At the start of the year, President Trump began his second nonconsecutive term, bringing Tesla CEO Elon Musk into the fold to lead the newly created Department of Government Efficiency (DOGE) and give advice on overhauling systems such as Social Security. DOGE, an external advisory group to the federal government, is tasked by the Trump Administration with slashing federal government expenditures. This includes making modifications across various federal agencies, including the Social Security Administration.
Potential Reforms DOGE Could Implement in Social Security
Social Security serves as a critical lifeline for about 70 million people in the U.S., primarily aiding retirees to stay out of poverty. It also offers essential support for individuals with disabilities that prevent them from working, and the Supplementary Security Income program assists those with minimal or no income and resources.
With DOGE’s role in advising the federal government, many beneficiaries are concerned about the access DOGE has to sensitive information. Earlier this year, DOGE was given access to the Treasury, and there are four key changes DOGE might introduce to the Social Security Administration and its beneficiaries:
Enhancing Payment Technologies
Given Musk’s expertise in cutting-edge technology, it’s suspected that he may focus on enhancing the technological infrastructure of the payment systems.
“Introducing blockchain or crypto-backed systems like DOGE could lead to cleaner operations, reduced fraud, and increased transparency, which is desperately needed,” said Peter Diamond, a Federally Licensed Tax, Accounting, Real Estate, and Structure and Certified Bankability Expert to Yahoo.
Encouraging Contributions to Society
Experts speculate that Musk might provide incentives for individuals pursuing careers in AI or renewable energy, or those generating innovative and forward-thinking ideas. These individuals might receive their benefits before the typical eligibility age of 62. This push for innovation in renewable energy is particularly timely, as the world tackles the climate crisis and aims to meet global warming targets to avoid catastrophic damage to the planet.
Stringent Anti-Fraud Measures
One of the most probable initiatives Musk might implement is stringent measures to combat fraud. With DOGE’s core mission to cut unnecessary federal spending, targeting fraudulent payments is a logical step. Reports indicate DOGE has already saved taxpayers $140 billion. The Social Security Administration boasts a 99% accuracy rate in payments, with only 0.3% being improper.
While this figure might seem small, it’s important to realize that the Administration disburses trillions of dollars in payments annually. Last year alone, it sent out $1.6 trillion in benefits. If 0.3% of these were improper or fraudulent, that represents $48 billion in unnecessary expenditures.
“By cutting down on waste and improper payments, there’s a better chance the system can sustain itself and function as intended for those who truly need it,” Diamond stated. “It will, of course, initially lead to slower payouts and services, but such is expected with any significant overhaul.”
DOGE is slated to continue operating within the federal government until July 2026, with Elon Musk expected to potentially depart from the agency in May of this year. For further updates and announcements on these changes, you can check the Department of Government Efficiency’s official website.
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Calvin Baxter is an economic analyst specializing in the evolving US labor market. He leverages real data to provide you with concrete recommendations and help you adjust your professional strategies.