President-elect Donald Trump has named Elon Musk and Vivek Ramaswamy to head a new initiative he has dubbed the “Department of Government Efficiency” (DOGE). The acronym, which shares its name with a dog-themed cryptocurrency that gained popularity after Musk’s endorsement, will focus on reducing government spending and eliminating inefficiencies within federal agencies.
Trump made the announcement in a statement Tuesday evening, emphasizing that Musk and Ramaswamy would be tasked with reforming government operations. While it remains unclear whether this new entity will be part of the federal government or operate independently, creating an official government agency requires approval from Congress.
In his statement, Trump praised the two men, calling them “wonderful Americans” who would help his administration eliminate bureaucracy, reduce unnecessary regulations, cut wasteful spending, and restructure federal agencies. He added, “Essential to the ‘Save America’ Movement,” Trump stated, “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.”
This appointment represents another break from traditional political practices for Trump as he assembles his administration. It also underscores the close relationships he has developed with both Musk and Ramaswamy, businessmen who, while new to politics, have become trusted allies of the incoming president.
During his campaign, Trump hinted at creating a government role for Musk, the billionaire behind Tesla, SpaceX, and the social media platform X. Musk, who has grown increasingly influential in conservative political circles, had previously proposed the creation of a “government efficiency commission” to monitor federal agencies. This proposal came during an exchange with Trump on X. Since the election, Trump and Musk have maintained a close working relationship.
Ramaswamy, a biotech entrepreneur and former Republican presidential candidate, is also making his official entrance into Trump’s administration with this new role. He had previously been considered as a potential vice-presidential candidate. In a post on X responding to the announcement, Ramaswamy declared, “We will not go gently,” tagging Musk in his post. Musk, in turn, commented separately on Trump’s announcement, stating, “This will send shockwaves through the system, and anyone involved in Government waste, which is a lot of people!”
Typically, department heads must be confirmed by the Senate, but it is unclear what formalities Musk and Ramaswamy will need to follow for their new positions. For Musk, there are concerns about potential conflicts of interest, given that his companies, which receive government funding, may fall under regulatory authority from the new department. Tesla, SpaceX, and Starlink, all part of Musk’s empire, have been subjects of federal investigations.
Musk’s relationship with Trump has become a defining feature of the final phase of Trump’s presidential campaign. As one of Trump’s most vocal supporters, Musk not only appeared on the campaign trail but also made significant financial contributions, spending over $100 million through his super PAC, America PAC. His financial backing surpassed the total contributions from the entire oil industry during that period.
Musk’s decision to back Trump was an unconventional move. While Musk made his fortune in the electric vehicle sector with a stated commitment to addressing climate change, he now finds himself supporting a politician who has been dismissive of concerns about carbon emissions. Trump, for his part, has publicly acknowledged Musk’s influence, even softening his rhetoric on electric vehicles in response to Musk’s endorsement. Trump referred to Musk as a “super genius” during his victory speech and included him in a family photo after the election.
Musk’s approach to government spending aligns with Trump’s goal of budget cuts. The tech magnate had previously suggested that the federal budget could be significantly reduced, proposing cuts of at least $2 trillion during a rally with Trump supporters in New York City just before the election.
In addition to his financial contributions, Musk has a history of cost-cutting within his own businesses. After acquiring X (formerly Twitter), Musk implemented mass layoffs, reducing the company’s workforce from 8,000 employees to just 1,500. This track record of cost reduction within his own ventures supports his role in leading efforts to streamline federal agencies.
Musk has also indicated that he plans to keep his super PAC active as the Republican Party prepares for special elections and midterm races. This could help sustain his influence on the political landscape, particularly as it relates to federal spending and regulatory reform.
Like Musk, Ramaswamy has long been a proponent of cutting federal expenditures. He gained attention during his bid for the 2024 Republican presidential nomination for his calls to shrink the size of the federal government. His proposals included cutting the Federal Reserve’s workforce by 90% and deporting American-born children of undocumented immigrants. After exiting the race and endorsing Trump, Ramaswamy’s political focus has shifted to supporting Trump’s vision for government reform.
Ramaswamy’s policies on reducing federal spending echo Musk’s beliefs, positioning both men as advocates for drastic government reforms. Their combined efforts in leading the “Department of Government Efficiency” will likely have a significant impact on Trump’s administration and its approach to managing federal resources.
Trump’s appointment of Musk and Ramaswamy to lead DOGE reflects his commitment to reducing government inefficiency and cutting federal spending. The duo, both relatively new to politics, has proven to be valuable allies to Trump, and their efforts to dismantle bureaucratic waste are expected to be a focal point of the incoming administration. Despite questions about potential conflicts of interest, especially concerning Musk’s business empire, the duo’s shared vision for efficiency and fiscal responsibility could shape Trump’s policy direction moving forward. As Ramaswamy put it, “We will not go gently,” indicating the sweeping changes they plan to implement in the federal government.
