Web Desk
Elon Musk has highlighted what he believes could be “the biggest scam of all time” in a discussion with Texas Senator Ted Cruz.
As the top adviser to President Donald Trump and head of the Department of Government Efficiency (DOGE), Musk appeared on Cruz’s Verdict podcast.
He explained how government spending allows nonprofits to operate with minimal oversight, enabling them to live luxuriously.
Why It Matters
DOGE aims to reduce operational costs by restructuring federal agencies to minimize government size.
However, the department has faced criticism for cutting essential programs, including those tackling the spread of the Ebola virus.
Musk has acknowledged that mistakes are possible. In a February Cabinet meeting, he stated, “We will make mistakes. We will not be perfect, but when errors occur, we will fix them quickly.”
What to Know
Musk shared a clip of his interview on X, formerly Twitter, describing nonprofit funding as “maybe the biggest scam of all time.”
“One of the most shocking loopholes we have uncovered is that the government funds so-called nonprofits with almost no oversight. There is no proper auditing of these organizations,” Musk told Cruz.
“For example, the $1.9 billion given to Stacey Abrams. These nonprofits then pay themselves extravagant salaries, expense everything, and buy private jets, luxury homes, and more,” he added.
This is not the first time Musk has criticized government spending. Earlier in March, he called Social Security “the biggest Ponzi scheme of all time.”
He pointed out that over 3.2 million individuals listed as 120 years or older had to be removed from records to stop payments to deceased people.
Under the Trump administration, DOGE claims to have saved $55 billion through contract cancellations, workforce reductions, and asset sales.
Public Reactions
On February 24, Musk posted on X about fraud, stating, “We are increasingly optimistic that by eliminating massive waste and fraud from Social Security and Medicare, we can increase actual payments to citizens and improve healthcare.”
What Happens Next?
Musk continues to lead the Department of Government Efficiency, focusing on further reducing federal spending.
His efforts will likely spark more debate over government funding and financial oversight.
