On Thursday, Elon Musk announced that the U.S. DOGE Service, which he oversees, aims to achieve an impressive target of cutting $1 trillion from federal spending each year. This figure represents nearly half of the government's discretionary spending, excluding critical expenditures such as Social Security, health care, and interest on the national debt. Musk's statement came during an interview on Fox News’s “Special Report” with Bret Baier, where he was accompanied by members of the DOGE staff. The billionaire tech CEO's appearance seemed to be a strategic move to enhance the public image of the group, which has faced challenges in garnering approval during its initial weeks.
Musk emphasized that most of the work necessary to identify these savings will be completed within the 130 days he is permitted to serve as a special government employee. This unique status allows him to maintain his outside business interests without the need for divestment or public disclosures. Musk and his team argue that their primary goal is to assist the American public and defend their approach by stating that federal workforce reductions have not been as detrimental as portrayed. They echoed former President Donald Trump’s sentiment, advocating for a meticulous approach to budget cuts, likening it to using a “scalpel” instead of a “hatchet.”
The U.S. DOGE Service, which stands for the Department of Government Efficiency (though not an official cabinet department), aims to deliver tangible results by improving access to government services. Musk stated, “Our goal is to reduce the deficit by a trillion dollars,” aiming to cut the nominal deficit from $2 trillion to $1 trillion. This translates to a reduction in total federal spending from $7 trillion to $6 trillion. He believes that a 15 percent reduction in overall spending is feasible, arguing that government inefficiencies lead to significant waste and fraud.
Despite Musk's confidence, budget experts have expressed doubts regarding the feasibility of such substantial cuts without impacting essential programs like Medicare, Medicaid, and Social Security, as well as defense spending. In the last fiscal year alone, the government allocated nearly $1.5 trillion to Social Security and approximately $1.4 trillion to Medicare and Medicaid combined. Additionally, military expenditures and interest on the national debt accounted for another $1.7 trillion. According to the Congressional Budget Office, discretionary spending—which covers government programs set annually—totaled around $1 trillion.
Musk acknowledged the need for caution in executing the proposed cuts, admitting that his past cost-cutting strategies have sometimes necessitated rehiring or reinstating canceled projects. “I do agree that we actually want to be careful in the cuts,” he said, emphasizing the importance of thorough planning. Nevertheless, Musk, despite not being the official head of DOGE, has taken on a leadership role within the group, portraying adjustments and criticisms as necessary steps toward reform.
The DOGE initiative has also prioritized tech modernization as a key element of its strategy to eliminate fraud and waste. Investment banker Anthony Armstrong, who focuses on the Office of Personnel Management, noted that many government systems fail to communicate with each other, contributing to inefficiencies. By addressing this issue, he believes a significant amount of fraud could be mitigated. Furthermore, Joe Gebbia, co-founder of Airbnb, aims to digitize the outdated retirement system for federal employees, advocating for a more tech-savvy government experience akin to an "Apple Store." “We really believe that the government can have an Apple Store-like experience,” Gebbia stated, highlighting the need for improved user experiences in government services.
Musk acknowledged that the DOGE initiative's efforts to combat fraud and waste may attract criticism, stating, “This is a revolution. It might be the biggest revolution in government since the original revolution.” He conceded that complaints are inevitable as they pursue their goals. The ambitious plans of the U.S. DOGE Service aim to reshape the federal spending landscape, but the path forward remains fraught with challenges and skepticism.
