Elon Musk’s 4 Big Promises for Social Security—and How They Could Impact Millions of Americans

Long considered the third rail of politics, all signs point to Elon Musk fixing his gaze on Social Security. In recent interviews, Musk voiced beliefs that the program is tantamount to a Ponzi scheme rife with fraud. Meanwhile, roughly 73 million Americans receive monthly Social Security payments, according to the Social Security Administration (SSA) website.

Understandably, there’s concern that Musk and his Department of Government Efficiency (DOGE) could make changes to Social Security. Here are four promises Musk has made about the program.

Reducing Fraud

Fraud is possible whenever finances are involved. Musk and the Trump administration seem to believe Social Security is riddled with it. In his State of the Union speech, President Trump claimed millions of Americans over 100 are receiving monthly benefits — a claim Musk had repeated, according to AP News.

To reduce waste and fraud, the Social Security Administration (SSA) will revive the practice of withholding 100% of an individual’s benefits if they owe money due to overpayment, according to Yahoo Finance. This was the practice of the SSA until the Biden administration acted in March of 2024 to limit the amount to a mere 10% of a monthly payment.  

Notably, the fraud argued by Musk isn’t as rampant as claimed. Under 1% of payments made over a seven-year window were fraudulent, according to the SSA Inspector General.

Closing Local Offices

Visiting a local SSA office could become more difficult thanks to Musk. The SSA reported it has approximately 1,230 offices nationwide. Musk reportedly wants to close 47 offices throughout the country, largely in the South and Southeast, with the alleged purpose being to close offices no longer necessary.

In the argument for efficiency, Musk could be shutting off access to Americans legitimately needing in-person support. Many in-office visitors lack computer or internet literacy and benefit from personal support, according to ProPublica.

Changing Direct Deposit Options

Direct deposit is the dominant method for Americans to receive Social Security payments. Over 99% of individuals receive their monthly support directly to their bank accounts, according to the SSA.

The SSA will no longer allow Americans to make direct deposit changes via phone. This change will take place by the end of March, per the Washington Post.

Moreover, the Post reported the agency said this is to directly address fraud, writing, “Approximately 40 percent of Social Security direct deposit fraud is associated with someone calling SSA to change direct deposit bank information.” Upon the change, people will need to make changes online or in person.

Recommending Layoffs of Departmental Employees

A key part of Musk’s actions has been tied to the layoffs of federal employees. That is also true of SSA workers. Musk has recommended laying off a minimum of 7,000 SSA employees, or over 10% of its workforce, according to AP News.

The reduction directly impacts wait times for people visiting offices, which averaged up to 45 minutes in 2024, according to the SSA Inspector General. Combined with recommended office closures, this could make managing needs in person more challenging.

Millions of Americans depend on Social Security to take care of their financial needs. Musk is promising actions that may hinder many from adequately managing their budgets. Staying informed and following recommended actions is the best way to avoid potential disruptions in payments.

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