Musk Says DOGE Halting Treasury Payments to US Contractors (2)

Elon Musk said his “DOGE team” of government efficiency enforcers is shutting down some payments to federal contractors, suggesting that the world’s richest man may have access to sensitive systems used at the US Treasury Department.

“The corruption and waste is being rooted out in real-time,” Musk posted on X, saying officials reporting to his so-called Department of Government Efficiency are “rapidly shutting down” payments to a Lutheran charity.

The Treasury Department didn’t immediately respond to questions about the extent of Musk’s access. President Donald Trump has put the Tesla CEO — and largest donor to his election effort — in charge of an effort to modernize federal information technology.

But Musk seems to be expanding that mandate to include control over financial flows in other parts of the federal government. Top security officials at USAID were placed on leave Saturday after refusing to allow DOGE staffers access to systems at the foreign assistance agency, saying they lacked the required security clearances.

Musk on Sunday called USAID “a criminal organization” that should “die.”

Read more: USAID Website Goes Dark as Musk Calls Aid Agency ‘Criminal’

Musk is targeting systems that process tens of billions of dollars a day in payments for US government agencies and the officials that oversee them. Musk’s statements on Sunday follow last week’s departure of David Lebryk, the Treasury Department’s most senior career official, who had been in charge of payment systems at the Bureau of the Fiscal Service.

David A. Lebryk

Photographer: Bill O’Leary/The Washington Post/Getty Images

Trump gave Musk’s efforts his seal of approval Sunday night. “Elon’s doing a good job,” Trump said to reporters.

“He’s a big cost cutter,” Trump said. “Sometimes we won’t agree with it and we’ll not go where he wants to go, but I think he’s doing a great job. He’s a smart guy, very smart, and he’s very much into cutting the budget of our federal government.”

Senator Ron Wyden, the top Democrat on the Senate Finance Committee, said Friday that he’s been told that Treasury Secretary Scott Bessent has granted DOGE full access to Treasury’s payment systems.

“Social Security and Medicare benefits, grants, payments to government contractors, including those that compete directly with Musk’s own companies,” Wyden said on BlueSky, a social media rival to Musk’s X. “All of it.”

Treasury officials have long maintained that its role is to serve as the federal government’s checkbook — and that the decision about whether to approve or deny payment belongs to individual agencies based on funds appropriated by Congress.

Read more: Overseer of Federal Payments System Leaves Treasury in Trump Era

“The @DOGE team discovered, among other things, that payment approval officers at Treasury were instructed always to approve payments, even to known fraudulent or terrorist groups. They literally never denied a payment in their entire career. Not even once,” Musk wrote on X, without providing evidence.

The Treasury has a Do-Not-Pay system in place designed to prevent such payments.

Musk said DOGE was shutting down payments by the US Department of Health and Human Services to Lutheran Family Services, a faith-based charity that has been providing social services to refugees. HHS and Lutheran Family Services didn’t immediately respond to requests for comment.

(Updates with Treasury policy in penultimate paragraph)

--With assistance from Dana Hull, Alberto Nardelli and Skylar Woodhouse.

To contact the reporters on this story:
Gregory Korte in Washington at gkorte@bloomberg.net;
Viktoria Dendrinou in Washington at vdendrinou@bloomberg.net

To contact the editors responsible for this story:
Justin Sink at jsink1@bloomberg.net

Emily Cohn, Gregory White

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