Elon Musk, head of the Department of Government Efficiency (DOGE), raised concerns about inefficiencies in federal spending during an appearance on Sen. Ted Cruz’s Verdict podcast. Musk revealed that his team’s audit of the federal government uncovered what he calls “magic money computers” — government computer systems with blank-check authority that can issue payments without proper oversight. These systems exist in multiple federal departments, including the Treasury, Health and Human Services, State, and Defense.
Musk explained that many people assume government financial systems are synchronized and track spending accurately. However, he suggested that this is not the case, implying a lack of coherence in federal financial management. He described these systems as being capable of creating money “out of thin air” and issuing payments without clear accountability.
Sen. Cruz acknowledged the concern, agreeing that such an issue would be alarming. Musk’s findings highlight potential inefficiencies and financial mismanagement within federal agencies. His remarks underscore the purpose of DOGE’s audit, which aims to enhance transparency and accountability in government spending. The discovery of these so-called “magic money computers” raises questions about how taxpayer dollars are managed and whether reforms are necessary to prevent waste and abuse.
Elon Musk, head of the Department of Government Efficiency (DOGE), revealed that 14 government computers, which he calls “magic money computers,” have the ability to create and send money without oversight. He described these systems as “maybe the biggest scam of all time” in a post on X. Musk claims these computers exist across multiple federal agencies and contribute to government waste.
During the discussion, Sen. Mike Lee jokingly asked if such a computer could be bought on eBay, highlighting concerns over the lack of accountability in federal spending.
The revelation comes as DOGE continues efforts to cut wasteful government spending. Last week, the department announced the cancellation of 239 government contracts deemed unnecessary, estimating savings of up to $1.7 billion. Among the canceled projects were a $699,000 study on cannabis use among “sexual minority gender-diverse individuals” and a $740,000 research project on social networks among Black and Latino sexual minority men in New Jersey.
Musk’s findings emphasize the need for financial oversight and reforms to ensure responsible government spending.