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Elon Musk has built a reputation for aggressive cost-cutting, often disregarding traditional norms in pursuit of efficiency.
His acquisition of Twitter in 2022 was a prime example—within months, he eliminated 75% of its workforce, shut down a major data center, and slashed spending wherever possible, even at the cost of service reliability.
Now, Musk appears to be applying that same approach to the federal government, starting with the U.S. Agency for International Development (USAID).
By February 3, Musk had effectively shut down USAID, placing its staff on leave and halting its programs. “We spent the weekend feeding USAID into the wood chipper,” Musk boasted on X.
His drastic move has sparked alarm among lawmakers and raised concerns about the broader impact of his role in the Trump administration.
Trump appointed Musk to lead the Department of Government Efficiency (DOGE), a newly established advisory body tasked with cutting $2 trillion from the federal budget by July 4, 2026.
The move aligns with Trump’s campaign promise to streamline government operations, but critics argue that Musk is pursuing cost-cutting without legal authority or accountability.
Musk’s ability to make such sweeping changes is largely due to Trump’s admiration for his cost-cutting strategies and his willingness to act without concern for traditional constraints. Trump sees Musk as an effective enforcer of his vision, and placing him at the helm of DOGE allows Musk to take the heat for implementing drastic policies.
This dynamic enables Trump to distance himself from the fallout while still benefiting from Musk’s aggressive tactics.
The motivations behind Musk’s involvement in government restructuring remain unclear. Some speculate that he enjoys the power and attention that come with making bold moves on the national stage.
During a Trump campaign rally, Musk announced DOGE’s plan to cut a third of the federal budget, receiving loud cheers from the crowd. “Your money is being wasted,” Musk declared.
“And the Department of Government Efficiency is gonna fix that.” Others believe his interest in government reform is tied to his business empire.
Between Tesla and SpaceX, Musk holds more than $15 billion in federal contracts. His success in securing these lucrative deals relies on maintaining a favorable relationship with the administration.
While Trump has criticized electric vehicle tax credits, he has also imposed strict tariffs on China, a move that protects Tesla from competition with Chinese automakers like BYD.
If staying in Trump’s good graces ensures that Tesla and SpaceX continue receiving government support, Musk may see his role at DOGE as a strategic investment.
Musk’s decision to start his cost-cutting efforts with USAID is particularly revealing. With a workforce of 10,000 employees and a budget of $43 billion, USAID is the largest provider of humanitarian aid worldwide.
Eliminating or drastically reducing its operations aligns with Trump’s “America First” ideology, which prioritizes domestic spending over international aid. Musk has openly called USAID a “criminal organization” and justified shutting it down by claiming it was rife with waste and corruption.
Eliminating USAID satisfies Trump’s base without threatening Musk’s financial interests. Cutting government programs like Social Security or military spending would provoke significant backlash, whereas defunding foreign aid is far less controversial among Trump’s supporters.
Lindsay Koshgarian, a program director at the Institute for Policy Studies, pointed out that Musk’s own business interests remain protected. “Musk’s SpaceX has contracts with the Pentagon,” she noted.
“The Pentagon budget is nearing $1 trillion, and half of that goes to contractors. There’s tremendous potential for cuts there. But will the Pentagon be a target for Musk’s agency, or will he focus on cutting programs like education and the environment that aren’t adding to his personal wealth?”
Despite Musk’s claims of having Trump’s full backing, there are legal barriers to dismantling an agency like USAID. It is funded by Congress, and DOGE lacks the legal authority to shut it down unilaterally. Congressional Democrats, led by Rep. Jim McGovern, have been vocal in their opposition.
McGovern, who protested outside USAID headquarters on February 3, made it clear that Musk’s actions are unconstitutional. “We live in the United States of America, and as much as Elon Musk and Donald Trump want, this is not a dictatorship, and we will not allow it to become one, ever,” he stated.
For now, resistance to Musk’s takeover remains limited. Many Republicans who previously supported USAID have remained silent, unwilling to challenge Musk’s claims that Trump authorized the agency’s dismantling.
Unless more lawmakers push back, the precedent set by DOGE’s actions could lead to even more drastic cuts. If Musk can erase an entire government agency over a weekend, what stops him from targeting Social Security or Medicare next?
Musk’s power within the Trump administration continues to grow, and his cost-cutting crusade is far from over. Whether motivated by ideology, self-interest, or sheer enjoyment of disruption, he has positioned himself as a central figure in Trump’s second-term agenda.
Without congressional intervention, Musk’s approach to government efficiency may extend far beyond USAID, reshaping the federal government with the same ruthless tactics he used at Twitter.
