Trump taps Musk to lead a ‘Department of Government Efficiency’ with Ramaswamy

President-elect Donald Trump has tapped Elon Musk and Vivek Ramaswamy to head a new government agency focused on regulating federal spending.

In a statement released Tuesday, Trump referred to the new agency as the “Department of Government Efficiency” (DOGE,) an acronym that is an apparent wink to the dog-themed cryptocurrency by the same name that started as a joke and skyrocketed after Musk promoted it.

While it is not yet clear whether this entity will exist within the federal government or outside, an official government agency cannot be created without an act of Congress.

“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 wrote. “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.”

The move by Trump marks another deviation from political tradition in assembling a new administration. It’s also a continuation of Trump’s relationships with Musk and Ramaswamy, businessmen who are both relatively new to politics but have become close allies of the incoming president.

On the campaign trail, Trump spoke of creating a role in the federal government for Musk, who is the richest man in the world and owns Tesla, SpaceX and the social media platform X.

Musk has become an increasingly influential voice in conservative politics. He first proposed a “government efficiency commission” that would monitor federal agencies during a conversation he had with Trump on X. Since winning the presidential election, Trump and Musk have remained in close orbit.

The appointment also brings Ramaswamy, a biotech entrepreneur and former Republican presidential candidate, officially into Trump’s administration after he was reported to have once been under consideration for vice president.

“We will not go gently,” Ramaswamy said in a post on X in response to the news while tagging Musk, who commented separately in Trump’s original announcement.

“This will send shockwaves through the system, and anyone involved in Government waste, which is a lot of people!” Musk said.

While most department heads have to be confirmed by the Senate, it’s unclear what formalities Musk and Ramaswamy will have to go through for these roles.

For Musk, having a direct role in the administration raises questions about potential conflicts of interest. He could potentially gain regulatory authority over federal agencies that oversee many of his companies that receive government funding, including Tesla, SpaceX and Starlink. Musk’s companies have also been the subject of federal investigations.

Musk and Trump

Musk became a major supporter of Trump in the final leg of his presidential bid, appearing on the campaign trail and spending more than $100 million on organizing efforts through his super PAC, “America PAC.” His political contributions went on to surpass the total amount of public donations from the entire oil industry.

Musk’s relationship with Trump exists a world apart from the careful way most American CEOs navigate politics — although Musk already has a history of breaking from corporate tradition.

The tech mogul’s support for Trump was also a surprising ideological pivot. Musk, who built his vast fortune on electric vehicles with a declared commitment to fighting climate change, is now embracing a politician who consistently dismisses concerns about carbon emissions.

That said, Trump’s appreciation was public. On the campaign trail he softened some of his rhetoric against electric vehicles, saying he had “no choice” to be in favor of them after Musk’s endorsement. Trump also called Musk a “super genius” in his victory speech and included Musk in a family photo after the election.

Musk went on to weigh in on spending cuts while speaking to Trump supporters at a rally in New York City ahead of Election Day, arguing the budget for the federal government could be significantly shrunk by “at least” $2 trillion.

Cutting costs in business; spending big in politics

He has a record of cutting spending within his businesses. After buying X, he conducted mass layoffs, vastly reducing the size of the company from 8,000 to 1,500 people.

Ahead of Trump’s announcement, Musk also said he plans to keep his super PAC active as Republicans gear up for special elections and the midterms.

Like Musk, Ramaswamy has also called for drastic reductions in federal spending.

Until he dropped out of the 2024 presidential race in January to endorse Trump, Ramaswamy vowed to reduce the role of the federal government. His policy proposals included slashing the Federal Reserve workforce by at least 90% and deporting American-born children of undocumented immigrants.