Donald Trump picks Elon Musk to co-head government efficiency department

US President-elect Donald Trump announced the appointment of Elon Musk and ex-presidential candidate Vivek Ramaswamy to head the newly formed Department of Government Efficiency on Tuesday, though it will operate outside formal government structures.

Despite its official-sounding name, the Department of Government Efficiency, nicknamed "Doge" by Musk, will function independently from traditional federal agencies. Trump's statement indicated that the initiative aims to provide external "advice and guidance" to the White House, with a focus on reforming the Office of Management and Budget. The overarching goal is to streamline federal operations, reduce regulatory burdens, and cut wasteful expenditures.

Speaking on the partnership, Trump lauded the tech billionaire and the entrepreneur for their innovative mindsets, stating that they would bring a "shock" to the system. "They will dismantle bureaucracies, slash redundant regulations, and conduct a comprehensive audit of the entire federal government," Trump asserted. The reforms, he suggested, would culminate on the 250th anniversary of the Declaration of Independence in 2026.

Musk, known for his ventures in electric vehicles, space exploration, and social media, has advocated for cost-cutting measures within the government. In his statement on X (formerly Twitter), Musk pledged transparency by documenting the group's efforts online. "Anytime the public thinks we're cutting something important or not cutting something wasteful, just let us know!" Musk wrote, adding that he would keep a public "leaderboard" for the most wasteful spending identified.

Ramaswamy, who entered the political scene in 2023, echoed Musk's sentiments, promising to tackle government inefficiency with an entrepreneurial spirit. "We will not go gently," Ramaswamy posted on X, signalling an aggressive approach to the project.

However, questions remain about how the department will operate and whether it falls under existing regulatory frameworks such as the Federal Advisory Committee Act. Unlike federal employees, Musk and Ramaswamy would not be required to disclose their financial holdings or adhere to conflict-of-interest regulations due to their advisory-only status.

The decision to enlist Musk has sparked criticism from some quarters. Public Citizen, a consumer rights group, argued that Musk's companies, including Tesla and SpaceX, have previously faced scrutiny over regulatory compliance. "Musk knows nothing about government efficiency," said Lisa Gilbert, the NGO's co-president, noting concerns over conflicts of interest.

While Musk's involvement in shaping federal policies could benefit his companies, experts predict that the initiative may result in significant deregulation, which could have far-reaching implications for industries ranging from space technology to artificial intelligence.

The market has responded to the announcement with a notable surge. Dogecoin, the cryptocurrency promoted by Musk, has seen its value more than double since Trump's re-election. Meanwhile, Tesla's stock price has risen by roughly 30% since the election results were confirmed.

Trump has indicated that the initiative will not require Musk's full-time commitment, acknowledging the billionaire's other ventures. "He's busy sending rockets up," Trump quipped at a recent rally, "but he's still going to help us cut the waste."