A month ago, billionaire Elon Musk warned that if Donald Trump won a second presidential term and gave him a role in government, Americans would need to “reduce spending to live within our means” and suffer “temporary hardship” in order to address the national debt. On Tuesday, the Tesla CEO seemed closer to achieving that goal after the president-elect announced Musk and Vivek Ramaswamy will lead a new “Department of Government Efficiency” (DOGE).
The two entrepreneurs will be tasked with paving the way for Trump’s administration “to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies,” Trump said in a statement.
He added that DOGE could “become, potentially, ‘The Manhattan Project’ of our time. Republican politicians have dreamed about the objectives of ‘DOGE’ for a very long time” and that the department would partner with the White House Office of Management and Budget (OMB). Exactly how DOGE would “provide advice and guidance from outside of government” was not clear.
In the statement shared by Trump, Musk declared that DOGE “will send shockwaves through the system and anyone involved in Government waste, which is a lot of people!”
“Importantly, we will drive out the massive waste and fraud which exists throughout our annual $6.5 Trillion Dollars of Government Spending. They will work together to liberate our Economy, and make the U.S. Government accountable to ‘WE THE PEOPLE,’” Trump continued. The president-elect ended by stating DOGE’s work will “conclude” no later than July 4, 2026, and that a “smaller government” will be the “perfect gift” to the American people, marking the 250th anniversary of the Declaration of Independence.
Musk, one of Trump’s mega-donors during his campaign, is a major government contractor and beneficiary of federal spending. His company SpaceX holds several federal contracts, including a $1.8 billion contract with an intelligence agency to build a global surveillance network with satellites. The world’s richest man is expected to receive a colossal financial windfall under the pro-corporate policies of a second Trump administration.
The tax law that Trump signed in 2017, which slashed tax rates for corporations and the wealthy, has greatly contributed to the national deficit. The president-elect has bragged about cutting taxes for the wealthiest echelons of the country. Trump vowed to maintain those tax cuts and proposed a further cut to the corporate tax rate.