Trump taps Elon Musk, Vivek Ramaswamy to lead new ‘Department of Government Efficiency’
Daily News Article — Posted on November 15, 2024
(by John Meyer, USA Today) – WASHINGTON − President-elect Donald Trump has tapped tech billionaire Elon Musk, the world’s wealthiest person, and former Republican presidential contender Vivek Ramaswamy to lead a new Department of Government Efficiency that will work to slash federal government spending, waste and regulations.
Trump said the commission will “provide advice and guidance from outside of government,” partnering with the White House and Office of Management and Budget “to drive large-scale structural reform” throughout the federal government. He said the team’s work will conclude no later than July 4, 2026.
“Together, these two wonderful Americans will pave the way for my administration to dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies − Essential to the “Save America” movement,” Trump said in a statement.
During the 2024 campaign, Musk said he would take a job in the administration as leader of a “Department of Government Efficiency” or DOGE, referring to the cryptocurrency he champions. The 53-year-old founder of SpaceX and CEO of Tesla has said publicly that he could quickly eliminate $2 trillion from the federal budget but has not provided any specifics on how.
Trump said the department led by Musk and Ramaswamy could become “the Manhattan Project of our time.” Trump provided no details on the size or budget of the department beyond the leadership of Musk and Ramaswamy.
Trump’s description seemed to suggest the department would operate as an advisory commission − not a formal federal agency − with no statutory authority. It was not immediately clear whether Musk and Ramaswamy would be working under contract for their services.
“A smaller government, with more efficiency and less bureaucracy, will be the perfect gift to America on the 250th Anniversary of The Declaration of Independence. I am confident they will succeed!” Trump said.
Musk has never worked for the federal government. But his various companies have billions of dollars in government contracts, including with space, military and intelligence agencies. That has prompted concern among watchdog groups that his cost-cutting efforts – and his influence on Trump – could create conflicts of interest and lessen oversight of his companies.
“This will send shockwaves through the system, and anyone involved in Government waste, which is a lot of people!” Musk said in a statement distributed by Trump’s transition team.
Musk posted a message on X, the social media platform he owns, after Trump’s announcement: “Threat to democracy? Nope, threat to BUREAUCRACY!!!”
Musk said the department will publicize all its actions online for “maximum transparency” and solicit feedback on cost-cutting measures from the public.
“Anytime the public thinks we are cutting something important or not cutting something wasteful, just let us know!” Musk said in a post. “We will also have a leaderboard for most insanely dumb spending of your tax dollars. This will be both extremely tragic and extremely entertaining,” Musk wrote.
Ramaswamy, 39, a biotech entrepreneur and the son of Indian immigrants, ran in the 2024 Republican primary but quickly became a strong ally of Trump’s. As a candidate, Ramaswamy advocated for the shutdown of federal government agencies including the FBI, Department of Education and the Nuclear Regulatory Commission.
“Republican politicians have dreamed about the objectives of ‘DOGE’ for a very long time,” Trump said, adding that the department will “create an entrepreneurial approach to government never seen before.”
Trump first proposed a government efficiency commission in a speech Sept. 5 to the Economic Club of New York. At the time, he said, the commission would conduct “a complete financial and performance audit of the entire federal government” and recommend changes.
Trump’s opponents said he and Musk aim to end government protections in a host of areas, from education to the environment, and to get rid of thousands of public servants. …..
Democrats mocked the undertaking. “The Office of Government Efficiency is off to a great start with split leadership: two people to do the work of one person,” far-left Sen. Elizabeth Warren, D-Mass., said in a post on X. “Yeah, this seems REALLY efficient.”
“Unlike you, neither of us are being paid, so it is very efficient indeed,” Musk said. “(The Department of Government Efficiency) will do great things for the American people. Let history be the judge.”…
Trump and Musk have been spending a lot of time together at the president-elect’s Mar-a-Lago residence in Palm Beach, Florida, according to a CNN report that said Musk was advising on transition, policy and personnel issues. …
“I look forward to Elon and Vivek making changes to the Federal Bureaucracy with an eye on efficiency and, at the same time, making life better for all Americans,” Trump said. “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 said.
Published at USA Today on Nov. 12, 2024 with a Greta Cross Nov. 14 USA Today report. Reprinted here for educational purposes only. May not be reproduced on other websites without permission.
Background
NOTE: The total federal spending budget for 2024 is $6.75 trillion. The federal government's revenue for 2024 is $4.919 trillion, resulting in a deficit of $1.833 trillion. This deficit is 5.6% of the gross domestic product (GDP).
The federal government uses revenue to pay for government activities, such as employee salaries and infrastructure maintenance, as well as to pay for goods and services for citizens and businesses. (from US Treasury Data Fiscal Data)
The federal government gets its spending revenue from:
Taxes. The largest source of revenue is taxes, which include:
- Individual income taxes (49%): The primary source of revenue (this makes up over 97% of revenue the federal government collects)
- Payroll taxes (37%): Paid by both workers and employers, these taxes fund Social Security and Medicare
- Corporate income taxes (9%): Taxes on the profits of corporations
- Excise taxes: A type of tax that makes up a smaller portion of federal revenue
- Other sources
Other Sources: The federal government also receives revenue from:
- Customs duties
- Leases of government-owned land and buildings
- The sale of natural resources
- Usage and licensing fees
- Payments to federal agencies
- Services like admission to national parks
(from Tax Policy Center, Cato Institute, Congressional Budget Office)