A new report shows that tech billionaire Elon Musk’s companies have sucked at least $38 billion out of the federal government’s coffers. The report, published by the Washington Post, makes the case that Musk’s corporate empire would not exist were it not for a flood of taxpayer money from the very government that the billionaire is currently attempting to dismantle.
The Post’s analysis found that the $38 billion comes from a dearth of subsidies, contracts, loans, and tax credits that went to Musk’s companies over the years (primarily Tesla and SpaceX). However, the $38 billion figure may actually be underselling how much Musk’s companies have benefited from the government. The Post notes:
The total amount is probably larger: This analysis includes only publicly available contracts, omitting classified defense and intelligence work for the federal government. SpaceX has been developing spy satellites for the National Reconnaissance Office, the Pentagon’s spy satellite division, according to the Reuters news agency. The Wall Street Journal reported that contract was worth $1.8 billion, citing company documents. The Post found nearly a dozen other local grants, reimbursements and tax credits where the specific amount of money is not public.
The news that Musk is a huge beneficiary of public money should shock no one, although it is particularly ironic given the fact that the billionaire and his minions are currently helping the Trump administration to undermine federal benefits for millions of middle- and low-income Americans.
Indeed, Musk’s DOGE has quietly been helping the Trump administration to attack the Social Security Administration, the bedrock of America’s welfare system, and the agency responsible for administering retirement benefits to some 73 million Americans. In recent weeks, DOGE has been helping to terminate leases for SSA offices across the country, leading to planned closures in locations like Michigan, New York, West Virginia, Ohio, Arkansas, Texas, and others. A report from The American Prospect alleges that the acting commissioner of the SSA, the Trump-appointed Leland Dudek, recently asked for a plan of action that would reduce the agency’s workforce by a whopping 50 percent—a move that, if implemented, would surely hobble the program’s overall operational capacity. As of last year, the SSA was already said to be suffering from staffing shortages, and further downsizing of the agency would surely make it dysfunctional and, ironically (as far as DOGE is concerned), highly inefficient.
Dudek also has an odd connection to DOGE: the Washington Post reports that, prior to being named SSA head, he was under investigation at the agency for “sharing unauthorized access to information” with Musk’s DOGE team. Amidst the probe into his activities, Trump suddenly elevated Dudek from his role as a mid-level bureaucrat at an anti-fraud unit to the agency’s top spot. Dudek replaced Michelle King, the previous acting commissioner of the SSA, who stepped down last week after refusing to grant DOGE access to “Social Security recipient information,” CNN previously reported. Dudek is merely the interim commissioner, however, and will ultimately be replaced by Frank Bisignano, the former chief operating officer of JPMorgan Chase, and the current CEO of Fiserv, a payment processor.
The Prospect further notes that layoffs at the SSA have been formally officiated via an email from the General Services Administration that confirmed the SSA would—like other federal agencies—be undergoing a “reduction in force.” Trump set the stage for massive layoffs at federal agencies with a simple DOGE-related executive order he passed a few weeks back. The apparent targeting of the SSA has kicked off rampant speculation within and around the agency concerning the long-term longevity of the agency:
Sources have speculated to the Prospect that the terminations are being done piecemeal to avoid headlines of tens of thousands of jobs lost. “The plan is to fire 50 percent of the workers in little buckets so nobody knows what they’re doing,” they said.
…“‘Not touching Social Security’ is not the reality of this administration,” said a source familiar with the discussions at SSA in a message obtained by the Prospect. “Looking for government to fail and be replaced by private industry appears to be the goal.”
On his platform, X, Musk has spread misinformation about the Social Security program that made the program appear dysfunctional and fraud-riddled. Indeed, Musk recently made the claim that America was paying out retirement benefits to tens of millions of dead people—a claim that Commissioner Dudek was forced to admit was blatantly untrue. Musk has previously gestured at the need to cut spending on Americans’ benefits and has shared misinformation online about Social Security that demonized the program.
The Trump administration’s apparent attack on Social Security has also been reified in the recently formulated federal budget proposal offered by the GOP-controlled Congress. The recently passed House budgetary blueprint reportedly proposes nixing taxes on Social Security payments. A recent analysis claims that eliminating said taxes would spike the national debt by 7 percent over the next few decades, and would have a short-term positive effect for wealthy seniors while largely abandoning younger generations. Other analyses show it would spur budgetary shortfalls for the program, endangering it overall.
GOP voters have begun to express their discontent at their lawmakers’ embrace of Musk and DOGE. Multiple Republican town halls have descended into chaos in recent weeks, as constituents have shown up to boo and heckle their congressmen over their support of the billionaire. However, many of those congressmen have met much of that criticism with a shrug. One such legislator, Rep. Jay Obernolte (R-California), dismissed his constituents’ concerns: “It’s easy to be critical, but the people voted for change in November, and that’s exactly what they’re getting.”
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