President-elect Donald Trump has picked tech billionaire Elon Musk, CEO of Tesla and SpaceX, to lead a new initiative aimed at streamlining federal operations and cutting wasteful government spending.
Trump in a statement on Tuesday named Musk and conservative activist Vivek Ramaswamy to head up newly formed Department of Government Efficiency (DOGE), fulfilling a campaign pledge to give Musk sweeping oversight of government spending.
The President-elect described the two men as “wonderful Americans” who will help dismantle bureaucratic red tape, slash unnecessary regulations, and restructure federal agencies
The goal is to reduce inefficiency and waste across the government, which currently spends over $6.5 trillion annually.
“This will send shockwaves through the system, and anyone involved in government waste, which is a lot of people!” Trump quoted Musk, who is known for his no-nonsense approach to business.
The new department will exist “outside of Government,” and will work closely with the White House and the Office of Management & Budget to implement sweeping reforms, potentially reshaping the way government operates for years to come.
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Trump picks Elon Musk and Vivek Ramaswamy to lead DOGE
The arrangement would also be likely to allow Musk and Ramaswamy to continue working in the private sector and serve without Senate approval.
DOGE’s mission is likened to “the Manhattan Project of our time,” a reference to the massive World War II effort to develop the atomic bomb.
Trump’s plan is to bring an “entrepreneurial approach” to the government, leveraging outside expertise to drive change.
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The initiative will focus on cutting waste, fraud, and unnecessary spending, with a deadline set for July 4, 2026, the 250th anniversary of the Declaration of Independence.
Trump believes the reforms will lead to a smaller, more efficient government that is more accountable to the American people.
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“I am confident they will succeed!” Trump said, expressing optimism that DOGE will transform the government into a leaner, more effective institution.
Proposals on reducing government spending
Musk has said he wants to cut $2 trillion from the federal budget, which is more than the discretionary budget of $1.7 trillion. However, he said the cuts would mean “temporary hardship” for some people.
Ramaswamy on his part has called for mass layoffs at federal agencies, a tactic that could sidestep legal protections that otherwise insulate the federal civil service from targeted political cuts.
Earlier this week in an interview with Tucker Carlson, he said that “If you simply mandated federal employees to work Monday through Friday, 8 a.m. to 6 p.m., like most Americans, you’d see a mass exodus — probably a 25% thinning of the bureaucracy right there.”
Ramaswamy campaigned for president in the Republican primaries on eliminating federal agencies, and his initial targets included the Federal Bureau of Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Education Department; the Nuclear Regulatory Commission; and the Food and Nutrition Service within the Agriculture Department.
The new announcement by Trump, a Republican who defeated Democratic Vice President Kamala Harris in last week’s presidential election, brings together two of his highest-profile surrogates from the tech industry.
Musk is among the wealthiest people in the world and is also the owner of the social media platform X.
Even though he is a newcomer to electoral politics, his super PAC spent more than $152 million to elect Trump and other Republicans this year.
Ramaswamy on his part is the founder of a biotech company, Roivant Sciences and ran for the 2024 Republican presidential nomination against Trump and dropped out in January after he finished fourth in the Iowa caucuses.
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