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WORLD
Elon Musk’s Department of Government Efficiency (DOGE) halts US Treasury payments, sparking controversy over legality, conflicts of interest, and government access.
Elon Musk’s Department of Government Efficiency (DOGE) has sparked major controversy after reportedly stopping payments made through the US Treasury. According to Bloomberg, Musk’s team, which focuses on cutting costs and modernizing government systems, has been shutting down payments to several federal contractors, including the faith-based charity Lutheran Family Services.
Musk, who announced these actions on X (formerly Twitter), claimed his team was eliminating “corruption and waste” in real-time. He alleged that Treasury officials were approving payments to fraudulent or even terrorist-linked organizations without proper checks.
Concerns Over Access to Government Systems
A key issue is the level of access Musk’s team now has to sensitive government financial systems. Reports suggest DOGE has been granted significant control over the Treasury’s payment infrastructure, which handles trillions of dollars, including Social Security and Medicare benefits. This has raised alarm among lawmakers, with many questioning the legality and oversight of DOGE’s involvement.
Senator Ron Wyden, a senior Democrat, revealed that Treasury Secretary Scott Bessent gave Musk’s team “full access” to these critical financial systems. Wyden expressed concern that some of the payments being blocked may impact government contractors who compete with Musk’s businesses, leading to potential conflicts of interest.
Resignations and Government Tensions
The controversy has already led to significant fallout within the government. David Lebryk, a top Treasury official overseeing payment systems, has resigned amid tensions over DOGE’s actions. Additionally, some officials at USAID (the US Agency for International Development) were placed on leave after they opposed DOGE’s involvement in classified financial operations.
Trump’s Support for Musk’s Cost-Cutting Measures
Despite criticism, President Donald Trump has backed Musk’s efforts, calling him a “smart guy” and praising his cost-cutting initiatives. Trump stated that while he doesn’t always agree with Musk, reducing government spending is important.
As DOGE continues its crackdown on government payments, the debate over its legal authority and transparency is expected to intensify, with lawmakers demanding more answers on its role in managing US Treasury operations.