Alleged Fed Fund Fraud in the US: $333 Million Loan for Recipients 110 Years Old and Above!

Jakarta, Pintu News – The United States Small Business Administration (SBA) has reportedly approved 3,095 loans worth Rp5.4 trillion ($333 million equivalent) to borrowers recorded as 115 years old or older in the Social Security database. One loan recipient was even listed as 157 years old and received Rp586 million ($36,000).

This information was revealed by the Department of Government Efficiency (D.O.G.E), which called this case part of an alleged large-scale fraud scheme. In addition, between 2020 and 2021, the SBA also approved 5,593 loans worth IDR5.1 trillion (equivalent to $312 million) for businesses registered in the names of children aged 11 years or younger.

While this may be legal in some cases, all of these loans had one thing in common: each application used a Social Security Number (SSN) that did not match the name registered in the government system. This finding raises serious concerns about the potential misuse of federal funds.

New Policy to Cut Social Benefits for the Elderly

While the alleged fraud of federal funds continues to be in the spotlight, the Social Security Administration (SSA) announced a new policy that will cut social benefits for seniors who receive overpayments. This decision reverses the Biden-era policy that previously limited deductions to 10% of their monthly payments.

Starting March 27, 2025, beneficiaries who received overpayments-often due to SSA errors-may lose their entire benefit. The move comes as part of the government’s efforts to recover IDR114 trillion ($7 billion equivalent) in the next decade.

The policy has drawn criticism from former Social Security Commissioner, Martin O’Malley, who warned that a full cut could cause financial hardship for the elderly who rely entirely on their social benefits. Although there is a debt write-off mechanism if the recipient is innocent, the amount of debt write-off in 2023 will only amount to IDR4.9 trillion ($302 million equivalent), much smaller than the total funds claimed as overpayments.

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Trump and D.O.G.E. Accuse Biden Administration of Massive Deception

Former President Donald Trump accused the Biden administration of being involved in a federal funds scam that he said was worth hundreds of billions of dollars. Trump claimed that the D.O.G.E. had uncovered many fraudulent government contracts that led to the leakage of large amounts of funds.

Meanwhile, labor unions in the United States are attempting to sue the SSA to prevent the D.O.G.E. from accessing the Social Security data of millions of citizens. The lawsuit filed in Maryland federal court aims to protect Americans’ personal information from unfettered access by the D.O.G.E.

Some parties believe that D.O.G.E is trying to gain access to personal data without clear restrictions. The union’s lawyer, Karianne Jones, stated that they have not been able to explain specifically what data the D.O.G.E is seeking and why they need it. However, a federal court in Washington recently rejected a request to block D.O.G.E’s access to the Treasury Department’s financial system that holds sensitive data on millions of people.

Budget cuts and mass layoffs in SSA

The Trump administration is also seeking major budget cuts in various government agencies, including the SSA. A report from D.O.G.E said that more than 10% of SSA employees will be laid off, and dozens of SSA offices across the country are at risk of closure.

The government argues that this move is necessary to reduce waste and fraud of federal funds. However, critics argue that the reduction in workforce will only exacerbate the problem, as understaffing may lead to more frequent administrative errors-as seen in the case of the $333 million loan to individuals of unreasonable age.

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Reference

• Cryptopolitan. Trump and Elon Musk’s D.O.G.E Find $333M in Federal Loans to 110-Year-Olds. Accessed March 10, 2025.
• Featured Image: CoinPedia