Trump picks Elon Musk to lead government’s new ‘cost-cutting’ department

Trump’s move comes as no surprise as Musk was reported to have donated $200m (£157m) to his election campaign, as ITV News US correspondent Dan Rivers reports
President-elect Donald Trump has appointed Elon Musk, the world’s richest man, to lead a new “Department of Government Efficiency” alongside former Republican presidential candidate Vivek Ramaswamy in his second administration.
In a statement on Tuesday, Trump said these “two wonderful Americans” will work to “dismantle government bureaucracy” in a new department, also known as Doge.
The name refers to an internet meme of a Shiba Inu dog which became a viral sensation in the early 2010s. A cryptocurrency named after the dog, Dogecoin, was later created in 2013 – and has since been supported by Musk.
“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,” Trump wrote.
The 78-year-old added that Musk and Ramaswamy would advise the White House from outside government, and work with the Office of Management and Budget to “drive large-scale structural reform, and create an entrepreneurial approach to Government never seen before”.
Trump said the move would “send shockwaves through the system, and anyone involved in Government waste, which is a lot of people!”
“It will become, potentially, ‘The Manhattan Project’ of our time,” Trump said, referring to the World War Two American programme aimed at developing the first nuclear bomb.
He added that Musk and Ramaswamy have a deadline of concluding their work by July 4, 2026, US Independence Day.
After the announcement, Musk, who owns Tesla, posted on his platform X: “Department of Government Efficiency. The merch will be (fire emojis).” Later adding: “Threat to democracy? Nope, threat to BUREAUCRACY!!!”
Ramaswamy, also the founder of pharmaceutical company Roivant Sciences, responded separately on X with a slogan he frequently used during his presidential campaign to advocate for eliminating federal agencies, saying: “SHUT IT DOWN.”
The 39-year-old multi-millionaire has also suggested a radical change of removing the FBI.
How will Trump’s new government efficiency department operate?
It is not currently clear how the new department will operate or whether a Republican-led Congress would approve such a sweeping overhaul of government operations and spending.
Questions have also been raised about potential conflicts of interest, as both Musk and Ramaswamy run companies with lucrative government contracts.
What is known is that “Doge” will fall under the Federal Advisory Committee Act, which regulates how external groups that advise the government must operate and be accountable to the public.
Unlike federal employees, who are normally required to disclose assets and avoid conflicts of interest, Musk and Ramaswamy would not face the same disclosure and ethical rules, as they would not be considered actual federal workers.
The 53-year-old billionaire wrote on X that “all actions of the Department of Government Efficiency will be posted online for maximum transparency”.
Trump started announcing his administration just days after he secured his second stint in the White House.
Pete Hegseth, a Fox News Channel host who served as an Army National Guard officer in Iraq and Afghanistan, has been confirmed as his secretary of defence.
Meanwhile, South Dakota Governor Kristi Noem has been selected as his next secretary of the Department of Homeland Security.
“Kristi has been very strong on Border Security,” Trump said in a statement.
“She will work closely with ‘Border Czar’ Tom Homan to secure the Border, and will guarantee that our American Homeland is secure from our adversaries,” he added.
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