A shocking revelation has come to light regarding fraudulent loans approved by the Small Business Administration (SBA) between 2020 and 2021. Over $333 million was issued to individuals aged 115 and older, with one recipient officially listed as 157 years old. At the same time, thousands of loans were granted using Social Security numbers that didn’t match applicants’ names. Meanwhile, the Social Security Administration (SSA) is making major changes to benefit payments, leading to concerns among retirees. Here’s what you need to know about these financial and political developments.
Massive Loan Fraud Discovered
Elon Musk’s Department of Government Efficiency (D.O.G.E) revealed that the SBA approved loans for over 3,000 individuals who were supposedly over 110 years old. Additionally, 5,593 loans worth $312 million were granted to businesses owned by children under 11, despite mismatched Social Security numbers.
The extent of this fraud has raised questions about the efficiency of federal financial programs. Former President Donald Trump accused the Biden administration of mishandling government funds, while Musk’s agency continues to investigate.
Social Security Cuts for Seniors
The SSA is reversing a policy introduced during Biden’s administration that limited overpayment recovery to 10% of a retiree’s monthly check. Beginning March 27, seniors who received overpayments—often due to SSA errors—may see their entire monthly benefit withheld until the debt is repaid.
This decision aims to recover $7 billion over the next decade. Critics argue it will place a severe financial burden on retirees who rely entirely on Social Security. The SSA recovered $4.9 billion last year but only approved $302 million in waivers for those not at fault.
Legal Battle Over Data Privacy
Trump and Musk’s D.O.G.E claim that large-scale fraud has been uncovered in federal programs. However, labor unions and privacy advocates are pushing back. A lawsuit filed in Maryland seeks to prevent Musk’s agency from accessing Social Security data, arguing that it threatens millions of Americans’ privacy.
Meanwhile, a judge in Washington ruled that D.O.G.E employees could access Treasury systems but acknowledged privacy concerns. Another court order in New York limits their data access.
Massive Job Cuts at Social Security Offices
The Trump administration is pushing for major job cuts at government agencies, including the SSA. More than 10% of Social Security employees face layoffs, and multiple SSA offices may close.
While the administration argues these cuts will reduce waste and fraud, critics warn they could make it harder to catch errors—like the fraudulent $333 million in loans.
Conclusion
The revelations of federal loan fraud, Social Security clawbacks, and government job cuts are causing major concerns. Seniors could see their benefits disappear due to overpayment recovery, while fraud investigations raise privacy issues. The battle between Trump, Musk’s D.O.G.E, and labor unions continues, with legal fights over data access and agency oversight. The coming months will be crucial in determining how these issues unfold.
