Misunderstanding Money: The Confusion Over Children's Benefits

In March 2025, a significant mix-up occurred regarding financial aid for young children. Barry Kaufmann, a prominent figure in the New York State Alliance for Retired Americans, made a bold statement at a rally. He claimed that loans supposedly given to children aged 11 or younger were actually survivor benefit annuities. These annuities are meant for children whose parents have passed away. Kaufmann's words quickly spread across various social media platforms, including Facebook, X, Threads, Reddit, and Bluesky. Kaufmann's statement suggested that a group called DOGE had mistakenly identified Social Security loans given to very young children. He argued that these were not loans but survivor benefits. This confusion highlights a broader issue: the lack of understanding among some IT professionals and billionaires about the intricacies of government programs. Kaufmann's critique was clear: you can't find what you don't know. The Small Business Administration (SBA) had already confirmed the existence of over 5, 500 loans, totaling about $312 million, to businesses supposedly owned by children aged 11 or younger. This announcement came just days before Kaufmann's rally. DOGE had stated it was working with the SBA to address this issue. However, the details surrounding these loans remained unclear. Neither DOGE nor the SBA provided further information at the time. A survivor benefit annuity is a benefit available to federal employees under specific retirement systems. Typically, this benefit goes to surviving spouses or ex-spouses. However, children can also be eligible if they were dependent on the retiree who chose the benefit. The Office of Personnel Management (OPM) manages these federal retirement plans. It was unclear how much money was paid to children aged 11 or younger under this benefit in the years 2020-2021, when DOGE claimed the loans were issued. The confusion over these benefits raises important questions. How did such a significant mix-up occur? Why was there a lack of clarity from both DOGE and the SBA? These questions highlight the need for better communication and understanding between government agencies and the public. It also underscores the importance of verifying information before it spreads widely. The situation serves as a reminder that misinformation can quickly gain traction, especially in the age of social media.