Trump appoints Elon Musk to lead government efficiency department

Elon Musk and former Republican presidential candidate Vivek Ramaswamy will lead the newly created Department of Government Efficiency, Donald Trump said on Tuesday.

Despite its name, the Department of Government Efficiency will operate outside the formal government structure. Musk and Ramaswamy will serve as advisors from the private sector, working alongside the White House and the Office of Management and Budget to introduce reforms that Trump claims will “shock government systems.” According to Trump, the two will help streamline federal agencies, cut back on regulations, and eliminate unnecessary expenses.

Trump described their efforts as a means to “dismantle government bureaucracy” and stated that he will keep the public involved through updates on wasteful spending, even promising a “leaderboard” for the most frivolous government expenditures.

Ramaswamy took to X, the platform formerly known as Twitter, to respond to his appointment with a message directed at Musk: “We will not go gently, @elonmusk.” The exact structure of the new initiative remains uncertain, but it could potentially fall under the Federal Advisory Committee Act, which would require transparency and public accountability for external government advisors.

Unlike federal employees, Musk and Ramaswamy would not be subject to federal ethics and financial disclosure rules, as they are not official government appointees. This lack of oversight has raised concerns, especially given Musk’s business interests across sectors that may benefit from reduced regulations, including electric vehicles, space exploration, social media, and biotechnology.

Musk, who has long advocated for creating an efficiency-focused government body, proposed calling the initiative “Doge,” a nod to both a popular Shiba Inu meme and the cryptocurrency Dogecoin, which Musk has openly promoted. Trump stated that one of Musk and Ramaswamy’s first tasks will be a sweeping audit of federal spending, with recommendations for “drastic reforms.”

The announcement has already impacted markets. Dogecoin’s value has doubled since the election, driven by speculation of a crypto-friendly regulatory environment under Trump. Meanwhile, Tesla shares have surged by 30%.

Trump mentioned that this effort will conclude by July 4, 2026, with a more streamlined government as a “gift” to the nation on the 250th anniversary of the Declaration of Independence. Ramaswamy, a biotech entrepreneur and first-time political candidate, previously endorsed Trump after dropping out of the 2024 presidential race. Known for his corporate cost-cutting measures, Ramaswamy has pushed for similar approaches in other areas, such as encouraging layoffs at Buzzfeed.

Musk recently spoke of his goal to reduce government spending by $2 trillion, a move that experts suggest could benefit his own companies, particularly those in AI and space technology. Daniel Ives, an analyst at Wedbush Securities, remarked that Musk’s influence in a Trump administration could reach across multiple federal agencies, given his ties to key industries.

However, Musk’s appointment has drawn criticism. Lisa Gilbert, co-president of Public Citizen, a progressive advocacy group, expressed doubts, saying Musk’s businesses have previously violated the very regulations he might seek to dismantle.

Trump acknowledged that Musk’s other commitments, like his work with SpaceX, would likely prevent him from serving full-time. “I don’t think I can get him full-time because he’s a little bit busy sending rockets up and all the things he does,” Trump said at a rally in Michigan in September.