Donald Trump has entrusted Elon Musk with the task of setting up a panel to streamline the US government. Although the president-elect has said little about how the group will operate, Musk has set an ambitious goal of cutting spending by the first $2 trillion.
Here’s how this new panel, led by Musk, the world’s richest man, and former Republican presidential candidate Vivek Ramaswamy, might work.
What does Musk want to cut?
Musk said at Trump’s rally at Madison Square Garden in October that the federal budget could be reduced by “at least” $2 trillion. According to the Congressional Budget Office, discretionary spending including defense spending is projected to total $1.9 trillion out of the $6.75 trillion in total federal outlays for fiscal year 2024, suggesting that Musk’s goal will be very difficult to meet.
Musk, whose companies include electric vehicle maker Tesla and commercial space company SpaceX, has deep knowledge of the National Aeronautics and Space Administration and the Pentagon, with extensive contracts with the agencies for their rockets, satellites and other space operations.
He has also feuded with regulators within the Transportation Department, including the Federal Aviation Administration, which has meddling in his company’s rocket launches, and the National Highway Traffic Safety Administration, which is investigating autonomous driving functions in his cars. .
Ramaswamy, who founded the pharmaceutical company Roivant Sciences, has worked with the Food and Drug Administration, an agency he previously called “corrupt.” In 2023, on the social media site
What have Musk and Trump said about the panel?
Trump said in a statement Tuesday that the panel will “provide advice and guidance from outside the government” on slimming the government, cutting regulations, reducing spending and restructuring federal agencies.
Trump wants to dismantle the Department of Education, leave states in control of schooling, and dismantle what he calls the “Deep State” – career federal employees he says secretly pursue their own agendas. Taking it forward.
Trump and Musk have suggested the panel would be able to make dramatic cuts, but larger budgetary actions generally are within Congress’s authority. They may seek advice from, or ignore, external panels such as the proposed Efficiency Panel.
In an effort to be transparent, Musk said the panel will post its “actions” for public comment.
“Whenever the public thinks we’re cutting something important or not cutting something useless, just let us know!” He said on X.
He also mentioned a list of “silly” expenses, which he described as “extremely amusing”.
What is the precedent for efficiency panels?
Former President Ronald Reagan announced in February 1982 that he would create a group of private sector experts to recommend ways to eliminate inefficiency and waste. That June, he issued an executive order creating the President’s Private Sector Survey on Cost Control in the Federal Government, to be headed by its chairman, J. Known as the Grace Commission, for Peter Grace, former CEO of WR Grace & Company.
Grace raised funds for this effort through a foundation. Approximately 150 business leaders volunteered their time on an executive committee that oversaw 36 Grace Commission task forces that reviewed agencies or actions.
The Commission issued a report in January 1984 with approximately 2,500 recommendations, and various task forces also issued reports.
The Reagan Library said, “Most of the recommendations, particularly those requiring legislation from Congress, were never implemented.”
In March 2017, Trump signed an executive order aimed at improving the efficiency, effectiveness, and accountability of federal agencies and “eliminating or reorganizing unnecessary federal agencies.” It directed each federal agency to submit a proposed plan for reorganization. He also signed a separate executive order to place “regulatory reform” task forces and officials within federal agencies.
Trump also tried to kill at least 19 agencies during his first term but failed. He called for the abolition of the Foreign Private Investment Corporation and the Corporation for Public Broadcasting, which help promote private investment in foreign development projects. He also tried to cut funding for Amtrak, rural airline service, and subsidies for the Special Olympics.
What experience does Musk have with cost cutting?
After Musk bought social media app Twitter, he fired about 3,700 employees, or half of its workforce, as advertisers stopped spending. Hundreds more employees later resigned. He later changed the name of the social media site to “X”, but its valuation has declined dramatically under Musk’s ownership.
Musk has achieved great success in space. SpaceX’s Falcon 9 rocket slashed launch costs with its reusability, fueled new satellite markets and gave rise to the company’s fast-growing Starlink constellation, which disrupted the established satellite communications industry and modern military strategies. Helped shape and turn SpaceX into a major defense contractor.
What are the rules for such panels?
The committee will likely operate under the Federal Advisory Committee Act, a 1972 law that ensures panels provide prompt, objective and open advice to the public. It also mandates cost control and record-keeping requirements that apply to approximately 1,000 committees, approximately 60,000 of which advise the President and the Executive Branch at any time.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
