over Musk’s Access
The extent of Musk’s authority remains unclear. However, President Donald Trump, who appointed Musk to lead a federal IT modernization initiative, has backed his actions. “Elon’s doing a good job,” Trump told reporters, emphasizing his commitment to cutting federal spending.
Treasury Secretary Scott Bessent allegedly granted DOGE full access to Treasury payment systems, according to Senator Ron Wyden, the ranking Democrat on the Senate Finance Committee. This access could impact payments for Social Security, Medicare, and federal contractors—including those competing with Musk’s companies.
Controversy at USAID and High-Level Departures
Tensions escalated when USAID officials refused to grant DOGE access to their systems, citing security clearance concerns. Musk responded by calling USAID “a criminal organization” that should “die.”
This follows the recent departure of David Lebryk, the Treasury’s top career official overseeing payment systems at the Bureau of the Fiscal Service.
Musk Alleges Fraud in Federal Payments
Musk claims DOGE uncovered a systemic failure within Treasury, alleging that payment officers were instructed to approve every transaction, even those tied to fraudulent or terrorist organizations. “They literally never denied a payment in their entire career. Not even once,” Musk stated on X, though he did not provide supporting evidence.
Treasury officials insist that stringent safeguards exist, including a Do-Not-Pay system to flag fraudulent transactions.
What’s Next for DOGE and Federal Spending?
The Biden administration and congressional leaders are now facing growing pressure to clarify Musk’s authority and oversight over Treasury operations. With billions of dollars at stake daily, the implications of Musk’s actions could be far-reaching.
As the controversy unfolds, the future of DOGE’s role in federal financial oversight remains uncertain.
