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

In 130 days, he reduced federal spending by $130 billion through corporate reforms such as downsizing agencies, persuading civil servants to leave, and digital transformation, improving fiscal efficiency, but also triggered legal controversies, conflicts of interest, and social Rebound.

Written by: Oliver, Mars Finance

On May 29, 2025, Elon Musk announced through Platform X that his 130-day term as a Trump administration's "Special Government Employee" (SGE) was at the end of his official exit 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. Dubbed the "efficiency revolution," the reform experiment, with Musk's entrepreneurial mindset and technology-driven approach, cut hundreds of billions of dollars in federal spending and reshaped the bureaucracy, but it was also deeply controversial due to legal controversies, conflicts of interest and political backlash.

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

On November 12, 2024, Trump announced the establishment of DOGE, appointing Musk and entrepreneur Vivek Ramaswamy to co-lead it, with the goal of "dismantling bureaucracies, cutting wasteful spending, and restructuring federal agencies." The name DOGE is inspired by Musk's favorite "Dogecoin," carrying both the mockery of meme culture and showcasing its disruptive intent. On January 20, 2025, Trump officially established DOGE through Executive Order 14158, with Musk taking office as a "special government employee," granted 130 days of government work permissions per year, and possessing extensive powers over budget review, agency 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 only conveys presidential directives. However, Musk is actually deeply involved in budget cuts, personnel adjustments, and agency eliminations, far exceeding the scope of an advisor. Sources reveal that he seldom has formal discussions with Trump, instead often issuing directives directly through the X platform and internal memos, demonstrating a highly autonomous working style. This unique identity grants him flexibility, but raises concerns about 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 skew his reforms towards the interests of private enterprises rather than public welfare.

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

Musk introduced the lean management philosophy of Tesla and SpaceX into the government, proposing three major strategies: downsizing institutions, discouraging civil servants, and digital transformation. These measures reshaped the federal government within 130 days, but also sparked 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 federal Department of Education, laying off about 13,900 employees and saving more than $30 billion in annual budgets. The closure of USAIDs was particularly shocking. Musk called it an "inefficient criminal organization" on the X platform, accusing only 10% of foreign aid for reaching recipient countries. On January 24, 2025, Trump froze almost all foreign aid, the USAID website was shut down, and employees were barred from entering the headquarters building, which Musk called "meat grinder." The move sparked international criticism, with several NGOs warning that America's global soft power had been undermined.

Secondly, Musk launched the "Civil Servant Resignation Plan," sending emails to 2 million federal employees encouraging them to voluntarily resign with an "8-month severance package" and requiring weekly progress reports to "prove their value." Those who do not respond will be considered as having resigned automatically. This policy led to the resignation of thousands of civil servants, but it also sparked dissatisfaction among grassroots voters, particularly regarding the decline in the quality of veterans' benefits and social security services. Musk also publicly questioned the sources of wealth of congressional members, pointing out that lawmakers with a salary of $200,000 possess assets in the millions, boosting 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 enrollment of more than 60 million people in the U.S., including 1.34 million "seniors" over the age of 150. In addition, DOGE found that $4.7 trillion in Treasury payments lacked tracking codes, prompting the Treasury to mandate access identification (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.

III. Achievements: Trillion Reduction and Political Dividends

Musk's reforms have achieved remarkable 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 more than $4 billion per day, reducing its annual budget from $7.2 trillion to $6.1 trillion, and reducing the deficit ratio by 1.8 percentage points. By eliminating inefficient projects, consolidating office space, and selling vacant assets such as military bases in Alaska and state-owned land in Utah, DOGE recouped more than $72 billion, the highest since the Cold War. Trump's proposal to spend 20 percent of the savings on "DOGE dividends" and plans to issue $5,000 tax refund checks to every taxpayer has sparked widespread discussion.

The reforms have also earned political capital for Trump. Musk's actions have been portrayed by conservative media as a benchmark for "draining the swamp in Washington," with Trump's polling support in swing states rising by 3.5 percentage points. By publicly questioning government waste, Musk has provided public opinion support for Trump's "strongman politics," accumulating political chips for the 2028 election. Additionally, relying on Supreme Court rulings (such as the 2022 West Virginia v. EPA case), DOGE has revoked several "overreaching" regulations and simplified administrative procedures, such as abolishing certain carbon emission standards and cybersecurity requirements for electric vehicle infrastructure, creating a more lenient environment for companies like Tesla.

Fourth, right and wrong: legal controversy and social backlash

Elon 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 arising from the forced acquisition of civil servants' health data. On February 8, 2025, District Judge Paul Engelmaier prohibited DOGE from accessing the Treasury's payment system, citing potential leaks of sensitive information. Harvard Law Professor Lawrence Tribe believes that DOGE was established without congressional authorization and constitutes an unconstitutional act, requiring Senate confirmation of its powers.

The reforms have also triggered a rebound both inside and outside the government. Departments such as the Pentagon and the State Department refuse to implement the "mandatory weekly report" policy, and cabinet officials complain that Musk has overstepped his duties. Republican Senator Marco Rubio criticizes USAID for shutting down operations that harm U.S. diplomatic interests. Grassroots voters protest the impact of layoffs on public services, such as declines in Social Security and Medicare services. Some Republican lawmakers are calling for cautious reforms due to pressure from their districts, to avoid affecting the midterm elections.

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

V. 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 Declaration of Independence, symbolizing a "gift of limited government." Whether its goal of reducing a $1 trillion deficit can be achieved remains in doubt. Reforms save $130 billion and enhance political capital, but cuts to social security and Medicaid result in decreased services for vulnerable groups, and the closure of USAID damages the international image of the United States. AI-driven budget analysis improves efficiency, but privacy issues remain unresolved.

Musk's "efficiency revolution" is a collision of corporate thinking and bureaucracy, achieving short-term fiscal and political dividends, but long-term stability is questionable. Its legacy raises a central question: Can governments operate as businesses? Musk's answer is yes, but he also acknowledges the "temporary difficulties" of reform. In the future, the answer to whether DOGE's mission will become the norm for government or just a flash in the pan will be revealed in 2026.