In a significant move aimed at overhauling the federal government’s structure and expenditures, President Donald Trump appointed Elon Musk and Vivek Ramaswamy to lead the newly established Department of Government Efficiency (DOGE) in November 2024. This initiative was designed to “dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies.”
**Formation and Objectives of DOGE**
The inception of DOGE was announced with the ambitious goal of conducting a comprehensive audit of the federal government to identify and eliminate inefficiencies. President Trump emphasized that this department would function externally, providing “advice and guidance from outside of Government,” and collaborating with the White House and the Office of Management & Budget to drive large-scale structural reforms. The department’s acronym, DOGE, is a nod to Musk’s association with the Dogecoin cryptocurrency, reflecting a modern and entrepreneurial approach to governance.
**Elon Musk’s Leadership and Initiatives**
Under Musk’s leadership, DOGE embarked on an aggressive campaign to streamline government operations. Musk, known for his cost-cutting measures in the private sector, applied similar principles to federal agencies. One of the most notable actions was the significant downsizing of the federal workforce, including plans to reduce the Department of Health and Human Services by 20,000 positions. Other agencies affected included the FDA, IRS, SBA, VA, and the Department of Education. ​
**Controversial Measures and Public Response**
The implementation of DOGE’s policies was met with considerable controversy. Termination notices sent to U.S. Agency for International Development (USAID) employees were found to contain numerous errors, affecting critical details such as employment start dates, tenure, salaries, and termination dates. These inaccuracies had the potential to impact pensions and severance pay, leading to significant distress among employees. The flawed notices were part of DOGE’s broader efforts to dismantle USAID and reduce foreign aid, resulting in the termination of over 5,000 programs. ​
**Impact on Musk’s Business Ventures**
Musk’s involvement in government restructuring had repercussions for his business interests. Tesla’s stock experienced fluctuations amid speculation about Musk’s future roles and commitments. Reports of his potential departure from DOGE led to a rise in Tesla shares, as investors anticipated his return to focus on the company.
**Political Challenges and Future Prospects**
Despite facing political challenges, including the Republicans’ loss in the Wisconsin Supreme Court race where Musk and his super PAC invested over $20 million, Vice President JD Vance confirmed that Musk would continue to play a central advisory role in President Trump’s administration. Musk’s tenure at DOGE was limited to 130 days under federal regulations, with his assignment concluding on May 30, 2025. However, Vance emphasized that Musk would remain a “friend and adviser” to the administration beyond his official role.
**Ethical Concerns and Investigations**
DOGE’s operations also attracted scrutiny from lawmakers. Democratic Representatives called for an investigation into allegations of mishandling sensitive personal data by DOGE staffer Marko Elez. Elez was accused of unauthorized disclosure of private information, potentially violating the Privacy Act of 1974. These allegations raised concerns about the department’s internal controls and ethical standards.
**Conclusion**
Elon Musk’s tenure at the Department of Government Efficiency was marked by ambitious efforts to reform federal operations, significant controversy, and notable challenges. While his initiatives led to substantial changes within the government, they also sparked debates about the methods and implications of such reforms. As Musk transitions back to his entrepreneurial ventures, his impact on governmental efficiency and the precedents set during his time at DOGE will likely influence future discussions on government reform.