U.S. President-elect Donald Trump announced on Tuesday the appointment of Elon Musk to co-lead a newly created Department of Government Efficiency, alongside former Republican presidential candidate Vivek Ramaswamy. This move further amplifies Musk’s influence, as the billionaire entrepreneur, who played a significant role in supporting Trump’s election, is given a pivotal role in shaping the future of the U.S. government.
The new department, which will operate outside the traditional confines of government, is aimed at eliminating bureaucratic inefficiencies, slashing unnecessary regulations, reducing wasteful spending, and restructuring federal agencies. Trump emphasized that the department would bring in advice from external experts, signaling an informal role for Musk and Ramaswamy without requiring Senate approval. Musk will remain at the helm of Tesla, SpaceX, and X (formerly Twitter) while contributing to this government initiative.
In a statement, Trump said that the department would achieve long-standing Republican goals by implementing large-scale structural reforms and fostering an entrepreneurial approach to governance. The department’s work is set to conclude by July 4, 2026, marking the 250th anniversary of the Declaration of Independence.
Musk, the world’s wealthiest individual according to Forbes, stands to benefit from this new role, which could also support the growth of his companies and interests in artificial intelligence and cryptocurrency. Analysts, such as Daniel Ives of Wedbush Securities, predict that Musk’s influence across federal agencies will greatly benefit Tesla and his other ventures.
Trump likened the initiative to the Manhattan Project, while Musk promised unprecedented transparency. “All actions of the Department of Government Efficiency will be posted online for maximum transparency,” Musk said on X, pledging to engage the public in identifying wasteful spending.
Musk also proposed a significant reduction in the federal budget, estimating a cut of at least $2 trillion. He criticized government spending, stating, “We’re going to get the government off your back and out of your pocketbook.”
The department’s acronym, DOGE, also nods to the popular cryptocurrency Dogecoin, which Musk has frequently endorsed.
Vivek Ramaswamy, who previously ran for the Republican presidential nomination, will withdraw from consideration for a U.S. Senate appointment in Ohio to focus on this new role.
