Donald Trump announced Tuesday that tech entrepreneur Elon Musk and former Republican presidential candidate Vivek Ramaswamy will head the newly formed so-called “Department of Government Efficiency,” or DOGE—a unique, private entity intended to overhaul federal operations without becoming an official government agency, The Guardian reported today.
Musk and Ramaswamy, Trump explained in a statement issued yesterday, will work from outside the government to deliver “advice and guidance.” Together, they will “dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies,” to instill an “entrepreneurial approach” into the federal government, Trump said.
The two businessmen will partner with the US government’s Office of Management and Budget to carry out comprehensive audits and suggest reforms, a move Trump believes will “shock” and challenge traditional government structures. Most federal government department heads have to be confirmed by the Senate, but it is unclear what formalities Musk and Ramaswamy will have to undergo to assume their roles with DOGE.
So nicknamed by Musk, DOGE is an Orwellian moniker named after Musk’s “favorite” cryptocurrency, Dogecoin, and also an internet meme. The entity will conduct a detailed audit of all federal spending, identify “wasteful expenditures,” and advise on substantial regulatory reductions.
Trump asserted that the private entity’s work will conclude no later than July 4, 2026, the US’s 250th Independence Day, a “gift to the nation.”
Musk, who owns social media platform X, tweeted that he would document DOGE’s actions online to allow for “maximum public transparency.”
He also said in the same tweet that Americans could voice their opinions on what the entity is doing. “Anytime the public thinks we are cutting something important or not cutting something wasteful, just let us know! We will also have a leaderboard for most insanely dumb spending of your tax dollars. This will be both extremely tragic and extremely entertaining.”
Ramaswamy responding to the appointment tweeted simply, “We will not go gently.”
We will not go gently, @elonmusk. 🇺🇸 https://t.co/sbVka2vTiW
— Vivek Ramaswamy (@VivekGRamaswamy) November 13, 2024
Trump’s departure from historical tradition and the unconventional nature of Musk and Ramaswamy’s roles raise concerns about a number of things including federal oversight of the entity. Federal advisory committees, usually accountable under the Federal Advisory Committee Act, must operate transparently, with members required to disclose assets and potential conflicts. In addition, as a private entity, it will be run by people who neither serve the country nor swear an oath to the Constitution.
Given that neither Musk nor Ramaswamy will hold formal government positions, they will essentially sidestep any such Constitutional or ethical guardrails. This has sparked criticism from consumer rights groups such as Public Citizen.
Lisa Gilbert, co-president of the progressive NGO, stated that Musk’s involvement poses potential conflicts due to his vested business interests, which include Tesla, SpaceX, Neuralink, and multiple cryptocurrency holdings.
The market’s reaction to the announcement has been swift. Dogecoin’s value doubled overnight and Tesla shares climbed by another 30% amid anticipation of more favorable regulatory conditions for Musk’s enterprises.
Musk’s influence in this new role may directly affect government policies related to artificial intelligence, space exploration, and electric vehicles, a serious conflict of interest, according to analysts. Wedbush Securities analyst Daniel Ives noted that Musk’s advisory position with respect to the Trump administration could extend his reach across federal agencies, potentially benefitting his tech companies.
Ramaswamy, a biotech entrepreneur with limited government experience, has previously advocated for cost-cutting in the corporate world. After gaining a stake in Buzzfeed, he encouraged the company to reduce its workforce and bring on conservative voices.
His role in the so-called “Department of Government Efficiency” aligns with his reputation for challenging traditional models of operation and seeking leaner corporate structures.
Critics, however, remain skeptical about the new entity’s feasibility and effectiveness. Its partnership with the federal government will likely face scrutiny over ethical boundaries and the real impacts of such sweeping federal changes. Musk’s proposed USD 2 trillion reduction in federal spending could lead to significant deregulation, potentially reshaping policies that affect everything from environmental protections to space exploration.
Despite these criticisms, Trump underscored the potential of Musk and Ramaswamy to shake up Washington’s entrenched bureaucracy. At a recent Michigan rally, he voiced optimism about Musk’s cost-cutting abilities, referring to him as the “cost-cutter” who could address what he called “crazy waste” in federal spending.
Trump, however, conceded that Musk’s involvement would not be full-time due to his existing commitments, including SpaceX’s active rocket programs.
Nevertheless, Trump envisions DOGE as a legacy project for his presidency, monitoring federal agencies and recommending cost-saving strategies that may streamline and reshape the federal government landscape in the US for decades to come.