In a revelation that has stunned financial watchdogs and lawmakers alike, the Department of Government Efficiency (DOGE) has identified a staggering $312 million in federal loans granted to children during the COVID-19 pandemic. According to DOGE, nearly 5,600 loans were approved for borrowers listed as 11 years old or younger, raising serious concerns about fraud and mismanagement within the Small Business Administration (SBA).
The loans, issued in 2020 and 2021, were part of the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) initiatives, designed to support struggling businesses. However, DOGE’s investigation found that each of these loans used a Social Security number (SSN) that did not match the name on file, making it highly unlikely they were legitimate.
“While it is possible for minors to be listed in certain business arrangements, the likelihood of 5,593 children independently securing these loans is practically nonexistent,” DOGE stated in an official report. The agency, led by Elon Musk, has pledged to work closely with the SBA this week to address the fraudulent disbursements and recover the misallocated funds.
A Pattern of Fraud?
This revelation follows another bombshell discovery: between 2020 and 2021, the SBA also issued $333 million in loans to individuals over 115 years old—some of whom were still listed as alive in the Social Security database. One supposed borrower, officially recorded as 157 years old, received $36,000 in federal funds.
The scope of these fraudulent approvals has fueled a broader crackdown by DOGE, which has already terminated hundreds of federal contracts deemed wasteful. This includes a $10.3 million Department of Agriculture contract—ironically intended to identify unnecessary contracts. DOGE has vowed to root out similar inefficiencies across federal agencies, estimating that up to $1 trillion in government waste could be eliminated.
Trump and Musk Demand Accountability
In his latest address to Congress, President Donald Trump blasted the systemic failures that allowed such fraudulent loans to be approved. He cited alarming figures, claiming that millions of centenarians remain active in the Social Security system, some supposedly as old as 360 years.
“I know some people who are rather elderly, but not quite that elderly,” Trump quipped. “We are searching right now for where this money went.”
Musk, who has been spearheading DOGE’s efforts to cut government bloat, privately met with House Republicans last week to discuss broader fraud prevention measures. He warned that without immediate action, the U.S. risks financial collapse due to unchecked waste.
Legal Battles Over Transparency
As DOGE pushes forward with its investigations, legal challenges are mounting. Labor unions and privacy advocates have filed lawsuits attempting to block DOGE’s access to Social Security data, citing concerns over personal privacy. Critics argue that the agency’s aggressive approach lacks oversight and could expose millions of Americans’ sensitive information.
However, a federal judge recently ruled in DOGE’s favor, allowing its employees to access Treasury records for investigative purposes. The decision is expected to face appeals, but for now, Musk’s agency is pressing ahead with its probe into government inefficiencies.
What’s Next?
With billions in fraudulent loans still unaccounted for, the coming weeks will be critical in determining whether DOGE and the SBA can successfully recover taxpayer funds. The agency’s findings raise urgent questions about the federal government’s oversight mechanisms and how such egregious financial mismanagement was allowed to occur.
As investigations continue, lawmakers and watchdog groups will be watching closely, eager to see whether those responsible for this misuse of taxpayer dollars will face accountability. One thing is certain: the fight against government waste is far from over.
