Elon Musk, CEO of Tesla, has been appointed as the head of the 'Department of Government Efficiency (DOGE)' under the second Trump administration. The agency's name is derived from the cryptocurrency 'Doge (DOGE) Coin,' which Musk once promoted. The plan is to cut $2 trillion in government spending to improve efficiency.
What is 'DOGE'? What is Musk's position?
The specific role and legal status of the Department of Government Efficiency have not yet been clearly disclosed. President-elect Donald Trump stated during the announcement of Musk's appointment that the department would operate by providing advice and guidance from outside the government. He also said it aims to reduce unnecessary regulations, cut wasteful spending, and reorganize federal agencies. Major foreign media outlets believe it will not be an official department. Bloomberg News speculates that it will be established under the Federal Advisory Committee Act, which allows the president to receive advice from committees composed of public and private members.
It appears that Musk and Indian-American businessman Ramaswamy, who will lead the Department of Government Efficiency, will not hold official titles. Bloomberg predicts they will serve as special government employees who can work up to 130 days in federal agencies or the White House without pay. Musk and Ramaswamy are reportedly seeking senior committee leadership roles rather than ministerial positions with restrictions such as blind trusts on stock holdings. This arrangement would allow them not to disclose or divest personal assets.
However, the federal ethics law, which prohibits participation in discussions and decisions affecting personal interests, will still apply. This is a particularly complex issue for Musk, who leads SpaceX, a company with contracts exceeding $15 billion with government agencies. The political media outlet The Hill cited former government officials expressing concerns about potential conflicts of interest if Musk takes on a government role.
"$2 Trillion Spending Cut"... DOGE's Goal
President-elect Trump described the Department of Government Efficiency as "the Manhattan Project of our time." It is intended to be a kind of "game changer." Specifically, it will provide advice and guidance from outside the government, collaborate with the White House and the Office of Management and Budget to push large-scale structural reforms, and create an unprecedented entrepreneurial approach to government. Bloomberg News reported that since Trump pledged during his campaign to close the Department of Education and return control of policies and funding to the states, related issues are expected to be addressed by the Department of Government Efficiency.
During the presidential campaign, Musk called for a $2 trillion cut in government spending and predicted large-scale government reform. He said there are too many federal agencies?428 in total?with many overlapping, and that 99 agencies would be sufficient. He also stated, "Either make the government efficient or America will go bankrupt." The Washington Post and others foresee that Musk might implement mass layoffs in the federal government and agencies, similar to the large-scale restructuring he has undertaken at Tesla and X.
However, actual spending cuts are expected to be difficult. The $2 trillion reduction Musk mentioned amounts to about one-third of the U.S. federal government's annual spending of $6.7 trillion. Bloomberg News said, "The effort led by Musk is likely to face political opposition that has thwarted previous deficit reduction attempts."
Can it pass Congress?
Congress does not need to approve Musk's appointment as head of the Department of Government Efficiency, but it controls spending authority. Budget cut policies decided by the department must pass Congress to reduce actual budgets. Therefore, there are predictions that real spending cuts will be difficult. CBS pointed out that Congress may hesitate to cut popular programs like Social Security and Medicare or security-related spending that affect millions of voters. Bloomberg News speculates that President-elect Trump will challenge the Budget Execution Act, which requires the president to spend money authorized by Congress unless Congress repeals it.
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