Musk's Government Efficiency Department Hires Many from Silicon Valley

Two Employees Assigned to Each Agency to Review Budget Cuts
Unpaid 80-Hour Work Weeks

As the second term of the Donald Trump administration approaches, the Department of Government Efficiency (DOGE), led by Tesla CEO Elon Musk and entrepreneur-turned-politician Vivek Ramaswamy, is reportedly planning to appoint a large number of Silicon Valley insiders to cut government budgets, according to the New York Times (NYT) on the 12th (local time).

Silicon Valley figures have been appointed throughout the Trump administration, including the White House Office of Science and Technology Policy’s chief AI advisor, the AI and cryptocurrency czar, and the Director of the Office of Personnel Management, and this trend appears to continue within the Department of Government Efficiency.

Elon Musk, CEO of Tesla. Photo by Reuters and Yonhap News

The Department of Government Efficiency plans to assign two employees to each federal agency. Through these personnel, the department aims to reduce unnecessary costs in each ministry. Employees not assigned to government agencies will work at the United States Digital Service Presidential Administration Office, established in 2014 by former President Barack Obama. According to the NYT report, most DOGE workers operate under unpaid conditions, working 80 hours per week.

Although budget cuts fall under congressional authority and the Department of Government Efficiency has no direct power, the NYT reported that the department is expected to provide recommendations on budget reduction areas to Congress.

Close associates of CEO Musk were closely involved in the selection process of DOGE employees. Interviews were conducted by Mark Andreessen, co-founder of venture capital firm Andreessen Horowitz with Musk; Sean Macquaire, Global Partner at Sequoia Capital; and Barris Akis, founder of Human Capital. A significant number of candidates are recipients of the "Thiel Fellowship," a scholarship awarded by Peter Thiel, co-founder of PayPal, to those who drop out of college to pursue entrepreneurship. Additionally, Brad Smith, who is close to Musk and Jared Kushner and served as chief advisor to the Secretary of Health and Human Services during Trump’s first term, is also involved in DOGE operations.

The department has also announced plans to hire a small number of full-time employees for back-office roles such as engineers and human resources. Engineers will use artificial intelligence (AI) to identify budget-saving opportunities.

Even as President-elect Trump’s inauguration nears, the structure of the Department of Government Efficiency remains largely shrouded in secrecy. Most communication takes place via the encrypted messaging app Signal. Currently, DOGE operates out of a building near the White House that houses SpaceX offices.

The NYT stated that contrary to initial expectations, the Department of Government Efficiency is unlikely to take the form of an external agency or nonprofit organization. Instead, it is more likely to exist as a kind of brand associated with CEO Musk, Ramaswamy, and others.

Meanwhile, CEO Musk had claimed last year, ahead of the presidential election, that the Department of Government Efficiency would reduce federal government spending by $2 trillion, but recently lowered the target to half that amount, $1 trillion. Experts have pointed out that achieving a $2 trillion budget cut is impossible without reducing budgets for Social Security, Medicare, and other programs.