U.S. Sen. Bernie Sanders warned late Monday that billionaire Elon Musk’s new call for up to $700 billion in cuts to mandatory federal spending is an alarming step in the direction of Social Security privatization, a longstanding—and deeply unpopular—goal of right-wing politicians and corporate-funded think tanks.

Musk, who is spearheading a large-scale assault on federal agencies and workers, told Fox Business host Larry Kudlow on Monday that “waste and fraud” in “entitlement spending”—a category that includes Social Security, Medicare, and Medicaid—is “the big one to eliminate,” estimating that up to $700 billion could be cut from such programs.

It’s not clear where Musk, who has lied repeatedly about Social Security in recent weeks, got the $700 billion figure. As Rolling Stone‘s Andrew Perez noted, “There is no expert on the planet who thinks there is $700 billion worth of annual fraud in America’s safety net programs.”

“Musk at one point in the interview cited a Government Accountability Office report which estimated that the government may lose between $233 billion and $521 billion annually to fraud, but that report covered the whole of the federal government—not just those programs,” Perez wrote.

A 2024 report from the Social Security Administration’s inspector general found that of the $8.6 trillion in Social Security benefits paid out between 2015 and 2022, roughly $71.8 billion was dispensed improperly—0.84% of the total.

“I think this is a prelude not only to cutting benefits, but to privatizing Social Security itself. I think that’s in the back of their mind.”

Musk also baselessly claimed that mandatory federal spending on programs such as Social Security, Medicare, and Medicaid is a “mechanism by which the Democrats attract and retain illegal immigrants, by essentially paying them to come here and then turning them into voters.” (In reality, undocumented immigrants pay taxes that help finance Social Security and Medicare but cannot receive benefits from the programs.)

Sanders (I-Vt.) couldn’t hide his disgust when he was asked during a CNN appearance to respond to Musk’s remarks.

“Well, he has called Social Security a Ponzi scheme. They have already laid off 2,500 employees of the Social Security Administration,” said Sanders. “If you ask me, I think this is a prelude not only to cutting benefits, but to privatizing Social Security itself. I think that’s in the back of their mind.”

“Why do you lie so much about Social Security? Why do you make it look like it’s a broken, dysfunctional system?” Sanders asked. “The reason is to get people to lose faith in the system, and then you can give it over to Wall Street. That’s my view.”

Musk’s latest attack on Social Security, a remarkably efficient program that has never missed a payment, came as his Department of Government Efficiency, or DOGE, has effectively taken over the Social Security Administration (SSA) and is pushing for massive cuts to the agency’s staff and budget based on egregious lies.

“Appearing to misread a chart, for example, Musk said on social media in February that DOGE had identified payments to ‘tens of millions’ of deceased Americans—an incorrect assertion repeated by White House Press Secretary Karoline Leavitt,” The Washington Postreported last week.

Everett Kelley, president of the American Federation of Government Employees—a union engaged in a legal fight against the Trump administration’s purge of the federal workforce—wrote Monday that Musk’s latest comments show that he “doesn’t just want to cut the SSA workforce.”

“He wants to eliminate Social Security entirely,” Kelley added.

Joel Payne, chief communications officer at MoveOn Civic Action, said in a statement Tuesday that “Elon Musk and the Trump-led Republican Party are promising exactly what they have been trying to do for years: gut Social Security.”

“Republicans want to illegally fire tens of thousands of workers responsible for making sure American seniors get their Social Security and then let Musk take his chainsaw to our benefits,” said Payne. “We won’t let them do it. Elon Musk, Donald Trump, and Republicans need to keep their hands off our Social Security.”

The progressive advocacy group Social Security Works sounded a similarly defiant note.

“Elon Musk is a conman and a criminal, born with an emerald mine instead of a moral compass,” the group wrote on social media. “Of course he wants to destroy Social Security, because he can’t get his tiny greedy fingers on it any other way. HELL NO!”