k billion reduction exit: Musk's account of merits and demerits at the White House

Written by: Oliver, Mars Finance

On May 29, 2025, Elon Musk announced through the X platform that his 130-day term as a "Special Government Employee" (SGE) of the Trump administration will end and he will officially retire from the Department of Government Efficiency (DOGE). According to people familiar with the matter, Musk did not hold formal talks with President Donald Trump before leaving office, and White House officials confirmed that the process of his departure began that night. The reform experiment, known as the "efficiency revolution", used Musk's entrepreneurial thinking and technology-driven approach to cut hundreds of billions of dollars in federal spending and reshape the bureaucracy, but it was also deeply controversial due to legal controversies, conflicts of interest and political backlash.

1. The Birth of DOGE: Elon Musk's Special Role

On November 12, 2024, Trump announced the creation of DOGE, which was co-led by Elon Musk and entrepreneur Vivek Ramaswamy, with the goal of "dismantling the bureaucracy, cutting wasteful spending, and restructuring federal institutions." DOGE's name is inspired by Musk's beloved "Dogecoin" and is both a banter of meme culture and a manifestation of its subversive intent. On January 20, 2025, Trump officially established DOGE through Executive Order 14158, and Musk took office as a "special government employee", given 130 days of government work authority per year, with broad powers for budget review, institutional restructuring and data access.

Musk's role is ambiguous and controversial. The White House defines him as a "senior advisor to the president," emphasizing that he has no direct decision-making power and simply conveys presidential directives. However, Musk is deeply involved in budget cuts, personnel adjustments, and agency downsizing, far exceeding the role of an advisor. Insiders reveal that he rarely has formal meetings with Trump, more often issuing directives directly through the X platform and internal memos, demonstrating a high degree of autonomy in his actions. This unique status grants him flexibility, but raises conflicts of interest due to his companies SpaceX (which holds $22 billion in government contracts) and Tesla (which is facing multiple federal regulatory investigations). Critics argue that Musk's business background may lead his reforms to favor private corporate interests rather than the public good.

II. The "Three Axes" of Reform: Radical Practices of Corporate Thinking

Elon Musk has introduced the lean management concepts of Tesla and SpaceX into the government, proposing three main strategies: downsizing institutions, discouraging civil servants, and digital transformation. These measures have reshaped the federal government's appearance within 130 days, but have also triggered intense social and political reactions.

First, Musk led the closure of the U.S. Agency for International Development (USAID), the Consumer Financial Protection Bureau (CFPB), and the Department of Education, laying off about 13,900 employees and saving over $30 billion annually in budget. The closure of USAID was particularly shocking. Musk referred to it on the X platform as "an inefficient criminal organization," accusing it of providing only 10% of foreign aid to the recipient countries. On January 24, 2025, Trump froze nearly all foreign aid, the USAID website was shut down, and employees were banned from entering the headquarters building, which Musk called "sent into the meat grinder." This move sparked criticism from the international community, with multiple non-governmental organizations warning that America's global soft power was thus damaged.

Secondly, Musk launched the "Public Employee Voluntary Exit Program," sending emails to 2 million federal employees, encouraging them to voluntarily resign with "8 months of compensation" and requiring weekly progress reports to "prove their value." Those who do not respond will be considered to have automatically resigned. This policy resulted in thousands of civil servants leaving, but it also triggered dissatisfaction among grassroots voters, especially regarding the decline in the quality of veteran benefits and social security services. Musk also publicly questioned the sources of wealth of congressional members, pointing out that lawmakers with an annual salary of $200,000 possess millions in assets, further fueling Trump's "anti-establishment" narrative and resonating with populist sentiments.

Finally, Musk brings in experience in the tech industry, emphasizing artificial intelligence and big data analytics. The DOGE team developed an AI-powered budget analysis system that identified $365 billion in "suspicious" spending in the Social Security system, such as the number of registered people exceeding the U.S. population by 60 million, including 1.34 million "seniors" over the age of 150. In addition, DOGE found that $4.7 trillion of Treasury payments lacked a tracking code, prompting the Treasury to make it mandatory to fill out the Access Identifier (TAS) from February 15, 2025. These technologies have increased the transparency of funds, but they have sparked privacy and security controversies due to the sensitive data involved.

3. Achievements: Trillion Reduction and Political Dividends

Musk's reforms have achieved significant results in the short term, bringing both financial and political dividends to the Trump administration. As of April 2, 2025, DOGE has cut $130 billion in federal spending, saving over $4 billion daily, reducing the annual budget from $7.2 trillion to $6.1 trillion, and decreasing the deficit rate by 1.8 percentage points. By eliminating inefficient projects, consolidating office spaces, and selling idle assets (such as military bases in Alaska and state-owned land in Utah), DOGE has recouped over $72 billion, setting a record since the Cold War. Trump proposed to use 20% of the saved funds for "DOGE dividends," planning to issue $5,000 tax refund checks to each taxpayer household, sparking widespread discussion.

The reforms have also earned Trump political capital. Musk's actions have been shaped by the conservative media as a benchmark for "draining the swamp in Washington," with Trump's approval rating rising 3.5 percentage points in swing states. By publicly questioning the government's waste, Musk has provided public opinion support for Trump's "strongman politics", accumulating political chips for the 2028 election. In addition, relying on Supreme Court rulings (such as the 2022 West Virginia v. EPA) case, DOGE has revoked a number of "ultra vires" regulations and simplified administrative procedures, such as repealing some of the EPA's carbon emission standards and cybersecurity requirements for electric vehicle infrastructure, creating a relaxed environment for companies such as Tesla.

IV. Right and Wrong: Legal Disputes and Social Backlash

Musk's radical reforms have sparked multiple challenges, exposing the contradiction between efficiency and fairness. The operation of DOGE has been accused of violating the Privacy Act and the Sunshine Act, facing 19 federal lawsuits, including a class action lawsuit triggered by the forced acquisition of civil servants' health data. On February 8, 2025, District Judge Paul Engelmeier prohibited DOGE from accessing the Treasury's payment system, citing the potential for sensitive information leaks. Harvard Law Professor Lawrence Tribe believes that DOGE was established without congressional authorization, constituting unconstitutional behavior, and its powers need to be confirmed by the Senate.

The reforms have also sparked backlash from both inside and outside the government. The Pentagon, the State Department, and other agencies have refused to implement the "mandatory weekly report" policy, and cabinet officials have complained about Musk overstepping his authority. Republican Senator Marco Rubio criticized USAID for closing down operations that harm U.S. diplomatic interests. Grassroots voters have protested the impact of layoffs on public services, such as declines in Social Security and Medicaid services. Some Republican lawmakers, facing pressure from their constituencies, have called for cautious reforms to avoid affecting the midterm elections.

Musk's failure to withdraw investments from SpaceX and Tesla has raised questions of conflicts of interest. The progressive think tank "Public Citizen" criticizes the deregulation policy of DOGE as serving Musk's business empire. Musk's promised "maximum transparency" has not been fulfilled, with some actions not publicly recorded, and congressional oversight is limited, undermining the legitimacy of reforms.

5. Heritage and Reflection: The Future of the Efficiency Revolution

DOGE is scheduled to dissolve on July 4, 2026, coinciding with the 250th anniversary of the U.S. Declaration of Independence, and symbolizes "the gift of lean government." Whether its $1 trillion deficit reduction target can be met remains questionable. Reforms saved $130 billion and boosted political capital, but Social Security and Medicaid cuts led to a decline in services for the vulnerable, and the closure of USAID damaged America's international image. AI-driven budget analysis improves efficiency, but privacy concerns remain unresolved.

Elon Musk's "efficiency revolution" is a collision between corporate thinking and bureaucratic systems, achieving fiscal and political dividends in the short term, but its long-term stability is questionable. His legacy raises a core question: Can the government operate like a corporation? Musk's answer is affirmative, but he also acknowledges the "temporary difficulties" of reform. In the future, will the mission of DOGE become a norm for the government, or will it merely be a fleeting storm? The answer will be revealed in 2026.