Vivek Ramaswamy And Elon Musk Have a Bold Plan to Slash Federal Funding: Key Details Revealed
Musk and Ramaswamy Reveal Ambitious Plans
President-elect Donald Trump has named entrepreneur Vivek Ramaswamy and billionaire Elon Musk to lead a new initiative— the Department of Government Efficiency, which would seek to reduce federal spending. Trump had outlined the idea for the commission as part of his new economic plans in September whilst campaigning for the 2024 elections.
Ramaswamy’s Take on Federal Spending
Ramaswamy has long advocated for slashing government spending. One of his key proposals—eliminating the Department of Education—was a goal he shared with Trump. Now, as they get ready to tackle federal expenditures, Ramaswamy, along with Musk, have pledged a more aggressive strategy. As reported by NBC News, he has advocated for massive layoffs throughout federal departments.
Outdated Government Programs
Discussing how to go about reducing federal spending, Ramaswamy suggested, “We shouldn’t let the government spend money on programs that have expired. Yet that’s exactly what happens today." He claimed that every year, half a trillion dollars of taxpayer money goes to programs that Congress has let expire. He stressed that 1,200 programs are no longer authorized to continue to receive aid. He remarked, “This is totally nuts. We can and should save hundreds of billions each year by defunding government programs that Congress no longer authorizes."
Musk’s Two Cents
Musk labeled the U.S. government as bloated and warned that its spending is unsustainable. He suggested cutting the number of federal agencies from over 400 to just 99. "There are so many [agencies] that people have never heard of, and that have overlapping areas of responsibilities." Musk is well-known for cutting costs at his companies, including reducing X's workforce after buying it two years back.
Musk to Slash Spending by $2 Trillion
Musk aims to reduce the government budget by $2 trillion, which is more than the $1.7 trillion allotted for discretionary spending. He specifically targeted smaller federal budget recipients, such as the Education Department and NPR, although he has not yet disclosed the details. While Musk acknowledged that some people may experience short-term hardship as a result of these cuts, he maintains that they are essential for long-term financial stability.
Programs to Be Affected
The International Space Station NASA, Veterans' Health Care, and the Head Start early education plan are among the programs that could face potential cuts. Funding for the Health Care Act has persisted even after it expired in 1998. As reported by Newsweek, the 800,000 federal employees who are represented by the American Federation of Government Employees (AFGE) have also expressed concern about the potential loss of essential services.
Can DOGE Actually Control Federal Spending?
Since the DOGE isn't an official government entity and would require congressional approval to be established, the proposals seem unlikely. Congress controls federal spending, therefore lawmakers would be hesitant to approve changes to programs that would affect millions, as reported by CBS News. However, according to reports, Trump's administration is looking into ways to carry out some of DOGE's suggested expenditure cuts without requiring Congress approval.
What Does Trump Expect from DOGE?
Trump presented the initiative as a daring attempt to reorganize government departments, slash unnecessary regulations, and stop excessive spending. He promised that by July 4, 2026, or by the 250th anniversary of the Declaration of Independence, Musk and Ramaswamy's job would be completed. However, he has only given a general outline of the plan and has not yet provided details on how the department will be staffed or funded.
