Trump and Musk explaining the administration’s cost-cutting efforts in the Oval Office of the White House in Washington. — Eric Lee/The New York Times
NOW that he is back in office, US President Donald Trump sees corruption everywhere – within the foreign aid agency, at the Justice Department, in federal contracting.
But when it comes to his own circle, he seems far less interested in taking a closer look.
In his second stint as president, Trump is styling himself as a crusader against waste, fraud, and abuse across the federal government – even as he systematically dismantles the very mechanisms designed to combat corruption.
Alongside billionaire Elon Musk, his self-proclaimed partner in the efficiency drive, Trump boasts they have uncovered “billions and billions of dollars” in corrupt spending. Yet, so far, neither has offered solid evidence to support their claims.
At the same time, his administration has dropped corruption cases against political allies, dismissed inspectors-general responsible for rooting out abuse, and pledged not to enforce a key anti-bribery law against major corporations.
Trump and Musk accuse the so-called “deep state” of corruption while asking Americans to trust that they, despite an unparalleled range of conflicts of interest, are above wrongdoing.
Both men continue to control their private business empires, which stand to benefit from government policies and decisions.
“I campaigned on the fact that I said government is corrupt – and it is corrupt,” Trump said during a recent Oval Office appearance with Musk.
“I see a lot of kickback here,” he added, without offering specifics. “Tremendous kickback. Because no one could be so stupid to give out some of these contracts, so it must be kickbacks.”
He went even further, claiming, “When you get down to it, it’s probably going to be close to a trillion dollars.”
Fuzzy numbers, baseless claims
Trump has a long history of making sweeping statements without factual backing.
As the first convicted felon ever elected president, he frequently hurls accusations of corruption and criminality at his opponents, often relying on conspiracy theories and debunked narratives.
His newfound crusade against waste in federal spending appears driven more by his vendetta against government institutions – agencies he believes undermined him during his first term – than by an actual desire to combat fraud.
When Trump’s aides have flagged questionable spending, the issues often stem from policy disagreements rather than outright graft. In some cases, they have misrepresented the details entirely.
For example, Trump falsely claimed the government was giving money “to the fake news media as a ‘payoff’ for creating good stories about the Democrats” after confusing standard subscription fees with aid grants.
Similarly, five of eight examples of alleged waste at the US Agency for International Development (USAID), cited by the White House press secretary, were either unrelated to the agency or misleadingly described.
None involved criminal fraud – just priorities Trump opposes.
“Nothing they have identified via the DOGE social media posts is, to my knowledge, evidence of fraud or corruption,” said Jessica Tillipman, an associate dean at George Washington Law School and a specialist in government contracting.
She was referring to Musk’s team, which calls itself the Department of Government Efficiency (DOGE).
“Fraud and corruption are illegal, and what DOGE has identified so far are payments that this administration disagrees with or views as wasteful, which are not illegal,” she added.
“Calling these things fraudulent or corrupt misrepresents what they are finding.”
Sensationalism over substance
During their Oval Office remarks, Trump and Musk made vague and dramatic claims that lacked substantiation.
Musk alleged that the government was issuing “a massive number of blank cheques” and paying “known fraudsters”.
He also suggested that Social Security cheques were going to individuals whose birth dates suggested they were 150 years old.
“We found fraud and abuse; I would use those two words,” Musk declared.
He further implied that government employees were secretly amassing tens of millions of dollars, though he failed to provide any evidence.
“Mysteriously, they get wealthy,” Musk said. “We don’t know why. Where does it come from? I think the reality is they’re getting wealthy at taxpayers’ expense. That’s the honest truth of it.”
A former inspector-general from a previous administration, speaking anonymously for fear of retaliation, suggested Musk was misinterpreting government data due to his lack of experience with federal agencies.
Fraud and hypocrisy
There is no question that waste and fraud exist in government.
The Government Accountability Office (GAO) estimated last year that the federal government loses between US$233bil and US$521bil annually to fraud, based on data from fiscal years 2018 to 2022.
Additionally, in 2023, the GAO reported that federal agencies made an estimated US$236bil in improper payments, adding up to roughly US$2.7 trillion in such payments over the past two decades.
Fraudulent claims surged during Trump’s previous presidency, largely due to pandemic-related aid programmes.
In 2016, before Trump took office, improper payments totalled US$144.4bil. By 2020, the final year of his first term, they had risen to US$206.4bil.
Despite his rhetoric, Trump’s actions suggest his anti-corruption stance is highly selective.
Within weeks of taking office, his Justice Department dropped a case against former representative Jeffrey Fortenberry, who was convicted of lying to the FBI about illegal campaign donations.
Federal prosecutors also withdrew from a campaign finance investigation into Republican Representative Andy Ogles, leaving the case in limbo.
Last month, the department moved to drop bribery charges against New York mayor Eric Adams, who has warmed up to Trump since the election.
Trump also pardoned former Illinois governor Rod Blagojevich, who was convicted of trying to sell a Senate seat.
And in a move that raised eyebrows, he nominated Charles Kushner, the father of his son-in-law Jared Kushner, as ambassador to France – despite his past conviction for tax evasion and witness retaliation. (Trump had pardoned him during his first term.)
At the same time, Trump has dismissed at least 17 inspectors-general from key federal agencies, eliminating officials whose mission is to uncover waste and abuse – the very thing he claims to be fighting.
His administration has also fired the heads of the Office of Government Ethics and the Office of Special Counsel, two watchdog agencies that scrutinised his team during his first presidency.
Conflicts of interest at the top
Trump’s selective anti-corruption drive conveniently ignores the potential conflicts within his own administration.
He maintains his business empire, which profits from his presidency and attracts investors hoping to curry favour.
A cryptocurrency venture he launched days before his inauguration has already funnelled US$100mil in trading fees to his family and associates.
Musk, meanwhile, continues to own and operate multiple companies, which receive billions in federal contracts and remain under government scrutiny.
Even if he does not directly intervene, officials who oppose Trump or Musk have found themselves sidelined or fired.
A White House official said Musk, who holds the title of unpaid “special government employee”, plans to file a financial disclosure – but it will remain confidential, despite his public promises of transparency. — ©2025 The New York Times Company
