DOGE Uncovers Massive Loan Fraud, Targeting Children and the Extremely Aged
The Department of Government Efficiency (DOGE), under the leadership of Elon Musk, has announced a new wave of contract terminations and revealed alarming instances of widespread loan fraud within the federal government. The agency disclosed that millions of dollars in loans were improperly granted to children and individuals well over the age of 100, raising serious questions about oversight and accountability within federal lending programs.
The revelations, made late Saturday, detail the Small Business Administration’s (SBA) apparent misallocation of funds during the COVID-19 pandemic. DOGE reported identifying nearly 5,600 loans, totaling $312 million, granted to borrowers whose listed owner was 11 years old or younger at the time the loans were issued in 2020 and 2021. The purpose of these loans remains unclear. While acknowledging the theoretical possibility of legal business arrangements involving young children, DOGE emphasized the extreme unlikelihood in these specific cases, citing the use of Social Security Numbers (SSNs) with incorrect names in all 5,593 loans.
DOGE took to X, formerly Twitter, to publicly address the situation, stating that they and the SBA are collaborating to resolve the issue this week. The agency’s transparency in highlighting these discrepancies underscores a commitment to accountability and a willingness to publicly challenge existing bureaucratic inefficiencies.
In addition to the loans given to children, DOGE unearthed another disturbing pattern: the disbursement of loans to individuals of extreme age. According to the agency, the SBA issued 3,095 loans, amounting to $333 million, to borrowers over 115 years old, individuals who were, nonetheless, still listed as alive in the Social Security database. One particularly egregious case involved a 157-year-old individual receiving $36,000 in loans. These loans included both PPP (Paycheck Protection Program) and EIDL (Economic Injury Disaster Loan) funds, programs designed to provide vital economic relief during the pandemic.
The findings echo concerns previously raised by former President Donald Trump, who, in an address to Congress, criticized the existence of millions of individuals over 100 years old listed in the Social Security database, including one supposedly aged 360. Trump expressed disbelief at these anomalies, stating he knew "some people who are rather elderly but not quite that elderly," highlighting what he considered to be widespread government waste and potential fraud.
Beyond the loan irregularities, DOGE is aggressively pursuing contract terminations to eliminate wasteful spending. The agency announced the cancellation of a Department of Agriculture contract worth $10.3 million, a contract that, ironically, was intended to identify unnecessary contracts. This termination is part of a larger effort to cancel 162 nonessential contracts, amounting to a total ceiling value of $205 million and projected savings of $90 million. While DOGE specified the Department of Agriculture cancellation, they did not provide a breakdown of the specific federal government areas impacted by the remaining contract terminations.
These actions are part of a broader initiative led by Musk to identify and eliminate up to $1 trillion in government waste. Musk recently met with a small group of House Republicans to discuss this ambitious goal. According to one lawmaker present at the meeting, the DOGE team is confident they can achieve this target. The lawmaker also noted Musk’s acknowledgement that mistakes may occur during the process, but that the agency would be committed to rapidly correcting them.
However, not all government entities appear to be fully supportive of Musk’s methods. Notably, the Department of Defense reportedly instructed its civilian workforce to disregard Musk’s request to report on productivity. This directive suggests potential resistance within the government to Musk’s efforts to increase efficiency and accountability, highlighting the challenges he faces in implementing widespread change.
In a controversial move, Musk reportedly told his cabinet that the DOGE email requesting information was a "pulse check" for workers, implicitly gauging their willingness to embrace increased productivity demands. He warned that the United States would face bankruptcy without decisive action to address government waste.
The disclosures from DOGE and Musk’s aggressive approach have ignited a debate about the extent of government waste and the effectiveness of existing oversight mechanisms. Critics argue that Musk’s methods are overly aggressive and disruptive, potentially demoralizing government employees and hindering essential services. Supporters, on the other hand, applaud his efforts to root out corruption and inefficiency, arguing that drastic measures are necessary to address the nation’s fiscal challenges.
The ongoing investigation into the improperly issued loans, along with the continued contract terminations, suggest that DOGE’s scrutiny of federal spending will continue to uncover further instances of potential waste and fraud. The collaborative effort between DOGE and the SBA to address the loan irregularities will be closely watched, as it could serve as a model for future investigations and reforms aimed at improving government efficiency and accountability. The findings underscore the urgent need for stricter oversight, improved data integrity, and more robust internal controls within federal agencies to prevent future misuse of taxpayer dollars.
The controversy surrounding the DOGE’s actions is likely to continue, with political ramifications potentially extending beyond the immediate issues of waste and fraud. The ongoing debate will undoubtedly shape the future of government efficiency initiatives and the role of private sector leaders in driving reforms within the public sector.
