Elon Musk has claimed that his Department of Government Efficiency (DOGE) team is actively shutting down payments to federal contractors, raising questions about his access to sensitive US Treasury Department systems.
“The corruption and waste is being rooted out in real-time,” Musk wrote on X, stating that DOGE officials are “rapidly shutting down” payments to a Lutheran charity.
The US Treasury Department has yet to respond to inquiries about the extent of Musk’s authority over government payment systems. However, his involvement follows President Donald Trump’s decision to put the Tesla CEO in charge of modernising federal IT infrastructure. Musk, however, appears to be extending his role beyond its original scope, intervening in financial flows across various government departments.
Musk’s growing influence over federal payments
Musk’s latest intervention comes amid reports that top security officials at USAID were placed on leave after refusing to allow DOGE staffers access to sensitive systems. The USAID officials cited a lack of security clearances, yet Musk reacted aggressively, calling the agency a “criminal organisation” that should “die”.
He is now targeting payment systems handling billions of dollars daily, following last week’s departure of David Lebryk, a senior Treasury Department official responsible for managing government payments at the Bureau of the Fiscal Service.
Trump endorsed Musk’s actions, telling reporters on Sunday evening:
“Elon’s doing a good job. He’s a big cost cutter. Sometimes we won’t agree with it, and we’ll not go where he wants to go, but I think he’s doing a great job. He’s a smart guy, very smart, and he’s very much into cutting the budget of our federal government.”
Concerns over musk’s control of government funds
Democratic Senator Ron Wyden, the ranking member of the Senate Finance Committee, expressed deep concern over Musk’s expanding influence. He claimed that Treasury Secretary Scott Bessent had granted DOGE full access to the Treasury’s payment systems.
“Social Security and Medicare benefits, grants, payments to government contractors, including those that compete directly with Musk’s own companies – all of it,” Wyden warned in a post on BlueSky, a social media platform rivalling X.
Treasury officials have historically maintained that their role is to act as the government’s checkbook. The responsibility for approving or denying payments rests with individual agencies, based on Congress-approved funding.
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However, Musk disputed this, alleging that Treasury payment officers had been instructed to approve every payment, including those to fraudulent or terrorist-linked groups.
“The @DOGE team discovered, among other things, that payment approval officers at Treasury were instructed always to approve payments, even to known fraudulent or terrorist groups. They literally never denied a payment in their entire career. Not even once,” Musk wrote on X.
He did not, however, provide any evidence to support his claims. The Treasury Department already operates a Do-Not-Pay system to prevent fraudulent disbursements.
Targeting payments to charities and federal contractors
One of the first organisations affected by DOGE’s intervention is Lutheran Family Services, a faith-based charity providing social services to refugees. Musk announced that the US Department of Health and Human Services (HHS) had been ordered to stop payments to the organisation.
Neither HHS nor Lutheran Family Services immediately responded to requests for comment.
Political and legal fallout expected
Musk’s growing control over federal financial systems is expected to spark intense political and legal scrutiny. His close ties with Trump and direct interference in government payments raise questions about accountability, transparency, and the risk of conflicts of interest, particularly as some government contractors compete with Musk’s own companies.
With Treasury officials remaining silent, the extent of Musk’s access and authority remains unclear. However, his latest actions suggest an unprecedented shake-up in how the US government handles payments – one that may set the stage for significant legal battles in the weeks ahead.
