On November 14, 2024, as Donald Trump prepares to return to the White House, he has appointed Elon Musk to establish a team aimed at improving government efficiency. While Trump has not disclosed specific details on how it will operate, Musk has set a goal to cut $2 trillion in spending.
As the world’s richest person, Musk will co-lead the Department of Government Efficiency (D.O.G.E) with former Republican presidential candidate Vivek Ramaswamy. According to Reuters, the following aspects shed light on how Musk plans to operate this newly formed team:
In a statement on Tuesday, Trump said the team will “provide advice and guidance from outside the government” to streamline government operations, reduce regulations, cut spending, and reorganize federal agencies.
Trump aims to transfer control of schools to the states and combat the “deep state.”
Trump and Musk have stated that the team could significantly reduce spending. However, large-scale budget actions generally fall within the purview of Congress. They may choose to heed advice from external groups like the efficiency department, or they may choose to ignore it.
Musk mentioned that to maintain transparency, the team will make its “actions” public to solicit feedback.
“If the public believes we are cutting something important or not cutting some waste, please feel free to tell us!” he said.
He also referenced a “silly” expense list, noting that these expenditures are “quite interesting.”
During a Trump rally held in October at Madison Square Garden, Musk stated that federal spending could be reduced by “at least” $2 trillion. According to the Congressional Budget Office, total federal spending for the 2024 fiscal year is estimated at $6.75 trillion, with discretionary spending (including defense spending) projected at $1.9 trillion.
Musk’s companies, including the electric vehicle maker Tesla and commercial space company SpaceX, have extensive contracts with NASA and the Pentagon, providing rockets, satellites, and other space services.
He has also dealt with regulatory agencies within the Department of Transportation, including the Federal Aviation Administration (FAA) overseeing SpaceX rocket launches, and the National Highway Traffic Safety Administration (NHTSA) investigating Tesla’s autonomous driving features.
Ramaswamy founded the pharmaceutical company Roivant Sciences and has collaborated with the FDA. In 2023, he criticized the FDA’s regulations and actions on the social media platform X.
In February 1982, former President Ronald Reagan announced the formation of a group composed of private sector experts to provide recommendations on eliminating inefficiency and waste. In June of the same year, he issued an executive order establishing the President’s Private Sector Survey on Cost Control, also known as the Grace Commission, chaired by former CEO of W.R. Grace and Co., J. Peter Grace.
Grace funded this work through a foundation. Around 150 business leaders voluntarily participated in an executive committee overseeing 36 Grace Commission task forces, each responsible for reviewing different agencies or functions.
In January 1984, the commission released a report with approximately 2,500 recommendations. Most suggestions, particularly those requiring congressional legislation, were never implemented, as stated by the Reagan Library.
In March 2017, Trump signed an executive order aimed at improving federal agency efficiency, effectiveness, and accountability, and “eliminating or reorganizing unnecessary federal agencies.” The order required each federal agency to submit restructuring plans and established “regulatory reform” task forces and officials within federal agencies.
Trump also attempted to shut down at least 19 agencies during his first term but was unsuccessful. He called for the elimination of Overseas Private Investment Corporation and Corporation for Public Broadcasting, sought to cut funding for Amtrak and rural air services, and reduce funding for the Special Olympics.
Following Musk’s acquisition of the social media app Twitter (now X), advertising revenue decreased, leading to layoffs of around 3,700 employees, about half of the workforce. Subsequently, several hundred employees resigned.
Musk’s success in the space sector is notable. SpaceX’s Falcon 9 rocket significantly reduced launch costs through reuse, fostering a new satellite market and facilitating the rapid expansion of the Starlink satellite network. This disruptive technology transformed the satellite communications industry, influenced modern military strategy, and established SpaceX as a major defense contractor.
The team may operate under the Federal Advisory Committee Act of 1972. The act ensures that the advice provided by these committees is timely, objective, and open to the public. It also mandates cost control and record-keeping for approximately one thousand committees and their 60,000 members who offer recommendations to the President and executive departments.