(AFP) – Tech billionaire Elon Musk, who has been tapped by President Donald Trump to lead federal cost-cutting efforts, said Tuesday that the United States would go “bankrupt” without budget cuts. Musk leads the efforts under the newly created Department of Government Efficiency (DOGE), and was speaking at the White House with Trump, who has in recent weeks issued a flurry of orders aimed at slashing federal spending.
In particular, Musk pointed to the country’s budget deficit, which topped $1.8 trillion in the last fiscal year, and took aim at high interest payments on the public debt. “It’s not optional” for Washington to reduce federal expenses, he told reporters. “It’s essential.”
The remarks, however, came as the Trump administration finds itself on a collision course with the US courts, as federal judges questioned the legality of White House cost-cutting measures. Trump’s sweeping plans, which have effectively shuttered some federal agencies and sent staff home, have sparked legal battles across the country. Multiple lawsuits seek to halt what opponents characterize as an illegal power grab.
Meanwhile, Musk’s team has moved through federal agencies, freezing aid programs and pushing workforce reductions. An executive order outlining the scope of DOGE included details of a federal workforce reduction plan that will restrict agencies to hire only one employee for every four that depart. The order also requires the head of each agency to consult with DOGE when deciding which vacancies to fill.
Asked to respond to criticism, Musk said that Americans voted for “major government reform,” an issue that Trump spoke about at rallies. And Musk, who also heads SpaceX and Tesla, said he is seeking to be as transparent as possible when asked about potential conflicts of interest. Musk’s role faces criticism in part because his companies have had huge US government contracts. The DOGE reform team has triggered alarm among critics as well by gaining access through the US Treasury to sensitive data.
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