Trump Names Elon Musk, Vivek Ramaswamy to Head New ‘Department of Government Efficiency’

President-elect Donald Trump announced Tuesday the formation of a “Department of Government Efficiency” for his upcoming administration, to be led by tech billionaire Elon Musk and entrepreneur Vivek Ramaswamy. The department aims to reduce government spending, slash excessive regulations, and overhaul federal agency operations.

“Together, these two wonderful Americans will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies,” Trump said in a statement.

The move immediately raised concerns over potential conflicts of interest, given Musk’s business interests in Tesla and SpaceX, both of which have lucrative government contracts. Details on how the department would function remain scarce, as does clarity on whether even a Republican-controlled Congress would back such an extensive overhaul.

A Vision for Trillions in Cuts

Trump had first proposed a government efficiency commission in early September, noting Musk had agreed to lead the initiative. At the time, Trump said the commission’s first task would be developing a plan to eliminate improper federal payments and reduce government fraud within six months, claiming it would save trillions. Musk later quipped that such an effort would “send shockwaves through the system.”

On social media platform X, formerly Twitter, Ramaswamy echoed his campaign slogan for drastic agency cuts, simply stating, “SHUT IT DOWN.” Ramaswamy, who challenged Trump in the Republican primary before endorsing him, has previously advocated eliminating federal agencies like the FBI, Department of Education, and Nuclear Regulatory Commission, arguing they foster wasteful bureaucracy.

Musk’s Role as “Secretary of Cost-Cutting”

Elon Musk, who has become known as a staunch critic of government regulations, has long argued for downsizing federal expenditures. At a recent rally in New York City, Musk, whom Trump dubbed “Secretary of Cost-Cutting,” stated, “Your money is being wasted, and the Department of Government Efficiency is going to fix that. We’re going to get the government off your back and out of your pocketbook.”

Musk even suggested that if appointed, he would lead an online “leaderboard” for the “most insanely dumb spending of your tax dollars.” The new office, Musk added, would publish all actions online to ensure transparency.

Skepticism Over $2 Trillion in Savings

Trump’s ambitious target of $2 trillion in cuts, however, has been met with skepticism. Former Treasury Secretary Larry Summers and economist Glenn Hubbard have publicly doubted the feasibility of finding $2 trillion in cuts, given constraints on reducing spending in areas such as Social Security, Medicare, and defense. Hubbard, a former chair of the U.S. Council of Economic Advisers, told the Economic Club of New York, “It’s just mathematically impossible to find $2 trillion.”

Marc Goldwein, senior policy director at the Committee for a Responsible Federal Budget, voiced further concerns. “Combating waste, fraud, and abuse is often an excuse to do nothing,” Goldwein said, noting the commission would need a mandate to examine the government’s largest spending programs to make a substantial impact.

Federal Workers’ Union Blasts the New Initiative

Unions and labor groups, particularly the American Federation of Government Employees (AFGE), have criticized the new department. “Elon Musk and Donald Trump care about one thing: lining their own pockets. Not government efficiency, and certainly not making things better for everyday Americans,” AFGE National President Everett Kelley said in a statement, highlighting concerns over layoffs and a potential shift in priorities away from public service.

The Department of Government Efficiency is set to conclude its work no later than July 4, 2026. “A smaller Government, with more efficiency and less bureaucracy, will be the perfect gift to America on the 250th Anniversary of The Declaration of Independence,” Trump said, expressing confidence in Musk and Ramaswamy’s success.

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