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Department of Government Efficiency

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Department of Government Efficiency
AbbreviationDOGE
FormationAnnounced on November 12, 2024; yet to be established
Key people
Websitex.com/DOGE

The Department of Government Efficiency[a] (DOGE) is a planned United States presidential advisory commission announced by Donald Trump, the current president-elect of the United States, in preparation for his second term as U.S. president. It will be led by Elon Musk and Vivek Ramaswamy. Despite its name, it is not an official government department, the formation of which would require approval by the United States Congress.

Musk has stated that he believes such a commission could reduce the U.S. federal budget by $2 trillion. Jamie Dimon, CEO of JPMorgan Chase, has supported the idea. Some commentators questioned whether DOGE is a conflict of interest for Musk given that his companies are contractors to the federal government.

The department's name is a backronym referencing both the Doge internet meme and Dogecoin, a cryptocurrency named for the meme.[1] Musk has previously been associated with Dogecoin, including being accused of involvement in a "pump-and-dump insider trading scheme" in a lawsuit. This suit was later dismissed with prejudice after the judge deemed the allegation "not possible to understand".[2][3][4] Dogecoin rose in value after Trump's 2024 election victory, then rose again upon the announcement of the commission, rising nearly 20% before paring gains.[5][6][7][8]

Functions

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Trump selected Elon Musk and Vivek Ramaswamy to serve as DOGE's leadership.

Despite the name, it will not be a federal executive department, which are created through an act of Congress, and is more likely to be an advisory body operating outside of government.[9]

Donald Trump has said the body would help to "dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures and restructure federal agencies". He has also stated that Musk and Ramaswamy will work with the Office of Management & Budget to address what he called "massive waste and fraud" in government spending.[6]

History

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AI-generated advertisements for the department posted on X by Ramaswamy and Musk

In August 2024, Trump said at a campaign event that if he were elected he would be open to giving Musk an advisory role.[10] In response, Musk wrote a post on X saying "I am willing to serve", along with an AI-created image of him standing in front of a lectern marked "Department of Government Efficiency".[1]

On November 12, 2024, Trump announced his intention to form a Department of Government Efficiency under the leadership of Elon Musk and Vivek Ramaswamy.[11] Trump stated that the entity's work will "conclude" no later than July 4, 2026, the 250th anniversary of the signing of the U.S. Declaration of Independence,[12] and coinciding with America's semiquincentennial celebrations, and a proposed "Great American Fair".[13] Trump called the proposed results of the department "the perfect gift to America".

Javier Milei, the president of Argentina, stated that prior to the official announcement of the creation of DOGE, Elon Musk had called Federico Sturzenegger, Argentina's Minister of Deregulation and Transformation of the State, to discuss imitating his ministry's model in the United States.[14] The idea of a DOGE has been linked to Trump's campaign promises to cut federal spending and reduce the size of government and the size of the federal fiscal deficit.[15] Musk has suggested that the former U.S. representative and presidential candidate Ron Paul could work with the department.[16][17]

Potential impact

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An infographic on outlays and revenues in the 2023 U.S. federal budget

Jamie Dimon, CEO of JPMorgan Chase, the largest American bank, has supported the idea of creating the department to improve government competency.[18]

On October 28, 2024, at a Trump rally in Madison Square Garden, Musk stated his belief that DOGE could remove US$2 trillion from the U.S. federal budget.[19] Musk has not specified whether these savings would be made over a single year or a longer period.[20] Maya MacGuineas of the Committee for a Responsible Federal Budget has said that this saving is "absolutely doable" over a period of 10 years, but it would be difficult to do in a single year "without compromising some of the fundamental objectives of the government that are widely agreed upon".[21]

The New York Times questioned whether Musk's companies being contractors to the federal government causes a conflict of interest with his proposed work in DOGE.[22] Musk has described deregulation as the only path to the SpaceX Mars colonization program, and promised he will "get the government off people's back and out of their pocket".[23]

Notes

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  1. ^ Also referred to as Government Efficiency Commission

References

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  1. ^ a b Cameron, Hugh (August 20, 2024). "Elon Musk 'Willing to Serve' in Trump Cabinet". Newsweek. Retrieved November 13, 2024.
  2. ^ "Musk, dogecoin investors go yet another round with post-dismissal sanctions motions". pp. Reuters.
  3. ^ "Elon Musk accused of insider trading in Dogecoin lawsuit". The Guardian. June 2, 2023. ISSN 0261-3077. Retrieved November 13, 2024.
  4. ^ "Elon Musk, Tesla win dismissal of lawsuit claiming they rigged dogecoin". pp. Reuters.
  5. ^ "Trump names Elon Musk to lead government efficiency drive". Reuters. November 13, 2024.
  6. ^ a b "Donald Trump picks Elon Musk for US government cost-cutting role". BBC News. November 13, 2024. Retrieved November 13, 2024.
  7. ^ "Why is Elon Musk becoming Donald Trump's efficiency adviser?". BBC News. November 13, 2024. Retrieved November 13, 2024.
  8. ^ Macheel, Tanaya (November 12, 2024). "Dogecoin spikes after Trump announces a Department of Government Efficiency — DOGE". CNBC. Retrieved November 13, 2024.
  9. ^ Dwoskin, Elizabeth (November 12, 2024). "Trump taps Musk, Ramaswamy to oversee 'drastic' changes to U.S. government". Washington Post. Retrieved November 12, 2024. In his announcement, Trump proposed the creation of an advisory body, operating outside government. Though it has the word "department" in its name, it would not be a government department — those are created by congressional authorization.
  10. ^ "Trump says he may end EV tax credit; is open to naming Elon Musk as an adviser". Reuters.
  11. ^ Beech, Eric (November 12, 2024). "Trump says Elon Musk, Vivek Ramaswamy will lead the Department of Government Efficiency". Reuters.
  12. ^ Nazzaro, Miranda (November 13, 2024). "Elon Musk, Vivek Ramaswamy to lead Trump's Department of Government Efficiency (DOGE)". The Hill. Retrieved November 13, 2024.
  13. ^ Henderson, O. Kay (November 7, 2024). "Trump's 'Great American Fair' idea on Iowa State Fairgrounds recirculates". Radio Iowa. Retrieved November 13, 2024.
  14. ^ "Milei brindó un nuevo apoyo a Sturzenegger y afirmó que Elon Musk imitará su gestión en EEUU". infobae (in European Spanish). November 8, 2024. Retrieved November 13, 2024.
  15. ^
  16. ^ "Ron Paul vows to join Elon Musk, help eliminate government waste in a Trump admin". The Hill. November 5, 2024.
  17. ^ Healy, Patricia. "Elon Musk puts spotlight on ... Department of Government Efficiency? | Cumberland Comment". USA TODAY. Retrieved November 9, 2024.
  18. ^ Bharade, Aditi (September 25, 2024). "Jamie Dimon says he likes Elon Musk's idea to start a DOGE, or Department of Government Efficiency". Business Insider. Retrieved November 13, 2024.
  19. ^ "WATCH LIVE: Trump holds campaign rally at Madison Square Garden in New York" (video). youtube.com. PBS NewsHour. October 28, 2024.
  20. ^ "Can Elon Musk cut $2 trillion from US government spending?". BBC News. November 13, 2024. Retrieved November 14, 2024.
  21. ^ Folley, Aris (November 3, 2024). "Elon Musk draws skepticism with call for $2 trillion in spending cuts". The Hill. Retrieved November 14, 2024.
  22. ^ Lipton, Eric; Fahrenthold, David A.; Krolik, Aaron; Grind, Kirsten. "U.S. Agencies Fund, and Fight With, Elon Musk. A Trump Presidency Could Give Him Power Over Them".
  23. ^
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