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Elon Musk Promises to Cancel Grants Following Access to US Treasury System

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Posted: 3rd February 2025
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Elon Musk Promises to Cancel Grants Following Access to US Treasury System.

Elon Musk has pledged to “rapidly shut down illegal payments” after his Department of Government Efficiency (DOGE) team gained access to the US Treasury's vast payment system, which distributes trillions of dollars annually. The move comes after the DOGE team discovered that payment approval officers were reportedly instructed to approve payments, even to known fraudulent or terrorist groups.

Musk, the world's richest man and a key backer of US President Donald Trump’s 2024 re-election campaign, has claimed responsibility for reviewing and rectifying these irregularities. On social media platform X, Musk boasted about his team’s efforts to combat fraud, citing a recent report revealing grants to Lutheran organisations. His remarks were made following confirmation that DOGE had secured access to the Treasury’s payment system, which processes payments like social security and government contracts.

Can Musk really cut payments?

However, questions have been raised about the legality and authority of DOGE’s involvement. A source familiar with the situation confirmed that DOGE does not have the power to cut payments; it can only review payment data. The Treasury already has its own team responsible for identifying fraudulent transactions.

Senator Ron Wyden, a leading Democrat on the Senate Finance Committee, condemned the move, stating that Treasury Secretary Scott Bessent had granted DOGE full access to the system. Wyden has demanded an explanation for allowing Musk’s team to oversee such sensitive operations. “I can think of no good reason why political operators who have demonstrated a blatant disregard for the law would need access to these sensitive, mission-critical systems,” Wyden said.

In the wake of the controversy, David Lebryk, the Treasury official overseeing its financial infrastructure, resigned on Friday. Lebryk had spent 36 years in government, briefly running the Treasury before Bessent’s confirmation.

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