Musk lowers government efficiency department expectations, federal spending cut target may drop to $1 trillion

Musk admitted during an interview with former Clinton government advisor and political strategist Mark Penn that the proposed US "Department of Government Efficiency" (DOGE) would be difficult to achieve the previously promised goal of cutting $2 trillion in federal spending. This is in stark contrast to his statement at a Trump campaign rally in October last year that he would "cut at least $2 trillion." Musk explained that setting high goals was to ensure actual results, "if we try to cut $2 trillion, we can achieve $1 trillion in results."

According to US Treasury Department data, spending in fiscal year 2024 is expected to be $6.75 trillion, while the government has only $1.7 trillion in discretionary budget. Musk said that if the budget deficit could be reduced from $2 trillion to $1 trillion and the economic potential could be released, the output of goods and services could keep up with the growth of currency supply, and inflation control could be achieved. Experts predict that Musk and Ramaswamy may focus on cutting social welfare programs such as Medicaid.