Musk Claims NGOs Are Major Fraud Source

This video captures Elon Musk discussing with Larry Kudlow what he characterizes as a massive government waste issue uncovered by the Department of Government Efficiency (DOGE). According to Musk, government-funded non-governmental organizations represent “one of the biggest sources of fraud in the world,” with the segment then shifting to Fox & Friends hosts discussing implications for border spending and domestic priorities.

According to the video, DOGE currently employs approximately 100 people—referred to as “super geniuses” by the President—and Musk would like to double that number to 200 to more effectively examine alleged government waste. Musk tells Kudlow that his team’s approach is straightforward: “follow the money.” In the video, Musk claims that DOGE began scrutinizing USAID closely after the agency allegedly violated presidential executive orders to suspend foreign aid, which Musk characterizes as “a lot of corruption.”

Musk alleges in the interview that the government has sent “tens of billions of dollars to NGOs that are essentially scams.” He describes what he views as a structural problem: the government gives money to NGOs, but according to Musk, “there were no controls over that NGO,” creating what he calls “a gigantic fraud loophole.”

The Fox & Friends hosts then apply Musk’s claims to border policy under the previous administration. Co-host Ainsley Earhardt alleges that when migrants crossed the border, they were handed to NGOs that provided shelter, food, and travel arrangements using federal dollars. She claims this was “a way for the federal government, under Joe Biden to hide the real costs of the border crisis” because the spending went through NGOs with allegedly no record keeping. Steve Doocy adds that, according to his understanding, the Biden administration gave money to NGOs so it wouldn’t have to build its own migrant-care infrastructure or “balloon the budget even further.”

Co-host Lawrence Jones contrasts this alleged spending on non-citizens with unmet domestic needs, citing veterans experiencing homelessness, North Carolina disaster victims, and Los Angeles wildfire survivors who need to rebuild. Brian Kilmeade references an example involving Stacey Abrams allegedly receiving $2 billion to form an organization distributing green appliances, questioning why that group received such funding without relevant experience and calling for tax statements and follow-through.

The conversation then pivots to child care costs, with hosts discussing a study showing that in 38 states plus DC, child care now allegedly exceeds college tuition costs, with DC infant care cited at over $28,000 annually compared to $6,200 for college tuition.

In Nick Shirley’s Own Words

“This, by the way, is one of the biggest sources of fraud in the world, is government funded, nongovernmental organizations. This is a gigantic fraud loophole.”

“We estimate tens of billions of dollars to NGOs that are essentially scams.”

“The government can give money to an NGO, and then there were no controls over that NGO.”

This segment matters because it represents high-profile allegations about a spending mechanism that allegedly operates with limited public oversight. If government funds flow to NGOs without adequate accountability systems, as Musk claims, it raises questions about how billions in taxpayer dollars are tracked and whether existing controls are sufficient to prevent alleged fraud and misuse.