- Tesla’s Elon Musk and former presidential candidate Vivek Ramaswamy to lead effort to streamline the federal government, aiming to reduce agencies, cut jobs, and drive deep fiscal reform.
President-elect Donald Trump has tapped two prominent figures—Tesla CEO Elon Musk and former presidential candidate Vivek Ramaswamy—to spearhead a task force on “making changes to the federal bureaucracy with an eye on efficiency.” The directive calls for the team to streamline government operations, target redundant agencies, and identify significant budget cuts, with an ambitious completion goal by July 4, 2026.
The appointment of Musk and Ramaswamy is generating waves across Washington. Both men have long records of calling for a reduced federal footprint and decentralizing government power, and Trump’s decision signals his intent to back major cuts to both spending and regulatory bodies.
In a social media post Tuesday night following the announcement, Musk offered a hint of his vision, stating, “99 federal agencies is more than enough.” He later revised his stance to a lower number, though, when reminded that over 80 federal agencies begin with the letter “U” alone, indicating a much larger and more complex bureaucracy.
Both Musk and Ramaswamy’s recent statements suggest that their mission could go well beyond minor trims. Instead, they appear intent on a comprehensive restructuring that could dismantle whole sections of the federal government. Initial targets reportedly include the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Department of Education, and even the Federal Reserve.
Vivek Ramaswamy, who competed against Trump in the 2023 Republican primary, is no stranger to these reformist ideas. He has long advocated for reducing the federal workforce and dismantling large agencies. During his campaign, Ramaswamy pledged to eliminate at least five federal agencies if elected, including the Department of Education, the IRS, and the Nuclear Regulatory Commission. Additionally, he suggested cutting 90% of the staff at the Federal Reserve, signaling a dramatic shift in federal monetary policy oversight.
His focus on reducing the Fed’s power has raised eyebrows among fiscal conservatives and economists alike. During his campaign, he argued that the Fed’s role has expanded far beyond its initial mandate. In a 2023 Wall Street Journal op-ed, he wrote, “I intend to make the 2024 presidential race in part a referendum on the proper role of our central bank.”
Ramaswamy’s approach aligns with the economic policy shifts Trump has intermittently supported throughout his career, including calls to dismiss Fed Chair Jerome Powell. However, Powell preemptively addressed these discussions, stating on Thursday that he intends to continue his work as Fed Chair, even if the White House applies pressure for his departure.
Tesla CEO Elon Musk’s approach to restructuring the federal government emphasizes large-scale financial downsizing. Musk has proposed a target of $2 trillion in spending cuts from the current $6 trillion annual federal budget. However, considering that the entire U.S. discretionary budget is just $1.7 trillion, Musk’s cuts would almost certainly extend to entitlement programs, including Medicare, Medicaid, and Social Security.
Musk acknowledged that his aggressive fiscal agenda could lead to “temporary hardship” but maintained that such sacrifices are necessary to prevent long-term economic issues. However, he has yet to elaborate on the exact programs or methods he plans to implement to achieve this substantial reduction.
In recent weeks, Musk has solidified his relationship with Trump, joining him for key meetings in Washington, D.C., and garnering support from other conservative leaders in favor of substantial fiscal reform.
- Department of Education: Both men have questioned the federal government’s role in education, advocating for more state-level control and reducing Washington’s oversight in K-12 education.
- Federal Reserve: Ramaswamy’s earlier calls to cut 90% of the Fed’s staff underscore his dissatisfaction with current monetary policies. A large-scale reduction could shift economic power and regulation toward Congress.
- IRS: The IRS has been a perennial target in conservative circles for its expansive reach and regulatory authority, and Ramaswamy’s plan to eliminate it would radically alter the U.S. tax collection system.
- ATF: With public attention focused on issues of gun control and federal enforcement, eliminating the ATF would shift responsibilities to other law enforcement bodies or state agencies.
- While these potential cuts would align with Trump’s desire to reduce federal spending, they also risk disrupting essential functions that impact millions of Americans.
High-profile business leaders, such as Marc Rowan, CEO of Apollo Global Management, have voiced support for Trump’s proposed “wholesale change.” In a statement following Trump’s announcement, Rowan expressed confidence in Musk’s ability to implement broad fiscal reform, stating, “I think Elon Musk represents wholesale change, and I think we actually need wholesale change.” Rowan has been floated as a potential Trump appointee for economic roles in the future.
Rowan’s comments highlight a belief that Washington’s financial situation is “fixable” but not without “radical overhaul” rather than “small amounts of tinkering.” Such a vision dovetails with Musk’s and Ramaswamy’s mandate for major cuts.
While Trump’s decision to enlist Musk and Ramaswamy for this task force underscores his commitment to change.
- Congressional Approval: Federal budget decisions fall under Congress’s purview, and while Republicans currently control the House, bipartisan support will be essential for any sweeping restructuring of federal agencies.
- Bipartisan Resistance: Skepticism exists on both sides of the aisle regarding the practicality and long-term impact of drastic cuts. Even conservative members of Congress have expressed concern over dismantling agencies like the IRS and the Department of Education.
- Public Backlash: Certain programs targeted for cuts, such as Medicare and Social Security, enjoy broad bipartisan support among the American public. Altering these programs would likely lead to public pushback, particularly among senior citizens.
- Operational Challenges: Large-scale cuts require an actionable roadmap, as a sudden reduction in the federal workforce could disrupt government services and spark logistical issues.
Despite these challenges, Trump’s directive includes a hard deadline. “Their work will conclude no later than July 4, 2026,” Trump stated, calling it “the perfect gift to America on the 250th Anniversary of The Declaration of Independence.” This ambitious deadline underscores the urgency the president-elect feels in achieving reform but raises questions about whether such sweeping changes are feasible in the time allotted.
If Musk and Ramaswamy succeed in achieving even a portion of their goals, the structure and scale of the U.S. government would change dramatically. Proponents argue that reduced bureaucracy could lead to enhanced efficiency and a more localized approach to governance. Skeptics, however, warn that such measures could weaken essential federal functions and create gaps in critical services.
While Musk’s and Ramaswamy’s strategies are not fully developed, the outline suggests an uncompromising approach that favors significant downsizing over incremental adjustments. Critics argue that such cuts risk destabilizing federal operations, while supporters believe it could lead to a leaner, more effective government.
The coming months will provide a clearer picture of Musk and Ramaswamy’s priorities and methods for enacting change. However, the extent to which they can implement their vision depends largely on negotiations with Congress and public reception. As with many aspects of Trump’s unconventional approach to governance, the task force will likely spark debate over the size, scope, and role of the federal government.
With July 4, 2026, marked as the deadline, Musk and Ramaswamy have little time to make their case for what they deem necessary reforms. For now, both men have the president-elect’s backing and a mandate for transformative change—but the path ahead remains fraught with political and logistical challenges.
