Earlier this year, President Trump commenced his second, nonconsecutive term in the White House. Joining him is Tesla CEO Elon Musk, brought onboard to head the new Department of Government Efficiency (DOGE) and advise on changes to systems such as Social Security. DOGE has been hired by the Trump Administration as an external advisory body to the federal government to advise on how to reduce federal government spending. As part of this, DOGE is making changes across federal departments, including the Social Security Administration.
Four changes DOGE could make to Social Security
Social Security is arguably one of the most important government programs in the US. Supporting approximately 70 million beneficiaries, with the large majority of these individuals being retirees, the program acts as essential support to keep vulnerable individuals out of destitution. In addition to the retirement program, Social Security supports individuals with disabilities that render them unable to work. The Supplementary Security Income program supports individuals with little to no income or resources.
With DOGE joining the federal government in their advisory role, many beneficiaries have raised concerns over the extent to which DOGE has access to sensitive information. Earlier this year, DOGE was granted access to the Treasury. In addition, there are four other changes DOGE could have in store for the Social Security Administration and its beneficiaries:
Advancing the payment system
With Musk’s background in futuristic and innovative technology, it is suspected that advancing the technological aspects of the payment system is something Musk could be considering implementing for the Administration.
“If blockchain or crypto-backed rails like DOGE are introduced, expect cleaner systems, less fraud and more transparency, which is clearly needed,” stated Peter Diamond a Federally Licensed Tax, Accounting, Real Estate, and Structure and Certified Bankability Expert to Yahoo
Incentives for advancing society
Some experts suggest that Musk may offer incentives for individuals who enter careers in AI and/or renewable energy, or for those who produce innovative and futuristic concepts. These individuals could qualify for their benefits to be paid out earlier than the standard minimum age of 62. Possible incentives for innovation in the renewable energy sector come at a critical time when the world is grappling with the climate crisis, ensuring that we move away from fossil fuels and keep within global warming goals so that we do not create irreversible damage to the planet.
Zero-tolerance policy for fraud
The most likely change Musk will be implementing is measures to combat fraud. With DOGE’s overall objective to reduce unnecessary federal spending, tackling fraudulent payments would be an obvious source of spending to crack down on. DOGE has reportedly already saved taxpayers $140 billion. The Social Security Administration has an estimated 99% payment accuracy rate, with only 0.3% of payments being improper.
While this statistic may seem low, it is important to remember that the Administration makes trillions of dollars worth of payments every year. Last year, the Administration sent out $1.6 trillion dollars worth of benefits to beneficiaries. If 0.3% of these payments were inaccurate or fraudulent, that amounts to $48 billion dollars worth of unnecessary spending by the Administration.
“By eliminating waste and improper payouts, there’s a stronger chance the system survives – and actually works as it was originally intended – for those who need it most,” Diamond explained. “It will, of course, come at a cost in the beginning. Slower payouts and service, but that is to be expected any time a drastic change like this happens.”
DOGE is expected to continue working for the federal government until July 2026, with Elon Musk expected to possibly leave the agency in May of this year. For more information on new developments and changes to be announced, you can visit the Department of Government Efficiency‘s official website.
