RM Elon Musk Labels Government-Funded NGOs as “Massive Fraud,” Accuses Them of Wasting Billions

Elon Musk has sharply criticized government-funded non-governmental organizations (NGOs), calling them “the biggest fraud in history,” and suggesting that tens of billions of taxpayer dollars are lost to fraudulent schemes with minimal oversight. However, while some recent investigations validate Musk’s concerns, federal audits have disputed the extent of the alleged fraud, placing it far lower than Musk’s claims. His tenure at the Department of Government Efficiency, where he co-led efforts to address such issues, ended with mixed results, and his broader allegations remain largely unproven.

In a resurfaced Fox Business interview from March 2025, Musk told host Larry Kudlow that government-funded NGOs operate as a “massive fraud loophole,” where billions of taxpayer dollars flow to organizations with little or no accountability. Musk claimed, “Tens of billions of dollars have been allocated to NGOs that are essentially scams.” This statement was made during his time as co-leader of the Department of Government Efficiency (DOGE).

Musk’s Criticism Targets Foreign and Domestic NGO Programs
One of Musk’s key areas of concern includes both foreign aid and domestic programs funded by NGOs. During a May appearance at the Qatar Economic Forum, he challenged NGOs to provide proof of their work, claiming that “huge fraud and corruption” were preventing aid from reaching those in need. Some recent criminal cases lend weight to his claims. For instance, USAID’s Office of Inspector General charged Mahmoud Al Hafyan with diverting $9 million in Syrian humanitarian aid, while Minnesota’s “Feeding Our Future” scandal exposed over $250 million in fraudulent claims.

Additionally, hearings held by the House Oversight Committee have described taxpayer-funded immigration NGOs as “slush funds,” which, according to some, push “radical agendas” with little to no accountability.

Federal Audits and Investigations Challenge Musk’s Claims
Despite Musk’s bold assertions, federal audits show that the actual rate of fraud in government benefit programs is much lower than he suggests. According to official audits, fraud in such programs is estimated to be between 2% and 5%, not the 90% to 95% fraud Musk has claimed. Independent fact-checkers also note that Musk is exaggerating the problem, pointing out significant errors in DOGE’s own evidence. For example, one $8 million contract was mistakenly reported as $8 billion.

Results from the Department of Government Efficiency’s work, which Musk co-led, were also mixed. While DOGE was able to reduce non-defense obligations by 22.4%, overall federal spending increased by around 6%. As a result, Musk’s sweeping claims about fraud remain largely unproven on a large scale, and his department’s efforts ended in late 2025 without achieving the dramatic reforms Musk had hoped for.