A staggering $236 billion was lost to improper payments across 71 federal programs in 2023, according to a report from the Government Accountability Office (GAO).
These improper payments highlight former President Donald Trump's previous pledge to overhaul the federal bureaucracy. Trump has voiced strong support for both the Department of Government Efficiency (DOGE) and Elon Musk's push for an extensive audit of government expenditures to eliminate fraud, waste, and abuse.
This colossal figure, with three-quarters reportedly classified as overpayments, represents just a fraction of the $1.8 trillion federal deficit accumulated under President Joe Biden's administration.
The New York Times provided further details on the GAO's findings:
"Mr. Musk has told administration officials that he thinks they could balance the budget if they eliminate the fraudulent payments leaving the system," the report noted, citing an unnamed official who discussed Musk's views. However, it remains unclear what data Musk used to make this claim. The 2024 federal deficit reached $1.8 trillion, while improper payments amounted to $236 billion across various programs during the 2023 fiscal year.
This significant level of waste may push Trump, should he return to office, to impose stricter measures on federal spending.
Musk has already zeroed in on the Treasury Department's payment infrastructure, which is responsible for distributing trillions in federal funding. According to the Times, Musk's associates have been granted entry into this system under stringent security protocols:
"The Musk allies who have been granted access to the payment system were made Treasury employees, passed government background checks and obtained the necessary security clearances," the report noted, based on information from two anonymous sources familiar with the internal arrangements. Although these representatives now have authorized access, the sources clarified that no operational actions have been taken and no government payments have been interrupted.
Insiders emphasized that Musk's involvement aims to review and scrutinize improper payments system-wide, not to arbitrarily block specific transactions. Treasury Department attorneys confirmed that Musk's team's access was granted following legal approval and that any modifications to the payment process would require extensive review and testing beforehand.
The audit being conducted by DOGE is a key element of Musk's broader strategy to minimize inefficiencies within the government.
As part of this initiative, DOGE has assumed control of the federal human resources office, the Office of Personnel Management. The department has also undertaken an extensive review of the General Services Administration, slashing 50 percent of its budget and reevaluating real estate leases. In addition, DOGE has plans to dismantle USAID, which many Republicans claim operates as a covert extension of CIA objectives.