How Elon Musk wants to cut billions of dollars in government spending in the USA – all the news

Drastic staff cuts in government authorities, elimination of subsidies, deregulation – the high-tech entrepreneur Elon Musk, appointed special advisor by the future US President Donald Trump, made public his plans for a radical restructuring of the government apparatus in the USA on Wednesday. Excessive bureaucracy is an “existential threat” to US democracy, according to an article published in the “Wall Street Journal” together with businessman Vivek Ramaswamy. “Now is the moment for decisive action.”

Hundreds of billions of dollars in public spending are now being scrutinized, the two entrepreneurs wrote. In order to reduce costs, massive job cuts “across the federal bureaucracy”, the elimination of subsidies and the repeal of numerous regulations are necessary. “Voters gave Donald Trump a clear mandate for radical change on November 5th, and they deserve to get it,” the article said.

Trump had appointed Musk, together with Ramaswamy, to head a “Department of Government Efficiency” (Doge), a new department for government efficiency. The two entrepreneurs are tasked with driving forward the restructuring of the government apparatus through concepts and recommendations. A significantly reduced government apparatus is expected to be in place by mid-2026.

“We will work as outside volunteers, not as federal officials or employees,” Musk and Ramaswamy wrote. In the article they describe different strategies to achieve their goals. In essence, the right-wing populist Trump is supposed to use executive powers to enforce the plans in an unprecedented way in his second term in office and receive support from the Supreme Court.

The consulting work of Musk, who is intertwined with government authorities in many ways through his companies SpaceX and Tesla, raises the question of massive conflicts of interest. In the end, this could lead to the entrepreneur practically promoting the abolition of authorities that regulate his companies.

In implementing their plans, they would focus on “driving change through executive action based on existing laws,” the two entrepreneurs wrote. There are currently a number of federal regulations in the USA that exceed the powers granted by Congress. Her department will provide Trump with a list of regulations that he can immediately suspend through an executive order.

A drastic reduction in these federal regulations would then provide the basis “for a massive reduction in personnel across the entire federal bureaucracy.” Your department will determine the minimum number of employees required in an agency so that it can carry out its tasks.

Employees whose jobs are being eliminated deserve to be “treated with respect,” the entrepreneurs wrote. The goal of her department is to “make it easier for them to transition into the private sector.” The president could also use existing laws to give them incentives to retire early.

The two entrepreneurs respond to the associated legal concerns in their letter as follows: According to common opinion, the legal protection of the public service prevents the president or his appointees from firing federal employees. However, the law allows for staff cuts that are not directed against specific employees.

It also empowers the president to issue rules for the competition. Trump could use this far-reaching power to curb “the uncontrolled growth in the administration.”

The two entrepreneurs also formulated a declaration of war on the so-called Impoundment Control Act of 1974, which prevents the president from stopping spending approved by Congress. “Trump has already suggested that this law is unconstitutional, and we believe the Supreme Court would likely side with him on this issue,” they wrote.

Federal overspending should end by targeting more than $500 billion in annual federal spending that Congress has not authorized or is being spent in ways Congress did not intend.

This included around half a billion dollars for public television, 1.5 billion dollars in grants for international organizations and almost 300 million dollars for progressive groups such as the family planning organization Planned Parenthood.

Musk and Ramaswamy wrote that they were prepared for resistance from the established forces in Washington. “We assume that we will prevail.” The ultimate goal is to dissolve the Doge by July 4, 2026 – the date “we have set for our project”.