Musk and DOGE: What You Need to Know About the Department of Government Efficiency
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Musk and DOGE: What You Need to Know About the Department of Government Efficiency
The Department of Government Efficiency (DOGE), co-led by Musk, aims to significantly cut spending under President-elect Trump's leadership.
Navigating Web3 tides with focused insightsBy: Liz Napolitano
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Elon Musk, CEO of SpaceX, and entrepreneur Vivek Ramaswamy will co-lead a new U.S. government initiative aimed at reducing the federal budget deficit.
The program, called the "Department of Government Efficiency" (D.O.G.E.), shares its acronym with Dogecoin—the cryptocurrency favored by Elon Musk. According to President-elect Donald Trump, the initiative will “eliminate redundant regulations, reduce wasteful spending, and restructure federal agencies.”
However, some details about the project remain unclear. Below is everything we currently know about DOGE.
What is DOGE?
DOGE is an upcoming U.S. government initiative first mentioned by Elon Musk in a tweet last August.
Although the project initially appeared to be a joke (created for humor, and unsurprisingly causing Dogecoin’s price to rise every time Musk referenced it), Trump has expressed support for DOGE's mission to cut government spending, suggesting this once-fictional department could become a real entity within the U.S. government.
Trump stated in a release on Tuesday: “Elon Musk and Vivek Ramaswamy will jointly lead my administration in dismantling bureaucratic red tape, eliminating redundant regulations, reducing wasteful expenditures, and restructuring federal agencies — essential elements of the ‘Save America’ movement.”
Trump also noted that the initiative will last until “no later than July 4, 2026,” marking the 250th anniversary of the Declaration of Independence.
Notably, according to information from the official U.S. Congress website, DOGE is not an official federal department in the traditional sense, as only Congress—not the president—has the authority to establish new federal departments.
Trump indicated that Musk’s meme-inspired idea would operate “outside” the formal government structure. This implies DOGE may not receive direct government funding. It also suggests the project will have very limited direct control over U.S. government agency budgets, although DOGE’s recommendations could still be advanced through Trump’s supporters in Congress.
Who will run DOGE?
Billionaires Elon Musk and Vivek Ramaswamy will lead the Department of Government Efficiency. According to a post Musk shared on X (formerly Twitter) on Thursday, neither will receive compensation for their work.
Musk, of course, is the CEO of Tesla and SpaceX, and owner of X (formerly Twitter). Ramaswamy is an entrepreneur and former Republican presidential candidate who dropped out of the primary race and endorsed Trump.
An official post released Thursday by the department said the team would tentatively consist of “ultra-high IQ, small-government revolutionaries” willing to work more than 80 hours per week to eliminate wasteful costs. Musk tweeted this week that it remains unclear how many people will be hired for the project—but all positions will be unpaid.
To date, neither Ramaswamy nor Musk has responded to requests for comment from Decrypt.
What will DOGE actually do?
Trump says DOGE will streamline the U.S. government by issuing reports and recommendations aimed at cutting regulation and spending.
“Your money is being wasted, and the Department of Government Efficiency will fix that. We’re going to stop the government from harassing you and taking money from your wallet,” Musk said in October during a Trump rally at Madison Square Garden in New York City.
Yet the billionaire leaders of this quasi-department have offered differing views on how deeply federal spending should be cut.
Musk has suggested slashing $2 trillion in federal spending—about one-third of the total U.S. federal budget. Meanwhile, Ramaswamy has said he wants to reduce the number of federal government employees by 75%, though the exact budgetary impact of such cuts remains unclear.
Despite these differences, based on recent public comments from both Ramaswamy and Musk, DOGE’s leadership appears united in advocating for massive layoffs across the federal workforce and the elimination of several U.S. agencies, including the Department of Education and the FBI, to reduce costs.
On Thursday, Musk tweeted: “The degree of waste in government spending is beyond public comprehension,” referring to the more than $6 trillion in U.S. federal spending in 2023.
Musk also said DOGE will hold weekly livestreams to share progress updates.
Why is it called DOGE?
The acronym DOGE for this virtual department appears to be a playful nod to Dogecoin (DOGE), the high-market-cap meme coin beloved by Elon Musk. The connection is further reinforced by an official Trump campaign T-shirt featuring President-elect Trump, Musk, and a Shiba Inu dog.
The Shiba Inu-based meme was created in 2013 by a pair of software engineers. Musk has said he owns a “bunch” of Dogecoin and has frequently discussed the token on Twitter over the past several years. In 2021, he even dubbed himself the “Dogefather” and mentioned the coin during his appearance on Saturday Night Live.
Dogecoin’s value surged throughout Musk’s support of Trump’s campaign and spiked sharply after Trump’s victory and the official announcement of DOGE’s leadership. Last week, Dogecoin reached its highest price in three years, driving gains across other major meme coins as well.
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