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Page 375 of 496
No. 455
Filed FEBRUARY 3, 2025
Self-Dealing & Corruption
Second Term

Trump Names Government's Largest Contractor To Lead Effort Dismantling The Agencies That Regulate And Pay Him, Resolving Long-Standing Concern That Elon Musk Lacked Direct Control Over His Own Regulators

The Filing

WASHINGTON. President Donald J. Trump moved this week to eliminate any lingering uncertainty about whether the federal government's largest private contractor would be allowed to run the federal government, placing billionaire Elon Musk in charge of an initiative to identify and dismantle the very agencies that regulate, investigate, and pay his companies.

The effort, formally titled the Department of Government Efficiency, was established by executive order on the President's first day in office and tasked with slashing federal spending and personnel. Officials confirmed that Musk, whose firms SpaceX, Tesla, and Starlink hold billions of dollars in federal contracts and remain subject to oversight by the agencies now under review, would lead the project as a "special government employee," a designation that permits a person to reshape the government without disclosing what he owns.

"There is no conflict of interest here, because the President has personally reviewed the arrangement and found it excellent," said one senior official, speaking on condition of anonymity because the arrangement is the conflict of interest. "Mr. Musk will be trimming the budgets of the same regulators currently looking into his companies, which we expect to make those companies considerably easier to regulate by removing the people who regulate them. Any savings to Mr. Musk are a happy coincidence we have chosen not to measure."

By early February, according to administration sources, DOGE personnel had obtained access to the Treasury Department's central payment system, fanned out across agencies including several with open enforcement matters against Musk's businesses, and begun reducing headcount at offices responsible for aviation safety, labor complaints, and consumer protection. The President, who days later would dismiss the director of the Office of Government Ethics, praised Musk effusively and assured reporters that should a conflict of interest ever arise, the administration stood ready to address it by declining to address it.

Throughout the period, federal contracts to Musk's companies continued without interruption, a fact officials cited as proof that the system was functioning precisely as intended. Ethics scholars noted that the United States had not previously handed operational control of the regulatory state to a single private actor it was simultaneously regulating, an oversight the administration described itself as pleased to correct.

At press time, the White House had announced that the official review of Mr. Musk's potential conflicts of interest would be conducted by Mr. Musk.

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