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Elon Musk’s Department of Government Efficiency (DOGE) has gained oversight of the Treasury Department’s payment system, raising significant concerns among consumer advocates and Democratic lawmakers regarding access to taxpayer data and the implications for federal funding allocation. This change allows DOGE control over the Bureau of the Fiscal Service, a key agency responsible for dispersing trillions of dollars in payments annually, including Social Security benefits and federal salaries, as reported by the Associated Press.
The timing of this development is notable, occurring shortly after the White House imposed a temporary freeze on federal grants and loans. This freeze created confusion within various federal assistance programs and among many Americans relying on government support. Reports emerged that state Medicaid programs were denied access to the Department of Health and Human Services system essential for tracking and distributing funds.
What are the concerns?
The White House’s initial directive to halt funding was later reversed, and a subsequent court ruling suspended the freeze. Nevertheless, DOGE’s current authority over the Treasury payment system raises serious questions about the Trump administration’s capacity to obstruct funding for crucial programs, such as Medicare and Social Security. Furthermore, there are worries about DOGE’s potential to access sensitive information, including the Social Security numbers of a vast number of American taxpayers.
Donald K. Sherman, the executive director of Citizens for Responsibility and Ethics in Washington, expressed deep concerns. He stated, “There’s no community of Americans that this system does not touch,” emphasizing the unsettling fact that access to this system, including sensitive personal information, is now in the hands of a billionaire connected to the administration. He warned of real risks associated with potential disruptions in federal payments crucial for millions of Americans.
The situation has prompted alarm among Democratic lawmakers such as Senators Elizabeth Warren and Ron Wyden. A recent lawsuit was filed against Musk and DOGE, alleging the unlawful and systematic sharing of personal financial information. The complaint names Treasury Secretary Scott Bessent and the Treasury as defendants.
Senator Warren highlighted the risks, noting that control over the payment system could enable the Trump Administration to “unilaterally – and illegally – cut off payments for millions of Americans,” potentially jeopardizing the financial stability of families across the country.
In her communication to Bessent, she further expressed concerns about unauthorized access to sensitive data protected by law.
What is the Bureau of the Fiscal Service?
The Bureau of the Fiscal Service performs the role of the government’s financial manager, responsible for processing payments for various agencies according to congressional allocations. It manages a vast network through which over $6 trillion in payments flow to American households, businesses, and other recipients annually.
In the fiscal year 2023 alone, this agency distributed nearly 1.3 billion payments amounting to approximately $5.4 trillion, with an impressive 97% of transactions executed electronically and all completed on time, according to available data.
How did DOGE get control of the payment system?
The establishment of DOGE was formalized through an executive order by President Trump, mandating that it be granted full access to pertinent agency records and systems. Despite not being an official federal department, DOGE gained access to sensitive data following the resignation of Treasury’s acting Deputy Secretary David Lebryk, who retired after Musk’s team at DOGE requested sensitive information.
In a statement via social media, Musk indicated that DOGE had halted payments from the Department of Health and Human Services to a charity assisting refugees, raising further questions about the implications of his control over federal funding.
Could this impact Social Security?
Concerns extend to how DOGE’s involvement may undermine vital programs like Social Security. Although neither Musk nor Trump have indicated an intention to target Social Security benefits, advocates remain cautious. Trump has assured the public of his commitment to preserve Social Security and has advocated for eliminating taxes on these benefits. However, given that monthly Social Security payments depend heavily on the Bureau of the Fiscal Service, stakeholders are rightfully anxious about potential risks.
Max Richtman, CEO of the National Committee to Preserve Social Security and Medicare, stated, “Musk and DOGE now have access to the personal information of every Social Security beneficiary — and the ability to stop payments for any federal programs they dislike,” a concern echoed by Senator Wyden, who raised the alarm about the possibility that Social Security checks could be affected.
Does Musk have access to taxpayers’ personal data?
Advocates and lawmakers also express apprehension regarding the potential for DOGE’s access to personal data of millions of taxpayers. The Bureau of the Fiscal Service not only disburses payments but also handles tax refunds, thus involving sensitive information like Social Security numbers and banking details.
While Kate Miller, a member of DOGE’s advisory board, has attempted to address these concerns by asserting that no classified information was accessed improperly, experts warn that any unauthorized access to personal data could expose taxpayers to significant risks. James E. Lee, president of the Identity Theft Resource Center, articulated that this level of access to personal information—traditionally tightly secured—could facilitate identity theft and other forms of financial fraud.
Additionally, lawmakers remain wary of potential risks posed by granting Musk access to sensitive data, especially given his substantial business interests in China and the ramifications that could have for national security and personal privacy.
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