Elon Musk Adjusts DOGE's Budget Cut Target To $1 Trillion

Billionaire Elon Musk has changed his earlier claim about his blue ribbon commission on government waste and inefficiencies. He originally said the commission could cut the federal budget, which is about $6.75 trillion a year, by $2 trillion. 

CEO of Tesla, Musk, now explains that the $2 trillion target he mentioned during his campaign was just a “best-case outcome.” He admitted that he thinks there’s only a “good shot” at achieving just half of that amount.

Challenges in Achieving $2 Trillion in Cuts

Musk's first $2 trillion target was met with skepticism due to the significant percentage of the federal budget dedicated to mandated spending like Social Security, Medicare, and defense. These areas are difficult to reduce without major policy reforms.

Strategic Focus on Waste Reduction

DOGE aims to cut wasteful spending in federal agencies. Musk believes that reducing spending by $1 trillion, along with economic growth, could help prevent inflation, which he sees as a major achievement.

Through DOGE, which will end on July 4, 2026, Musk and Ramaswamy plan to explore how far they can go with executive power to improve federal government efficiency and recover wasted funds.

They will work as advisors to the White House Office of Management and Budget and likely cooperate with Congress. 

Potential Impact on Government Operations

The proposed cuts could significantly change how the government operates. This may include reducing the federal workforce and merging certain agencies. However, details on which programs or departments will be affected are not yet available. Experts are worried about Musk’s goal of raising $2 trillion, which he discussed with Trump at Madison Square Garden last October.

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