Donald Trump has tasked Elon Musk with creating a panel to oversee the US government. Although the president-elect did not say much about how the group will work, Musk has already set a priority goal of reducing the use of $ 2 trillion.
Here’s how the new team, which will be led by Musk, the world’s richest man, and former Republican presidential candidate Vivek Ramaswamy, could work.
What does Musk want to cut?
Musk said at Trump’s rally at Madison Square Garden in October that the federal budget could be cut by “at least” $2 trillion. Intelligence spending, including defense spending, is estimated at $1.9 trillion out of $6.75 billion in total government spending by 2024, according to the Congressional Budget Office, suggesting Musk’s goal will be more difficult to meet.
Musk, whose companies include electric car maker Tesla and commercial space company SpaceX, has deep knowledge of the National Aeronautics and Space Administration and the Pentagon, organizations with extensive contracts for rockets, satellites and other space activities.
He has clashed with regulators within the Department of Transportation, including the Federal Aviation Administration, which has a say in his company’s rocket launches, and the National Highway Traffic Safety Administration, which is investigating his driving practices.
Ramaswamy, who founded the pharmaceutical company Roivant Sciences, has worked with the Food and Drug Administration, an agency he has called “corrupt” in the past. In a social media post, X in 2023 added that “Countless FDA regulations and actions are hypocritical, dangerous and unconstitutional.”
What did Musk and Trump say about the panel?
Trump said in a statement on Tuesday that the task force would “provide advice and guidance from outside the government,” on shrinking government, reducing regulations, cutting spending and restructuring federal agencies.
Trump wants to eliminate the Department of Education, and leave school control to states, and crack down on what he calls “deep state” — union workers who he says are secretly pursuing their own agendas.
Trump and Musk have suggested the panel would be able to make dramatic cuts, but typically the biggest budget actions are Congressional money. They can take advice from external panels such as the proposed efficiency panel, or ignore them.
In an effort to be transparent, Musk said the panel would post its “actions” for public comment.
“Whenever the community thinks we’re cutting something important or not cutting something wasteful, just let us know!” he said to X.
He also mentioned a list of “deaf” expenses, which he said would be “extremely exciting”.
What is an example of a working panel?
Former President Ronald Reagan announced in February 1982 that he would form a group of private sector experts to recommend ways to eliminate inefficiency and waste. That same June, he issued an executive order forming the Presidential Private Sector Survey on Cost Control in the Federal Government, known as the Grace Commission of its chairman J. Peter Grace, former CEO of WR Grace and Co.
Grace raised money to support this effort through the foundation. About 150 business leaders volunteered their time on the executive committee that oversaw the Grace Commission’s 36 forces, which reviewed agencies or operations.
The Commission issued a report in January 1984 with about 2,500 recommendations, and various task forces issued reports as well.
“Many of the recommendations, especially those requiring legislation in Congress, never materialized,” the Reagan Library said.
In March 2017, Trump signed an executive order aimed at improving the efficiency, effectiveness, and accountability of federal agencies and “eliminating or restructuring unnecessary federal agencies.” It ordered each federal agency to submit a proposed reorganization plan. He also signed an executive order to place forces and officials for “regulatory reform” within federal agencies.
Trump also tried to assassinate at least 19 senators but was unsuccessful in his first term. He called for the abolition of the Overseas Private Investment Corporation, which helps invest private funds in foreign development projects, and the Corporation for Public Broadcasting. He also tried to cut funding for Amtrak, funding for the local air service and the Special Olympics.
What experience does Musk have with cost cutting?
After Musk bought social media app Twitter, he laid off about 3,700 employees, or half of its workforce, as advertisers pulled cash. Hundreds more workers then resigned. He later renamed the social network “X”, but its value has declined significantly under Musk’s ownership.
Musk has had great success in space. SpaceX’s Falcon 9 rocket lowered launch costs through rework, sprouted new satellite markets and spawned the company’s fast-growing Starlink constellation, which disrupted the established satellite communications industry and helped shape modern military strategy and turned SpaceX into a major defense contractor.
What are the rules for a panel like this?
The committee is likely to operate under the Federal Advisory Committee Act, a 1972 law that ensures panels provide prompt, objective and open advice to the public. It also mandates spending controls and recordkeeping requirements that apply to nearly 1,000 committees with some 60,000 members advising the President and the executive branch at any given time.
-Chris Sanders, Karen Freifeld, David Shepardson and Alexandra Alper, Reuters
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