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9 DOGE Myths and Exaggerations Musk Wants You to Believe

Elon Musk's Department of Government Efficiency (DOGE) claims to be cutting billions in government waste. But how much of it is real, and how much is exaggerated?

Kendall Blythe

MTN Staff

Over two decades making money matters clear, practical and relatable.

February 24, 2025 • Advertising Disclosure

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Elon Musk
Frederic Legrand – COMEO / Shutterstock.com

Supporters of Elon Musk’s DOGE are enthusiastic about it eliminating waste and saving taxpayers billions. Critics argue that many of its claims are exaggerated or misleading.

From questionable savings to outright miscalculations, what is happening behind the headlines?

1. The $8 billion ICE contract that was never $8 billion

Elon Musk
Naresh677 / Shutterstock.com

DOGE claimed an $8 billion cost-saving by canceling an Immigration and Customs Enforcement (ICE) contract. But the truth is:

  • The contract was worth $8 million, not $8 billion.
  • Only $2.5 million had been spent before its cancellation.
  • The “savings” were exaggerated by a factor of 1,000, making it one of the biggest DOGE misinformation claims to date.

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2. Did DOGE really save money by closing Jimmy Carter’s office?

Elon Musk
DELBO ANDREA / Shutterstock.com

DOGE claimed credit for saving $128,233 by shutting down a former president’s office in Atlanta. But there’s a catch:

  • The lease was already set to expire following Jimmy Carter’s death in December 2024.
  • The office space was part of a General Services Administration (GSA) lease that would have ended regardless of DOGE’s involvement.
  • This is another example of DOGE taking credit for something that would happen anyway.

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3. Social Security fraud: Real problem or exaggerated crisis?

vasilis asvestas / Shutterstock.com

Elon Musk has claimed that “tens of millions” of fraudulent payments are being made through Social Security. However, the agency’s reports tell a different story:

  • The Inspector General’s office found that improper payments account for less than 1% of Social Security’s total spending.
  • While some payments to deceased individuals have been documented, they’re a tiny fraction of overall benefits.

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4. Musk’s Fort Knox conspiracy: Is the gold gone?

Elon Musk
Kathy Hutchins / Shutterstock.com

Musk recently questioned whether the U.S. gold reserves at Fort Knox were still intact, sparking speculation online. However, the facts tell a different story:

  • Fort Knox has been audited multiple times, with the last major inspection confirming the gold’s presence.
  • Conspiracy theories about missing gold have circulated for decades, but no evidence supports Musk’s claim.

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5. FEMA’s supposed $59 million in luxury hotel stays

Elon Musk
Alessia Pierdomenico / Shutterstock.com

Musk claimed FEMA wasted $59 million on disaster relief funds to house migrants in luxury hotels in New York City. But here’s what actually happened:

  • The funds came from a previously approved budget for shelter and services, not “disaster relief.”
  • New York received $237 million in federal reimbursement for its $7 billion migrant housing costs.
  • Of the $59 million, only $19 million went toward hotel fees, and none was spent on luxury accommodations.

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6. Are anti-DOGE protests funded by “corrupt NGOs”?

Elon Musk
Alessia Pierdomenico / Shutterstock.com

Musk reposted claims that government-backed NGOs secretly funded anti-DOGE protests, but:

  • No evidence links any government-funded organization to the demonstrations.
  • Protesters have organized mainly independently online, with no financial backing from federal agencies.

7. Did USAID pay celebrities to visit Ukraine?

Elon Musk
Frederic Legrand – COMEO / Shutterstock.com

Rumors circulated that USAID paid celebrities like Ben Stiller and Angelina Jolie to take photos with Ukrainian President Volodymyr Zelenskyy, but the facts tell a different story:

  • Both actors publicly denied receiving any payments.
  • USAID has no record of funding celebrity visits.
  • Some posts falsely attributed a fake news report from E! News, which has since been debunked.

Misinformation spreads fast, but verifying facts is crucial—especially regarding finances. Making informed decisions can help you avoid costly mistakes and stay financially secure.

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8. Are bureaucrats pocketing “tens of millions” from taxpayers?

Kathy Hutchins/Jonathan Weiss / Shutterstock.com

Musk claimed government employees were pocketing millions of taxpayer dollars, but:

  • No specific names or proof were given.
  • Federal employees’ salaries are publicly documented and don’t support this claim.
  • The claim suggests corruption without providing any direct evidence.

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9. Did USAID fund a “transgender opera” in Colombia?

Elon Musk on the cover of Newsweek
dennizn / Shutterstock.com

A viral claim said USAID spent thousands on a transgender opera in Colombia, but:

  • The State Department, not USAID, funded a $25,000 grant for a university research program on transgender representation in opera.
  • It had nothing to do with DOGE, yet the claim keeps spreading.

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The truth about DOGE’s cost-cutting claims

The White House
Andrea Izzotti / Shutterstock.com

usk has claimed DOGE will save $1 trillion from the federal budget by July 4, 2026. However, the reality is more complicated:

  • The largest “savings” claims have already been debunked or heavily exaggerated.
  • Cutting government programs doesn’t automatically free up cash—it often shifts spending elsewhere.
  • Many announced cuts haven’t been finalized, meaning any projected savings remain theoretical.

DOGE’s cost-cutting claims may sound impressive, but many rely on misleading figures, pre-planned cuts, or savings that may never materialize. Just as it’s important to separate fact from fiction in budgeting, making smart investment choices means looking beyond hype and focusing on tangible opportunities.

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