What to know about Trump’s Department of Government Efficiency, led by Elon Musk and Vivek Ramaswamy
Donald Trump vows to use two billionaires – Tesla CEO Elon Musk and entrepreneur Vivek Ramaswamy – to spearhead efforts to reduce wasteful federal spending as president-elect Call it ” Ministry of Government Efficiencyor dogs.
The appointments, announced by Trump on Tuesday, raised a host of questions about the effort, including whether Musk and Ramaswamy have the authority to change federal spending given congressional mandates for state spending, and what cuts businessmen might consider. At the same time, DOGE is not an official government agency under the plan, raising questions about its powers and how it operates.
Trump’s announcement comes a week after win second term As president, voters have expressed dissatisfaction with the economy under the Biden administration. As part of his campaign pledge, Trump promised to cut government spending. A profile on the social media platform
“Frankly, it does need to be done again, so every few decades you really need to look at everything,” said Elaine Kamarck, a senior fellow in governance studies at the Brookings Institution who managed the Clinton administration’s national performance reviews. “Government spending in the 1990s,” CBS MoneyWatch said.
But Carmack also has reservations about Musk and Ramaswamy’s mandates, especially since the former recently suggested he could save more than $2 trillion — nearly a third of the federal government’s $6.7 trillion in annual spending. one. Two-thirds of this expenditure is mandatory Discretionary spending is primarily directed toward national defense through programs such as Social Security and Medicare.
“That was the first warning sign that this was going to be a failed operation,” Carmack said. “It was crazy.”
The Trump campaign did not immediately respond to a request for comment.
Below is information about the Department of Government Effectiveness.
What is the Department of Government Effectiveness?
Trump announced the creation of the governor in a statement on Tuesday, describing it as an effort to “cut redundant regulations, cut wasteful spending and reorganize federal agencies.”
The name is a nod to Musk’s support for a cryptocurrency called Dogecoin. Created as a joke Designed by two software engineers and using images of smiling Shiba Inu dogs. (Dogecoin’s price has more than tripled in the last month and is currently trading at 38 cents.)
Trump said Musk and Ramaswamy’s work will be completed “no later than July 4, 2026” or the 250th anniversary of the Declaration of Independence.
Trump outlined the outlines of the initiative but did not reveal how it would be staffed or funded. The Trump campaign did not respond to requests about DOGE funding or whether Musk or Ramaswamy would be paid for their work.
Can the Governor really cut federal spending?
Currently, this seems unlikely given that the Government House is not an actual government department Created with congressional approval. Federal spending is authorized by Congress, and senators and House representatives may be hesitant to support cuts to major programs like Social Security or Medicare that are popular with millions of voters or the nation’s military.
It’s unclear how the organization will operate. It may be governed by the Federal Advisory Committees Act, which sets out how outside groups that advise the government must operate and be accountable to the public.
Trump described the roles of Musk and Ramaswamy as providing “advice and guidance from outside the government.”
That’s not a big deal, Carmack said.
“They don’t have any power — not at all,” she added, noting that the president’s support could help persuade lawmakers to back efficiency efforts.
What do Musk and Ramaswamy have to say about federal spending?
Musk, the world’s richest man with a net worth of $319 billion, according to the Bloomberg Billionaires Index, has described the U.S. government as bloated and said its spending is unsustainable. The Tesla founder also said he wants to reduce the number of federal agencies from more than 400 to 99.
“There are a lot of (agencies) that people have never heard of, with overlapping responsibilities,” Musk explain earlier this month.
While campaigning with Trump, Musk also explain He may cut “at least $2 trillion” from the annual budget. “Your money is being wasted, and Government Efficiency is going to fix that,” Musk said.
Musk is known for cutting costs at his own companies, Most of X’s employees He acquired the company two years ago and is focusing on Tesla’s manufacturing costs. Even so, the results of these efforts have been mixed, with X’s valuation dropped by about 80% Since his purchase. At the same time, Tesla’s stock price has soared 48% in the past year, and its market value exceeded $1 trillion.
Ramaswamy, who dropped out of the presidential race in January, according to Forbes, has a net worth of about $1 billion Run on “Anti-Wake” Activity. He also advocates government spending cuts Abolish the Ministry of Educationa common goal of President-elect Trump.
Have government departments tried to cut costs before?
Yes, there have been efforts by both Republican and Democratic presidents to cut government spending.
In 1982, President Ronald Reagan created the Grace Commission, led by wealthy businessmen J. Peter Graceis the CEO of WR Grace & Company, a chemicals company. About 150 business people volunteered to serve on the committee, which ultimately recommended 2,500 reforms. according to Head to the Ronald Reagan Presidential Library.
“Most of the recommendations, especially those that required legislation from Congress, were never implemented,” the library noted. “However, the committee’s work provided a starting point for many conservatives’ criticisms of the federal government.”
In the 1990s, President Bill Clinton instituted the National Performance Review with the goal of building a better-functioning, lower-cost government, Carmack said. She added that the group’s civil servants understand the bureaucracy and that many of them are frustrated by it.
The group had some success in streamlining operations and cutting costs, ultimately cutting more than 300,000 jobs. according to A study by the Congressional Research Service. Carmack noted that at a time when the Internet was just emerging, the group also worked to integrate technology into departments to improve efficiencies such as online tax filing.
Where can the Trump administration cut spending?
While experts are skeptical of Musk’s claims that $2 trillion in spending can be cut, they also point to opportunities to examine efficiencies.
Eliminating Medicare fraud is one area where savings can be made, according to Citizens Against Government Waste, a nonpartisan organization focused on government spending. Its recommendations also include reducing the country’s contribution to the United Nations and ending subsidies for certain agricultural products such as dairy and sugar. Savings of $377 billion are expected in the first year, accounting for about 19% of Musk’s $2 trillion plan.
But Carmack points out that efficiency is about more than just cost-cutting. It’s also about understanding how bureaucracies work,
“Everything in the federal government is large and complex, and there are layers upon layers of complexity,” she noted. “Al Gore and I rely on hundreds of experienced public servants to tell us how this works — and if you don’t, I doubt they will because Musk is an arrogant billionaire, You will fail.”
Does Musk have a conflict of interest?
Yes, as Musk’s SpaceX partners with the Department of Defense and NASA, the federal government committed $3 billion to his company last year, according to to the New York Times. Tesla, meanwhile, is under investigation by the National Highway Traffic Safety Administration and other agencies.
Federal employees are generally required to disclose their financial assets and entanglements to avoid any potential conflicts of interest and to divest themselves of significant assets related to their jobs. Because Musk and Ramaswamy are not officially federal workers, they do not face these requirements or ethical restrictions.
contributed to this report.
