Menu

Search

  |   Politics

Menu

  |   Politics

Search

Trump Enlists Elon Musk to Slash Federal Workforce and Cut Spending

Trump Enlists Elon Musk to Slash Federal Workforce and Cut Spending. Source: Michael Vadon, CC BY-SA 4.0, via Wikimedia Commons

President Donald Trump has appointed billionaire Elon Musk to spearhead efforts to downsize the U.S. federal workforce. An executive order signed Tuesday directs agencies to collaborate with Musk’s Department of Government Efficiency (DOGE) to identify job cuts and potential agency eliminations. The plan mandates hiring only one new employee for every four departures, exempting roles critical to national security, law enforcement, and immigration.

Standing alongside Trump in the Oval Office, Musk, wearing a "Make America Great Again" cap, defended his authority despite not holding an elected position. "You can't have an autonomous federal bureaucracy," he said, emphasizing the need for accountability. Critics, however, have raised concerns over DOGE’s secrecy, as it discloses little about its operations while reporting substantial budget cuts.

Musk aims to identify $1 trillion in government waste and fraud, a figure equating to nearly 15% of federal spending. His deep involvement has sparked debate over potential conflicts of interest, given his leadership of SpaceX, which holds lucrative Pentagon contracts. Trump dismissed these concerns, stating measures would prevent conflicts.

Legal challenges have already impeded aspects of Trump's workforce reduction strategy. Courts blocked mass buyouts and efforts to sideline U.S. Agency for International Development employees, while also restricting Musk’s access to Treasury payment systems. Federal labor unions and job protections further complicate mass layoffs.

Musk, who speaks with Trump almost daily, criticized law firms challenging the initiative, calling them “anti-democratic.” He also lashed out at judges halting executive orders, claiming, "Democracy in America is being destroyed by judicial coup." Trump echoed these sentiments, questioning judicial interference in his administration’s cost-cutting measures.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.