Trump Installs World's Richest Federal Contractor To Lead Government Efficiency Effort, Resolves Long-Standing Concern That Person Receiving Federal Contracts Had No Voice In Awarding Them
WASHINGTON. President Donald J. Trump signed an executive order on his first afternoon back in office Monday establishing the Department of Government Efficiency, a new federal advisory entity to be led by Elon Musk, the chief executive of three companies presently collecting an estimated $38 billion in active federal contracts and operating under the simultaneous review of at least five federal regulatory agencies.
The new body, abbreviated DOGE in reference to a cryptocurrency its new administrator has spent eight years promoting on the personal social-media platform he owns, was announced as an effort to identify and eliminate wasteful federal spending. Sources within the administration clarified that the wasteful spending under examination does not at this time include the federal contracts, tax credits, launch subsidies, or regulatory exemptions presently flowing to Tesla, SpaceX, xAI, X Corp., the Boring Company, or Neuralink.
“Elon’s going to find tremendous waste, tremendous fraud,” the President told reporters in the Oval Office, adding that the world’s wealthiest man had been chosen for the role on the basis of his proven willingness to fire people. Mr. Musk, who will retain his positions as chief executive of all of the above companies, is to serve as a “special government employee,” a designation that caps his federal service at 130 days per year and exempts him from the financial disclosure rules that apply to ordinary federal appointees.
Administration officials confirmed that Mr. Musk would not be required to divest from any of his holdings, recuse himself from matters affecting his companies, or place his investments into a blind trust. Asked whether SpaceX, currently the subject of open inquiries by the Federal Aviation Administration, the National Labor Relations Board, the Environmental Protection Agency, the Justice Department, and the Securities and Exchange Commission, would fall within DOGE’s announced review of “regulatory overreach,” a senior White House aide confirmed that this was, broadly speaking, the entire purpose of DOGE.
The order grants DOGE personnel access to federal payment systems, personnel files, and the internal networks of agencies including the Treasury Department, the General Services Administration, and the Office of Personnel Management. Within forty-eight hours, the new office’s staff, drawn primarily from Mr. Musk’s private companies and a network of unpaid associates between the ages of nineteen and twenty-five, had begun reviewing federal payroll data and seeking read-write privileges on the system that distributes Social Security payments.
At press time, Tesla shares had risen on the news, SpaceX’s private valuation had reportedly increased by tens of billions of dollars, and DOGE had identified the federal investigation of SpaceX as its first inefficiency.