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Elon Musk’s DOGE reforms could lead to 'collapse' of Social Security within a few months? Check details

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Synopsis
Elon Musk-led DOGE 's reforms could lead to the collapse of Social Security in 90 days, Social Security Commissioner Martin O’Malley. Trump's billionaire ally Elon Musk has said in the past that he believes Social Security is a "ponzi scheme" as he and his DOGE team have worked to drastically downsize the administration including laying off nearly 7,000 employees.
Elon Musk’s DOGE reforms could lead to 'collapse' of Social Security within a few months? Check detailsAgencies

In March, Elon Musk-led DOGE removed 3.2 million names from the Social Security database

Elon Musk-led Department of Government Efficiency (DOGE) has been tasked to reform the Social Security Administration. Over 70 million Americans receive Social Security every month and many are apprehensive with what changes Musk could bring to the administration that could affect their benefits, reports suggest.
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Musk has previously called Social Security the "biggest Ponzi scheme" in history. According to the Cato Institute, over half of elderly aged people lived at or below the poverty line before Social Security was enacted in 1935, according to The Mirror.


ALSO READ: 'Worst thing, disgusting': Americans grade Elon Musk's DOGE within the first 100 days of the Trump administration

Social Security to collapse?

Last month, former Social Security Commissioner Martin O’Malley told CNN if the cuts Elon Musk and his DOGE team want to implement were to be enacted the administration would collapse within 90 days, with benefits being potentially delayed.

“Everything they’re doing is driving this agency to system collapse,” O’Malley said of Social Security’s new management. “It will lead to interruptions in service, and that will ultimately cascade into more frequent system interruptions for the processing of claims, ultimately leading to system collapse and eventually the interruption of benefits.”
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DOGE and Musk previously proposed eliminating the Social Security phone service last month, but reportedly backed off that plan after massive pushback from the public.

ALSO READ: 'Trump Recession': US President spends weekend at National golf club in Florida as stock markets crash

In March, Elon Musk-led DOGE removed 3.2 million names from the Social Security database and all of them were listed as 120 years or older were marked as deceased. DOGE confirmed the update on X, stating that it has been conducting a records cleanup for the past two weeks. “Approximately 3.2 million numberholders, all listed age 120+, have now been marked as deceased. More work still to be done,” the post reads. Musk shared the post, commenting, "Cleaning up the dead people database."

Commerce Security on Social Security

In March, US Commerce Security Howard Lutnick during a podcast interview suggested the only people who would call the Social Security helpline after missing a check would be "fraudsters."

"My mother-in-law, who's 94, wouldn't call and complain," Lutnick said. "She'd think something got messed up and she'll get it next month. A fraudster always makes the loudest noise, screaming, yelling and complaining."

Acting Social Security Commissioner Leland Dudek admitted that he was not the only one making decisions within the administration, according to reporting from CNN citing an attendee at a nearly two-hour meeting Dudek held with staffers, legal aid attorneys and other advocates.

ALSO READ: 'NO INFLATION': Trump stands firm on tariff plan amid market rout, says US bringing billions of dollars

“People are coming in from the outside. They’re unfamiliar with the nuances of our agency,” the attendee said Dudek responded when asked who is in charge. “It’s DOGE – not the DOGE kids, it’s the DOGE management.”
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The Washington Post reported earlier this week that DOGE is planning even more layoffs at the administration after shedding nearly 7,000 employees already. These cuts have reportedly left with poor customer service.

According to the Post, employees received an email earlier this week offering voluntary reassignments to “mission-critical” roles, including answering calls from beneficiaries and adjudicating claims as the agency eyes a wider reorganization.

While President Donald Trump has repeatedly claimed he would not touch Social Security benefits, the cuts DOGE is proposing would have potentially catastrophic impacts on those whose only source of income are their Social Security checks.

Trump, Musk on Social Security

In February, Elon Musk expressed concerns about Social Security records, alleging that millions of deceased individuals were still listed as alive. He suggested that this oversight could result in errors in benefit distribution.

ALSO READ: ‘He profits when our economy implodes’: Trump’s commerce secretary under fire over market crash

Additionally, US President Donald Trump echoed these concerns, claiming that millions of individuals over the age of 100 were still present in the database, with some continuing to receive payments.

Both Trump and Musk have spread dubious misinformation about alleged fraud within the administration claiming deceased people have been receiving benefits long after their deaths.

The cuts already made have reportedly led to long wait times for callers seeking assistance from the administration, the Social Security website crashing and online accounts malfunctioning.

This week, an appeals court blocked DOGE from accessing sensitive Social Security data, and a lawsuit challenged the staff reductions at the agency.
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