Elon Musk Says Democrats Are Paying 'Illegal Immigrants' Through 'Entitlement Spending' — Experts Say He's Wrong

Elon Musk recently claimed that Democrats are using entitlement programs — like Social Security and Medicaid — to attract undocumented immigrants, but experts have pushed back on this statement, saying there's no evidence to support it. Musk's comments have stirred political debate and raised questions about the future of Social Security and other entitlement programs.

Musk’s Claims About Entitlement Spending

In a recent interview with Fox Business, Musk claimed that the U.S. government is losing up to $600 million to $700 billion per year to waste and fraud in entitlement programs. "That’s also the mechanism by which Democrats attract and retain illegal immigrants by essentially paying them to come here and then turning them into voters," he said.

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Musk's claims align with statements made by President Donald Trump, who has also alleged widespread fraud in the Social Security system. Trump suggested during a speech to Congress that the Social Security Administration is making payments to deceased individuals, some listed as being up to 160 years old. However, there's no solid evidence to support these claims on the scale Musk and Trump have described.

Experts Dispute Musk's Claims

Experts have widely refuted Musk's allegations about entitlement fraud. According to the SSA Inspector General, approximately $72 billion in improper payments were made between 2015 and 2022 — less than 1% of the total Social Security benefits paid out during that period. While errors and fraud exist, they are not close to the levels Musk suggested.

Additionally, undocumented immigrants are not eligible to receive Social Security benefits. However, some pay into the system through payroll taxes using individual taxpayer Identification numbers or false Social Security numbers. This means they may contribute to Social Security but cannot collect benefits.

Martin O'Malley, former SSA head under the Biden administration, warned that Musk and Trump's efforts to cut costs at the agency could lead to serious service disruptions. He told CNBC that the SSA's staffing reductions and office closures could cause delays in processing claims and handling benefits.

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Political and Administrative Fallout

Musk's comments have brought widespread debate from both sides of the aisle. 

"There were howls of protest and denial from the GOP any time we pointed out that Republicans want to cut Social Security," former Secretary of Transportation Pete Buttigieg wrote on X. "Now the most powerful official in the White House goes on TV and calls it ‘the big one to eliminate.'"

Prior to Musk's comments, the Department of Government Efficiency — which Musk oversees — had already initiated cost-cutting measures at the SSA. The agency has announced plans to cut approximately 7,000 jobs and reduce its regional offices from 10 to four. Acting SSA Commissioner Leland Dudek has reportedly faced pressure from DOGE to eliminate "waste and fraud," but he has expressed concern that decisions are being made without sufficient understanding of SSA operations.

Despite Musk and Trump's aggressive push to reduce waste, they have not proposed cuts to Social Security benefits directly. Musk said on X that his goal is to ensure Social Security "remains solvent and protects the social security checks of honest Americans!"

See Also: Elon Musk Told The U.N. If They Could Show A Plan For Ending World Hunger He'd Donate $6 Billion – ‘I Will Sell Tesla Stock Right Now And Do It'

The Reality of Social Security Fraud

While Musk and Trump have suggested that millions of deceased Americans are receiving benefits, experts believe the issue stems from data entry errors rather than actual fraud. The SSA's computer systems, which use outdated programming, default to a birth year of 1875 when birthdates are missing. This means some individuals are mistakenly listed as being over 150 years old. However, the SSA has a policy to terminate payments to beneficiaries over 115 years old to prevent fraud.

It's unclear whether Musk and DOGE will pursue additional cuts at the SSA or if their focus will remain on fraud investigations. Democratic lawmakers have voiced concerns that these efforts could undermine Social Security's ability to provide timely benefits. Meanwhile, Musk's statements about entitlement fraud and undocumented immigrants continue to generate political tension, even as data suggests that widespread fraud remains rare.

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