President-elect Donald Trump unveiled plans Tuesday for the creation of a Department of Government Efficiency (DOGE), which aims to cut waste, streamline operations, and reduce the size of the federal government by July 4, 2026.
The proposed department will be led by Tesla CEO Elon Musk and entrepreneur Vivek Ramaswamy, a biotech investor and former Republican presidential candidate.
“I am pleased to announce that the great Elon Musk, working in conjunction with American patriot Vivek Ramaswamy, will lead the Department of Government Efficiency (‘DOGE’),” Trump said in a statement.
“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 essential to the ‘Save America’ movement.”
Trump lauded the proposed department as a revolutionary approach to tackling inefficiency in Washington, vowing it would “send shockwaves” through the nation’s capital.
The acronym “DOGE” is a reference to Dogecoin, which became a phenomenon three years ago when Musk and other prominent celebrities endorsed the cryptocurrency. Dubbed a “memecoin,” it became so popular that its market value peaked at $45 billion in April 2021.
Musk championed the coin—so much so that last year, he temporarily switched the logo on X to the Doge dog. Stories circulated on the social media platform that every time Elon posted about the currency, “stonks go up.”
The Dogecoin has already risen more than 150% in value since Election Day, including a high surge since Trump’s announcement about the DOGE.
The DOGE would operate as an advisory body, working alongside the White House and the Office of Management and Budget to implement sweeping structural reforms.
“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,” Trump said. “Importantly, we will drive out the massive waste and fraud which exists throughout our annual $6.5 trillion dollars of government spending. They will work together to liberate our economy and make the U.S. government accountable to ‘WE THE PEOPLE.’”
Musk and Ramaswamy Embrace Roles
Both Musk and Ramaswamy enthusiastically accepted the challenge. Ramaswamy shared his commitment to the mission on X, writing, “We will not go gently, @elonmusk.”
Musk echoed the urgency of addressing government inefficiency, warning that America’s financial future depends on immediate action. “Either we get government efficient or America goes bankrupt. That’s what it comes down to. Wish I were wrong, but it’s true,” Musk posted on X in response to the announcement.
He also promised transparency, pledging that all DOGE actions would be publicly available. “Anytime the public thinks we are cutting something important or not cutting something wasteful, just let us know! We will also have a leaderboard for the most insanely dumb spending of your tax dollars. This will be both extremely tragic and extremely entertaining,” Musk said.
Prior to the announcement of the new department, Musk spoke at a town hall meeting about his intentions to trim the waste within the federal budget.
“If the current trend of strangulation by overregulation is not turned around, we’ll never get to Mars,” Musk said. “There’s so much government waste that’s going on…in every direction, there’s mad waste. If people simply know that if they waste a ton of taxpayer money, or do something that’s basically corruption, then they’re going to get fired, then that will immediately improve the situation.”
“If they’re effective in spending your money, because taxpayer money is your money, they should be rewarded, they should be promoted. They have a duty to spend your money well.”
To address federal spending, Musk then pledged to reduce the federal budget by $2 trillion, a hefty percentage of the current $6.75 trillion budget. He plans to accomplish this by eliminating wasteful programs, he said, though the implications of such deep cuts could mean reduced government services and potential job losses.
Federal Spending in the Spotlight
The federal government currently spends over $6.75 trillion annually, with interest on the national debt now exceeding $950 billion, according to Treasury Department data.
Trump highlighted the growing debt as unsustainable, referencing a quote from Musk posted on X: “The interest owed on the U.S. defense budget debt is now larger than the defense budget. This is not sustainable. That’s why we need the Department of Government Efficiency.”
Federal employment numbers also underscore the scale of the task. The U.S. government employs over 3 million civilians, a significant increase from the 800,000 reported in 1939 when the Bureau of Labor Statistics began tracking federal employment.
While Musk has pledged to serve without pay or official recognition, his appointment could raise concerns over potential conflicts of interest given his companies’ reliance on federal subsidies and regulatory frameworks. Critics may question whether these ties could influence his decision-making in the role.
Nevertheless, Trump remains confident in Musk and Ramaswamy’s ability to overhaul government operations, reduce waste, and deliver results for taxpayers. The DOGE initiative reflects a broader commitment to reshaping the federal government and restoring fiscal responsibility.
As Trump’s administration prepares to take office, the proposal underscores a bold vision to redefine government efficiency while holding Washington accountable to the American people.
