US President-elect Donald Trump on Tuesday announced the creation of a new Department of Government Efficiency, appointing billionaire Elon Musk and former Republican presidential candidate Vivek Ramaswamy to co-lead the entity. The move is aimed at streamlining government operations, slashing regulations, and eliminating wasteful spending, further solidifying Musk’s influence in the Trump administration.
Trump, in a statement, highlighted that the new department would “dismantle Government Bureaucracy, cut excess regulations, and restructure Federal Agencies” in line with long-held Republican goals. The department will work closely with the White House and the Office of Management and Budget to push for large-scale structural reforms and introduce an entrepreneurial approach to governance. The goal is to complete the department’s work by July 4, 2026, marking the 250th anniversary of the Declaration of Independence.
The appointments have drawn mixed reactions. While analysts expect Musk’s appointment to benefit his business empire, including Tesla, SpaceX, and X (formerly Twitter), critics argue that his lack of government experience and his businesses’ frequent run-ins with regulatory authorities raise concerns about potential conflicts of interest. Public Citizen, a progressive consumer rights group, condemned the move, calling it an example of corporate corruption.
Musk, ranked as the world’s richest person by Forbes, has long been a supporter of Trump, donating millions to the campaign and making several public appearances with the president-elect. His new role will allow him to remain the head of his companies without requiring Senate approval, offering him substantial influence in shaping government policy.
Musk, known for his outspoken views and social media presence, promised transparency in the new department’s work, claiming that all actions would be posted online. He also joked about creating a “leaderboard” to highlight wasteful government spending.
Ramaswamy, who previously ran for president before supporting Trump, withdrew from consideration for a potential US Senate seat in Ohio to take up this new role. Ramaswamy’s book Woke, Inc. criticized companies for adopting business strategies based on social justice and climate change concerns.
The department, whose acronym “Doge” also alludes to Musk’s promotion of the cryptocurrency dogecoin, is expected to play a significant role in shaping policy under the incoming Trump administration, particularly in areas related to deregulation and government efficiency.
Tesla shares saw a boost following the announcement, while dogecoin has surged, reflecting investor optimism about the favorable regulatory environment under Trump. However, concerns about the concentration of power and potential conflicts of interest are likely to continue as the new administration takes shape.
