Earlier this year, President Trump began his second term in office, and one of the major changes in his administration was the creation of the Department of Government Efficiency (DOGE).
This department is headed by Tesla CEO Elon Musk, who has been tasked with advising on improvements to various federal systems, including Social Security.
DOGE’s goal is to help reduce government spending by suggesting more efficient ways of running programs like Social Security. But how might these changes affect the millions of Americans who rely on Social Security?
The Role of Social Security in the US
Social Security is one of the most important government programs in the United States, supporting around 70 million Americans. The majority of beneficiaries are retirees, but the program also provides support for people with disabilities who can’t work and offers help to those with limited income. Without Social Security, many Americans would struggle to meet their basic needs.
However, the program is not without its challenges. As DOGE begins to take a more active role in advising the government, beneficiaries of Social Security have raised concerns about how their personal information might be used.
For example, DOGE was recently granted access to the U.S. Treasury’s data, which has led to questions about how much influence Musk and his team could have on the program’s future.
Four Potential Changes to Social Security Under DOGE
While DOGE’s influence on Social Security is still unfolding, there are four possible changes that Musk and his team might introduce.
1. Improving the Payment System
Given Musk’s experience with technology and innovation, one major change could be improving the payment system for Social Security. Experts suggest that DOGE may introduce blockchain technology or cryptocurrency, such as the popular Dogecoin (DOGE), to modernize the way benefits are distributed.
If this happens, beneficiaries could see cleaner systems with less fraud and more transparency, something that is currently needed in government programs.
Peter Diamond, a tax and financial expert, believes that using blockchain or cryptocurrency could help reduce fraud and improve how benefits are delivered to those who need them most.
2. Incentives for Innovation
Another possible change is the introduction of incentives for individuals who pursue careers in fields like artificial intelligence (AI) and renewable energy. These sectors are seen as critical for the future, especially as the world works to combat climate change.
Musk might suggest offering early access to Social Security benefits for those who contribute to these industries, encouraging innovation in ways that benefit society and the environment.
Incentives for individuals working in renewable energy, for example, could align with global efforts to move away from fossil fuels and reduce the impacts of climate change. This could help the US meet its climate goals while rewarding those who play an active role in shaping the future.
3. Zero-Tolerance for Fraud
One of the most likely changes is a crackdown on fraud within the Social Security system. DOGE’s primary objective is to reduce unnecessary government spending, and tackling fraud is one of the easiest ways to save money.
While the Social Security Administration has a high payment accuracy rate (99%), even a small amount of fraud or mistakes can lead to billions of dollars in wasted taxpayer money.
For example, even though just 0.3% of Social Security payments are found to be improper, this amounts to billions of dollars in inaccurate payments each year. Eliminating fraud would help ensure that the program functions as it was originally intended: to support those who truly need it.
4. Slower Payouts but Stronger Long-Term Sustainability
While the goal of reducing fraud and improving the system is important, experts caution that it may lead to slower payouts and service in the short term. The necessary adjustments could be costly at first, but they might help the Social Security system remain strong and sustainable in the long run.
Elon Musk and DOGE’s team are expected to continue working with the federal government until 2026, with Musk possibly stepping down in May of this year. As these changes are implemented, Social Security beneficiaries will need to keep a close eye on any adjustments that could affect their benefits.