Elon Musk speaks as US President Donald Trump appears to be like on within the Oval Workplace of the White Home in Washington, DC, on February 11, 2025. Agence France-Presse
WASHINGTON — Tech billionaire Elon Musk, who has been tapped by President Donald Trump to guide federal cost-cutting efforts, mentioned Tuesday that the US would go “bankrupt” with out finances cuts.
Musk leads the efforts beneath the newly created Division of Authorities Effectivity (DOGE), and was talking on the White Home with Trump, who has in current weeks issued a flurry of orders aimed toward slashing federal spending.
Particularly, Musk pointed to the nation’s finances deficit, which topped $1.8 trillion within the final fiscal 12 months, and took intention at excessive curiosity funds on the general public debt.
READ: Trump: Musk will assist uncover ‘lots of of billions’ in US gov’t fraud
“It’s not optionally available” for Washington to scale back federal bills, he informed reporters. “It’s important.”
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The remarks, nonetheless, got here because the Trump administration finds itself on a collision course with the US courts, as federal judges questioned the legality of White Home cost-cutting measures.
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Trump’s sweeping plans, which have successfully shuttered some federal companies and despatched workers dwelling, have sparked authorized battles throughout the nation.
A number of lawsuits search to halt what opponents characterize as an unlawful energy seize.
READ: Musk’s US authorities ‘takeover’ sounds alarm bells
In the meantime, Musk’s group has moved via federal companies, freezing assist packages and pushing workforce reductions.
An government order outlining the scope of DOGE included particulars of a federal workforce discount plan that may limit companies to rent just one worker for each 4 that depart.
The order additionally requires the pinnacle of every company to seek the advice of with DOGE when deciding which vacancies to fill.
Requested to reply to criticism, Musk mentioned that Individuals voted for “main authorities reform,” a problem that Trump spoke about at rallies.
And Musk, who additionally heads SpaceX and Tesla, mentioned he’s in search of to be as clear as attainable when requested about potential conflicts of curiosity.
Musk’s function faces criticism partly as a result of his firms have had enormous US authorities contracts.
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The DOGE reform group has triggered alarm amongst critics as properly by gaining entry via the US Treasury to delicate knowledge.
