Musk gains control over $5T payment system, sparking panic

Fear has gripped Washington as Elon Musk’s Department of Government Efficiency (DOGE) has secured access to the Treasury Department’s payment system, which processes over $5 trillion annually. The system is critical for funding government programs such as Social Security and Medicare, and any disruption could have catastrophic economic consequences.

Treasury Secretary Scott Bessent authorized DOGE’s full access on Friday, following a standoff with top Treasury official David Lebryk, who had resisted Musk’s involvement. Lebryk was abruptly placed on leave before announcing his retirement.

Political backlash and security concerns

Democrats erupted in outrage, with Senator Elizabeth Warren calling for an investigation and Representative Pramila Jayapal denouncing the move as “corrupt.” Critics fear Musk could use his access to advance Trump’s political agenda, potentially withholding payments or cutting funding for government programs.

Musk defended the decision, alleging widespread fraud in government spending. He claimed that Treasury officials had never denied payments, even to fraudulent or terrorist-linked recipients.

Musk’s role in government spending cuts

Musk has pushed for drastic spending reductions, initially calling for $2 trillion in cuts before revising the goal to $1 trillion. DOGE’s role in managing Treasury’s payment system remains unclear, but its access could provide a mechanism for enforcing spending restrictions without congressional approval.

This move follows Trump’s recent attempt to freeze trillions in federal grants—a decision swiftly blocked by a judge.

Possible disruptions and political fallout

Senator Ron Wyden warned that any politically motivated meddling in the payment system could cause severe economic damage. Meanwhile, Musk escalated tensions by calling USAID, a foreign aid agency, “evil” and a “viper’s nest of radical-left Marxists.”

With key agencies resisting Musk’s involvement, the situation remains volatile. Any interruption in government payments could trigger a financial crisis, making Musk’s next move critical to watch.